Nordic Rutile investment scenarios
20.11.2017 21:25
Last modified: 24.11.2017
Data used below is mainly collected from the Engebø PFS and the press release for offtake agreement with the Barton Group.
| RESOURCE Cutoff: 3% | TiO2 % | Ore [Mt] | TiO2 [kt] | Garnet % |
| Measured | 3,97 % | 15 | 596 | 44,6 % |
| Indicated | 3,87 % | 77,5 | 2 999 | 43,6 % |
| Measured + indicated | 3,89 % | 92,5 | 3 595 | 43,7 % |
| Inferred | 3,86 % | 138,4 | 5 342 | 43,5 % |
| Measured + indicated + inferred | 3,87 % | 230,9 | 8 937 | 43,6 % |
| NORDIC RUTILE | SUM | AVERAGE | UNIT |
| Open Pit Mining | |||
| Waste Mined: 30,4 Mt (Average: 1903 kt/Year) | 30 445 | 1 903 | kt |
| Ferro Ore Mined (before losses & dilution): 22,6 Mt (Average: 1413 kt/Year) | 22 615 | 1 413 | kt |
| Underground Mining | |||
| Waste Mined: 10 Mt (Average: 626 kt/Year) | 10 022 | 626 | kt |
| Ferro Ore Mined (before losses & dilution): 19,4 Mt (Average: 1215 kt/Year) | 19 433 | 1 215 | kt |
| All Mining Operations | |||
| Total Waste Mined: 40,5 Mt (Average: 1395 kt/Year) | 40 467 | 1 395 | kt |
| Total Ferro Ore Mined (before losses & dilution): 42 Mt (Average: 1450 kt/Year) | 42 048 | 1 450 | kt |
| Total Ferro Ore Mined Rutile Grade (before losses and dilution) | 3,72 | % | |
| Total Ferro Ore Mined Garnet Grade (before losses and dilution) | 40,30 | % |
| Ore Qualities | SUM | AVERAGE | UNIT |
| Ore loss: 5 % | 5,0 % | % | |
| Dilution: 5 % | 5,0 % | % | |
| Rutile Product Grade (as TiO2): 94,9 % | 94,9 % | % | |
| TiO2 Recovery to Rutile Product: 58,4 % | 58,4 % | % |
| Plant Production and Sales | SUM | AVERAGE | UNIT |
| Rutile Produced: 913 kt (Average 31,5 kt/Year) | 913 | 31,5 | kt |
| Rutile sales: 910 kt (Average 31,4 kt/Year) | 910 | 31,4 | kt |
| Rutile sales price: Average 1070 USD/t | 1 070,0 | USD/t | |
| Garnet Produced: 7320 kt (Average 252,4 kt/Year) | 7 320 | 252,4 | kt |
| Garnet Sales: 6956 kt (Average 239,9 kt/Year) | 6 956 | 239,9 | kt |
| Rutile sales value: 974 MUSD (Average 33,6 MUSD/Year) | 974 | 33,6 | MUSD |
| Fine Garnet Grade (<212 μm) - 30/60 mesh blast market: 2,3 Mt (Average 79,9 kt/Year) | 2 319 | 79,9 | kt |
| Fine Garnet Grade(<212 μm) - 80 mesh waterjet: 2,3 Mt (Average 79,9 kt/Year) | 2 319 | 79,9 | kt |
| Fine Garnet Grade (<212 μm) - 100 mesh waterjet: 2,3 Mt (Average 79,9 kt/Year) | 2 319 | 79,9 | kt |
| Fine Garnet Grade (<212 μm) - 30/60 mesh blast market sales price: Average 310 USD/t) | 310,0 | USD/t | |
| Fine Garnet Grade(<212 μm) - 80 mesh waterjet sales price: Average 300 USD/t) | 300,0 | USD/t | |
| Fine Garnet Grade (<212 μm) - 100 mesh waterjet sales price: Average 275 USD/t) | 275,0 | USD/t | |
| Garnet value, 30/60 mesh blast market: 719 MUSD (Average 24,8 MUSD/Year) | 719 | 24,8 | MUSD |
