Alien Metals Limited NPV (DI) (UFO)

Sector:

Mining

Index:

FTSE AIM All-Share

0.20p
   
  • Change Today:
      0.005p
  • 52 Week High: 0.41
  • 52 Week Low: 0.12
  • Currency: UK Pounds
  • Shares Issued: 6,492m
  • Volume: 12,356,823
  • Market Cap: £12.98m
  • RiskGrade: 512

Alien Metals takes wraps off Hancock development study

By Josh White

Date: Thursday 08 Feb 2024

LONDON (ShareCast) - (Sharecast News) - Alien Metals unveiled promising outcomes of a development study on its Hancock Iron Ore Project in Western Australia's Pilbara region on Thursday.
The AIM-traded firm said the study, facilitated by Mining Plus, Burnt Shirt and internal personnel, was anchored by an updated mineral resource estimate which boasted a JORC mineral resource of 8.4 million tonnes at 60% iron.

With an upgraded indicated resource of 4.5 million tonnes at 60.2% iron and eight million tonnes of the mineral resource earmarked for conversion to mining inventory, the project had solid financial metrics.

Alien said key indicators included an average annualised EBITDA of AUD 39m (£20.09m), a pre-tax 10%-discounted net present value of AUD 146m, and a pre-tax internal rate of return of 133%.

Operating with an all-in sustaining cost of $85 per tonne and a production rate of 1.25 million tonnes per annum, the project demonstrated strong potential for profitability.

The firm said the development study also emphasised the project's operational viability and cost-efficiency.

Confidence in capital and operational costs was bolstered by up-to-date tendered pricing for over 90% of expenditures.

Initial production plans prioritised the exploitation of a 3.9 million tonne mining inventory, with scope for further upside through tapping into the entire mineral resource and ongoing exploration activities.

Using a mobile dry crushing and screening plant, the ore processing strategy was geared towards producing 1.25 million to 1.5 million tonnes of 100% fines product annually.

Notably, the proximity to the mining hub of Newman contributed to cost reduction by circumventing extensive construction expenses.

Moreover, provisional export capacity through the port of Port Hedland had been secured, pending final approvals expected in the first half of 2024.

"The development study is a significant advancement and de-risking step for the Hancock Project," said non-executive chair Alwyn Vorster.

"Attractive project economics highlight the robustness of the project with its low start-up cost, sustainable operational costs along with the significant upside from future exploration plans.

"The geological review recently undertaken reinforces that the Hancock Project has significant regional exploration potential to increase the resource base through further exploration activities, supporting the company's future growth and expansion aspirations."

Vorster said Alien was confident that the global iron ore industry had a "bright future", underpinned by ongoing high demand for quality iron ore from stable jurisdictions like Australia, where high environmental, social and governance standards were set in the production of raw materials.

"Healthy iron ore prices as experienced over the last few years will support the Hancock Project delivering shareholder value in the medium term."

At 1354 GMT, shares in Alien Metals were up 9.06% at 0.2p.

Reporting by Josh White for Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

UFO Market Data

Currency UK Pounds
Share Price 0.20p
Change Today 0.005p
% Change -2.44 %
52 Week High 0.41
52 Week Low 0.12
Volume 12,356,823
Shares Issued 6,492m
Market Cap £12.98m
RiskGrade 512

UFO Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
34.61% above the market average34.61% above the market average34.61% above the market average34.61% above the market average34.61% above the market average
31.34% below the sector average31.34% below the sector average31.34% below the sector average31.34% below the sector average31.34% below the sector average
Price Trend
83.56% below the market average83.56% below the market average83.56% below the market average83.56% below the market average83.56% below the market average
62.5% below the sector average62.5% below the sector average62.5% below the sector average62.5% below the sector average62.5% below the sector average
Income Not Available
Growth Not Available

UFO Dividends

No dividends found

Trades for 24-May-2024

Time Volume / Share Price
16:29 180,000 @ 0.20p
16:19 336,320 @ 0.20p
15:18 477 @ 0.21p
14:48 87,597 @ 0.19p
14:44 95 @ 0.21p

UFO Key Personnel

Finance Director Guy Adrian Robertson
CEO Troy Whittaker

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