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Walkabout Resources reveals updated graphite project DFS, shares up

The project is estimated to produce US$1.4 billion of revenue over its 24-year mine life.

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The previously low development capital cost has lowered further to US$27.8 million

Walkabout Resources Ltd (ASX:WKT) has incorporated the recent Ore Reserve upgrade into the updated definitive feasibility study (DFS) for its Lindi Jumo Graphite Project in Tanzania.

The mine life has increased 20% to 24 years and the project’s post-tax net present valuation (NPV) has increased 9.4% to US$197 million.

The construction schedule is dependent upon adequate pre-production funding being secured.

The current schedule has not been modified on the basis that commissioning can be realised 9 to 12 months after project-start funding has been received.

READ: Walkabout Resources increases graphite reserve grade to 17.9%, highest-grade mineable reserve in East Africa

Walkabout’s executive director Allan Mulligan said: “We are delighted with the results of the DFS which demonstrate that the extraordinary Lindi Jumbo project continues to deliver compelling economics in spite of conservative sales assumptions.

“We have a high degree of confidence in the revised cost estimates which are derived from actual engineering drawings and negotiated contract prices.

“This mine has been designed to withstand potential start-up and ongoing risks.

“It continues to show outstanding economics with a payback period of less than two years. These factors make the Project attractive to potential funding partners and investors.”

Quick facts: Walkabout Resources Ltd

Price: 0.185 AUD

Market: ASX
Market Cap: $64.59 m

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Walkabout Resources' updated DFS designed to reduce start up risks for Lindi...

Walkabout Resources Ltd (ASX:WKT) executive director Allan Mulligan talks Proactive Investors through the enhanced outcomes of an updated Definitive Feasibility Study (DFS) for the Lindi Jumo Graphite Project in Tanzania. Mulligan explains that capital costs have been reduced, and that...

on 12/3/19

2 min read