The project with critical material products: rare earth element concentrate, which is confirmed by a shortage of products and a monopoly on the market. Favorable forecasts for rising raw material's prices and consumption
STRENGTHS
High quality raw materials and concentrate REE
Mining and technological solutions are environmentally friendly
Non-radioactive ores
Quick access to the maximum productivity
WEAKNESSES
Refinement of enrichment technology
Possibility of changing the ore quality
Need for further geological exploration
OPPORTUNITIES
High liquid commodity REE
Rising raw material prices and consumption
Integrated field development
THREATS
Fluctuation of the hryvnia exchange rate
Rising energy, materials and service costs
Fluctuation in world market mineral prices
ECONOMIC EFFICIENCY OF THE PROJECT
Life of Mine Forecast
| Annual value for concentrate productivity 6 670 t/year | value LOM | |
|---|---|---|
| Pre-tax profit, million $ | 21.6 | 278.6 |
| Income tax, million $ | 3.9 | 49.6 |
| After-tax profit, million $ | 17.6 | 228.9 |
| Cash flow, million $ | 20.5 | 266.4 |
| LOM | |
|---|---|
| Net Profit Margin, % | 119.5 |
| Profitability index – PI | 4.3 |
| IRR, % | 199 |
| LOM | |
|---|---|
| Net cash flow, million $ | 260.5 |
| NPV, million $ | 97.03 |
| РВР - payback period, years | 2 |