Sembehun Project Feasibility and Market Dynamics
Sembehun PFS Summary
Sierra Rutile Limited
The PFS sets out an attractive project and pathway to developing Sembehun, leveraging the significant Area 1 infrastructure in place, remaining Area 1
Ore Reserves and Mineral Resources and forecast Area 1 cash flows to develop Sembehun in a two phased approach.
Sembehun PFS Highlights
Ore Reserves¹
Mineral Resources¹
Mine Life
Mining Method
Processing
174Mt @ 1.45% Rutile
508 Mt @ 1.10% Rutile
>13 years
Dry mining (truck & excavator)
Mineral concentrate from Sembehun will be
processed in a magnetic separation circuit
(to be constructed) and proceed to the
company's existing mineral separation plant,
which includes a feed preparation plant and
dry plant
US$318m
Production Tonnes (Mt) vs Grade (% rutile)4
1.6% 1.6%
1.6% 1.6%
1.4%
1.4%
1.5%
1.5% 1.5%
1.4%
1.3%
1.4% 1.4%
1.2% 1.3%
13.7
13.6 13.6 13.6 13.7 13.6 13.6 13.6 13.7 13.6 13.0
8.1
6.8
7.6
1.3
Year 1
Year 2
Year 3
Year 4
| | | | | | | | | | |
Year 5
Proved Reserve
Year 6
Year 7
Year 8
Year 9
Probable Reserve
Annual Rutile and Ilmenite Production (kt)4
Year 10
Year 11
Year 12
Year 13
Rutile Grade (% of ore)
Year 14
Year 15
Project Net Present Value
(8%, post tax real)²
Project Internal rate of return (post tax
real)²
Capital cost (US$m real)
Steady state average unit cash costs of
production
(US$/t Z/R, real)
Steady state average unit cash costs of
production, net of co-product credits
(US$/t R, real)³
24%
Total: US$337m
-
Phase 1: US$284m | Phase 2: US$52m
US$726/t rutile and zircon produced
(excluding royalties and rehabilitation)
US$535/t rutile produced
(excluding royalties and rehabilitation)
15
Year 1
11
87
Year 2
57
117
Year 3
41
190
Year 4
72
188
Year 5
75
205
Year 6
57
178
Year 7
69
169
Year 8
75
158
Year 9
75
182
Year 10
75
185
Year 11
75
165
Year 12
75
168
Year 13
75
144
Year 14
75
Year 15
■Rutile Ilmenite
Note: (1) Ore Reserve and Mineral Resource estimate as at 31 December 2021. Please see Appendices F and G for more information. (2) Excludes head office corporate costs. (3) Unit cash costs (net of co-products) represent the total
cash costs of production less the revenue earned from co-products (ZIC, TIC and ilmenite), divided by the total tonnes of rutile produced (exclusive of TIC). (4) Please see Appendix G for more information on Production Targets.
Production Targets are based on current Ore Reserves only.
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