Mkango resources announces results of updated PFS
- After-tax net present value (NPV10%) of US$345 million and after-tax internal rate of return (IRR) of 37% based on a long term rare earth basket value of US$59.8 per kg rare earth oxide (REO).
- Initial Capex of US$216 million, including a contingency of US$20 million, remains among the lowest in the rare earth sector.
- Cash operating costs average US$13.0 per kg REO for the first 5 years of production and US$16.4 per kg REO for the life of mine with an additional cost of US$10.0 per kg REO to account for the cost or discount associated with tolling or the sale of a chemical concentrate.
- Production of 2,841 tonnes of REO in mixed chemical concentrate per year over an 18 year mine life.
- A large proportion of the cerium is removed during the hydrometallurgical process, significantly enhancing the basket value of production.
- Over 80% of basket value is attributable to rare earths used in high growth permanent magnet applications, comprising over 65% attributable to neodymium and praseodymium, and over 15% to the heavy rare earths, dysprosium and terbium.
William Dawes, Chief Executive Officer of Mkango stated: "The market review, completed in conjunction with the updated Pre-feasibility study, validates our strategy and focus on the "big four" magnet rare earths, which have a strong market outlook, geared to China's emerging green economy and growing consumer demand, and make up over 80% of our potential future revenue.
Benchmarking analyses completed internally by Mkango and independently by Adamas Intelligence indicates that Mkango is favourably positioned with a combination of low capex and opex versus its peer group of advanced stage rare earth projects at the Pre-feasibility or Feasibility stage."
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