24th Jun 2016 06:39
LONDON (Alliance News) - Sirius Minerals PLC on Friday said the total capital cost for the huge polyhalite mine in North Yorkshire is now 18% lower than the original estimate and now stands at USD2.91 billion.
Sirius is in the process of developing a large polyhalite mine in the North York Moors National Park and is developing it in stages in order to manage that large capital requirement, but the company has been gradually reducing the capital cost since publishing the definitive feasibility study.
Overall, the updated capital cost unveiled Friday is 18% lower than the original USD3.56 billion estimate - and the requirement for the first stage of development now stands at USD1.09 billion, 33% less than the original USD1.63 billion estimate.
"By working closely with specialist contractors for almost two years we have been able to further strengthen the delivery plan for the project. The reduced capital funding requirement will also be a significant benefit to the already attractive economics that underpin our world-class project," said Chris Fraser, managing director and chief executive of Sirius.
"We look forward to continuing to work with our contractors and their local supply chains as we move into the delivery phase and maximise value for both our shareholders and the wider economy," he added.
Sirius said the updated budget forecasts mean the project now has a current net present value of USD15.20 billion and an internal rate of return of 28%.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Sirius Minerals