Strandline Resources (STA.AX) has confirmed it has produced heavy mineral concentrate at its Coburn flagship project in Western Australia. The commissioning of the in-pit mining units and the Wet Concentration Plant is now well underway and hopefully Strandline will be able to confirm the findings of the definitive feasibility study, which was completed in 2020.
That feasibility study indicated the project will produce 24,000 tonnes of rutile, 110,000 tonnes of ilmenite, 54,000 tonnes of zircon concentrate and 34,000 tonnes of premium zircon and this should result in an average annual EBITDA of A$104M and an after-tax NPV8% of A$705M. That was based on an average long-term zircon price of almost $1,500/t and a rutile price of $1138/t while the ilmenite price used for the economic study. Fortunately for Strandline, the rutile price recently reached $1,500/t as Sierra Rutile (SRX.AX) reported an average rutile price of US$1,535 during the September quarter.
Disclosure: The author has no position in Strandline Resources. Please read our disclaimer.
