Dartbrook Open Cut

Completion of Open Cut Pre-Feasibility Study for Dartbrook Project

The Dartbrook Open Cut Pre-Feasibility Study (OC PFS) was the culmination of 12 months’ work since the Company completed the acquisition of the Project on 29 May 2017.

The OC PFS considers two main options – an owner operator case and a contract mining case.

The Study highlights:

  • The Owner-Operator and Contractor cases both deliver an NPV of approximately AU$1.3 billion with strong internal rates of return, 23.2% and 24.6% respectively
  • Study confirms the technical and financial capability of the Dartbrook Open-Cut Project
  • Consistently low run of mine coal strip ratio delivers very competitive, low life-of-mine operating costs in the 1st quartile for global seaborne thermal coal producers
  • Modelling of key environmental parameters indicates the Project meets or exceeds stringent environmental requirements
  • Substantial benefits for the region, State and Federal governments delivered by employment, royalties and taxes
Study Snapshot Unit Owner Operator Case Contractor Case
Project Net Present Value10 AUD million, as at 1 July 2017 1,341 1,292
Project Internal rate of return %, as at 1 July 2017 23.2 24.6
AUD Free on Board (FOB) operating cost LoM, all-in, excluding state royalties, 2017 AUD 42.1 47.8
US$ FOB LoM, all-in, excluding state royalties, 2017 USD 31.6 35.8
Payback period Year of production 5 5
Development Capex 2017 AUD to first coal 937 699
Average EBITDA Margin Steady State Earnings before interest, tax, depreciation and amortization, as a % of revenue 52% 46%
Total RoM tonnes LoM 226 226
Total Product tonnes LoM 172 172

Click here to view the Dartbrook Open Cut Pre-Feasibility Study