23rd Aug 2018 12:43
LONDON (Alliance News) - Thor Mining PLC said Thursday it is targeting first production from its Molyhil tungsten in northern Australia in early 2020, after it upgraded its definitive feasibility study.
"The study outcomes show materially enhanced financial returns and early payback of capital as a result of process improvements and longer operating life at the Molyhil open pit, with significant further upside potential from subsequent underground mining at Molyhil and from the nearby Bonya tungsten deposits," the company said.
Thor said the project is set to bring in total revenue "in excess" of AUD500 million, or GBP282.8 million, over a lifespan of seven years.
The payback period for the project is expected to be less than 18 months. The study also showed an all equity net present value of AUD101 million.
The company added it requires USD43 million to finance the project.
"Of particular note, the sole focus of this study is on the open pit operation outlined in the ore reserve, and does not account for what the board believe will be significant additional mine life generated from the potential underground mining operation and the additional ore potential from the nearby Bonya deposits, as previously announced," Chairman Mick Billing said.
Thor shares were trading 7.8% lower at 2.08 pence each Thursday.
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