Metro Mining (ASX:MMI) has outlined a significantly stronger operating scenario for its Bauxite Hills project in Queensland with double the production output and a 148% increase in net present value (NPV).
The project is now being contemplated as producing 4 million tonnes per annum of bauxite by employing a 24-hour operational regime.
This is expected to deliver substantial economies of scale and underpins an increase in NPV from A$235 million in a previous Definitive Feasibility Study (DFS) to A$582 million
IRR improved about 5% to 156%, with average annual EBITDA estimated at A$134 million and profit after tax coming in at $92 million.
By comparison, after-tax net profit under the 2 million tonnes per annum scenario contemplated after-tax net profit at $37.3 million a year.
These improved metrics are expected to be realised for only a modest increase in capital costs, with initial capex now tipped at $40.1 million versus a prior estimate of $33.9 million.
MEET MD Simon Finnis at Proactive's Spotlight CEO Sessions in Sydney and Melbourne in February 2016
Sydney Investor Luncheon, Tuesday, 2nd February.
Melbourne Investor Luncheon, Wednesday, 3rd February.
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