Sconi Financial Advantage
NPV8%
A$817 million (post-tax)
Capital Cost
US$974 million (estimate)
IRR 15%
Payback period: 5.8 years (post-tax)
Free Cashflow
A$5 billion (life of mine)
Operating Costs
US$1.46/lb nickel (C1 cash costs, post by-product credits)
FINANCIALS
Robust financial returns
| Sconi Project Key Inputs/Financial Outcomes | Unit | Updated BFS |
|---|---|---|
| Life of mine (LOM) | Years | 30 |
| Autoclave throughput | mtpa | 2.0 |
| Tax rate | % | 30 |
| QLD state royalties | % | 2.5 |
| Average strip ratio (waste/ore) | x | 0.87 |
| Price inputs | ||
| LOM average nickel price | US$/lb Ni | 7.00 |
| LOM average cobalt price | US$/lb Co | 30.00 |
| A$/US$ | US$ | 0.71 |
| Valuation, returns and key ratios | ||
| NPV8% (post-tax, real basis, ungeared) | A$M | 817 |
| NPV8% (pre-tax, real basis, ungeared) | A$M | 1,471 |
| IRR (post-tax, real basis, ungeared) | % | 15 |
| IRR (pre-tax, real basis, ungeared) | % | 20 |
| Payback period (post-tax, simple) | Years | 5.8 |
| Payback period (pre-tax, simple) | Years | 4.4 |
| Pre-tax NPV8%/ Pre-production capex | x | 1.0 |
| Capex summary | ||
| Total capex (pre-production) | US$M | 974 |
| Sustaining capex (opex/capex) | % | 1.25 |
| Cashflow summary (LOM) | ||
| Sales revenue (gross) | A$M | 13,270 |
| Project net cashflow (pre-tax) | A$M | 7,120 |
| less tax paid | A$M | 2,136 |
| Project net cashflow (post-tax) | A$M | 4,984 |
| Unit cash operating costs (Ni; Years 3-30) | ||
| Mining | US$/lb Ni | 0.69 |
| Ore handling | US$/lb Ni | 0.39 |
| Processing | US$/lb Ni | 4.60 |
| G & A | US$/lb Ni | 0.35 |
| Freight | US$/lb Ni | 0.08 |
| Total cash operating cost | US$/lb Ni | 6.10 |
| less Co/Sc credits | US$/lb Ni | (4.64) |
| Total C1 cash costs (post by-product credits) | US$/lb Ni | 1.46 |
| add royalties/FOB | US$/lb Ni | 0.50 |
| All-in sustaining cost (AISC) | US$/lb Ni | 1.96 |
About Australian Mines
Australian Mines (ASX: AUZ) aims to decarbonise and electrify the world through the development of sustainably and ethically sourced advanced battery materials in Australia.
Our world class, 100% owned, low cost, Sconi Project in Queensland is expected to deliver sustainable nickel and cobalt from the first mineral resources company to be Carbon Neutral certified by the Australian Government, Australian Mines.
When Sconi starts commissioning, expected 2028, it will meet surging demand from one of the largest producers of advanced batteries for the electric vehicle industry, LG Energy Solution.
The Company also has a number of other promising development strategies and process options at Sconi, providing flexibility and diversity through the project's lifespan.
For more information,
visit the Australian Mines website
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ownership