Cornish Metals (TSX-V, AIM: CUSN) said on Tuesday its South Crofty tin project in Cornwall, UK, carries an after-tax net present value (NPV6) of £180 million ($235 million) and an internal rate of return of 20%.
The updated Preliminary Economic Assessment (PEA) outlines a 14-year mine life producing 49,168 tonnes of tin, with average annual output of about 4,700 tonnes between years two and six, which is equivalent to 1.6% of global mined tin. The company estimates a 3.3-year payback period, cumulative after-tax cash flow of £558 million ($750 million), and annual EBITDA of £70 million with margins above 60%.
Pre-production capital stands at £198 million with sustaining capital at £43 million. The all-in sustaining cost is pegged at about $13,400 per tonne in years two through six, placing the project in the lowest quartile globally. EBITDA is forecast at £70 million annually during the same period,…
