Sembehun Project Feasibility and Market Dynamics slide image

Sembehun Project Feasibility and Market Dynamics

- Sembehun PFS Summary – Capex & Opex Estimate The Sembehun PFS operating expenditure and capital expenditure estimates for Phase 1 and Phase 2 are outlined below. Sierra Rutile Limited Operating Expenditure Estimate Capital Expenditure Estimate (real, US$/t rutile) Phase 1 Phase 2 Mining 191 250 (real, US$m) Direct Phase 1 Phase 2 Total WCP 218 176 Mine development 4 4 Logistics to MSP 35 35 Wet concentrator plant 83 22 21 104 MSP 108 100 Mineral separation plant 4 4 Logistics to Port Non-process 10 10 46 1 infrastructure 46 46 Port 22 12 Indirect Overheads 456 228 Indirects² Selling Costs 6 6 Contingency³ Total operating costs per tonne³ 1,048 818 Project total costs4 90 16 106 63 11 73 284 52 337 • The operating cost estimate was developed with the assistance of Hatch using a combination of bottom-up factored estimates and current rates from Area 1 operations on which the Sembehun process is based. • • Operating costs per tonne are expected to improve in Phase 2 as a result of ramp-up costs normalising and economies of scale being achieved across the integrated Sembehun operation. A phased development approach has been designed to optimise the upfront capital required and maximise the ability to utilise Area 1 cash flows to support the development of Sembehun. • The majority of development costs will be incurred during Phase 1, with a second wet concentrator plant and supporting capital representing the majority of costs to be incurred during Phase 2. Notes: (1) Please see Appendix H for information on future capital requirement risk. (2) Indirect costs include project management, technical services, EPCM, sub consultants, temporary construction facilities, site wide capitalised costs, commissioning, start-up inventories, spares, insurance, land acquisition and freight costs. (3) Contingency costs represent 28% of the base capital expenditure estimate. (4) Numbers may not sum due to rounding. 22
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