Anfield Nickel shares close to year-high after positive Guatemala project study
Shares in Anfield Nickel's jumped 4.2% to within striking distance of a year-high on Friday after the company released the results of the economic assessment of the Mayaniquel project in Guatemala.
Anfield said the project may generate approximately 700 permanent jobs and 800 direct jobs during the three year construction period and potentially $1.8 billion in taxes and government royalties payable to the Guatemalan government.
Anfield highlighted the following in the study:
- Robust project economics driven by a low strip ratio (0.35:1), excellent metallurgy, good existing infrastructure, a large mineral resource and amenability of ore to physical upgrading to increase nickel grades of plant feed.
- Base case net present value ("NPV") of $606 million, at an 8% discount rate, and an internal rate of return ("IRR") of 14.1%.
- The base case assumes a long term nickel price of $8.25/lb, an 8% real discount rate, a $0.19/lb contained iron credit, $0.08/Kwh power cost and $100/tonne long term coal price (including freight) (the "Base Case").
- The PEA was completed on only the mineral resources contained within Anfield's Sechol and Tres Juanes deposits. These two deposits comprise approximately 63% of the indicated mineral resources and 52% of the inferred mineral resources, above a 1.0% nickel cutoff, defined to date at the Project.
- Average nickel in ferronickel production of 19,900 tonnes per year for 29.5 years with an average nickel in ferronickel grade of 22.5%.
- Capital payback in 5.2 years.
- C-1 life of mine ("LOM") cash costs (net of iron credits) estimated to average $3.14 per pound of nickel sold.