logo-loader

EMED Mining FD John Leach says PRT’s start-up funding will be modest

Published: 19:02 20 Sep 2010 AEST

no_picture_pai

EMED Mining’s (LON:EMED) finance director John Leach highlighted that the funding required to restart the Rio Tinto copper mine - Proyecto Rio Tinto (PRT) - in Spain is relatively modest.

"Based on our detailed planning and assuming the timely processing of regulatory applications and associated negotiations, the Rio Tinto Mine is on-track to restart in late 2011,” Leach commented.

“Thereafter, it will provide a substantial contribution to the regional economy and commensurate profits to the EMED Mining Group for many years to come.”

EMED highlighted that the copper price outlook remains positive, with spot and average 10-year forward prices continuing to exceed US$3.00/lb or US$6,600/tonne.

Leach expects that operating cash flows will support project finances for the majority of the required funding.

“At this copper price, projected net operating cash flow is estimated to average US$117 (€93) million per year under the current ‘base case’ development plan,” the company stated. Furthermore, updated financial models show that the initial capital required for PRT's start-up remains in the order of US$100 million.

In its interim results, EMED updated investors on a productive six-month period in which it completed and submitted important permitting documents, and resolved a number of important commercial matters.

"In Spain, the submission of detailed and independent reports marks another significant milestone in the permitting process for the Rio Tinto Mine,” EMED MD Harry Anagnostaras Adams said.

Elsewhere at its other key development project, the Detva Gold project in Slovakia, key studies have been completed.

"In Slovakia, the revised Scoping Study for Biely Vrch has improved our development plan, facilitated the first phase of the permitting process, provided a platform for public dialogue and allowed the commencement of the Preliminary Environmental Impact Assessment," the MD added.

The updated Scoping Study confirmed the attractive economics for the proposed Biely Vrch gold mine, with targeted gold production of 60,000 ounces per annum at around US$530/oz. Additionally the first step of the permitting process has been reached, as Slovakian regulators approved Biely Vrch’s 1.1 million ounce mineral resource estimate.

In terms of its financial results, EMED reported a €5.3m loss (H109: €4.3m loss) as it continues to invest in the two development projects.

"The financial accounts of the group at this stage reflect the board's conservative stance of writing off all exploration expenditure until projects are fully permitted and production triggered”, Leach said.

On the 30th June 2010, the company had cash and equivalents of €7m.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

13 hours, 13 minutes ago