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Old 05-25-2015, 02:14 PM
Sparty Sparty is offline
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Default GGG: Kvanefjeld Feasibility Study

  • The Kvanefjeld resource (>1 billion tonnes, JORC-code 2012) will support an initial mine life of 37 years and provide scope to both expand production and extend the life of the mine significantly.
  • The Project will produce rare earth products, uranium oxide, zinc concentrate and fluorspar.
  • The capital cost of the Project is $1,361M, comprising $1,121 M of project costs (plant, utilities, indirect costs and contingency) and US$240 M of associated infrastructure costs (power, port, village).
  • The cost of producing the primary product, a critical rare earth concentrate, is US$8.56/kg REO (after by-product credits) making Kvanefjeld one of the world's lowest cost rare earth producers.
  • The Project has an after tax net present value of US$1.4 Billion (at a discount rate of 8%) and an internal rate of return of 21.8%
  • The forecast basket price for the Company's critical rare earth concentrate is US$78.6/kg REO producing an operating margin of approximately US$70/kg.
  • The incremental cost of recovering the uranium from the high-grade mineral concentrate is less than US$6/lb U3O8, which will place Kvanefjeld into the bottom quartile of the cost curve for current uranium production
To read the full ASX announcement go to: www.ggg.gl/docs/ASX-announcements/Kvanefjeld-Feasibility.pdf

 

Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. Comments on this forum should never be taken as investment advice.

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