Polymetals Resources has released an updated mine plan for its Endeavor silver-lead-zinc mine near Cobar, NSW, which promises significant financial returns and the beginning of production in the first half of 2025.
The new Endeavor mine plan (EMP) outlines a 10-year operation with a pre-tax net present value (NPV) of $414 million and an internal rate of return (IRR) of 345%.
The project anticipates a pre-tax free cash flow of $609 million, generating an annual EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $89 million in the first five years.
The EMP forecasts production of 260,000 tonnes (t) of zinc, 10.6 million ounces of silver and 90,000t of lead.
The pre-production capital expenditure is estimated at $28 million, with a maximum cash drawdown of $30 million.
Polymetals’ executive chair Dave Sproule said the results of the mine restart were impressive.
“The work completed by the technical team has generated impressive outcomes for the Endeavor mine restart. It epitomises the Polymetals can-do and innovative approach to mining projects.” he said.
“In addition to this great value, we are also moving to test several ideas to unlock contained gold and silver from the existing stored tailings using hydrometallurgical techniques, and we are actively engaged in exploration to expand the mineral resource of the deposit to extend mine life.
“The quality of the Endeavor mine asset, our Cobar Basin operational familiarity, the significant remaining metal endowment and enormous exploration potential, provides a platform for substantive and long-term returns for our shareholders and the region.”
Polymetals has already commenced critical path site refurbishment activities, including upgrades to underground infrastructure. It is also actively exploring near-mine areas, with further drilling at the Carpark prospect underway.
With a payback period being 14 months, the company aims to begin production in the first half of 2025, following the finalisation of a $30 million debt facility.
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