Aspire Mining's Comprehensive Update on Ovoot Coal Resources and Reserves
AKM (AKM) Share Update November 2024 Wednesday 13th
Aspire Mining Updates Ovoot Coal Resources and Reserves
Aspire Mining Limited (ASX: AKM) has released a detailed update on the coal resources and reserves at its Ovoot Coking Coal Project, confirming its world-class status and supporting its financing strategy.
Instant Summary:
- Total Coal Resource estimated at 219.4 million tonnes.
- Total Coal Reserve estimated at 130.1 million tonnes.
- Life-of-Mine plan extends for 31 years with low average stripping ratio.
- Low initial capital costs with a payback period of three years.
- Projected NPV10 of just under USD 1.6 billion.
Resource and Reserve Details
Aspire Mining Limited has completed a comprehensive review of the Ovoot Coking Coal Project, with SRK Consulting MGL LLC estimating a total Coal Resource of 219.4 million tonnes. This includes 99.5 million tonnes Measured, 100.9 million tonnes Indicated, and 19.0 million tonnes Inferred resources.
The Coal Reserve is estimated at 130.1 million tonnes based on a Run-of-Mine moisture basis of 2.9%, with 76.8 million tonnes classified as Proved and 53.3 million tonnes as Probable.
Life-of-Mine Plan
The life-of-mine plan outlines a 31-year operation, with an initial production rate of 1.5 million tonnes per annum, ramping up to 5 million tonnes per annum. The plan includes a low average total stripping ratio of 6.5 bank cubic metres of overburden per ROM tonne of coal produced.
Financial Projections
Highlights from the project's cost model indicate low initial capital costs, with a payback period achievable within three years of production commencement. The project is expected to deliver a net present value (NPV10) of just under USD 1.6 billion.
The updated resource and reserve estimates reinforce the Ovoot project's viability, potentially boosting investor confidence. The low capital costs and strong financial projections may positively influence Aspire's stock price and attract new investors.
Investor Reaction:
Analysts are likely to view the update positively, given the project's confirmed world-class status and robust financial metrics. The extended mine life and low stripping ratio are particularly attractive features for long-term investors.
Conclusion:
Investors should consider the long-term potential of the Ovoot project as Aspire Mining continues to advance its development. The company's strategic focus on low-cost operations and strong financial returns positions it well for future growth.