Total
0
Shares
Image Sourced ShutterStock
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Australian Mines has announced its Sconi Project will generate $5 billion in cash flow. The Sconi Project, located in North Queensland, is rich in nickel, cobalt and scandium
  • A revised ore reserve estimate at the project has show an increase of 69 per cent, resulting in a total of 57.3 million tonnes.
  • The mines life has been extended to 30+ years and as a result the total revenue has increased to $13.3 billion

Following a revised mine plan and ore reserve estimate, battery materials developer, Australian Mines have announced free cash flow from its Sconi Project has increase 93 per cent, totalling five billion dollars.

The Sconi Project, located in North Queensland, is identified as having large ore bodies containing cobalt, nickel and scandium. Upon revision, the total ore reserve at the project has seen an increase of 69 per cent, resulting in the sum of 57.3 million tonnes. This is broken down into 8.08 million tonnes of proved ore and 49.22 million tonnes of probable ore.

The mines’ life has been extended to over 30 years, from the initial 18 years. As a result the mines total revenue has risen to $13.3 billion, which is a 44 per cent increase.

Positive drill results from earlier in the year sparked the revision of the Sconi Projects’ mine plan and ore reserve estimate. As it stands the company said the project is expected to produce 1,405,000 tonnes of nickel sulphate, 209,000 tonnes of cobalt sulphate and 1,441 tonnes of scandium during the course of the mines life.

Each year the project is expected to produce 46,800 tonnes of nickel sulphate and 7,000 tonnes of cobalt sulphate each year.

Australian Mines proposed during the Sconi Project’s life it will produce enough cobalt and nickel to create three to six million electric vehicle batteries. This is based on the current quantities needed.

Following the announcement, Australian Mines’ share price peaked at 27 per cent today and currently sits at an 18 per cent increase to $0.026 per share.

AUZ by the numbers
More From The Market Herald

" GWA Group (ASX:GWA) completes extension of syndicated banking facility

GWA Group (GWA) has successfully extended its syndicated banking facility.

" Downer (ASX:DOW) refinances $1.4b loan facility

Downer EDI Limited (DOW) has refinanced the group’s inaugural $1.4 billion sustainability linked loan facility, which was established in December 2020.
Quickstep (ASX:QHL) - CEO, Mark Burgess

" Quickstep (ASX:QHL) partners with Swoop Aero

Quickstep (QHL) has signed a strategic supply agreement with Swoop Aero.
Electro Optic Systems (ASX:EOS) - CEO, Dr Ben Greene

" Electro Optic Systems (ASX:EOS) moves ahead with OHB contract

Electro Optic Systems (EOS) will move ahead with a manufacturing contract with OHB Systems after concluding negotiations.