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The key economic highlights of the FS are outlined in the table below (all dollar amounts are stated in US$):
----------------------------------------------------------------------------After-tax NPV@10% $1.32billion----------------------------------------------------------------------------After-tax IRR (based on 35% income tax rate) 33%----------------------------------------------------------------------------Estimated Total Capital Expenditures (including production, port and logistics and contingency) $642 million----------------------------------------------------------------------------Estimated Total Operating Expenditures (Production, transportation, port, FOB on vessel) $98.75/tonne MOP----------------------------------------------------------------------------Payback period 3.1 years----------------------------------------------------------------------------Total MOP product from Proven and Probable Sylvinite Reserves, 23.7 million tonnes----------------------------------------------------------------------------
For the purpose of the FS, capital expenditures (CAPEX) were estimated for three main categories: Production using solution mining, solar evaporation and flotation (Production); Transportation and handling of product between the production site and the port (Transportation/Handling); and Port facilities in Djibouti (Port).
The Production CAPEX includes costs associated with cavern development, the solar evaporation ponds, brine processing, and infrastructure including power. Solar evaporation of the saturated brine solution is possible at the Danakhil Project due to the year-round hot temperatures averaging 34 degrees C daylong with very little rainfall. Salts harvested from the ponds will be processed by standard flotation to create an MOP product of a standard grade sufficient for direct application as fertilizer or as feedstock for processed or blended fertilizers.
Transportation CAPEX costs are based on a company owned fleet of trucks and all support, such as maintenance. Port CAPEX costs are based on Allana constructing its own storage facility and conveyor system at the new port of Tadjourah in Djibouti. The main portion of the port, primarily the quay, ship loader and associated infrastructure, is commencing construction and will be completed by the Djibouti Port Authority. The table below outlines the estimated capital expenditures in US$ (2013$) for all categories, including indirects and allocated contingencies.
----------------------------------------------------------Total Estimated CAPEX $642 million---------------------------------------------------------- Estimated Production CAPEX $579 million---------------------------------------------------------- Estimated Transportation/Handling CAPEX $29 million---------------------------------------------------------- Estimated Port CAPEX $34 million----------------------------------------------------------
Estimated operating expenditures (OPEX) were also calculated for Production, Transportation/Handling, and Port. The OPEX costs in US$ per tonne (2013$), including G&A and contingencies, are outlined in the table below:
-----------------------------------------------------------Total Estimated OPEX $98.75/tonne----------------------------------------------------------- Estimated Production OPEX $69.25/tonne----------------------------------------------------------- Estimated Transportation/Handling/Port OPEX $29.50/tonne-----------------------------------------------------------
