Polymetals Resources (ASX:POL) increased the value of its total assets to more than $22.45 million in the 6 months to 31 December 2023, while reducing liabilities from more than $3.119 million to $2.657 million.
In its interim financial report for H2 2023, the company today (14 March 2024) notes that while it incurred a loss for the period, the near-term outlook looks promising given the Endeavor Mine Restart Study (MRS) was completed in early October.
The MRS was completed by Polymetals’ technical staff with external assistance from specialist consultants engaged to complete ore reserve and mine scheduling, metallurgical testwork and recommended metallurgical recoveries.
The MRS extends to all known mineralised areas of the Endeavor Mine with processing via the existing 1.2 million tonnes per annum lead/zinc flotation circuit.
Australian Mining Consultants (AMC) were engaged to conduct an independent review of the MRS. The comprehensive AMC review completed on 20 December 2023 found no fatal flaws in the Endeavor MRS.
Receipt of the AMC report has allowed the company to advance its financing options toward redevelopment of the Endeavor Mine.
The financial outcomes of the Endeavor MRS for the first 10 years of its redeveloped
operational life includes life of mine (LOM) revenue of $1.412 billion, opex of $934 million, EBITDA of $400 million, and LOM free cashflow of $323 million.
With pre-production capex of $23.7 million, the mine will have pre-tax NPV of $201 million, IRR of 91%, for payback in just 2.3 years, as reported by Mining.com.au.
As per today’s financial report, on 30 November 2023 Polymetals provided an opportunity for its shareholders to participate in a rights issue. The entitlement offer closed on 22 December 2023 raising just over $1.743 million at a price of $0.32 per share.
The share issue price was at a 5% premium to the 30-day trading VWAP.
Proceeds will be used to progress the Endeavor MRS.
Polymetals Resources is an Australian mining and exploration company with a project portfolio with significant potential for the discovery and development of both precious and base metals resources.
Write to Adam Orlando at Mining.com.au
Images: Polymetals
