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Utilizing the 24 month average graphite prices provided by IM, along with the flake size distribution derived from metallurgical test work conducted by Mintek, the Molo blended graphite price was determined to be a starting price of USD$1,563.77 as shown in the chart below.
---------------------------------------------------------------------------- Sale Price Assumptions (based on 2 year average from IM)---------------------------------------------------------------------------- Mintek Blended Average with Conventional Sales Yield (%) Mesh Size C% Sale $ $/T -------------------------------------------------------------------------- -------------- NOT +50 NOT provided by IM SIZED -50 +80 $ 2,383.82 33.3 +100 94.9 $ 2,026.72 $ 674.90 36.1 -100 +200 93.3 $ 1,881.86 $ 679.35 30.6 -200 82.1 $ 684.71 $ 209.52 -------------------------------------------------------------------------- -------------- $ 1,563.77----------------------------------------------------------------------------
Capital Costs ("CapEx")
DRA arrived at its capital cost estimate through a combination of supplier quotations and factor analysis of similar sized mines with similar processing circuits. The estimated capital cost for the project is USD$ 162 million. As is standard, a mining contingency is required to allow for estimation variances at the PEA level analysis. Due to the degree of accuracy in DRA's capital cost estimate, DRA is comfortable using a contingency of 12.5%. The capital cost estimate allows for a provision for the execution of the Bankable Feasibility Study phase of the project. A summary of the estimated capital cost for the project is illustrated below,
Mining Area Infrastructure $ USD 5,681,745Plant Cost $ USD 68,925,519General Infrastructure $ USD 39,564,757Indirect Costs $ USD 29,892,092Contingency (12.5%) $ USD 17,979,201 Total $ USD 162,043,315
Please note that a limited allowance has been made for infrastructure investment, outside of the actual mining and processing operations. This final estimate will be defined during the full feasibility study.
Operating Costs ("OpEx")
The operating costs have been estimated based on a per ton milled basis for contract mining, processing and transportation from the 'pit-to-port'. The operating costs are summarized in the table below.
Starting Contract Mining ($/T mined) $4.76/Tonne Mined (Waste and Ore)Starting Processing ($/T milled) $22.90/Tonne MilledStarting Transportation (FOB port $105.00/Tonne Concentrate$/T shipped) transported to port
The operating costs arrived at for the PEA analyses were obtained as follows:
-- Contract mining cost from Minopex, a specialist in the field of outsourced operation and maintenance of metal and mineral processing facilities-- Processing cost from DRA, a multi-disciplinary, multi-national organisation that specialises in project management in mining, infrastructure and mineral process plant design and construction-- Transportation cost from plant site to cargo ship from Panalpina World Transport Ltd. ('Panalpina'), one of the world's leading providers of end-to-end supply chain solutions
