Platina Resources (ASX:PGM) has announced the results of a scoping study on its Owendale scandium project in New South Wales, Australia. The study is anticipating a mine life of approximately 70 years producing 30 tonnes of scandium per year at an all-in cost of less than $500/kilo. This means that based on an anticipated Scandium price of $2000/kilo, the project could generate $45M per year in operating cash flow, resulting in a payback period of just two years.
The numbers definitely look interesting but don’t forget the accuracy rate is just +- 50%, and we would like to see confirmation in a pre-feasibility or feasibility study before getting too excited. Platina seems to be joining the Scandium rush and the main question will be what the impact of these potential new producers would be on the price of scandium as the risk of a supply-flooded market is becoming quite realistic now.
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Disclosure: The author holds no position in Platina Resources. Please see our disclaimer for current positions.
