Dartbrook Open Cut

Completion of Open Cut Pre-Feasibility Study for Dartbrook Project

The Dartbrook Open Cut Pre-Feasibility Study (OC PFS) is the culmination of 12 months’ work and marks a major milestone for the Company since completion of the acquisition of the Project on 29 May 2017.

AQC’s vision is to develop Dartbrook as a low impact, open cut, mining operation. 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$1.3 billion with strong internal rates of return, 23.2% and 24.6% respectively
  • Study confirms the technical and financial capability of the Dartbrook Open-Cut Project
  • Consistently low run of mine coal strip ratio delivers very competitive, low life-of-mine operating costs in the 1st quartile for global seaborne thermal coal producers
  • Modelling of key environmental parameters indicates the Project meets or exceeds stringent environmental requirements
  • Substantial benefits for the region, State and Federal governments delivered by employment, royalties and taxes
  • Environmental Impact Statement commenced with completion and submission anticipated by Q3FY19.
Study Snapshot Unit Owner Operator Case Contractor Case
Project Net Present Value10 AUD million, as at 1 July 2017 1,341 1,292
Project Internal rate of return %, as at 1 July 2017 23.2 24.6
AUD Free on Board (FOB) operating cost LoM, all-in, excluding state royalties, 2017 AUD 42.1 47.8
US$ 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