SDL 0.00% 0.6¢ sundance resources limited

sundance iron ore capex projection 3 28bn

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    Sydney, Feb 06, 2008 (RWE via COMTEX) -- SDLI | news | PowerRating | PR Charts -- (RWE Australian Business News) International iron ore company Sundance Resources (ASX:SDL) reports updated capital and operating cost estimates for its 90pc-owned Mbalam Iron Ore Project in Cameroon, West Africa of total capex of $3.28n.

    This work has been completed as part of the Company's pre-feasibility study program. The estimates will be presented today to the Indaba conference in South Africa.

    A study report provided by WorleyParsons has updated the original cost forecasts contained in the 2006 Scoping Study of the Mbalam Project completed by Promet Engineers. The study report is based on December 2007 US Dollar pricing. The estimates remain preliminary and subject to various assumptions in respect of site data, engineering definition, construction and operating conditions, exchange rates, etc. Work is continuing with the aim to progressively refine the project scope and costings.

    The project operating financials have been updated using the current operating cost estimate and 2007 FOB contract prices for Australian DSO grade lump and fines products. This shows a potential annual operating margin of >US$30/tonne on assumed 35Mtpa production of Direct Shipping Ore (DSO) hematite. This represents a 20% increase over the operating margin reported on the basis of the 2006 Scoping Study.
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