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On 24 January 2019, Mayur Resources Limited (ASX:MRL) announced that it had completed the Definitive Feasibility Study (DFS) for the Central Cement and Lime Project (the Project) which is located near Port Moresby, PNG.
The DFS has confirmed technical robustness and strong economics for the project. As per DFS, the Project is going to be robust, and it will deliver healthy margins with current forecast life?of?project (LOP) revenue of US$4,792 million and LOP Project EBITDA of US$3,540 million. As per DFS, the project is estimated to have a life of 30 years.
The project is supported by a 78 Million tonnes Ore Reserve that has been taken from the larger JORC Resource of 382 Million tonnes that will potentially enable both the future duplication expansion of the Projectâs cement and quicklime plant capacity and an extension of the project life beyond 50 years.Â
As per the announcement, the Company has also delineated a new Mineral Resource of 14 Mt (JORC) for cement making correctives material. The results of the DFS study provides a strong platform for the Company to submit its application for a Mining Lease for the quarrying operations. Further, now the company can complete the next steps of detailed engineering design, product offtake and project financing that will enable a financial investment decision and a target commencement of construction by late 2019.
As per Mayurâs Managing Director Paul Mulder, the completion of the highly encouraging Definitive Feasibility Study for the CCL Project within just 12 months of the companyâs maiden JORC in January 2018, is a huge achievement for the company. The company has delivered on its commitments set out in the capital raise in April 2018 and after a period of intense activity from its highly experienced team. He told that now the company has a solid base case that paves the way for delivering both a nation-building project for PNG and an extremely important project in Mayurâs portfolio.
Now that the definitive feasibility study is complete, the company can submit its proposal for development to the Mineral Resource Authority and seek approval of a Mining Lease for the project. Further, the company can finalize the compensation agreements with the local community.
As per the DFS, the project cost is estimated to be of US$ 331 million which is determined from DFS engineering and EPC bids received for delivery of the fully integrated project.
The company is committed to significantly lowering the price of cement in PNG over the operational life of the Project. Progressive price reductions will positively impact the economy by reducing the cost of infrastructure and residential housing all being cheaper to build, ultimately making PNG a more affordable place to live, do business and attract foreign investment.
Meanwhile, in the last 6 months, the share price of the MRL decreased by 7.80 percent as on 22 January 2019. Its shares traded at $0.620 (-4.615% intraday) with a market capitalization of circa $97.57 million on 24 January 2019.
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