viewMetallica Minerals Limited

Metallica Minerals’ study supports development of bauxite project

Metallica Minerals (ASX:MLM) has successfully completed an independent pre-feasibility study (PFS) supporting the development of the Urquhart Bauxite project in Queensland’s Cape York.

Metallica Minerals’ study supports development of bauxite project

The company’s shares were last trading at $0.053, up 15.22% intraday.

Metallica’s PFS estimates pre-tax project net present value of $78.4 million on sales of 6.5 million tonnes of bauxite (proved and probable reserves).

The PFS base case points to a potential revenue stream nearing $300 million across 5.5 years of production with a payback period of just five months.

The project is expected to generate a strong total operating margin of around $12 per tonne.

Metallica has a 50% share of the Urquhart Bauxite joint venture and plans to develop it via a contractor model so as to minimise mine start-up capital and maximise returns.

The joint venture is in the process of negotiating a mining and haulage contract with an appropriately qualified contractor.

The high-margin bauxite in Area A of the project is slated for first production in Q2 2017.

Metallica is targeting a production rate of 1.5 million tonnes per annum by 2019.

The company had a cash balance of circa $1.5 million as at 30 September 2016.

Quick facts: Metallica Minerals Limited

Price: 0.011 AUD

Market: ASX
Market Cap: $3.56 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



OptiBiotix Health CEO updates on new deal with Actial Farmaceutica and...

OptiBiotix Health's (LON:OPTI) Stephen O'Hara caught up with Proactive London's Andrew Scott following the news they've signed a distribution deal covering Australia, New Zealand, Indonesia, and Thailand for its cholesterol and blood pressure reducing dietary supplements, CholBiome and CholBiome...

14 hours, 39 minutes ago

2 min read