Viridis Mining and Minerals (ASX:VMM) has delivered a region-first prefeasibility study at its Colossus Rare Earth Project in Brazil, which now “positions the company for a global leadership role in Western markets.”
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The PFS highlighted “unmatched” rare earth potential at the explorer’s flagship site and sets the company up for what it described as “compelling” cash flow.
“This study confirms what we’ve believed from day one: Colossus is emerging as one of the most economically robust and strategically significant rare earth projects globally,” the company’s chief, Rafael Moreno, said today.
Economic highlights of the Colossus pre-feas study included an after-tax NPV of US$899 million (A$587M) and a 34% after-tax internal rate of return.
Average annual operating cash flow stands at A$301M in projections.
“In under two years, [we’ve taken] Colossus from an acquisition to a PFS-stage asset through discipline, metallurgy, ESG groundwork, and engineering,” Mr Moreno declared after the company shared the PFS results.
Should the Brazilian mine last for its (conservative) estimated 20-year lifespan, it would bring in a total revenue of around US$5.64 billion (A$8.4 billion).
The site’s C1 production cost per kilogram TREO came in at around $6.20.
A high-grade MREO profile, a scalable resource base, and simple, low-cost metallurgy will also help Colossus “stand out in a market increasingly defined by quality, security, and supply chain diversification,” Mr Moreno added.
Heading into Wednesday, the market had VMM priced at 50cps.
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