3608 XXXI International Mineral Processing Congress 2024 Proceedings/Washington, DC/Sep 29–Oct 3
regarding PBT. The PBT formula which has been applied
to this analysis is as follows:
PBT t DCF
CCF
a
b
a =+
where
ta =number of years before CAPEX recovery occurs
CCFa =cumulative cash flow in the year before CAPEX
recovery occurs
DCFb =discounted cash flow in the year after CAPEX
recovery occurs
Key assumptions and simplifications for this analysis are
summarised as follows:
• The cost estimates upon which the financial analysis
is based correspond to an accuracy of ± 45%, which
aligns with a Class 5 (AACE) Engineering level study
• Concentrate and doré product market value is
assumed as constant across the life of the project
(considerations for inflation have been excluded)
• Concentrate product will receive 75% of the con-
tained value and dore product will receive 100% of
the contained value
• Considerations for costs incurred throughout tes-
twork and flowsheet design phase as well as other
R&D phase costs have been excluded from this
financial analysis
• Stage 1 Jameson Concentrator construction and
commissioning time to be 15 months
• Stage 2 IsaMill ™ construction and commissioning
time to be 24 months
• Stage 3 Albion Process ™ construction and commis-
sioning time to be 18 months
• Assumed 92% operating time and operating capacity
• CAPEX contingency factor of 30% has been applied
• Assumed corporate tax rate of 30%
• Applied discount factor of 10%
• Analysis to consider a 10 year operating life and
• Assumed straight line equipment depreciation
method.
A stagewise approach to implementation will see staggered
capital expenditure (CAPEX) and operating expenditure
(OPEX). The capital and operating expenditures generated
for and percentage distributions for each plant stage are
presented in Table 3.
Other key design inputs used for the financial analysis
are summarised in Table 4.
Scenario 1
Scenario 1 considers whole-of-plant implementation prior
to the commencement of operations. This includes the
design and concurrent construction and commissioning
of a Jameson Cell flotation circuit, IsaMill ™, and Albion
Process ™ circuit along with relevant ancillary equipment
to produce a final doré. Present value calculations for this
scenario produced the following results (Table 5).
Table 5. Scenario 1—Financial analysis results summary
Parameter Units Design
Net Present Value (NPV) USD 616,626,644
Internal Rate of Return (IRR) %101
Payback Time (PBT) Months 21
Table 3. CAPEX and OPEX and percentage distribution by plant stage
Stage 1: Flotation Stage 2: UFG
Stage 3: Oxidative
Leaching TOTAL
Capital Cost (USD) 17,841,200 12,833,600 40,990,300 71,665,100
CAPEX distribution across stages (%)25 18 57 100
Operating Cost (USD /annum) 900,000 894,000 7,767,000 9,561,000
OPEX distribution across stages (%)9.5 9.5 81 100
Table 4. Case study design inputs
Parameter Units Design
Au recovery (Concentrator)—Grade Maximised %85
Au recovery (Concentrator)—Recovery Maximised %95
Au Recovery (CIL post-Albion Process™) %96
Au Product Throughput (Concentrate) Oz /Annum 120,193
Au Product Throughput (Doré) Oz/Annum 128,603
Gold Price USD /Oz 1,282.50
regarding PBT. The PBT formula which has been applied
to this analysis is as follows:
PBT t DCF
CCF
a
b
a =+
where
ta =number of years before CAPEX recovery occurs
CCFa =cumulative cash flow in the year before CAPEX
recovery occurs
DCFb =discounted cash flow in the year after CAPEX
recovery occurs
Key assumptions and simplifications for this analysis are
summarised as follows:
• The cost estimates upon which the financial analysis
is based correspond to an accuracy of ± 45%, which
aligns with a Class 5 (AACE) Engineering level study
• Concentrate and doré product market value is
assumed as constant across the life of the project
(considerations for inflation have been excluded)
• Concentrate product will receive 75% of the con-
tained value and dore product will receive 100% of
the contained value
• Considerations for costs incurred throughout tes-
twork and flowsheet design phase as well as other
R&D phase costs have been excluded from this
financial analysis
• Stage 1 Jameson Concentrator construction and
commissioning time to be 15 months
• Stage 2 IsaMill ™ construction and commissioning
time to be 24 months
• Stage 3 Albion Process ™ construction and commis-
sioning time to be 18 months
• Assumed 92% operating time and operating capacity
• CAPEX contingency factor of 30% has been applied
• Assumed corporate tax rate of 30%
• Applied discount factor of 10%
• Analysis to consider a 10 year operating life and
• Assumed straight line equipment depreciation
method.
A stagewise approach to implementation will see staggered
capital expenditure (CAPEX) and operating expenditure
(OPEX). The capital and operating expenditures generated
for and percentage distributions for each plant stage are
presented in Table 3.
Other key design inputs used for the financial analysis
are summarised in Table 4.
Scenario 1
Scenario 1 considers whole-of-plant implementation prior
to the commencement of operations. This includes the
design and concurrent construction and commissioning
of a Jameson Cell flotation circuit, IsaMill ™, and Albion
Process ™ circuit along with relevant ancillary equipment
to produce a final doré. Present value calculations for this
scenario produced the following results (Table 5).
Table 5. Scenario 1—Financial analysis results summary
Parameter Units Design
Net Present Value (NPV) USD 616,626,644
Internal Rate of Return (IRR) %101
Payback Time (PBT) Months 21
Table 3. CAPEX and OPEX and percentage distribution by plant stage
Stage 1: Flotation Stage 2: UFG
Stage 3: Oxidative
Leaching TOTAL
Capital Cost (USD) 17,841,200 12,833,600 40,990,300 71,665,100
CAPEX distribution across stages (%)25 18 57 100
Operating Cost (USD /annum) 900,000 894,000 7,767,000 9,561,000
OPEX distribution across stages (%)9.5 9.5 81 100
Table 4. Case study design inputs
Parameter Units Design
Au recovery (Concentrator)—Grade Maximised %85
Au recovery (Concentrator)—Recovery Maximised %95
Au Recovery (CIL post-Albion Process™) %96
Au Product Throughput (Concentrate) Oz /Annum 120,193
Au Product Throughput (Doré) Oz/Annum 128,603
Gold Price USD /Oz 1,282.50