leadf
logo-loader
viewEuropa Metals Ltd

Europa Metals’ Toral project elevated by new economic study

“Today's release of the new economic numbers is a culmination of two years' work covering many aspects of the Toral deposit," said chairman Myles Campion.

Europa Metals Ltd - Europa Metals’ Toral project elevated by new economic study

Europa Metals Ltd (LON:EUZ) has released the findings of a preliminary economic study for the Toral lead-zinc-silver mine project, in north west Spain, proposing a significantly larger mining operation.

It envisages a 700,000 tonnes per annum operation over a 12-year life.

In a statement, Europa described a very robust project capable of producing high-grade saleable concentrates within an EU jurisdiction.

Wednesday’s early deals in London saw Europa shares advance around 11.6% to trade at 12p each.

The study pitched the project’s net value (NPV) at US$156mln and sees an internal rate of return (IRR) of 31.3%.

READ: Europa Metals boosted as Toral permit is renewed

Upfront capital requirement is estimated at US$79mln and life-of-mine operating costs are seen at US$477mln.

The mine is predicted to generate US$963mln of revenue over life-of-mine, with life-of-mine earnings (EBITDA) forecast at US$471mln.

Europa highlighted meanwhile that whilst the LOM production schedule incorporates 100% of existing resources, the deposit is still open to the east and also at depth, which allows potential for production expansion.

"Having recently secured a new three-year investigation permit for Toral and with today's updated economics attributing a US$156mln NPV and a 31.3% IRR, the board shall progress Europa's strategy to secure the most value-accretive pathway to advance the project,” said Laurence Read, Europa chief executive.

"With work towards a PFS for Toral now underway, we look forward to updating the market in due course on our hydrogeology programme, planned resource and metallurgical drilling and geotechnical work.”

Chairman Myles Campion, meanwhile, added: “Today's release of the new economic numbers is a culmination of two years' work covering many aspects of the Toral deposit.

“All necessary programmes needed to move the project towards a PFS have been completed and we now look forward to advancing all these studies to put the company in the best position to assess all options."

Quick facts: Europa Metals Ltd

Price: 11.25 GBX

AIM:EUZ
Market: AIM
Market Cap: £5.53 m
Follow

Add related topics to MyProactive

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

NO INVESTMENT ADVICE

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...

In exchange for publishing services rendered by the Company on behalf of Europa Metals Ltd named herein, including the promotion by the Company of Europa Metals Ltd in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Market Report: UK inflation jumps up as cost of food and clothing rise

FTSE 100 started in the red after UK inflation numbers came in higher than expected and US retail sales missed forecasts. London’s leading index shed 25 points to 6,340 in early deals. UK inflation rose 0.7% in October from 0.5% in September due to higher prices for clothes and food. It was...

6 days, 18 hours ago

2 min read