Mincor Resources released a definitive feasibility study for its integrated nickel restart plan in Western Australia’s Kambalda District. 

Mincor Resources (ASX:MCR,OTC Pink:MCRZF) announced the release of a definitive feasibility study (DFS) for its integrated nickel restart plan in Western Australia’s Kambalda District.

Highlights from the study are as follows:

Strong financial returns1

  • Pre&hyphentax NPV7% of $305m and 98% IRR • EBITDA totalling $585m
  • Pre-tax and post-tax free cash flow generation of $407m and $315m respectively
  • Capital payback of 12 months from first nickel concentrate production

Low cost operations

  • Life of Mine (“LOM”) unit cash costs of operations of $3.36/lb (US$2.35/lb), with Cassini averaging $2.71/lb (US$1.90/lb)
  • LOM AISC of $4.47/lb (US$3.13/lb), with Cassini averaging $3.81/lb (US$2.67/lb)

Low pre-production and LOM CAPEX

  • Pre-production CAPEX of $68m, mainly associated with mine development and related infrastructure
  • Project peak cash requirement of $97m including working capital; LOM CAPEX of $179m
  • Funding process well advanced with domestic and international institutions, with binding credit-approved terms sheets expected in the June 2020 quarter

Click here to read the full Mincor Resources (ASX:MCR,OTC Pink:MCRZF) press release.

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