This announcement should be read together with the cautionary statements on page 3 and the attached DFS Summary.
The DFS confirms Mardie can become a globally significant Tier 1 salt and sulphate of potash (SOP) project offering attractive financial returns for more than 60 years, potentially making it one of the longest life projects developed in
Based on the positive DFS results, the BCI Board has approved the Company advancing the Project towards a final investment decision by early 2021.
Key results of the DFS include: Positive business case established for production of 4.4Mtpa of high purity salt and 120ktpa of premium SOP fertiliser.
DFS demonstrates NPV7 of
Direct capital cost estimate of
Operating cost estimates show competitive salt costs with other Western Australian operations, and SOP operating costs in the lowest quartile globally.
Project funding initiatives well progressed, including negotiation of indicative debt term sheets with the Australian Federal Government's Northern Australia Infrastructure Facility (NAIF) and a number of Australian and international banks. Discussions with potential cornerstone equity investors are underway and expected to gain further momentum upon completion of the DFS.
Experts forecast attractive long-term salt and SOP prices based on strong demand growth in the Asian region.
Thirteen non-binding salt offtake memoranda of understanding (MOUs) and two SOP non-binding offtake MOUs secured with credible Asian buyers, accounting for 100% of Mardie's three-year salt production and 75% of five-year SOP production.
Regulatory approvals and tenure well advanced. Mardie's Environmental Review Document (ERD) endorsed by the
Development schedule targeting final investment decision in Q1 2021, construction commencement in Q2 2021, first salt sales by mid-2024, and first SOP sales by mid-2025.
DFS workstreams covering engineering, technical, commercial and approvals were managed by BCI with support from industry leading consultants including GR Engineering,
As optimisation potential to the DFS base case, BCI will consider relocation of crystallisers to the recently acquired tenements north of Mardie, which will allow for increased production and lower operating costs. The new tenements also offer sufficient area for additional evaporation ponds which could increase production capacity to 6Mtpa salt and 160ktpa SOP production, making Mardie one of the largest solar evaporation operations globally.
Mardie's green credentials and sustainability are evidenced by its utilisation of an inexhaustible seawater resource, 99.9% of the energy requirements being derived from natural sun and wind energy, and secondary processing of excess salt brine into a high-quality SOP fertiliser. BCI has
Contact:
Tel: +61 8 6311 3400
Email: info@bciminerals.com.au
IMPORTANT NOTICES
The Project aims to produce salt and SOP from a seawater resource, which is abundant, inexhaustible, readily accessible and has a known and consistent chemical composition. The JORC Code does not apply to a project of this nature and accordingly JORC Ore Reserves and Mineral Resources are not reported. The DFS is based on material assumptions as outlined throughout this announcement and the attached DFS Summary, including as to capital and operating cost estimates, production targets, forecast financial information and the availability of funding. BCI has concluded that all material assumptions are based on reasonable grounds and there is a reasonable basis for making the forward-looking statements included in this announcement and the DFS Summary. However, there is no certainty that they will prove correct or the outcomes will be achieved.
The capital costs and operating costs reported in this announcement and the DFS Summary were prepared by
Braemar AMC Shipbroking (Braemar) has provided a report on seaborne freight data to BCI, from which information has been incorporated into this announcement and the DFS Summary.
FORWARD-LOOKING STATEMENTS
This announcement and the DFS Summary contain forward-looking statements. These forward-looking statements are based on BCI's current expectations and beliefs concerning future events at the date of this announcement, and are expressed in good faith. BCI believes it has reasonable grounds for making the forward-looking statements. However, forward-looking statements are subject to risks, uncertainties and other factors, a number of which are set out in Section 15.2 of the DFS Summary named 'Risks', which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Consequently, forward-looking statements should not be relied on as a guarantee of future performance. Other than as required by law, including the ASX Listing Rules, BCI does not undertake or assume any obligation to update or revise any forward-looking statement contained in this announcement or the DFS Summary.
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A Definitive Feasibility Study (DFS) on the
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