Vimy Resources DFS Refresh Improves Mulga Rock Numbers

THE BOURSE WHISPERER: Vimy Resources (ASX: VMY) completed its revisitation of the Definitive Feasibility Study for the company’s 100 per cent-owned Mulga Rock project in Western Australia.

Vimy Resources declared the refresh demonstrates that the uranium project will generate stronger financial returns than previously forecast.

Nutshell-wise the project economics now stand at:

─ Net Present Value pre-tax US$393 million, a 14 per cent increase
─ Internal Rate of Return 31 per cent, a 23 per cent increase
─ Capital cost of US$255 million, a 20 per cent reduction
─ Payback 2.4 years, reduced by 8 months
─ Free cash flow US$61 million year, a 22 per cent increase

The refresh also improved operating costs:

─ Cash operating cost (C1) of US$23.33 uranium over the first 5 years, an 8 per cent decrease
─ C1 of US$26.02 uranium over Life of Mine, a 7 per cent decrease
─ All In Sustained Costs of US$28.09 uranium over the first 5 years and US$31.22 uranium over Life of Mine, both an 8 per cent decrease

“The DFS Refresh reinforces the global importance of the Mulga Rock project, which is the largest advanced uranium project in Australia; a first-world jurisdiction with low sovereign risk,” Vimy Resources CEO Mike Young said in the company’s announcement to the Australian Securities Exchange.

“With a completed DFS and State and Federal Government approvals, it is leader of the pack in terms of the next wave of world-wide uranium projects.

“The Refresh has been transformational for the project and moves it into the middle of the uranium producer AISC cost curve and on par with the higher cost Kazakh operations and well ahead of most other uranium juniors.

“As we move into the coming contracting cycle, the utilities will look very favourably on our location in Australia, our multi-mine pipeline, and our long, sustainable mine life at Mulga Rock.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@vimyresources.com.au

 

Web: www.vimyresources.com.au