Sky Metals Reports Pre-Tax NPV of AU$438 Million in Tallebung Project Pre-Feasibility Study

MT Newswires Live08-10 14:23

Sky Metals (ASX:SKY) said a pre-feasibility study for its Tallebung Project in New South Wales has returned a pre-tax net present value of about AU$438 million at an 8% discount rate and a pre-tax internal rate of return of 69% over an initial 7.3-year mine life, according to a Monday Australian bourse filing.

The company said the study delivers life-of-mine average annual earnings before interest, taxes, depreciation and amortization of more than AU$115 million and a capital payback of less than 17 months, based on assumed prices of $45,000 per tonne of tin, $1,500 per metric tonne unit of tungsten trioxide and $50 per gram of silver.

Pre-production capital is AU$138.8 million, comprising around AU$113.4 million for the processing plant and around AU$26.3 million for site and mine establishment, exclusive of contingency, with an all-in sustaining cost (AISC) of $5,653 per tonne of tin produced net of co-products, the filing added.

Funding discussions are advancing with strategic offtake, royalty, streaming and financing groups, with approvals targeting mining approval in late 2027 and first production in mid-2028, the filing added.

The company's shares rose 4% in recent Monday trade.

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