The Company announced the results of an independent pre-feasibility study prepared by SRK on the Kun-Manie project in December 2007:
- Post Tax NPV (10 %) of $84 million;
- Annually 4 Mt of ore open-pit mined;
- Production – a total of 38.2 Mt of ore (at 0.55% nickel and 0.15% copper);
- 16,000 tonnes of nickel contained in concentrate per year;
- Initial capital expenditure of $331 million;
- Total operating cost of $2.51 to generate and deliver a pound of nickel to the nearest railroad.
The pre-feasibility study showed that the project is economic at a nickel price of $7.50/lb. For every $1 above this, $100 million is added to the NPV. At today’s price of $14/lb the NPV is in excess of $800 million.
For more information on the pre-feasibility study, please click here.
