Australian Mines releases June qtr report
Advanced battery materials developer Australian Mines (ASX: AUZ) has provided its Quarterly Activities Report for the period ending 30 June 2019.
· Updated mine plan, Ore Reserve Estimate and financials for the Sconi Project, which significantly improved the already favourable economics for the project;
· Planned Life of Mine of the Project has increased to at least 30 years
· The NPV8 (pre-tax) has increased to $1.47 billion
· Total free cashflow after tax has increased to $5 billion
· The Company’s Queensland-based Mineral Resources, including Sconi, Bell Creek and Minnamoolka, now exceed 115 million tonnes, following a new Mineral Resource Estimate for the Bell Creek satellite deposit
· Equates to 738,359 tonnes of contained nickel and 71,575 tonnes of contained cobalt
· Working towards finalising a long form off-take agreement with SK Innovation for 100% of the cobalt sulphate and nickel sulphate produced from the Sconi Project, whilst separately advancing project financing
· Completed first phase of the resource expansion drilling campaign at Flemington
· Confirmed high-grade mineralisation continues to extend westward from the current Mineral Resource at Flemington
· Moving swiftly to commence second phase of the Flemington resource expansion drilling campaign, totalling more than 12,000 metres of drilling
Australian Mines Managing Director, Benjamin Bell, commented, “As clearly apparent from this quarter’s work, the entire team at Australian Mines remains steadfastly committed to delivering on the company’s goal of becoming a major future producer of cobalt sulphate and nickel sulphate chemicals with a fully auditable supply chain for the electric vehicle sector.
“The revised financials and Ore Reserve for the Sconi Cobalt-Nickel-Scandium Project released this quarter have materially improved the already favourable economics of this project and highlighted its potential as a significant, long-life, world-class development.
“With a mine life now estimated to be in excess of 30 years, Australian Mines intends to be a feature of the Queensland mining landscape for decades to come. We intend to become a significant employer in the region with a focus on providing secure jobs and building shared public-use infrastructure for our local communities as much as practicable.
“With the Sconi Project defined as a Prescribed Project by the Queensland Government, we are continuing to liaise with the Government in progressing the project and are constantly seeking opportunities to work with, and support, local businesses in the process.
“With the economics and updated mine plan now finalised, we are working with our financial advisers and potential off-take partner to develop and execute a financing structure so that we can progress project construction as soon as possible.
“While a Final Investment Decision is getting nearer, in reality, this is just the beginning as we embark on transforming Australian Mines into a significant Australian mining house.”