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Thor Mining's new DFS for Molyhil projects earnings of A$239mln over seven year life of mine

The company has announced results of an upgraded definitive feasibility study (DFS) for the Molyhil tungsten and molybdenum project in the Northern Territory of Australia.
Drilling samples from Molyhil
Trading in the company's shares was suspended on the ASX pending the release of the DFS

The latest definitive feasibility study (DFS) for Thor Mining PLC’s (LON:THR, ASX:THR) Molyhill project in Australia projects revenue in excess of A$500mln over seven years.

The DFS points to underlying earnings (EBITDA) of A$239mln over the current seven-year life of mine with a project payback period of fewer than 18 months after payment of royalties and taxation. The first production is targeted for early 2020.

WATCH: Thor Mining's Mick Billing discusses updated DFS for Molyhil

The DFS postulates a net present value (NPV) of A$101mln at a discount rate of 5% with an internal rate of return of 59% after payment of taxes and royalties.

The project finance requirement has been put at US$43mln.

The DFS covers only the open pit operation previously outlined in the company’s ore reserve statement and Thor believes the tungsten and molybdenum project offers substantial upside potential from subsequent underground mining at Molyhill and from the nearby Bonya tungsten deposits.

Mick Billing, the executive chairman of Thor Mining, said the DFS demonstrates the substantial value this project holds for the company and its shareholders.

"The company now has an updated and upgraded definitive feasibility study, incorporating the work over recent years at Molyhil with which it can continue to engage with third parties who have expressed a specific interest in the project,” Billing said.

"Molyhil is 100% owned by Thor Mining and is construction ready subject to submission of an acceptable mining management plan and finalisation of project level mine construction financing. Upon finalisation of project-level financing, (which the company hopes to conclude in the next few months), the construction phase for Molyhil is estimated at 12 months."

Shares in Thor were down 0.25p at 2p in mid-morning trading.

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