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.