- Rex Minerals (RXM) has updated its capital and operating cost estimate for its Hillside Copper-Gold Project in South Australia
- Last week, the company received the all-clear for its Program for Environment Protection and Rehabilitation for Hillside from the SA Government
- The project's pre-production capital costs are expected to total US$410 million (around A$585 million), with an annualised earnings before interest, taxes, depreciation and amortisation (EBITDA) of A$152.7 million
- Every year, the project is expected to bring in 35,000 tonnes of copper and 24,000 ounces of gold
- In addition, Hillside will create approximately 500 to 550 jobs during its construction period and 430 during operations
- Rex remains unchanged on the market this afternoon and is trading for 23.5 cents per share
Rex Minerals (RXM) has updated its capital and operating cost estimate for its Hillside Copper-Gold Project in South Australia.
Last week, the company received the green light from the South Australian Government for its Program for Environment Protection and Rehabilitation (PEPR) for Hillside.
For the project, the net direct cash cost is expected to be US$1.38 per pound of copper and all-in sustaining cost (ASIC) of US$1.60 per pound of ore.
The study indicates the project has a 16.2 per cent internal rate of return and a post-tax net present value of just over half a billion Aussie dollars.
Pre-production capital cost will total US$410 million (around A$585 million) and annualised earnings before interest, taxes, depreciation, and amortisation (EBITDA) is expected to be A$152.7 million.
Over the first 12 years of production, Rex expects an average annual processing rate of six million tonnes per annum, and an annual average production of 35,000 tonnes of copper and 24,000 ounces of gold, with a head grade of 0.66 per cent copper and 0.17 grams per tonne of gold.
Hillside will boost the South Australian economy by employing 500 and 550 staff during construction and 430 during operations. Rex will also pay $170 million in royalties to the state.
“Where in the world can you find a near-term copper-gold project with these credentials!" said Rex's Managing Director, Richard Laufmann.
Hillside is one of Australia’s largest undeveloped open-pit copper mineral resources. The project contains two million tonnes of copper and 1.4 million ounces of gold.
"Located not far from Ardrossan on the Yorke Peninsula – a fantastic address with access to local workforce, township, accommodation, existing infrastructure and less than two hours’ drive from Adelaide," Richard told the market.
Rex remains unchanged on the market this afternoon and is trading for 23.5 cents per share at 12:59 pm AEST.