A reminder from December as to why some are very optimistic about AIM....(and the price of zinc)
Perkoa a goer says BFS Thursday, December 22, 2005 Michael Vaughan
AIM Resources' 60,000 tonne per annum Perkoa zinc project in the West African country of Burkina Faso will cost $US72.5 million to develop, with first production expected in mid-2007.
A bankable feasibility study calculated the 14-year project to have a net present value of $US147.7 million, while project revenues are expected to total $US1.3 billion.
Capital payback is expected to be within two years of full production.
AIM expects to complete project financing in the first quarter of 2006 with Barclays Capital charged as the company's debt finance advisors.
The company expects to start project development in the second quarter of 2006.
Perkoa will operate at a rate of about 500,000 tonnes per annum, producing in excess of 60,000t of zinc in concentrate per annum.
The unit cost for the project is US$53.50/ROMt with the zinc price currently trading around $US1815.50 per tonne.
The company said it has already identified a number of areas where costs can be improved based on the conservative assumptions used in the BFS.
MiningNews.net was unable to contact AIM's managing director Mark Flory who is reportedly in Europe negotiating offtake agreements that are expected to be finalised in the next quarter.
AIM pointed out the project's NPV of $US147.7 million equates to A38.6c per share.
AIM Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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