Cadence Minerals PLC Yangibana Project NPV Increases 84% to A$1bn (2102C)
21 Febrero 2022 - 01:00AM
UK Regulatory
TIDMKDNC
RNS Number : 2102C
Cadence Minerals PLC
21 February 2022
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Hastings Technology Metals (ASX: HAS) - Yangibana Project NPV8
Increases 84% to A$1 billion (post tax).
Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to note
that Hastings Technology Metals (ASX:HAS) ("Hastings"), Cadence's
joint venture partner at the Yangibana Rare Earth Project in the
Gascoyne region of Western Australia ("Yangibana" "Yangibana
Project"), has announced significant progress on, and improved
project economics for the Yangibana Project. The updated project
economics, based on a Definitive Feasibility Study (DFS) completed
by Hastings in 2017 and revised in late 2021, follows an extensive
and comprehensive review period, extending over three years, which
has sought to de-risk project execution, optimise the flowsheet and
enhance project economics.
Highlights:
-- Post-tax Net Present Value8 ("NPV8") increases by 84% to $1,012 million.
-- Post-tax Internal Rate of Return ("IRR") of 26%.
-- Life of Mine pre-tax Free Operating Cashflow increases by 71% to $4,376 million.
-- Revised capital cost estimated at A$582 million (including contingency is $658 million)
-- Project is 'shovel-ready' following a comprehensive review
and assessment of current inflationary pressures present in Western
Australia.
-- Capital payback period forecast at 2.7 years from commencement of production.
-- Production of 3,400tpa of NdPr Oxides capable of supplying up
to 8% of forecast global NdPr demand.
-- Discussions on funding options with suitable partners continue to progress.
-- $20 million early works program to deliver the core site
infrastructure at Yangibana is well underway
Key to this process was validating the capex required to bring
Yangibana into operation considering the current inflationary
environment and tightening labour market in Western Australia.
Following this review period, the management team now have a
high degree of confidence in the quantum of capital required and
are proceeding to finalise funding arrangements for Yangibana ahead
of proposed commencement of plant construction activities forecast
to commence in H2 2022. The $20 million early works program to
deliver the core site infrastructure at Yangibana is underway with
plant and personnel achieving good progress to date.
The full HAS release can be found at:
https://www.investi.com.au/api/announcements/has/000839dd-0cd.pdf
Relevance to Cadence Minerals Holdings in the Yangibana
Project:
Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences
which form part of the Yangibana Rare Earth Deposit. Hastings
Technology Metals owns the remaining 70% ("Hastings"). The current
mining schedule indicates that the joint venture areas are
scheduled to be mined in years 12 to 15 on the mine plan. Further
details of our ownership the mineral resources and reserves on our
jointly held leases can be found at:
https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/
Hastings Technology Metals' Executive Chairman Charles Lew
commented: "Today is a significant milestone for the Hastings team
that is the result of an extensive amount of work carried out over
a number of years. The updated project economics tell a story of a
world-class rare earths project that will be capable not only of
delivering up to 8% of global NdPr demand for a period of at least
15 years but generate significant, long-term value for all
shareholders."
"The Hastings team has done a tremendous job since 2017 to
optimise and de-risk the Yangibana project, both technically and
commercially, to make it an even more compelling investment
proposition. Since its discovery in 2014, we were always confident
in the quality of the rare earths resource endowment at Yangibana.
As it turned out, the steady progress we have made over the years
has converged with a strong global rare earths magnet market
underpinned by the global energy transition and electric mobility.
As the updated project economics demonstrate, Yangibana will be a
financially and operationally robust, long-life project."
"We are well advanced on discussions with a range of funding
partners (in addition to NAIF) and are now focused on finalising
the appropriate capital structure that best positions Hastings for
success in bringing Yangibana into production by 2024. This
includes undertaking a corporate transaction or seeking a joint
venture partner(s)."
- Ends -
For further information:
Cadence Minerals plc +44 (0) 7879 584153
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
Darshan Patel
Novum Securities Limited (Joint
Broker) +44 (0) 207 399 9400
Jon Belliss
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
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be forward-looking statements. Forward-looking statements are
identi ed by their use of terms and phrases such as "believe"
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including references to assumptions. These forward-looking
statements are not based on historical facts but rather on the
Directors' current expectations and assumptions regarding Cadence
Minerals Plc's future growth results of operations performance
future capital and other expenditures (including the amount. nature
and sources of funding thereof) competitive advantages business
prospects and opportunities. Such forward-looking statements re ect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors. Many factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business
conditions competition environmental and other regulatory changes
actions by governmental authorities the availability of capital
markets reliance on key personnel uninsured and underinsured losses
and other factors many of which are beyond the control of Cadence
Minerals Plc. Although any forward-looking statements contained in
this announcement are based upon what the Directors believe to be
reasonable assumptions. Cadence Minerals Plc cannot assure
investors that actual results will be consistent with such
forward-looking statements.
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