Key section is section 26. Main salient p;oints are:
:The Project’s combined Proven and Probable Mineral Reserve amount to 26,644,000 t, grading an average 7.41%total manganese with an effective data of July 14, 2022. Approximately 99% of the Mineral Resource wasconverted to a Mineral Reserve.
The CMP mine plan is designed to produce approximately 3,000 t/day of tailings feed over a 25-year project life.
The CMP process plant is designed to have a 25-year project life at a nominal name plate production rate of 50,000 t/a of HPEMM by extracting approximately 1.1 Mt/a of the CMP tailings. Two-thirds of the annual HPEMM flake production is expected to be converted into approximately 100,000 t/a of HPMSM. HPEMM product containing greater than 99.9% manganese is expected to be sold as flakes and will be produced without the use of selenium and chromium. The CMP HPMSM product will be designed to contain no less than 99.9% MSM, a minimum of 32.34% manganese, and will be sold in powder form, produced without the use of fluorine.
Currently, EMN has knowledge of impacted groundwater caused by the historical mining and processing activity in the area, in particular, the ongoing leaching of metals and other pollutants from the tailings. EMN continues to regularly monitor these impacts in groundwater wells and expects that the reprocessing of the Chvaletice tailings would result in a significant reduction or elimination of ongoing groundwater pollution caused by the currently unlined tailings facility.
A Level 1, Project Development Schedule has been prepared during the FS in order to outline the overall timelineand key constraints. According to the schedule, it is expected that the project should take approximately four years to develop to achieve a commencement of commercial production by Q1, 2027. The critical path of the project currently falls through the environmental impact assessment, detailed engineering, construction, andcommissioning phases.
Tetra Tech completed a pre-tax economic analysis based on estimated costs and revenues for extracting andreprocessing the tailings from the Chvaletice deposit. The economic analysis is based on the sale of two products:HPEMM and HPMSM. The product prices used for the analysis were based on the projection by CPM. Theeconomic analysis summarized below shows that the project is economically viable: ▪ Pre-tax NPV of USD$1,750 million at an 8% discount rate ▪ Pre-tax IRR of 24.9% ▪ Pre-tax payback period of 3.6 yearsGrantThornton, based in the Czech Republic, prepared both the Czech tax depreciation calculations based on thecapital expenditure information and the allocation of such expenditures into the Czech tax depreciation groups, and the Czech corporate income taxes payable for the CMP economic analysis based on existing income tax legislation in the Czech Republic.The post-tax economic analysis for the life of the project yielded the following financial results: ▪ Post-tax NPV of USD$1,342 million at an 8% real discount rate ▪ Post tax IRR of 21.9% ▪ Post-tax payback period of 4.1 years ▪ The FS economic evaluation shows that the CMP is most sensitive to product prices followed by operatingcosts
This FS and Public Report concludes that re-processing of the CMP deposit is expected to provide a strongeconomic return for shareholders. It is recommended that the Project be moved to the next phase of projectdevelopment and engineering design as defined in the FS."
EMN Price at posting:
30.5¢ Sentiment: Buy Disclosure: Held
