The estimated capex has fallen from $119 million to $111 million.

Tampia capex falls to $111m

Friday, 14 December, 2018 - 14:30

A revised feasibility study released by Explaurum has detailed a reduced capital cost of $111 million for its Tampia project in the Wheatbelt, as Ramelius Resources increased its stake in the gold explorer to 20 per cent.  

Brisbane-based Explaurum, which is currently subject to a hostile takeover offer from gold producer Ramelius, said the updated study provided a number of changes from the original report.

The estimated capex has fallen from $119 million to $111 million, while the all-in sustaining cost has also reduced from $855 per ounce to $825/oz.

The pre-tax net present value for the project has increased $31 million to $156 million.

Managing director John Lawton said the revised study confirms the strength of the Tampia project.

"Explaurum undertook to provide shareholders with critical Tampia project information in order to enable a balanced evaluation of the company within the context of the current Ramelius takeover offer,” he said.

“This updated Tampia feasibility study delivers on this commitment and details new and relevant information not previously assessed in the independent expert’s report prepared by BDO.

“The updated feasibility study confirms that Tampia is a technically sound and robust project with forecast annual production in excess of 100,000 ounces of gold, at an all-in-sustaining-cost averaging $917 per ounce.

“This places Tampia in the lowest cost quartile of gold projects globally.

“It also generates an outstanding margin of over $800 per ounce at current spot gold prices, which are trading at $75 per ounce higher than the gold price used in the updated feasibility study.”

The company has put the process plant construction out to an engineering procurement construction tender, which is expected to be completed soon.

Today’s announcement comes one day after Ramelius revised its takeover bid for Explaurum, adding a 2 cents per share sweetener to its original scrip offer.

According to a change of interest notice on the ASX, Ramelius' stake in Explaurum jumped from 5 per cent to 20.1 per cent.

Shares in Explaurum finished ahead 4.6 per cent at 12 cents each today.