▪ 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
OZL Price at posting:
$13.80 Sentiment: Buy Disclosure: Held
