The annual general meeting of Australian Mines Limited (ASX: AUZ) in its AGM held on 21 November 2018, the chairman of the company disclosed its recent bank feasibility study (BFS) on its Sconi Project in North Queensland. He also highlighted the annual revenue generated through its production.
He states that the outcome of the BFS results was very positive and he has met the expectation of the board and executive team members.
Through these studies, the company was able to identify the commercial viability for constructing and operating three open pits and 2 million tonnes per annum at Sconi plant for 18 years. It is expected that the proposed operations will be able to generate $0.5 billion per year. An annual EBITDA of around 300 million will be generated.
As per the BFS, the average production of cobalt sulfate will be 8,500 tonnes per annum. Also, the average nickel sulfate production will be 53,000 tonnes per annum. The average production of both cobalt sulfate and the nickel sulfate meets the off-take agreement with the SK Innovation which is a Korean battery manufacturer who is ready to take the entire volume of nickel and cobalt produced.
It was also highlighted that the company had started its journey of becoming a strategic partner for the supply chain of the global battery material. At the same point of time, another project was as acquired by the name of Flemington in South Wales. The company shows its confidence in completing the acquisition of both the cobalt and nickel project.
In the past couple of months, the growth was reported it to be extremely encouraging as a result of extensional drilling across specific regions of the Sconi project. The Sconi project is considered to be a top asset of the company and one of the advanced cobalt projects of Australia. The result which was received by now indicates a further increase in the requirement of nickel and cobalt. A further study is going on to extend the existing potential of the Sconi project in the long term.
Another project, Flemington, is following Sconi project regarding exploration studies and development planning.
The company is now looking forward to some commercial opportunities for the scandium oxide at its Sconi project. Based on this, the company has entered into another global research and global partnerships in the same duration of time.
The company has stepped ahead into the second phase of research and development project Metalysis in the UK. This project was provided with the scandium oxide to evaluate the simpler and cost-effective means to produce aluminum-scandium feedstock for alloy development.
Since the inception, the performance of the company is 20.62%. The 1 year and 5 years performance of the company was -52.17% and 864.97% respectively. By the end of the day, the market price of the share has gone up by 4.545%. The closing price of the share was A$0.046 with the market capitalization of A$119.48 million.