| Garnet value, 80 mesh waterjet: 696 MUSD (Average 24 MUSD/Year) | 696 | 24,0 | MUSD |
| Garnet value, 100 mesh waterjet: 638 MUSD (Average 22 MUSD/Year) | 638 | 22,0 | MUSD |
| Garnet sales revenue: 2052 MUSD (Average 70,8 MUSD/Year) | 2 052 | 70,8 | MUSD |
| REVENUE, OPEX, EBITDA | SUM | AVERAGE | UNIT |
| Revenue (TiO2 + Garnet): 3026 MUSD (Average 104,3 MUSD/Year) | 3 026 | 104,3 | MUSD |
| OPEX (86,92 USD/t: 716 MUSD (Average 24,7 MUSD/Year) | 716 | 24,7 | MUSD |
| EBITDA (Earnings before interests, taxes, depreciations and amortizations): 2,3 BUSD (Average 79,7 MUSD/Year) | 2 310 | 79,7 | MUSD |
Scenario 1:
Part 1: Pre-investments of 10,8 MUSD financed by 50% Offtake agreement and 50% equity increase
Part 2: Open pit construction investments of 207,5 MUSD financed by 25% Offtake agreement, 60% bank loan and 15% equity increase
Part 3: Underground mining construction investments of 16,9 MUSD financed by 100% cash payment
| CAPEX | SUM | UNIT |
| Total Capital Expenditure | 235,2 | MUSD |
| Amount of Total Capital Expenditure (Control of Total Capital Expenditure) | 100 % | % |
| Bank loan: (52,9% - 124,5 MUSD) | 124,5 | MUSD |
| Amount of Total Capital Expenditure | 53 % | % |
| Offtake Agreement(s): (24,3% - 57,3 MUSD) | 57,3 | MUSD |
| Amount of Total Capital Expenditure | 24 % | % |
| Cash Payment: (7,2% - 16,9 MUSD) | 16,9 | MUSD |
| Amount of Total Capital Expenditure | 7 % | % |
| Bond: (0% - 0 MUSD) | 0,0 | MUSD |
| Amount of Total Capital Expenditure | 0 % | % |
| Share issue funding: (15,5% - 36,5 MUSD) | 36,5 | MUSD |
| Amount of Total Capital Expenditure | 16 % | % |
| Share value @ emission | 8,24 | NOK/Share |
| Total share issue neccessary for final investments | 39,5 | Mill. Shares |
| Total shares after investment activities | 134,4 | Mill. Shares |
| CAPEX DETAILS | SUM | AVERAGE | UNIT |
| Initial Capital Expenditure for Open Pit and Processing Plant + underground fascilities + DFS: 235 MUSD | 235 | 47,05 | MUSD |
| Bank loan: 52,93% (124,5 MUSD) | 125 | 41,50 | MUSD |
| Bank Loan Interests: 8 % (44,4 MUSD) | 44 | 6,35 | MUSD |
| Payback Bank Loan: 168,9 MUSD | 169 | 33,79 | MUSD |
| Bank Loan | 79,36 | MUSD | |
| Bond: 0% (0 MUSD) | 0 | 0,00 | MUSD |
| Bond Interests: 15 % (0 MUSD) | 0 | 0,00 | MUSD |
| Payback Bond: 0 MUSD | 0 | 0,00 | MUSD |
| Bond | 0,00 | MUSD | |
| New share issue: 15,53% (36,5 MUSD) | 37 | 9,13 | MUSD |
| Total shares: 134,4 Mill. shares | 134,4 | 133,05 | Mill shares |
| Offtake agreement: 24,35% (57,3 MUSD) | 57,3 | 14,32 | MUSD |
| Offtake agreement discount: Average: 20% | 20,0 % | MUSD | |
| Offtake agreement cost: 11,46 MUSD | 11,5 | 2,86 | MUSD |
| Payback Offtake agreement: 68,7 MUSD | 68,7 | 3,44 | MUSD |
| Cash payment: 7,2% (16,9 MUSD) | 16,9 | 17 | MUSD |
