Sydney - Thursday - May 3: (RWE Australian Business News) - Indo...

Sydney - Thursday - May 3: (RWE Australian Business News) -
Indo Mines Limited (IDO) advises that a Scoping Study undertaken by
ProMet Engineers Pty Ltd has confirmed the economic viability and cash
flow potential of the Jogjakarta Iron Sands Project in Central Java,
Indonesia.
The Scoping Study shows an NPV ranging from US$418 million
(A$505 million) to US$658 million (A$795 million) assuming sales at
US$300 to US$350 per tonne for pig iron respectively from the production
of 1 million tonnes per annum of pig iron.
At a mining rate of 9 million tonnes of iron sands per annum the
Project will support a production rate of 1 million tonnes of Pig Iron
per annum at an operating cost of US$152 per tonne. At a spot price of
US$300 (current spot prices range from US$280-US$385) the Project has
the potential to generate operating cash flows of around US$148 million
per annum.
Pig iron demand and supply projections within Indonesia and its
adjacent markets indicate a stable price will continue for some years,
with demand likely to increase with the availability of this cheaper
domestic supply.