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Aspire Mining updated PFS reveals lower mining costs

Snapshot

The revised mining plan has lowered costs and increased the pre-tax NPV for the early development of the coal mine to US$878 million.

Aspire Mining Ltd - Aspire Mining updated PFS reveals lower mining costs

Quick facts: Aspire Mining Ltd

Price: 0.074 AUD

ASX:AKM
Market: ASX
Market Cap: $37.57 m
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Aspire Mining Ltd (ASX:AKM) has revealed mine plan and cost updates for the Ovoot Early Development Plan (OEDP) pre-feasibility study (PFS) for the coking coal project in Mongolia.

The optimised mine plan will see initial waste removal deferred until years 2 and 3 of mining operations with total mined volumes of waste and coal remaining the same.

Recent mining contractor quoted rates have reduced mine gate costs per tonne by 19% from US$32.80 per tonne down to US$26.40 per tonne over the life of mine.

The lower mining costs and deferred capitalised waste removal delivers a 34% reduction in the required up-front capital investment from US$47 million down to US$31 million.

This lowers C1 cash costs from US$83 per tonne to US$76 per tonne for coal delivered to the China border and increased the pre-tax NPV by US$120 million.

Working towards gaining required approvals

Aspire’s executive chairman David Paull said: “The updates to the OEDP PFS demonstrate the value Aspire intends to deliver for all shareholders from Ovoot’s first-stage development.

“Ovoot remains a world-class coking coal project and Aspire is committed to working with all levels of Mongolia’s government and the community to achieve the necessary approvals for us to finalise the OEDP DFS.

Shareholders to vote on $33.5 million raising this month

“Having a Mongolian partner to help Aspire achieve our ambition of delivering substantial value for all shareholders is paramount and we are delighted with the ongoing support from our largest shareholder, Mr Tserenpuntsag.

“This is why Aspire’s Non-Aligned Directors have unanimously recommended that shareholders vote in favour of the $33.5 million Share Placement to Mr Tserenpuntsag at our AGM in Perth on 29 November.”

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Full interview: Aspire Mining receives additional undertakings from major...

Aspire Mining Ltd (ASX:AKM) managing director and chairman David Paull updates Proactive on receiving additional commitments from major shareholder Mr Tserenpuntsag in relation to his proposed $33.5 million equity investment in company. Mr Tserenpuntsag will exercise all his 153.3 million...

on 14/11/19

2 min read