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Mejillonnes Phosphate Project

Mejillones, Chile

Mejillones, Chile

Phosphate

Phosphate

 Exploration and Development

Exploration and Development

Project Overview

Mejillones Phosphate Project

Located next to the deepwater port of Mejillones, Chile
  • Sedimentary phosphate deposit, 100% owned with 13 exploration and 8 exploitation concessions believed to be highly prospective for phosphate production.
  • Covers a contiguous area of approximately 6,300 hectares
  • Profit margin over LOM of 65% - low operating cost of US$35/t
  • LOM well in excess of 45 years (only used LOM of 15 years in NPV calculation)
  • Cash from Copper Oxide Processing Project will fund development to Bankable Feasibility Study (‘BFS’).
Key Financial highlights
  • NPV* of US$180 million @ 10% DCF
  • IRR* of 733%
  • Build capital* of less than US$15 million
  • Revenue of US$465 million (LOM of 15 years)
  • EBITDA of US$310 million
  • PAT of US$230 million
  • Tax rate of 18.5%
Development and Key Milestones
  • Development programme to complete BFS with Venmyn Deloitte
  • Evaluation has concluded that following the historical work and the drilling on the project area any additional drilling will not de-risk geological continuity or phosphate grade at this stage
  • Key priority is to address is the stripping ratio of removing 50m of overburden to mine the phosphate deposit at these depths and the amount of material to be moved.
  • The critical issue is therefore one of mining cost
  • Primary focus on Mejillones is to address this issue via conceptual mine design
  • These studies will take approximately 6 months to complete
  • The successful outcome of these will then guide us as to initiate a drilling program to define a reserve and allow for bulk sample for final metallurgical test work