12th Dec 2019 15:51
(Alliance News) - Base Resources Ltd on Thursday said a definitive feasibility study has confirmed the Toliara project in Madagascar as a "world class mineral sands development."
The African mineral sands producer said the definitive study outcomes are in, with the pre-feasibility study outcomes released in March. They confirm a post-tax and pre-debt net present value of the project of USD652 million and an average revenue to cost ratio of 3.15 over the initial 33-year mine life.
"We are very pleased that the DFS has re-confirmed our view that the Toliara project is a world class mineral sands development opportunity. In the first 26 years of full production, the Toliara project is expected to produce an average of 814kt of ilmenite, 55kt of zircon and 7kt of rutile annually, over a period when a global supply deficit of titanium dioxide feedstocks and zircon is expected. This production profile, combined with a highly competitive revenue to cost of sales ratio, will generate estimated average annual free cash flows of USD140.2 million over these years," said Colin Bwye, executive director of operations & development of Base Resources.
Base Resources now plans to focus on concluding offtake and funding arrangements for Toliara as it works towards a final investment decision, planned for September 2020.
The company, over the course of 2020, also aims to upgrade the mineral resources and ore reserves estimate for the Ranobe deposit following completion of geological interpretation of drilling. The Ranobe deposit is located 45 kilometres north of the Toliara project.
Base Resources shares were up 5.7% at 12.95 pence each in London on Thursday afternoon.
By Tapan Panchal; [email protected]
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