Metals X MLX Rentails

Metals X (ASX:MLX) has published the results of its definitive feasibility study on the Renison Tailings Retreatment project (or just ‘Rentails’). The Renison project already produces 7,000 tonnes of tin per year and is on its way to produce 8,000-8,500 tonnes of tin as the company will start to use ore sorting to improve its operational efficiencies.

Metals X MLX Rentails 2

The initial capex of the tailings processing plant is estimated at A$205M which is reasonable considering the annual output of 5,400 tonnes of tin and approximately 5 million pounds of copper per year (that being said, it doesn’t look like any contingency was used, so we wouldn’t be surprised to see the capex come in higher than the A$205M). At a tin price of A$24,000 per tonne, the pre-tax NPV8% would come in at A$171M with an IRR of 27%, which would increase to A$260M and 37% using a tin price of A$26,667/t using an average head grade of 0.45% tin and 0.23% copper over the life of mine.

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The author has no position in Metals X. Please read the disclaimer

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