EXPLORATION & DEVELOPMENT

Walkabout improves economics in upgraded Lindi Jumbo DFS

Walkabout Resources (ASX:WKT) has updated the definitive feasibility study (DFS) for its high-grade Lindi Jumbo graphite project in Tanzania again, this time adding in the recent ore reserve upgrade.

Staff reporter
Walkabout has lauded Lindi Jumbo's compelling economics in spite of conservative sales assumptions

Walkabout has lauded Lindi Jumbo's compelling economics in spite of conservative sales assumptions

The DFS' post-tax net present value climbed 9.4% to US$197 million, with the internal rate of return up 23.9% to 119% and a payback period of under two years.

The life of mine (LOM) was increased by four years to 24 at 40,000 tonnes per annum of production, while LOM revenue was increased by 21.6% to $1.4 billion.

Development capital cost dropped 6% to $27.8 million.

The DFS determined operational costs of $347 per tonne of concentrate FOB at the port of Mtwara, and cash margins of over $1,000/t FOB.  

Average annual free cash flow was estimated at $28.8 million, up 2.9% and the LOM EBITDA was forecast at $1.07 billion, climbing 21%.

Walkabout said the robust economics were based on current sales assumptions, with the weighted average basket price reduced to a $1,515/t.

Lindi Jumbo's reserves were increased in February by 10% to 5.5 million tonnes, with the total graphite content (TGC) up 22% to 987,000t and the life of mine grade up 11% to 17.9% TGC.

Executive director Allan Mulligan said the DFS demonstrated Lindi Jumbo's "compelling economics in spite of conservative sales assumptions".

"We have a high degree of confidence in the revised cost estimates which are derived from actual engineering drawings and negotiated contract prices.

"This mine has been designed to withstand potential start-up and ongoing risks. It continues to show outstanding economics with a payback period of less than two years," he said. 

At A14c (US9.86c), Walkabout shares are close to the A15c level seen six months ago. 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.