The Agreement is with
The zircon concentrate sales are expected to generate circa
The remaining Project revenue is expected to be from the balance of premium finished zircon and rutile product (representing 34% of forecast revenue). Offtake agreements for these remaining products are advancing well. Coburn's forecast average annual production of zircon concentrate product is 54,000 tonnes (refer ASX announcement 14 Jan-2020) and contains payable zircon, titanium and rare earth monazite minerals. The zircon mineral is suitable for a range of applications including ceramics, zirconium chemicals and foundry uses. The titanium minerals are well suited for production of TiO2 pigment and monazite is suitable for the extraction of rare earths.
Strategically, the Agreement also provides for sale on favourable terms of 100 per cent of the heavy mineral concentrate (HMC) to be produced from the Wet Concentration Plant (WCP) during the project ramp-up phase and while the longer-lead time Mineral Separation Plant (MSP) (through which the zircon-concentrate product will ultimately be produced) is being constructed. This strategy accelerates cashflows and therefore further derisks the project ramp-up phase.
As outlined in the Definitive Feasibility Study (DFS) (released Apr-2019), Coburn's high unit value orebody assemblage and low costs underpin strong financial returns for Strandline, with a rapid payback period of 2.2 years from the start of production and a first quartile revenue-to-cost ratio of 2.2. Strandline Managing Director
COBURN PROJECT SNAPSHOT
Strandline is advancing towards a development decision for its 100%-owned Coburn mineral sands project in
Coburn DFS Pre-Tax NPV8 of
Coburn to provide significant regional, community benefits and indigenous opportunities
Construction-ready with key development approvals in place, incl mining lease, environmental approval, native title agreement and pastoral lease ownership
Annual production of 34kt premium zircon, 54kt of zircon concentrate, 110kt chloride ilmenite and 24kt rutile; to supply 5% of global zircon market and a strong foothold in the chloride feedstock market
Capital-efficient development compared with industry peers;
Large homogenous JORC-compliant Reserve of
Conventional open pit dry mining in free-dig sand with in-pit tailings deposition and progressive backfill and full rehabilitation
Low waste-to-ore strip ratio averaging 0.7; extremely low slimes and oversize; coarse mineral particle size Proven processing technology capable of high efficiencies and mineral recoveries
Large global customers supportive of Coburn production and long-term offtakes agreements
First production of HMC within 18 months from project commencement
For more information on the Coburn mineral sands project, refer to the ASX Announcement dated
The Company confirms that all the material assumptions underpinning the production target and financial results continue to apply and have not materially changed. This announcement is authorised for release by
ABOUT STRANDLINE
Contact:
Tel: +61 8 9226 3130
Email: enquiries@strandline.com.au
FORWARD LOOKING STATEMENTS
This report contains certain forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside of the control of Strandline. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay, approvals and cost estimates. Actual values, results or events may be materially different to those contained in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this announcement reflect the views of Strandline only at the date of this announcement. Subject to any continuing obligations under applicable laws and ASX Listing Rules, Strandline does not undertake any obligation to update or revise any information or any of the forward looking statements in this announcement to reflect changes in events, conditions or circumstances on which any forward looking statements is based.
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