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.