Home Madagascar Estimates of Basic Resource Upgrades for the Madagascar Heavy Minerals Project

Estimates of Basic Resource Upgrades for the Madagascar Heavy Minerals Project

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By Jaime Llinares Taboada


Base Resources Ltd. on Monday announced improved projections for its Toliara heavy ore project in Madagascar, generating annual revenue of $ 317 million and free cash flow of $ 174 million over 38 years.

The Australia-based mining company has released an updated definitive feasibility study for Toliara, reflecting increased ore reserve estimates for the Ranobe deposit.

According to the study, Toliara will produce 1.03 million tonnes of ilmenite, zircon and rutile per year over 38 years. This will generate annual revenue of $ 317 million, earnings before interest, taxes, depreciation and amortization of $ 219 million, and free cash flow of $ 174 million.

As a result, the mine’s net present value has been revised to $ 1.01 billion, from $ 652 million in the previous study in 2019.

“Since the release of the DFS in 2019, Ranobe’s mineral resource and ore reserve estimates have increased significantly, which, combined with the attractive long-term supply and demand outlook, has improved the value. of the project by increasing its scale, the company said.

The development of the project will consist of two stages. The first phase will require a capital expenditure of $ 520 million and last for 27 months. The second stage will require an additional $ 137 million.

Shares at 08:15 GMT were up 5.4% to 14.75 pence.


Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT


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