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Optimization work on the 2011 De Wittekrans Feasibility Study demonstrates the opportunity to enhance the projects technical and financial fundamentals
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Proposed exports of 2.4Mtpa of a thermal coal product, ideally suited for the Asian Coal Market, over an initial 30 year mine life
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Capital costs and funding requirements forecast to reduce through utilization of existing coal wash plants and rail sidings and/or construction the wash plant under a BOOM contract
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Annual forecast thermal coal exports planned to increase from 0.8mtpa to 2.4Mtpa with total annual sales revenue forecast to increase by over 35% to up to approx. US$145m
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Annual forecast free cashflow after tax increases by approx 30% to up to approx. US$30m
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Indicative Equity Project NPV10 in excess of US$110m, IRR of approx. +20%
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Optimization work demonstrates that the De Wittekrans Coal Project has the potential to become the Company’s “flagship” project and generate strong returns
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Company in discussions with several parties for funding of the Project through a strategic joint venture and/or long-term coal offtake agreement and commercial bank finance
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Company to now appoint independent technical consultant
