Grangex (6MV) Update / Briefing Transcript

Grangex (6MV) Update - Key Points Summary Company Overview - Company: Grangex AB - Project: Sydvaranger Restart Project - Focus: Definitive Feasibility Study (DFS) for the Sydvaranger mine Core Insights and Arguments - Completion of DFS: The DFS has been completed on time and within budget, confirming the techno-economic viability of the Sydvaranger project, with significant improvements over the Preliminary Economic Assessment (PEA) conducted earlier in January 2025 [4][11] - Net Present Value (NPV): The pre-tax NPV has increased to $1.5 billion, a significant jump from previous estimates, indicating strong economic metrics for the project [5][11] - Internal Rate of Return (IRR): The IRR is reported at 9.2%, slightly lower than previous estimates due to the acceleration of capital expenditures (CapEx) to enhance project execution [5][13] - Mine Life Extension: The mine life has been extended from 19 years to 25 years, adding approximately six years of operational capacity [12][22] - Production Capacity: The concentrate production has increased from 53.8 million tons to 63.3 million tons, reflecting enhanced resource estimates [12][14] - Operating Costs: Life-of-mine operating costs have decreased to $56.1 per ton of concentrate, down from $61.8 per ton in the PEA, showcasing improved cost efficiency [25][26] Financing and Operational Plans - Financing Strategy: The DFS serves as a foundation for securing financing for the final investment decision (FID) expected by the end of 2025 [6][53] - First Shipment: The first commercial shipment is anticipated by November 2026, allowing the project to become cash flow positive early in its operational phase [6][12] - Project Execution Skills: Grangex emphasizes its unique in-house capabilities for project execution, covering all aspects from geology to logistics and sales [7][8] Environmental, Social, and Governance (ESG) Considerations - ESG Standards: Grangex adheres to high ESG standards, with a comprehensive understanding of environmental and social impacts, including water management, waste management, and stakeholder engagement [31][33] - Permitting Status: All necessary permits for the project restart in 2026 are in place, including environmental and mining permits [34][35] - Environmental and Social Impact Assessment (ESIA): Grangex is committed to completing an ESIA to consolidate previous studies and ensure a thorough understanding of environmental impacts [36][41] Additional Noteworthy Points - Independent Consultants: The DFS was managed by SLR Consulting UK Ltd, ensuring compliance with Canadian standards (NI 43-101) and enhancing credibility [5][11] - Market Forecasting: Independent market forecasts have been conducted to assess pricing and market conditions, supporting the financial model [8][10] - Community Impact: The project is expected to provide economic benefits to the local community in Kirkenes and the municipality of Sydvaranger, acting as a significant economic driver for the region [55][56] Conclusion - The Definitive Feasibility Study marks a critical milestone for Grangex, demonstrating the project's viability and setting the stage for financing and operational execution. The improvements in economic metrics, mine life, and production capacity, alongside a strong commitment to ESG principles, position Grangex favorably for future developments in the Sydvaranger project [53][60]