Walkabout lowers Lindi Jumbo project capex
PERTH (miningweekly.com) – Junior graphite developer Walkabout Resources has reduced the expected start-up capital cost for its Lindi Jumbo graphite project, in Tanzania, from $38.7-million to $29.6-million.
The ASX-listed company told shareholders that an updated definitive feasibility study (DFS) also adjusted the project’s net present value from $320-million to $302-million, and the pre-tax internal rate of return from 108% to 96%.
The updated DFS took note of a number of factors to reflect recent legislative changes in Tanzania, including 16% State ownership, and possible scheduling delays due to those changes in legislation.
The company found that the gross financial effect of the 16% free carry, and the 1% clearing fee would be $101-million over the life of the mine, or 8.4% of total expected revenues.
Walkabout said on Thursday that while the results of the updated DFS were considered the ‘worst case’ scenario, the modelling still yielded highly attractive returns for the project, further supporting the board’s decision not to stall or delay the engineering design work currently under way in China.
The Lindi Jumbo project is expected to produce some 40 000 t/y of graphite-in-concentrate over a mine life of 20 years.
The project was recently granted environmental approvals and Walkabout is looking at funding options for the project.
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