Capital & Operating Costs

Capital Costs

Pre-production capital costs in the Savannah FS Optimisation are approximately $20M, essentially unchanged from the Feasibility Study. Life-of-mine capital expenditure, inclusive of pre-production costs, mining capital development and sustaining property, plant and equipment (PP&E) capital needs, but excluding closure costs, is estimated to be approximately $220M (Table 4).   The estimated annual capital expenditure profile is shown in Figure 6.

The estimation methodology and cost of most individual capital items largely unchanged from the Feasibility Study. As shown in Table 4, the biggest changes in capital expenditure, compared to the Feasibility study are:

  • $7.5M for solar power plant;
  • $5.2M for concentrate haulage fleet;
  • $7.0M capitalised costs net of capitalised revenue during the three-month production ramp-up phase; and
  • $8.0M reduction in mining capital development.

Table 4 – Savannah FS Optimisation – pre-production, ramp-up, sustaining and LOM capital cost estimates ($’M).  Amounts are rounded to nearest $1M

Figure 6 – Savannah FS Optimisation – Annual capital expenditure profile

Operating Costs

The estimation methodology and unit costs of most individual operating cost items in the Savannah FS Optimisation are also largely unchanged from the Feasibility Study.  Unit site operating costs on a per tonne milled basis in the Savannah FS Optimisation are estimated to be $92/t compared to $99/t estimated in the Feasibility Study, a reduction of 7% (Table 5).  Total life-of mine site-based operating costs in the optimised case are reduced to $680M, compared to $800M in the Feasibility Study.

Table 5 – Savannah FS Optimisation – Life of Mine Unit Cash Operating Cost ($/t milled)

Figure 7 – Savannah FS Optimisation – Annual unit operating costs per tonne milled

Figure 8 – Savannah FS Optimisation – Annual operating costs

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