| Debt down payment: 255 MUSD | 254,6 | MUSD | |
| Accumulated Debt down payment: 255 MUSD | 254,6 | MUSD | |
| CAPEX (incl. Interests): 254,6 MUSD | 254,6 | MUSD | |
| Net profit: 2,1 BUSD (Average profit: 70,9 MUSD/Year) | 2 055 | 70,9 | MUSD |
| Net profit: 16,7 BNOK (Average profit: 576,5 MNOK/Year) | 16 718 | 576 | MNOK |
Scenario 2:
Part 1: Pre-investments of 10,8 MUSD financed by 100% equity increase
Part 2: Open pit construction investments of 207,5 MUSD financed by 60% bank loan and 40% equity increase
Part 3: Underground mining construction investments of 16,9 MUSD financed by 100% cash payment
| CAPEX | SUM | UNIT |
| Total Capital Expenditure | 235,2 | MUSD |
| Amount of Total Capital Expenditure (Control of Total Capital Expenditure) | 100 % | % |
| Bank loan: (52,9% - 124,5 MUSD) | 124,5 | MUSD |
| Amount of Total Capital Expenditure | 53 % | % |
| Offtake Agreement(s): (0% - 0 MUSD) | 0,0 | MUSD |
| Amount of Total Capital Expenditure | 0 % | % |
| Cash Payment: (7,2% - 16,9 MUSD) | 16,9 | MUSD |
| Amount of Total Capital Expenditure | 7 % | % |
| Bond: (0% - 0 MUSD) | 0,0 | MUSD |
| Amount of Total Capital Expenditure | 0 % | % |
| Share issue funding: (39,9% - 93,8 MUSD) | 93,8 | MUSD |
| Amount of Total Capital Expenditure | 40 % | % |
| Share value @ emission | 8,24 | NOK/Share |
| Total share issue neccessary for final investments | 97,5 | Mill. Shares |
| Total shares after investment activities | 192,3 | Mill. Shares |
| CAPEX DETAILS | SUM | AVERAGE | UNIT |
| Initial Capital Expenditure for Open Pit and Processing Plant + underground fascilities + DFS: 235 MUSD | 235 | 47,05 | MUSD |
| Bank loan: 52,93% (124,5 MUSD) | 125 | 41,50 | MUSD |
| Bank Loan Interests: 8 % (44,4 MUSD) | 44 | 6,35 | MUSD |
| Payback Bank Loan: 168,9 MUSD | 169 | 33,79 | MUSD |
| Bank Loan | 79,36 | MUSD | |
| Bond: 0% (0 MUSD) | 0 | 0,00 | MUSD |
| Bond Interests: 15 % (0 MUSD) | 0 | 0,00 | MUSD |
| Payback Bond: 0 MUSD | 0 | 0,00 | MUSD |
| Bond | 0,00 | MUSD | |
| New share issue: 39,88% (93,8 MUSD) | 94 | 23,45 | MUSD |
| Total shares: 192,3 Mill. shares | 192,3 | 188,96 | Mill shares |
| Offtake agreement: 0% (0 MUSD) | 0,0 | 0,00 | MUSD |
| Offtake agreement discount: Average: 0% | 0,0 % | MUSD | |
| Offtake agreement cost: 0 MUSD | 0,0 | 0,00 | MUSD |
| Payback Offtake agreement: 0 MUSD | 0,0 | 0,00 | MUSD |
| Cash payment: 7,2% (16,9 MUSD) | 16,9 | 17 | MUSD |
| Debt down payment: 186 MUSD | 185,9 | MUSD | |
| Accumulated Debt down payment: 186 MUSD | 185,9 | MUSD | |
| CAPEX (incl. Interests): 185,9 MUSD | 185,9 | MUSD | |
| Net profit: 2,1 BUSD (Average profit: 73,2 MUSD/Year) | 2 124 | 73,2 | MUSD |
| Net profit: 17,3 BNOK (Average profit: 595,7 MNOK/Year) | 17 277 | 596 | MNOK |
