SKY Metals Announces Positive PFS for Tallebung Tin-Tungsten-Silver Project
Key points
- 3Mtpa open cut project with a 1.99:1 strip ratio
- Initial mine life of 7.3 years from only 66% of the total MRE
- Low capex of A$138.8M, short lead times and 7-month construction schedule
Full summary
SKY Metals Ltd has released the Pre-Feasibility Study (PFS) for its Tallebung Tin-Tungsten-Silver Project in Australia. The project is expected to produce 2,040t of tin, 31,700mtu of tungsten trioxide, and 315koz of silver annually. The PFS highlights a simple, low-risk open-cut mining operation with a low 1.99:1 life-of-mine strip ratio. The project is expected to have a low capital expenditure of A$138.8M and a short 7-month construction schedule. The project is also expected to have low operating costs of approximately A$98 million per annum. The project is expected to receive mining approvals in late CY2027 and commence production by mid-CY2028.
Guidance
Base case NPV: A$438M; Spot case NPV: A$1.0B; Annual EBITDA: A$116M (base case), A$221M (spot case)
Outlook
SKY Metals plans to commence definitive feasibility studies and continue drilling to extend the mine life beyond the initial 7.3 years. The company is also actively engaging with strategic funding and offtake partners.
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