ANAX Metals Ltd (ANX)

---

Corporate Update - Whim Creek Project

13 May 2024 8:44 AM. Original PDF: Open PDF | 20 Pages

ANAX Metals reports significant improvement in Whim Creek Project financials with a 32% increase in economics, a Pre-Tax NPV7 of $357M, and an IRR of 74% due to strengthened copper prices.

Summary

• Strengthened copper prices have significantly enhanced the Whim Creek Project's financial outlook.
• The project now boasts a Pre-Tax NPV7 of $357M and an IRR of 74%.
• An 8-year mine life is expected to generate approximately $520M in free cash.
• There's potential for extending mine life and cash flow through re-optimisation at higher commodity prices.
• Exploration at Evelyn and Salt Creek is prioritized for resource extension.
• Project financing and strategic partnership discussions are making progress.

Highlights

• Pre-Tax NPV7: $357M
• IRR: 74%
• Estimated free cash generation: ~$520M over 8 years
• Copper price assumption: $9,900/t
• Significant improvement in project economics: 32%

Positives

• Substantial increase in project value and financial outcomes.
• High IRR indicating strong project profitability.
• Extended mine life and additional cash flow from higher commodity prices.
• Progress in strategic partnerships and project financing.

Negatives

• The need for re-optimisation to realize potential extensions, indicating additional work and costs.
• Dependence on sustained high commodity prices for improved financial outcomes.

Key Dates

• ASX: ANX 13 MAY 2024 - Date of corporate update announcement.
• March and September 2023 - Previous DFS1 and Heap Leach Study2 results.

Alerts

• Contains better than expected results: yes
• Contains worse than expected results: no
• Contains expected results: no
• Sentiment: very positive