URA Holdings PLC (LSE:URAH) CEO Bernard Olivier said he was "extremely encouraged" by the study on the Gravelotte Emerald Mine which suggested it would produce almost $80 million of profits over its life, while the payback period would be just two and a half years.
The independent review by ACA Howe calculated the net present value (NPV) before tax at a 10% discount rate to be $22.39 million giving an internal rate of return (IRR) of 76%.
The project is expected to become profitable by the second year of operations, with an average operating cost of $54.70 per tonne and a capital expenditure of $2.58 million, excluding sustaining capital investment.
Operating expenditures are projected at $67.28 million over the 17 life of the mine, with a total payable ore of 1.23 million tonnes.
The mine's annual production is expected to ramp up to 90,000 tonnes within six years, generating an estimated total profit before tax of $79.5 million.
CEO Olivier told investors: "We are extremely encouraged by the results of the ACA Howe review, which confirms the potential robust economics of the Gravelotte Emerald Mine.
"The high IRR and positive NPV underscore the significant potential value this project can bring to our shareholders.
"With the initial production startup capital expenditure already completed, and the mine now back in production, we are well-positioned to advance this project and capitalise on the opportunities it presents."