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PERTH (miningweekly.com) – An enhanced definitive feasibility study (DFS) into the Lindi Jumbo graphite project, in Tanzania, has delivered a significant economic boost for the project, owner Walkabout Resources told shareholders on Thursday.
The updated DFS increased the projected mine life by four years, to 24 years, while increasing the projected life-of-mine (LoM) revenues from $1.18-billion to $1.4-billion, and the earnings before interest, taxes, deprecation and amortisation from $886-million to $1-billion over the LoM.
Production has been maintained at 40 000 t/y of graphite.
The project’s pre-production capital cost requirements have decreased from $29.7-million to $27.8-million, the pre-tax net present value has increased from $302-million to $335-million, while the internal rate of return has increased from 108% to 142%.
However, LoM operating costs have also increased from $267.5-million to $334.1-million, with the additional four-year mine life.
“We are delighted with the result of the DFS, which demonstrate that the extraordinary Lindi Jumbo project continues to deliver compelling economics in spite of conservative sale assumptions,” said Walkabout executive director, Allan Mulligan.
“We have a high degree of confidence in the revised cost estimates, which are derived from actual engineering drawings and negotiated contract prices.”
He noted that the mine has been designed to withstand potential start-up and ongoing risks, and has continued to show outstanding economics with a pay-back period of less than two years.
“These factors make the project attractive to potential funding partners and investors,” Mulligan said.