wingellina feasibility results

Wingellina Feasibility Results

– Strongly Positive at Current Prices
Highlights

�� Long Life 39 years;
�� Production 40,000tpa Nickel (1.488 Million tonnes Ni over mine life) and 3,000tpa Cobalt (113,000 tonnes Co over mine life);

�� Cash Cost of US$3.34/lb Ni equivalent;

�� After tax NPV8% of A$3.4 billion at current prices

�� Average annual EBITDA when operational of A$ 568 million;

�� Five year simple payback of A$2.2 billion capital.

Metals X Limited (“Metals X”) has completed its Phase 1 - Feasibility Study on the massive, 100% owned Wingellina Project in the Central Musgrave ranges and concluded
that, subject to funding and approvals, the major Nickel-Cobalt-Iron project should be developed.


The feasibility study has determined a project development strategy that builds a High Pressure Acid Leach (HPAL) plant on site to produce a mixed nickel-cobalt hydroxide
concentrate for shipping to third party refineries. The project has a nameplate annual production of 40,000 tonnes of nickel and 3,000 tonnes of cobalt metal and a mine life
of 39 years.

The feasibility study has significantly eliminated the perceived disadvantage of location and isolation by identifying local supplies of gas for power supply, calcrete for neutralisation, sources of process water, and the delineation of road, rail and transport logistics to service the project.

The feasibility study has distinguished the project from other operating nickel laterite deposits in Australia on the basis of the ore style being a limonite or tropical laterite.

The chemical make-up and physical characteristics of the ore vary markedly from typical Australian laterite deposits, having an iron oxide content averaging 47%, magnesium content of less than 2%, a low strip ratio and the ability to excavate the ore without blasting.

In addition acid and consumable consumptions are low.
Financially, the project is estimated to have an after tax NPV (8%) of $A 3.4 billion. The undiscounted accumulated cashflow for the initial 39 year life of the project is $A14 billion and once operational the project generates an annual average EBITDA of A$568 million at current spot metal prices.


Total capital cost estimate for the project (including contingency but excluding EPCM) is A$2.214 billion.
PresRselease

Press Release
Wingellina Feasibility Results – Strongly Positive at Current Prices
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Metals X has applied a long-term sulphur price of $150/t based on expert long term price forecasting. Should current spot sulphur prices (approx $400/t) sustain, the
impact on Wingellina would be to increase operating costs from US$3.34/lb after cobalt credits to US$5.06/lb after cobalt credits.