The show must go on — the resource plays that are still progressing their projects
27th March 2020
Resources Rising Stars
Efforts to alleviate the impact of the COVID-19 pandemic such as travel bans and other restrictions have led some resource companies, particularly those with operations overseas, to defer or suspend work.
However, there are some companies that are going ahead with work to advance their projects.
Take Strandline Resources (ASX:STA) for example, the mineral sands player has just raised $6.5m through a share placement and rights issue to accelerate development of its flagship Coburn project in Western Australia.
This includes advancing project financing and pre-execution activities, such as procurement of major construction and operations contracts, offtake agreements, debt financing and partner arrangements.
Coburn has an ore reserve large enough to underpin a mine life of 22.5 years initially.
During this time, it is expected to generate revenue of $3.9bn, earnings of $1.9bn, pre-tax net present value (NPV) of $551m and internal rate of return (IRR) of 32 per cent.
NPV and IRR measure the expected profitability of proposed projects.
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