10th Jul 2014 08:53
LONDON (Alliance News) - Shares in Minco PLC rose by more than a third at one point Thursday morning, after it said it saw positive results from a preliminary economic assessment for its Woodstock manganese project in New Brunswick, Canada.
Shares in Minco were trading up at 12% at 4.25 pence Thursday morning, having hit an intraday high of 5.00 pence shortly after the market open.
The assessment indicated a pretax net present value of CAD846 million at 8% discount rate, and a pretax internal rate of return of 17.97% based on a 3,000 tonne per day operation. It showed a pre-production capital expenditure of CAD864 million, and an average annual payable production of approximately 80,000 tonnes of electrolytic manganese metal.
This indicated a project life of 40 years, with operating costs that are expected to "be the lowest in the world", Minco said, at an average USD0.64 per pound of electrolytic manganese metal produced over the first 20 years, and USD0.68 per pound over the life of the project.
Minco said that around 98% of the worlds electrolytic manganese metal is produced in China, and reported average operating costs are USD0.91 per pound, citing Shanghai Metals Market's ' China EMM Industry Chain Report 2013-2014.'
"We are very pleased to announce excellent preliminary economic assessment results for our Woodstock manganese project which we believe clearly demonstrates the potential value of the project to Minco and our shareholders," said Chairman John Kearney.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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