Axiom Mining Limited
ARBN 119 698 770
Level 6, 15 Astor Terrace Spring Hill QLD 4000
Australia
T + 61 7 3319 4100
[email protected] www.axiom-mining.com
12 August 2016
ASX Announcement
Company Update - Pre-Feasibility Study highlights world class potential of the Isabel Nickel Project (San Jorge and Kolosori deposits)
Highlights
The combination of the above factors indicates that the Project's operations will be a low cost saprolite nickel producer able to provide a steady and reliable premium product to its customers.
Figure 1.2 Aerial view of the Isabel Nickel Project
4 DSO: Direct Shipping Ore
Basis for the Financial Evaluation
Table 1.1 provides the assumptions and calculations on which the financial evaluation is based upon.
Category
|
Measurement
|
Commencement Date
|
2016
|
Mining Rate (Years 1 to 5)
|
10.07 WMT
|
Life of Mine (LOM)
|
18 years
|
Average Stripping Ratio
|
(0.83:1)
|
Nickel Prices
|
2016 to 2035*
|
Total Pre-Capital Costs (Chart 1.2)
|
$18.2m
|
Total Operating costs - FOB (Chart 1.3)
|
$11.49
|
Mineral Royalty
|
3%
|
Discount Rate
|
8%
|
Tax Rate
|
35%
|
Net Present Value (NPV) (Base Case)
|
$188m
|
Internal Rate of Return (IRR)
|
95%
|
Net Margin (after tax and royalties)
|
35%
|
Payback on Capital Costs
|
|
PFS Accuracy
|
+ / - 25%
|
Table 1.1 Financial Assumptions
*based on Wood Mackenzie forecast
All dollars reported in this document are US $ unless otherwise stated.