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- Company updates help the investors in taking informed decisions.
- Two ASX-listed stocks, Silver Mines (ASX:SVL) and Santos (ASX:STO) are on the investors’ radar today following significant market updates.
Investors keep a close watch on recent developments within a company. It is pretty obvious as the updates keep them informed about the business conditions and give them signs that help in making decisions about their investments.
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SVN has released an update on a mining lease application, while STO has announced the Barossa FPSO contract.
Let's explore these updates in detail to understand why they created a buzz among investors today.
Silver Mines (ASX:SVL) Submits Bowdens MLA
Silver Mines Limited (ASX:SVL) has submitted a mining lease application to develop the Bowdens Silver project, which is one of the largest undeveloped silver assets in Australia.
Located in central NSW, the project sits within the exploration licence 5920, fully owned by SVL. With a proposed open cut mine feeding a new processing plant of 2.0Mtpa capacity, the project is under the development stage. The project is expected to have a mine life of 16.5 years with life of mine production at ~66 million ounces of silver, 130,000 tonnes of zinc and 95,000 tonnes of lead.
The project has already secured no-objection from government agencies under the exhibition process and completed the Environmental Impact Statement (EIS) in May 2020. The EIS was concluded with favourable assessment outcomes.
The company is engaged in finalising the EIS Response to Submissions to the NSW Department of Planning, Industry and Environment as part of the final phases of the approval process.
The stock of SVL was trading flat at A$0.225 at 2:55 PM AEDT on 24 March 2021.
Santos (ASX:STO) Engages BWO for Barossa FPSO Services
Santos (ASX:STO) operates the Barossa project in collaboration with its partner SK E &S. STO holds a 62.5 per cent operating interest in the project.
The company has awarded a major contract concerning the project to BW Offshore (BWO). The contract is for the construction of a Floating Production, Storage and Offloading vessel (FPSO). The contract is subject to a final investment decision on the project.
Source: ASX Update, dated 24 March 2021
The contract involves an up-front pre-payment and a buyout option with an overall reduction in the capital costs by around US$1.0 billion.
The contract will help Santos maintain a low operating cost and significantly reduce its carbon footprints. The FPSO vessel will be built in Singapore and South Korea. It is planned to process natural gas for supply to Darwin LNG after installation.
The final investment decision on the Barossa project is expected in the coming weeks with a first gas plan in 2025.
STO stock was trading lower by 1.674 per cent to A$7.050 at AEDT 3:02 PM on 24 March 2021.