Introduction
Polymetals, driven by promising financial metrics from a mine restart study, has outlined its intent to recommence production of zinc-lead-silver from the halted Endeavor mine by the latter half of next year.
Financing The Venture
The journey to restart the mine comes with a financial roadmap. Polymetals has projected pre-production capital expenditures at A$23.7 million and anticipates a peak cash drawdown of $37.8 million. Additionally, the company is tasked with offsetting a $28 million bond surety related to mine restoration.
Impressive Financial Metrics
Promising figures underline the potential of the Endeavor mine's reactivation. The venture's net present value (NPV) stands at an impressive $201 million, and an internal rate of return (IRR) pegged at 91%. With these metrics, the project is forecasted to yield earnings around $400 million.
Projected Production Output
Set to span a decade, the Endeavor project estimates an average yearly processing volume of 840,000 tonnes. From this, the company projects to extract 210,000 tonnes of payable zinc, 62,000 tonnes of payable lead, and an impressive 9.7 million ounces of silver.
Previous Financial Engagements
Before this, Polymetals secured a noteworthy financial deal. The company solidified a binding pact for a US$10 million unsecured concentrate pre-payment finance facility. This was complemented by a A$500,000 equity investment in collaboration with the renowned global metal trading entity, Ocean Partners UK. Furthermore, Polymetals amassed $3.6 million at a rate of 31c per share from its investor base in June.
Company Stock Performance
Reflecting on the company's stock performance, shares in Polymetals traded at 29c the previous week, giving the firm a market capitalization of $43 million.
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