Todays VML announcement is worth a read. Inpart. Updated DFS...

Todays VML announcement is worth a read.

Inpart.
Updated DFS review

The recently completed DFS review has included:

- Revising the exchange rate to US$0.80 and US$0.75 as opposed to US$0.90;
- Applying a 15% reduction to operating costs over previous assumptions; and
- Maintaining estimated capital expenditure at the same level as the previously reported figures (scheduled for review). At an exchange rate of US$0.80 and US$0.75, the estimated capital would be US$138 million and US$129 million respectively.

In addition, the combination of a lower exchange rate and lower operating costs mean that the project will now generate similar returns at a price of US$375/mtu APT compared to the previously reported case2, which used a price of US$450/mtu and an exchange rate of US$0.90.

This includes post-tax NPV of US$129 million, 24% IRR and payback in 2.5 years. Free cash flow is estimated at US$281 million.

Life-of-mine cash costs are estimated at US$156/mtu.
Vital has entered into a formal Earn-In Agreement with JOGMEC (Japan Oil, Gas and Metals National Corporation) where JOGMEC has earned 30% of the Project for $5.4 million.