HIGHLIGHTS • Scoping Study indicates 70% Sirius owned Nova-Bollinger as a technically low risk and economically robust nickel project • Projected life of mine nickel revenue of A$4.6 billion (on a 100% basis) • Projected net cash flow of A$2.8 billion (on a 100% basis including capital) • Estimated C1 cash operating cost of A$1.75/lb Ni in concentrate (after by-product credits) positions Sirius in the lowest 20% of nickel producers globally • Estimated capital cost to first concentrate production of A$471 million including A$51 million of contingency • Production of premium quality separate nickel and copper concentrates planned to commence in mid-2016 with an initial mine life of 10 years • 1.5 mtpa throughput plant resulting in average annual production of 28,000t nickel and 11,000t copper in concentrate • Mining inventory of 13.9mt grading 2.0% nickel, 0.82% copper and 0.07% cobalt for a contained 276,000t nickel, 114,000t copper and 9,300t cobalt • Over 91% of the tonnes and 95% of the nickel metal included in this mining inventory are in the Indicated Resource category • Definitive Feasibility Study on track to be completed by mid 2014 enabling underground development and on-site construction to start in Q3 2014 • In excess of A$200 million expected to be paid in WA State royalties
Milesy
SIR Price at posting:
$2.67 Sentiment: LT Buy Disclosure: Held
