12th Jan 2015 08:53
LONDON (Alliance News) - Thor Mining PLC shares jumped higher on Monday morning after the company posted an upgraded feasibility study for the Molyhil tungsten project in Australia which confirmed the attractive economics of the project and an early payback on the capital required for development.
The study indicated a project payback period of 18 months after the payment of royalties and taxation on the project.
The all equity net present value of the project has been put at AUD67 million, with an internal rate of return of 44%, it said.
The cash production cost for the project has been estimated at USD112 per metric tonne unit of tungsten concentrate, compared to revenue of USD358 per metric tonne unit.
"The Molyhil project has taken a significant step forward with this enhanced feasibility study. The returns are very attractive, and cash flow available for debt servicing of 2.5 times project capital cost," said Mick Billing, Executive Chairman of Thor Mining.
"Substantial work has been undertaken to improve costs, and we believe that Molyhil has a very attractive cost structure and a low start-up capital expense. We do not underestimate the task in securing project finance. However we believe these upgraded project economic outcomes are compelling," Billing added.
Thor shares rose 37% to 0.13 pence on the news, one of the best performers in the AIM All-Share in early trade on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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