Excellent.
The February PFS Headlines say it all:
▪ Three-fold increase in life of operation to ~26 years with throughput at 10 Mtpa
▪ Maiden Ore Reserve of 220Mt (100% Probable) at 0.36% Cu and 0.33% Ni1
▪ Annual production of ~28,000tpa copper and ~22,000tpa nickel in concentrates2
▪ Bottom quartile cash cost operation with C1 cost of ~US$(0.90)/lb Cu and ~US$1.30/lb Ni (net of by-product credits)
▪ Net Present Value of ~A$800 million and IRR of ~20% (post-tax)3
▪ Off-grid renewable power, large scale open pit mining and innovative processingplant underpin low operating costs
▪ Key critical path activities continue whilst project is assessed against OZ Minerals' capital allocation framework
A welcome addition to Cu output and useful diversification into Ni.
“The PFS released in February 2020 showed West Musgrave to be a low cost, long life (26 year), copper-nickel open pit project with a low carbon footprint. We are focused on a smooth and efficient integration in the immediate term and will update the market during this quarter on next steps for the project."
The PFS outlined a four year program to first production from FID. If OZL puts the pedal to the metal, they may achieve this in three to three and a half years.
It may even beat Centro into production, I say mischievously.
Ash
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