Allied Critical Metals Further Highlights Rapid Payback, Capital Efficiency and Infrastructure from Borralha PEA

Core Insights - The article discusses the Preliminary Economic Assessment (PEA) for the Borralha Tungsten Project, highlighting its unchanged economic metrics and strong investor interest in project details [1][2][3]. Economic Assessment - The PEA outlines a capital-efficient underground tungsten development project in the EU, demonstrating strong economic returns across various tungsten price scenarios [3][6]. - The project was evaluated under three pricing frameworks: Base case at $962/mtu WO₃, Medium case at $1,365/mtu WO₃, and High case at $2,049/mtu WO₃ [3][5]. - The project shows significant sensitivity to tungsten prices, with approximately 96% of the project NPV driven by tungsten [6][7]. Financial Metrics - After-tax NPV (8%) at $1,000/mtu WO₃ is $473.4 million (USD $346.6 million) with an IRR of 48.8% [10]. - Payback periods are approximately 2.2 years from the start of commercial production and 4.2 years from the start of construction under the medium case [10][5]. - Average annual revenue is projected at approximately $252.5 million (USD $184.9 million) with an average annual EBITDA of approximately $142.2 million (USD $104.1 million) [10][20]. Capital and Operating Costs - Initial capital cost is estimated at approximately $124.2 million (USD $91 million) with total life-of-mine capital around $178 million [12][10]. - Operating costs are projected at approximately $59.3 per tonne processed, including mining, processing, and general administrative costs [15][48]. Resource and Infrastructure - The project is based on the updated Mineral Resource Estimate (MRE) for the Santa Helena Breccia, with a total of 13 million tonnes at a grade of 0.21% WO₃ for Measured and Indicated resources [12][9]. - The project benefits from existing regional infrastructure, including access to grid power and water resources, which supports a compact and efficient site layout [22][36]. Growth and Development Strategy - A fully funded 20,000-meter drill program is underway to target resource expansion and confidence conversion, aiming to extend the mine life beyond the initial 11-year plan [10][28]. - The project is positioned as one of the largest undeveloped tungsten resources in the EU, with a favorable Environmental Impact Declaration [34][33].