Australian Mines looking at $5bn in free cashflow from Sconi

Australian Mines looking at $5bn in free cashflow from Sconi

Australian Mines (ASX: AUZ) sent investors flocking to the bourse this week when it revealed a major expanded mine life and revised financials for its Sconi cobalt-nickel-scandium project in Queensland, which has doubled the expected free cashflow of the operation to $5 billion.


Australian Mines (ASX: AUZ) sent investors flocking to the bourse this week when it revealed a major expanded mine life and revised financials for its Sconi cobalt-nickel-scandium project in Queensland, which has doubled the expected free cashflow of the operation to $5 billion.

Australian Mines told the market this week that it had boosted the total ore reserves of Sconi by 69 per cent, to 57.3 million tonnes, which has increased the project’s mine life from 18 years to 30 years and total revenue by 44 per cent, to $13.3 billion.

That includes a $2.4 billion increase in the forecast free cashflow to be generated from the flagship project.

Total mineral resources for Sconi are now estimated at 75.7 million tonnes at 0.6 per cent nickel and 0.08 per cent cobalt.

“The project is now estimated to produce 1.4 million tonnes of nickel sulphate and 1,441 tonnes of scandium over the project life,” the company said in a statement.

“The total nickel and cobalt production from Sconi over its life will be sufficient to produce the equivalent of at least 3 million to 6 million EV battery packs.”

The engorged project economics came just hours after Australian Mines kicked off an underwritten share purchase plan, with a target of $5 million but with space to accept the same amount in oversubscriptions.

Managing director Benjamin Bell said the extra tonnage expected from Sconi formed the basis of a revised mine plan and ongoing refinements to the project’s bankable feasibility study.

“The Sconi project will result in a significant upgrade of existing public and common-use infrastructure located within the local region including roads, airport and telecommunications,” he said.

“The use of local businesses is a key feature and requirement of the construction contract. In the construction phase, local businesses with experience in fabrication, engineering, labour, plant and equipment hire, metalwork, welding and drilling will all be encouraged to tender for work.

“This is in line with our promise of employing local, living local and buying local.”

Australian Mines flags potential resource expansion at Flemington

Australian Mines flags potential resource expansion at Flemington

Sconi to generate $5 billion in free cashflow over 30-year mine life

Sconi to generate $5 billion in free cashflow over 30-year mine life