Sierra Rutile unveils DFS for Sembehun project
Takeover target Sierra Rutile has unveiled the results of its definitive feasibility study (DFS) for the Sembehun project, underscoring the transformative impact of the rutile project, located in Sierra Leone.
Sembehun stands out as one of the biggest and highest-grade natural rutile deposits globally, Sierra Rutile states, noting that the DFS has validated the project's potential to substantially enhance the company’s mine life, reduce its cost structure, leverage existing infrastructure, and create enduring value for shareholders and the local community in Sierra Leone.
The DFS highlights a range of key outcomes, underscoring the transformative impact of the Sembehun project. It is expected to have a mine life of 14 years, with no changes to the previous Sembehun ore reserve of 173.7-million tonnes at 1.46% rutile.
A yearly production rate target of about 14.4-million tonnes of ore mined is anticipated, supporting an average of 175 000 t/y of rutile production at steady state.
The DFS confirms the project's potential to deliver significant incremental value, with a reduction in capital expenditure estimate of 11% to $301-million compared to the previous prefeasibility study.
The expected payback is forecast within 55 months from project commencement, with a post-tax, real net present value, using an 8% discount, of $408-million and an internal rate of return of 27.8%.
Sierra Rutile MD and CEO Theuns de Bruyn expresses confidence in the Sembehun project's ability to “fundamentally change” the cost base and economic of mineral sands production by Sierra Rutile.
Sierra Rutile is the subject of an unsolicited takeover offer by investment group PRM Services.
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