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- Triton Minerals (TON) provides a positive interim definitive feasibility study (DFS) update for its Ancuabe graphite project in Mozambique
- The update indicates that amid ongoing inflationary pressures affecting the mining industry, the company managed to keep in line with its capital expenditure estimate of US$99.1 million (A$146.7 million) from 2017
- The majority of capital costs were sourced from Jinpeng, which Triton awarded a FEED contract to for its process plant and associated non-processing infrastructure
- The company expects the final DFS update in Q2 CY2023, with works largely completed and results currently under review and finalisation
- Shares in TON are up 6.67 per cent and trading at 3.2 cents at 2:15 pm AEST
Triton Minerals (TON) has provided an interim definitive feasibility study (DFS) update for its Ancuabe graphite project in Mozambique.
Despite ongoing inflationary pressures impacting the mining industry, the company has managed to remain in line with its capital expenditure estimate of US$99.1 million (A$146.7 million) set back in 2017.
The company’s interim DFS update focused on refreshing key financial inputs such as graphite basket pricing, upfront capital expenditure, operating expenditure, and sustaining capital expenditure.
The updated upfront capital expenditure saw a material reduction of 12 per cent, including steel, plate work, pipework and electric, offset by increased in-country services and material construction costs such as civil engineering, labour and construction materials – which have increased by around 30 per cent due to inflation since 2017.
“It is a pleasing result that the initial capital costs have come in in line with the 2017 DFS estimate, especially in light of the recent inflationary pressures experienced by the mining industry,” TON Executive Director Andrew Frazer said.
Triton’s major capital costs came from experienced graphite mining equipment manufacturer, Jinpeng, which the company recently awarded a contract to carry out FEED works for its process plant and associated non-processing infrastructure.
“During the FEED stage, we will continue to optimise the project with respect to costs estimates, performance across the flow sheet and further de-risking of the project towards construction.”
Additionally, the company is undertaking an early contractor involvement (ECI) process, considered to be cost and time-effective.
The final results of the DFS update are expected to be released in Q2 CY23, with works largely completed and results currently under review and finalisation.
Project execution planning is also expected around the same time.
After this, Triton will engage an in-country project team, with key project members relocating to Pemba in northern Mozambique to progress the FEED works and commence project execution. FEED works are also expected to be completed in Q2 CY2023.
Shares in TON were up 6.67 per cent and trading at 3.2 cents at 2:15 pm AEST.
