Question
I need to summarize below press release and please include a professional opinion about the impact in trading performance and public market from an investor
I need to summarize below press release and please include a professional opinion about the impact in trading performance and public market from an investor perspective (Please use Yahoo finance and provide the link of Yahoo chart):
Generation Mining Delivers Updated Feasibility Study for Canada's Next Critical Mineral Mine - the Marathon Palladium-Copper Project
After-Tax NPV6% $1.16 Billion, IRR of 26%, Payback 2.3 years
Toronto, Ontario - March 31, 2023 - Generation Mining Limited (TSX: GENM; OTCQB: GENMF) ("Gen Mining" or the "Company") is pleased to announce positive results on the updated Feasibility Study ("2023 FS" or the "Feasibility Study") for the Marathon Palladium-Copper Project (the "Project") located near the Town of Marathon in Northwestern Ontario. The 2023 FS presents an optimized design for the Project with improved clarity on anticipated capital and operating costs in the current inflationary environment. The 2023 FS outlines the operation of an open pit mine and process plant over a mine life of 12.5 years and replaces the Company's March 2021 Feasibility Study (the "2021 FS").
All dollar amounts are in Canadian dollars unless otherwise stated. All references to Mlbs are to millions of pounds and Moz are to millions of ounces and koz are to thousands of ounces.
Highlights:
Robust economics1: An after-tax Net Present Value ("NPV") at a 6% discount rate of $1.16 billion and Internal Rate of Return ("IRR") of 25.8% based on a long-term price of US$1,800/oz for palladium and US$3.70/lb for copper.
Quick payback period on Initial Capital2,3: 2.3 years.
Initial Capital: $1,112 million ($898 million net of equipment financing and pre-commercial production revenue), an increase of 25% from the 2021 FS.
Low Operating Costs and attractive AISC: Life of mine ("LOM") average operating costs of US$709/PdEq oz and all-in sustaining costs ("AISC") of US$813/PdEq oz3. Operating costs have increased 14% compared with the 2021 FS.
Increased Mineral Reserve Estimate: an increase of 8.5% in Mineral Reserves tonnages and a decreased open pit strip ratio
Optimized operation: increased process plant throughput and improved metallurgical recoveries over LOM
Average annual payable metals: 166 koz palladium, 41 Mlbs copper, 38 koz platinum, 12 koz gold and 248 koz silver
LOM payable metals: 2.1 Moz palladium, 517 Mlbs copper, 485 koz platinum, 158 koz gold and 3.2 Moz silver
Strong cash flows in first three years of production following commercial production: $851 million of free cash flow3, 580 koz of payable palladium and 132 Mlbs of payable copper
Jobs: Creation of over 800 jobs during construction jobs and over 400 direct permanent jobs during operations
Jamie Levy, President and CEO of the Company, commented, "This updated Feasibility Study underscores just how robust the Marathon Project is, even in the current inflationary environment. This, combined with strong demand for critical minerals, makes the rationale for the Project becoming Canada's next critical minerals mine more compelling than ever before. With the receipt of our Environmental Assessment approvals and our recently announced indicative offtake term sheets, we are advancing to arrange Project financing and working hard to obtain the permits necessary to start construction. The Project promises to be a near-term sustainable, environmentally sensitive, low-cost producer of critical metals that Canada and the rest of the world desperately need. On a copper equivalent basis, the Marathon Project, once in production, is expected to be one of the lowest CO2 equivalent intensity mines in the world. The metals we plan to produce will not only support emissions controls and the transition to a greener economy in Ontario and Canada, but they will also support job creation and economic prosperity for local, regional, and national stakeholders, in particular the First Nation community of Biigtigong Nishnaabeg and the Town of Marathon."
Following the 2021 Feasibility Study, the Company undertook considerable work to optimize and de-risk the Project, including:
Detailed engineering on the process plant, Tailing Storage Facility ("TSF"), and site infrastructure designs.
Additional metallurgical test program to optimize the flowsheet and plant design and improve confidence in metallurgical recoveries. Results allowed the Company to remove the PGM- Scavenger circuit from the process plant design and lower the process plant unit-operating costs.
Geotechnical investigations completed in areas of key infrastructure location and confirmed the locations chosen in the construction design.
Additional diamond drilling of 18,995 m within the Marathon Deposit targeting key areas within the open pit Mineral Reserves in the first three years of planned production, and areas within and proximal to the overall Mineral Resources.
Agreement finalized with Hycroft Mining Holding Corporation ("Hycroft") for the purchase of an unused, surplus SAG mill and an unused, surplus ball mill4, which together with ancillary equipment allows the Company to increase throughput by 10% in the second full year of production.
Community Benefits Agreement ("CBA") signed and ratified with the Biigtigong Nishnaabeg ("BN"), on November 12, 2022.
Federal and Provincial Environmental Assessment approvals received on November 30, 2022.
Initiated the process of obtaining various federal and provincial permits and approvals required to construct and operate the project.
Drew Anwyll, P.Eng, Chief Operating Officer, said, "Our team has been working hard to develop the Marathon Project and has successfully optimized and improved confidence in the designs of the process plant, the open pits and the necessary infrastructure for the Project. Detailed design will advance, and we will continue to de-risk the Project in anticipation of finalizing the Project financing and receiving approval of the required permits to commence construction later in 2023."
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