Economics
Unit | Value | |
---|---|---|
NPV (at 10% discount rate) | US$ M | 257 |
Including terminal value | US$ M | 49 |
IRR | % | 27 |
Capital Payback Period | Years | 3 |
Average annual free cash flow | US$ M per annum | 47 |
Life of Mine Free Cash Flow (post-tax real) | US$ M | 1033 |
The Ranobe Mine is a robust project with projected high operating margins revenue and relatively low development capital compared to similar scale mineral sands projects. The forecast life of mine average operating cash cost of $116/t of product combined life of mine average revenue of $271/t of product is projected to result in high operating margins. When combined with the low capital intensity and absolute capital required for the initial development, currently estimated as $216m including working capital, the project is forecast to deliver an IRR of around 27% and an NPV10 of $257m over a 21 year life.