Mike Ralston of Blencowe explains how the Orom-Cross PEA shows potential for long life, profitable graphite project
Episode 370, Sep 29, 2021, 01:01 PM
Mike Ralston CEO of Blencowe Resources #BRES explains how the Orom-Cross PEA shows potential for long life, highly profitable graphite project.
Mike Ralston CEO of Blencowe Resources #BRES explains how the Orom-Cross PEA shows potential for long life, highly profitable graphite project.
Highlights
Low operating costs and robust financials for mining operation:
· Net Present Value (NPV8) of US$317M / IRR 49% over 13-year life of mine from 2025.
· Average nameplate production of 75,000tpa graphite sold as concentrate, with ability to extend this after further drilling.
· Life of mine C1 operating cost of US$498/t (CIF Mombasa port) which would make Orom-Cross one of the lower cost graphite projects worldwide.
· An initial capital cost of US$80M, inclusive of 15% contingency.
· Orom-Cross will generate an average US$40M pa in EBITDA over life of mine at a weighted average price of US$1,050/t for the full basket of all end-products sold from 2025 onwards.
· Cumulative post-tax net cash flow of US$351M generated over initial 13 years life of mine.
· 4-year payback on capital.
Low operating costs and robust financials for mining operation:
· Net Present Value (NPV8) of US$317M / IRR 49% over 13-year life of mine from 2025.
· Average nameplate production of 75,000tpa graphite sold as concentrate, with ability to extend this after further drilling.
· Life of mine C1 operating cost of US$498/t (CIF Mombasa port) which would make Orom-Cross one of the lower cost graphite projects worldwide.
· An initial capital cost of US$80M, inclusive of 15% contingency.
· Orom-Cross will generate an average US$40M pa in EBITDA over life of mine at a weighted average price of US$1,050/t for the full basket of all end-products sold from 2025 onwards.
· Cumulative post-tax net cash flow of US$351M generated over initial 13 years life of mine.
· 4-year payback on capital.
Background
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger flakes within the deposit. A 21-year Mining Licence for the project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit and Blencowe is moving into the studies phase shortly as it drives towards first production.
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger flakes within the deposit. A 21-year Mining Licence for the project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit and Blencowe is moving into the studies phase shortly as it drives towards first production.
Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 16.3Mt @ 6.0% Total Graphite Content. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.