Independent expert gives Coburn a tick
An independent review of Strandline Resources’ Coburn mineral sands project near Shark Bay in Western Australia has confirmed no fatal flaws or residual risks...
22nd May 2020
Resources Rising Stars
An independent review of Strandline Resources’ Coburn mineral sands project near Shark Bay in Western Australia has confirmed no fatal flaws or residual risks (reports MiningNews).
SRK Consulting reviewed technical, environmental, permitting, product quality and marketing aspects of the project, which will form part of the due diligence process for potential lenders, including the Northern Australia Infrastructure Facility.
An independent economic cost-benefit analysis has also been completed by Deloitte Access Economics, as required by NAIF, confirming Coburn will provide a host of important socioeconomic benefits over its forecast mine life of up to 38 years.
A separate report on product quality and marketing, undertaken by TZ Minerals International, highlighted the high-quality specifications and saleability of Coburn's zircon and titanium products.
"These independent reports validate Coburn's very strong fundamentals, its development readiness and support finalising debt and equity financing for the project," Strandline managing director Luke Graham said.
"With the key development approvals in place and binding offtake contracts signed with major customers, Coburn is moving rapidly towards development."
Coburn has capital costs of A$257 million, a net present value of $551 million, internal rate of return of 32% and payback period of 2.2 years.
EBITDA over the initial 22.5-year mine life is forecast at $1.9 billion, with an EBITDA margin of 98%.
The project has reserves of 523 million tonnes at 1.11% total heavy mineral.
Last month, Strandline signed binding offtakes with customers covering 66% of projected revenue for the first 5-7 years.
Strandline is aiming to make a final development decision this year, with first production expected within 18 months of the start of construction.
Image: IIuka Mineral Sands
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