Alara Resources (ASX: AUQ) is preparing to divulge additional information in relation to the company's Khnaiguiyah zinc-copper project joint venture in Saudi Arabia.
The project is a 50:50 joint venture company between Alara and the United Arabian Mining Company (Manajem), a privately owned Saudi Arabian mining company.
Khnaiguiyah is located 170 kilometres south-west of the capital city Riyadh and currently has JORC Reserves (Proved and Probable) of 26.08 million tonnes at 3.3% zinc and 0.24% copper.
The project would benefit from a rising zinc price, with a DFS from April 2013 showing:
- 2 Mtpa processing rate – Zn & Cu concentrates produced
- Project revenue: A$2,074 M
- Project costs : A$1,201M
- EBITDA: A$873M
- Cash flow (post Capex): A$467M
- Capex: US$257M
- Project NPV: A$170M
- IRR: 23%
- Weighted Avg cost of capital 9.1%
- Payback: 2.8 years
The halt will remain in place until the opening of trade on Friday 14th March 2014, or earlier if an announcement is made to the market.
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