Prairie Downs Metal: SCOPING STUDY CONFIRMS POTENTIAL FOR WORLD CLASS HIGH MARGIN MET AND THERMAL COAL PROJECT

(firmenpresse) - SCOPING STUDY CONFIRMS POTENTIAL FOR WORLD CLASS HIGH MARGIN MET AND THERMAL COAL PROJECT

HIGHLIGHTS:
· Positive Scoping Study confirms potential for the Lublin Coal Project to be developed as a large scale, long life mine with attractive fundamentals and the ability to produce both semi-soft coking and premium thermal coal

· Average annual operating cash costs of US$37 per tonne (steady state), which would place the project on the lowest position on the global cost curve for coal delivered into Europe

· EBITDA of up to US$391 million utilising conservative sales pricing assumptions (average US$332 million per annum steady state)

· Up to 6.7 million tonnes per annum of saleable coal over a minimum 22 year mine life with production from the first two target seams (average 6.0 million tonnes per annum steady state)

· In-situ coal quality provides flexibility to produce exceptionally high quality, low ash semi-soft coking and premium thermal coals, with attractive coal specifications expected to lead to premium pricing

· Access to well established regional rail and port infrastructure with underutilised bulk cargo capacity for low transportation costs within Poland, to regional European markets by rail, and to the seaborne export market through underutilised ports in the north of Poland

· Massive 1.6 billion tonne JORC Resource confirms that the Lublin Coal Project is a world scale, multigenerational asset with potential for significant expansion of production beyond the proposed Scoping Study mine plan which incorporates only two of 21 coal seams within the concessions

· Significant positive social and economic benefits for the Lublin region, including the potential to double FDI and create new jobs

· Prairie continues to build an exceptional Polish and international management team with experience in designing and developing world-scale strategic coal projects

· Prairie will continue drilling at the Lublin Coal Project and will commence a Pre-Feasibility Study over the coming weeks with anticipated completion of the study during the first half of 2015

· Strong fundamentals, low operating cost base, existing infrastructure advantage, strategic location and scalability confirms the potential for the Lublin Coal Project to bring online a significant new supply of coal in the heartland of industrial Europe

Cautionary Statement
In accordance with the ASX listing rules, the Company advises the Scoping Study referred to in this announcement is based on lower-level technical and preliminary economic assessments, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. The Production Target referred to in this announcement is partly based on Inferred Mineral Resources (being 26%). There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target or preliminary economic assessment will be realised.

Prairie Downs Metals Limited (Prairie or Company) is pleased to announce the results of a Scoping Study (Study) which has been prepared in accordance with the JORC Code (2012 Edition). The Study has been conducted on the Companys Lublin Coal Project (LCP or Project) located in the low cost and proven Lublin Coal Basin in south eastern Poland.

The Study confirms that the LCP can support production of up to 8.8 million tonnes per annum (Mtpa) Run-of-Mine (ROM) coal yielding up to 6.7 Mtpa of saleable clean coal at steady state production. The LCPs fundamentals from this initial development are extremely encouraging with average annual operating cash costs during steady state production of US$37/tonne of saleable coal Free On Rail at the Mine Gate (FOR) which places the LCP on the lowest position on the global cost curve for thermal coal delivered into Europe. The LCP has the potential to achieve EBITDA of up to US$391 million per annum, with steady state EBITDA of US$332 million per annum.

The LCP is located in the Lublin Province in Poland, which is well serviced by modern and highly efficient infrastructure, offering the potential for low capital intensity mine development. Mining services, construction personnel, contractors and equipment are expected to be supplied and/or built by a combination of Polish firms and international firms.

http://www.irw-press.at/prcom/images/messages/2014/5174/PrairieDownsMetals_280414_PRcom_english2.001.jpeg

Figure 1: Location of the Lublin Coal Project

Prairies Chief Executive Officer, Mr Ben Stoikovich, said Results from the Scoping Study show the potential to develop a world scale, multi-generational coal mine with strong cash flows and with operating costs on the lowest position on the global cost curve for coal delivered into Europe. With the Scoping Study complete the Company will now look to begin a Pre-Feasibility Study on the Lublin Coal Project in the coming weeks. We are in the enviable position of having a highly advanced project with very strong fundamentals, located in a proven world class coal basin. The Lublin Coal Project has the potential to become a significant new coal producer within the industrial heartland of Europe and offer a strategic supply of high quality semi-soft coking and premium thermal coal regionally within Poland and to nearby European markets, and for seaborne export. We look forward to the Project providing a tremendous boost in local employment opportunities and benefits for the regional and national economy.

For further information contact:
Ben Stoikovich Hugo Schumann Anastasios Arima
Chief Executive Business DevelopmentExecutive Director
Officer

+44 207 478 3900 +44 207 478 3900 +61 8 9322 6322
info(at)prairiedownsmeta
ls.com.au


Key Scoping Study Parameters

Prairie is pleased to report the results of the Study prepared by independent consultants Wardell Armstrong International (WAI), with input from other specialist consultants and local experts. The Study utilised an updated Coal Resource Estimate (CRE) for the Companys LCP which comprises a Global CRE of 1,559 million tonnes including an Indicated resource of 157 million tonnes from two coal seams, the 391 and 389 seams. The LCP is located in south eastern Poland in the Lublin Coal Basin, which is proven to be the lowest cost coal basin in Europe. Key results of the Study were as follows:

Table 1: Scoping Study Parameters (to a maximum
accuracy variation +/-
30%)

Peak ROM Coal Production 8.8 Mtpa
Average ROM Coal Production Steady 7.7 Mtpa
State


Years of Steady State Production in 20 years
Scoping Study Mine
Plan

Total ROM Coal Produced over first 22 157.7 million
years of Mine
Life

Average CHPP Product Yield at Steady 77.3%
State

Peak Clean Coal Production 6.7 Mtpa
Average Clean Coal Production at 6.0 Mtpa
Steady State


Total Clean Coal Produced over first 120.9 million
22 years of Mine Life


Start of Construction 2016

High Margin, Significant Cash Flow Generation

The results of the Study demonstrate the potential for exceptionally high operating margins and cash flow generation given the anticipated low operating costs for the LCP, even at conservative coal sale price assumptions.

Table 2: Cash Flow Potential
Average Annual Cash Operating Costs FOR US$36.80 per ton
Steady ne
State

Average Annual Total Cash Costs FOR Steady US$38.05 per ton
State (incl. royalty) ne


Weighted Average Sales Price Received FOR at US$93.6 per tonn
Mine Gate (Long Term e
Real)

Peak Annual EBITDA US$391 million
Average Annual EBITDA Steady State US$332 million

To view the entire press release please follow the link:
http://www.asx.com.au/asxpdf/20140428/pdf/42p6hmb0n7mnbm.pdf

Unternehmensinformation / Kurzprofil:
Leseranfragen:
Bereitgestellt von Benutzer: irw
Datum: 28.04.2014 - 15:31 Uhr
Sprache: Deutsch
News-ID 330779
Anzahl Zeichen: 8930

contact information:
Town:

Wien

Kategorie:

Business News

Diese Pressemitteilung wurde bisher 327 mal aufgerufen.


Die Pressemitteilung mit dem Titel:
"Prairie Downs Metal: SCOPING STUDY CONFIRMS POTENTIAL FOR WORLD CLASS HIGH MARGIN MET AND THERMAL COAL PROJECT
"
steht unter der journalistisch-redaktionellen Verantwortung von

Prairie Downs Metal (Nachricht senden)

Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).

Alle Meldungen von Prairie Downs Metal