Around a $ 8 million Market Cap , as a investment or swing trade it is difficult to find much better in terms of risk vs reward .
The PFS forecasts a 30-year operation generating $124 million EBITDA per year for a pre-tax net present valuation (NPV) or $880 million and post-tax NPV of $568 million.
Pure’s managing director John Downie said: “The PFS demonstrates that despite the smaller scale of the TECH Project, production levels are significant, project economics are attractive and most importantly, the capex hurdle is not insurmountable.
“We are enthusiastic at the outcomes of this PFS and will continue to pursue the opportunities we’ve identified to improve the economics and sustainability of the project going forward.
“The use of the DNi Process™ for processing nickel laterite, instead of traditional HPAL, assists in providing these advantages.
“The combination of the DNi Process™ and the high-grade ore supplied from New Caledonia are the two biggest advantages and points of difference for the TECH Project.”
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TECH will employ the processing technology developed and patented by Direct Nickel Projects, the DNi Process, which should result in lower expenditure and operating expenses for the project when compared to other operations.
With exploration and mining risk minimised via ore supply agreements, it is anticipated that Pure Minerals can move quickly through to a final investment decision and begin development in a much shorter time frame than typical mining projects.It defined the project has a 30-year design life and can produce 26,398 tonnes per annum of nickel sulphate and 3097 tonnes per annum of cobalt sulphate per year at grades of 1.60 per cent nickel and 0.18 per cent cobalt.
It also identified several opportunities that have the potential to significantly improve the economics of the TECH Project.
"We are enthusiastic at the outcomes of this PFS and will continue to pursue the opportunities we've identified to improve the economics and sustainability of the project going forward," he added.
On the back of the positive PFS results, Queensland Pacific Metals will continue to advance the TECH project.
Planned activities include process optimisation, the commencement of a definitive feasibility study, and the progression of environmental studies and approval applications.
https://themarketherald.com.au/pure-minerals-asxpm1-confirms-strong-potential-of-tech-project-2019-12/
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