{"id":9529,"date":"2024-05-13T00:12:28","date_gmt":"2024-05-13T00:12:28","guid":{"rendered":"https:\/\/economicherald.net\/?p=9529"},"modified":"2024-05-13T00:12:28","modified_gmt":"2024-05-13T00:12:28","slug":"anax-metals-whim-creek-project-muscles-up-as-copper-prices-surge","status":"publish","type":"post","link":"https:\/\/economicherald.net\/?p=9529","title":{"rendered":"Anax Metals\u2019 Whim Creek project muscles up as copper prices surge"},"content":{"rendered":"

Rising copper prices have increased economics of Anax Metal\u2019s Whim Creek project by 32%
\nProject now estimated to generate $520m in free cash flow along with pre-tax NPV of $357m and IRR of 74%
\nStudies have started on regional processing hub strategy and discussions are continuing with potential offtakers and financiers<\/p>\n

\u00a0<\/p>\n

Special Report:<\/em><\/strong> Strengthening copper prices have supercharged the economics of Anax Metals\u2019 Whim Creek copper project by 32%, increasing pre-tax NPV to $357m and IRR to 74%.<\/strong><\/p>\n

Whim Creek is just 115km from Port Hedland and will process sulphide ore from the Mons Cupri, Whim Creek, Evelyn and Salt Creek deposits through a new 400,000tpa concentrator.<\/p>\n

Under a\u00a0definitive feasibility study<\/strong><\/a>\u00a0released in April 2023, the project was envisioned by Anax Metals (ASX:ANX)<\/strong><\/a> as a base metals operation with a production life of 8.5 years and very modest $71m pre-production capex at that time.<\/p>\n

This will in turn generate free cash flow of $340m with a NPV and IRR \u2013 both measures of profitability \u2013 of $224m and 54.3% respectively through the production of 55,000 tonnes per annum of copper, zinc and lead concentrates (~12,000t copper equivalent).<\/p>\n

From the second year of operation, the company will use the fully permitted existing heap leach facility to produce copper cathode and zinc sulphate from mined low-grade ore.<\/p>\n

ANX has also started studies for a 20,000tpa copper equivalent production hub at Whim Creek that will offer its neighbours a potential processing solution.<\/p>\n

This production will be split equally between the concentrator and the heap leach facility.<\/p>\n

The first stage of this is a scoping study<\/strong><\/a> with 20% JV partner\u00a0Develop Global (ASX:DVP)<\/strong><\/a> into the feasibility of transporting oxide ores from DVP\u2019s 100%-owned Sulphur Springs deposit to Whim Creek for heap leaching into saleable copper and zinc products.<\/p>\n

\u00a0<\/p>\n

Strong copper delivering improved economics<\/strong><\/h2>\n

With copper prices rising some 17% to date this year, ANX now expects Whim Creek to generate $520m in free cash flow, delivering pre-tax NPV and IRR of $357m and 74% respectively.<\/p>\n

Along with increases in other commodity prices, the company also outlined the potential to increase open pit mine life and cashflow through further re-optimisation work.<\/p>\n

It will also prioritise Evelyn and Salt Creek copper resource extension exploration in the coming field season and has started studies for the regional processing hub strategy.<\/p>\n

Additionally, leaching test work for Sulphur Springs oxide\/transitional leaching has been completed while discussions are continuing with several commodity traders and funds interested in securing offtake and providing financing for the project.<\/p>\n

Over the last few weeks, ANX has also s engaged with a number of new parties interested in securing Australian copper.<\/p>\n

\u201cThe Whim Creek asset continues to shape up as a strategic processing hub for the Pilbara. The robust standalone project delivers attractive economic outcomes which are highly leveraged to base metal prices,\u201d managing director Geoff Laing said.<\/p>\n

\u201cThe recent increase in copper and other key metal prices has significantly enhanced project financial metrics.<\/p>\n

\u201cAnax is ideally positioned to benefit from the positive momentum building in copper demand on the back of its critical role in electrification and green technologies.<\/p>\n

\u201cThe team has worked diligently to ensure the Whim Creek asset is ready for near term production of key energy metals while establishing a platform for growth through the processing hub and resource extensions.\u201d<\/p>\n

\u00a0<\/p>\n\n

\ufeff<\/span>\u00a0<\/p>\n

\u00a0<\/p>\n

This article was developed in collaboration with Anax Metals, a Stockhead advertiser at the time of publishing. <\/em><\/p>\n

\u00a0<\/em><\/p>\n

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.<\/em><\/p>\n

<\/span><\/p>\n

The post Anax Metals\u2019 Whim Creek project muscles up as copper prices surge<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Rising copper prices have increased economics of Anax Metal\u2019s Whim Creek project by 32% Project now estimated to generate $520m in free cash flow along [more…]<\/a><\/p>\n","protected":false},"author":0,"featured_media":9530,"comment_status":"","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-9529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nAnax Metals\u2019 Whim Creek project muscles up as copper prices surge - Economic Herald<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/economicherald.net\/?p=9529\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Anax Metals\u2019 Whim Creek project muscles up as copper prices surge - 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