Pacific Lime and Cement (ASX:PLC), formerly known as Mayur Resources, has secured approval for a final investment decision (FID) to proceed with developing the Central Lime Project in Papua New Guinea.
The FID is made on the basis of a strategic re-design, reducing upfront capital and enabling the project to be fully funded from existing cash reserves, with access to additional contingent funding sources available if necessary, enabling full-scale construction to begin.
Managing Director Paul Mulder says this marks a milestone in the company’s journey to becoming a regionally significant supplier of lime and cement.
“This decision reflects our confidence in the project’s robust economics, strong market demand and strategic positioning, and the high-level support we have received in both government and in the community of Papua New Guinea,” Mulder says.
“The equity-only funding model provides the company with funding certainty during the construction of the Central Lime Project, while also offering a path to enhance life-of-project cashflows attributable to equity holders.
“The Central Lime Project represents a significant opportunity to deliver lasting benefits to Papua New Guinea. With FID now secured, we are focussed on executing the development phase with discipline and efficiency.”
Mulder notes that the project is expected to create hundreds of direct jobs and extend into thousands of indirect jobs. It will also help in establishing a domestic supply of lime that will support construction and industrial development in the nation.
By proceeding with a FID, Pacific Lime and Cement has materially de-risked the project’s capital structure and expects a revised strategy to generate improved forecast free cashflow creating an improved platform for the company to pursue scalable long-term growth in the building materials sector.
Lime is a versatile material that is primarily calcium oxide or calcium hydroxide, derived from limestone or chalk. It is widely used in construction, agriculture, and various industrial processes.
Pacific Lime and Cement is focused on developing natural resources in Papua New Guinea. In addition to lime and cement, the company is focused on iron ore and industrial sands.
Write to Aaliyah Rogan at Mining.com.au
Images: Pacific Lime and Cement
