Anatolia Energy (ASX: AEK) Releases PEA Results of Temrezli Uranium Project
- Preliminary Economic Assessment demonstrates robust economics -- NPV (8% DCF) of US$ 173.9M (A$ 189.1M) -- Internal Rate of Return of 103% -- Total production of 9.1M lbs U3O8 over a 10 year LOM -- Upfront Capital US$ 30.6M & Cash Operating Costs of US$ 22.30/lb - Defines path for advancement of the Temrezli project to production - Sefaatli & West Sorgun projects offer additional scale and economic potential
PERTH, AUSTRALIA--(Marketwired - Jul 1, 2013) - Turkish uranium explorer and ASX listed Anatolia Energy Limited ("Anatolia" or "the Company") (ASX:AEK) is pleased to announce the results of a Preliminary Economic Assessment (PEA) for the Temrezli Uranium Project in the central Anatolia region of Turkey.
The PEA confirms the amenability of the Temrezli deposit to low cost In-situ recovery techniques, and indicates a pre-tax NPV at an 8% discounted cash flow (DCF) of US$173.9M
Assumed U3O8 Price | US$ 60 / lb |
Life of Mine | 10 Years |
Total U3O8 Production | 9,125,000 lbs |
Annual U3O8 Production | 1,000,000 lbs |
Upfront Capital Costs | US$ 3.35 / lb or US$ 30.6M |
Cash Operating Costs | US$ 22.30 / lb |
Pre-Tax NPV (8% DCF) | US$ 173.9M |
Free Cash Flow | US$ 288.9M |
Internal Rate of Return | 103% |
The PEA clearly demonstrates that the Temrezli Uranium Project will be in the lowest cost quartile uranium production. Sensitivities were evaluated by WWC to varying uranium prices. At US$ 40/lb U3O8, the NPV (8% DCF) is US$ 68.8M, whilst at US$ 80/lb U3O8 the assessment provides for an NPV (8% DCF) of US$ 279.0. This demonstrates the robustness of the project economics. The US$ 60/lb uranium price assumption is substantially lower than the peer assessments detailed in the PEA, and reflective of consensus uranium price forecasts by market analysts.
Anatolia will advance the permitting and environmental assessment process with the intention of commencing production in early 2016 and, as previously announced, continue to negotiate various forms of development funding with potential partners.
Anatolia's Managing Director Jim Graham said, "The WWC Engineering assessment of the Temrezli Uranium Project demonstrates a robust case for advancing the Project to a production decision. We will immediately plan an in-fill and step-out drilling program to delineate additional resources, and implement our previously stated intention to conduct further hydrological testing.
A full copy of the PEA is available on the company's website at http://anatoliaenergy.com.au/news/