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Strandline Resources Ltd.
Summary
| Project: | Fungoni | |
|---|---|---|
| Deposit: | Fungoni | |
| Location: | Tanzania | |
| Commodities: | Rutile-Zircon-Ilmenite-Leucoxene | |
| Date: | 11/1/2018 | |
| Report Code: | JORC | |
| Report Type: | Feasibility Study | |
| Project Stage: | Mine Development | |
| Report details: | 1-11-2018: Strandline Resources Ltd. announces a Feasibility Study report for its Fungoni deposit at the Fungoni project. Feasibility study results incl. pre-tax NPV(10%) US$48.7M, IRR of 61%, LOM of 6.2yrs. Strandline Resources (ASX: STA) is pleased to a | |
| Resources: | (not mentioned in this report) | |
| CP/QP: | [Overall Report]: n/a (n/a) | |
| ABSTRACT: | Strandline Resources (ASX: STA) is pleased to announce updated Definitive Feasibility Study (DFS) results for its 100%-owned, high-grade Fungoni mineral sands project (Fungoni) in Tanzania. The original DFS results were announced to the ASX on 06 October 2017 (“Original DFS”). The DFS has been updated to reflect the latest information on the project (“Updated DFS”), including terms of binding offtake agreements and higher mineral sands commodities price forecasts published by TZ Mineral International Pty Ltd (TZMI) in August-2018. Capital and operating cost estimates have also been revised in line with advancing execution contracts, such as the award of the fixed-price EPC contract with international contractor GR Engineering Services. Other material assumptions underpinning the Original DFS remain unchanged. The updates have resulted in an overall enhancement to the project financial metrics, including an outstanding Internal Rate of Return of 61% (from 56%) and first quartile revenue-to-operating cost ratio of 2.8. The projected LOM revenue has increased to US$184m (or A$246m) from US$168m and EBITDA to US$115m from $98m. The increase is driven by the strengthening market outlook for Fungoni’s high-value product suite and favourable offtake terms compared to the assumptions made in the Original DFS. Strandline Managing Director Luke Graham said Fungoni was set to continue benefiting from the forecast supply shortages in the global zircon and TiO2 market. “With the ongoing tightening in the mineral sands market, Fungoni offers additional opportunities to grow reserves and mine life, resulting in increasing financial returns over time,” Mr Graham said. “The modular relocatable infrastructure planned for Fungoni can be re-used at Strandline’s other mineral sands assets. “Importantly, Strandline’s two most advanced projects, Fungoni and Coburn, differentiate through their premium zircon-titanium product suite and relatively low capital intensity. “The funding process for Fungoni is well underway and, importantly, the Company continues its close collaboration with the Government of Tanzania and local communities.” | |
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