Andromeda updates Great White economics
PERTH (miningweekly.com) – An updated definitive feasibility study (DFS) into the Great White kaolin project, in South Australia, has increased the expected revenue and net present value estimates while decreasing capital cost expectations.
ASX-listed Andromeda Metals this week reported that based on the 300 000 t/y kaolin production target, the updated DFS has increased the project’s estimated net present value from the A$613-million considered in the 2022 DFS, to A$1.01-billion.
Revenue projections have increased by 32%, from A$4.7-billion to A$6.2-billion, while the internal rate of return has increased from 36% to 45%. Capital cost for the project has dropped by 9%, from A$207-million to A$188-million, with the pay-back period decreasing by 14% from 5.9 years to 5.1 years.
The project’s expected mine life has remained unchanged at 28 years, based on an ore reserve of 15.1-million tonnes.
“The 2023 DFS represents the outcome of a rigorous commercial and business strategy review for commercialising our construction-ready project, to meet rising market demand,” said Andromeda CEO and MD Bob Katsiouleris.
“As we move to finalising debt funding, the 2023 DFS will underpin our funding strategy for the remaining capital required to move towards anticipated construction and into production.”
Subject to additional funding, the commercial strategy review identified an opportunity for high-purity alumina (HPA) to become part of Andromeda’s complementary product portfolio. Technical and market validation is proposed to restart, post the commissioning of Great White.
It is estimated A$8-million to A$10-million will be required to complete a prefeasibility study on HPA, the commercialisation of which is not included in the 2023 DFS.
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