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)

Green Project

Zero CO₂ emissions; ethical, auditable, and transparent supply chain

FINANCIALS

Robust financial returns

The Sconi Project is expected to deliver attractive and robust financial returns when it comes online in mid-2024. This is based on the updated mine plan, Ore Resource Estimate, and financials (Updated BFS) for the Sconi Project released to ASX on 13 June 2019.
Sconi Project
Key Inputs/Financial Outcomes
UnitUpdated BFS
Life of mine (LOM)Years30
Autoclave throughputmtpa2.0
Tax rate%30
QLD state royalties%2.5
Average strip ratio (waste/ore)x0.87
Price inputs
LOM average nickel priceUS$/lb Ni7.00
LOM average cobalt priceUS$/lb Co30.00
A$/US$US$0.71
Valuation, returns and key ratios
NPV8% (post-tax, real basis, ungeared)A$M817
NPV8% (pre-tax, real basis, ungeared)A$M1,471
IRR (post-tax, real basis, ungeared)%15
IRR (pre-tax, real basis, ungeared)%20
Payback period (post-tax, simple)Years5.8
Payback period (pre-tax, simple)Years4.4
Pre-tax NPV8%/ Pre-production capexx1.0
Capex summary
Total capex (pre-production)US$M974
Sustaining capex (opex/capex)%1.25
Cashflow summary (LOM)
Sales revenue (gross)A$M13,270
Project net cashflow (pre-tax)A$M7,120
less tax paidA$M2,136
Project net cashflow (post-tax)A$M4,984
Unit cash operating costs (Ni; Years 3-30)
MiningUS$/lb Ni0.69
Ore handlingUS$/lb Ni0.39
ProcessingUS$/lb Ni4.60
G & AUS$/lb Ni0.35
FreightUS$/lb Ni0.08
Total cash operating costUS$/lb Ni6.10
less Co/Sc creditsUS$/lb Ni(4.64)
Total C1 cash costs (post by-product credits)US$/lb Ni1.46
add royalties/FOBUS$/lb Ni0.50
All-in sustaining cost (AISC)US$/lb Ni1.96

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 the world's most sustainable nickel and cobalt from the first mineral resources company to be Carbon Neutral certified by the Australian Government, Australian Mines.

When Sconi comes online in 2024, it will meet surging demand from the world's largest producer 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

%

ownership

Australian Mines has 100% ownership of its battery materials projects

We have a clear path to producing the world’s most sustainable nickel and cobalt from 2024