- Vanadium Resources’ (VR8) share price has rallied after it announced its Pre-Feasibility Study (PFS) for its Steelpoortdrift Vanadium Project
- The PFS estimates a Life of Mine (LOM) earnings before taxes, interest, amortization and depreciation (EBITDA) of US$5.8 billion (A$7.69 billion)
- The capital expenditure (CAPEX) pre-production should total US$200 million (A$265.1m) while expansion CAPEX is set at US$147m (A$194.86m)
- VR8 says this PFS confirms Steelpoortdrift’s potential to be a world class, large scale, low cost vanadium producer
- Company shares are up 42.6 per cent at 7.7 cents each at 3:18 pm AEST
Vanadium Resources’ (VR8) share price has rallied after it announced the results from its Pre-Feasibility Study for its Steelpoortdrift Vanadium Project.
The company has a 50 per cent stake in the project in South Africa, which has a JORC compliant resource of 662 million tonnes at 0.77 per cent vanadium pentoxide.
Financially, the PFS has estimated a Life of Mine (LOM) earnings before taxes, interest, amortization and depreciation (EBITDA) of US$5.8 billion (A$7.69 billion).
The project’s internal rate of return (IRR) has also been set at 45 per cent, post tax, with payback expected to be achieved within 25 months.
Steelpoortdrift’s capital expenditure (CAPEX) pre-production is expected to total US$200 million (A$265.1 million) while the project’s expansion CAPEX is set at US$147 million (A$194.86 million).
VR8 Chairman Jurie Wessels said the PFS confirmed Steelpoortdrift’s potential to be a world class, large scale, low cost vanadium producer.
“The PFS endorses the world class qualities of the Steelpoortdrift project and emphasises the substantial intrinsic value of a processing enterprise that is expected to be the beneficiary of superior grades arising from the favourable exploitation qualities of the orebody,” Mr Wessels said.
“Through this result, VR8 is aiming to become a major supplier of vanadium products to global markets, which are increasingly expectant and reliant on vanadium in a dawning alternative energy era.”
VR8 will now put the project through more detailed design studies before ultimately beginning construction and production.
Company shares have spiked following the PFS release, trading up 42.6 per cent at 7.7 cents each towards the close of market on Wednesday.