Uis mine
Aim-listed AfriTin Mining has announced the results of its internally produced preliminary economic assessment (PEA) for the Phase 2 expansion of the company’s flagship polymetallic asset, the Uis mine, in Namibia.
The PEA shows an aftertax net present value of $2.1-billion and an internal rate of return of 75%.
It indicates a significant yearly cash flow with rapid payback of 1.5 years from an openpit tin, lithium and tantalum mine.
The proven profitable Phase 1 pilot plant significantly derisks the execution and process flow design of Phase 2, the company points out.
The PEA estimates average production of ten-million tonnes run-of-mine (RoM) a year over a 14-year mine life.
The earnings before interest, taxes, depreciation and amortisation margin is estimated at 64%, or $62/t RoM.
The PEA projects capital expenditure of $440-million, including a 30% contingency, is needed for the Phase 2 expansion.
“This PEA shows outstanding economics and returns for the expansion and allows us to move forward with excitement to a full bankable feasibility. The fact that we have successfully brought Phase 1 into production allows us to significantly derisk Phase 2 from the considerable learnings in building a new mine.
“Phase 2 will see AfriTin produce globally significant volumes of tin, lithium and tantalum, which are vital in meeting the demands of the transition to a new efficient greener technology future,” comments CEO Anthony Viljoen.