Since October 2014, in parallel with the preparation of the Definitive Feasibility Study (DFS), the Company has conducted a detailed early engagement and competitive tendering process with specialist contractors for critical aspects of the Project’s construction.
This has resulted in the selection of Associated Mining Construction (UK) and Hochtief Murphy joint ventures as the preferred contractors for the mine site development and mineral transport system respectively.
The completion of the DFS and detailed discussions with our preferred contractors has enabled the Company to confirm the Project’s capital funding requirement and economic return metrics, as set out below:
Total Project capital funding requirement of US$2.91 billion
Stage 1 capital funding requirement of US$1.09 billion
Net present value of US$15.4 billion (assuming ultimate production levels of 20 Mtpa), rising to US$27.8 billion upon commencement of production
An unlevered after tax internal rate of return of 28% (assuming ultimate production levels of 20 Mtpa)
The ability to generate annual earnings before interest, tax, depreciation and amortisation (EBITDA) ranging between US$1 billion and US$3 billion through various volume and price outcomes