Sumatra Copper gets $35m credit for Tembang Gold Project
Thursday, February 21 2013 - 02:43 AM WIB
ASX-listed Sumatra Copper and Gold Limited said it has received credit approval from Credit Suisse AG for US$30 million in senior debt finance facilities to fund the commercial development of its Tembang Gold Project, located in southern Sumatra. In addition Credit Suisse will provide up to $5 million of cost overrun funding.
The support of Credit Suisse, a globally recognized leader in mining project finance is a significant milestone for Sumatra and a strong endorsement of the company?s confidence in the technical and financial strength of the project, Sumatra said in a statement received Thursday. Credit Suisse was appointed following a competitive process conducted by Sumatra?s debt advisors, Optimum Capital Pty Ltd.
Provision of the $30 million senior debt facilities are now subject to completion of the project finance documentation and conditions precedent customary for a financing of this nature. These include final approval of the company?s Forestry Permit, expected in March, and the completion of the equity component of the funding package.
The funding will support the planned construction of the project, based on the Stage 1 Definitive Feasibility Study completed in September 2012, the company said. The study confirmed the economic viability of the project. The results are summarized below.
Key Outcomes:????
Gold production????????????????????????????????????????????? |
146,000 oz |
Silver production????????????????????????????????????????????? |
1,388,000 oz |
Total capital cost????????????????????????????????????????????? |
$68 M |
Pre-prodiction capital?????????????????????????????????????? |
$38.5 M |
Cash operating cost Cl????????????????????? |
? |
(net silver credits, pre royalties)??????????????????????? |
$487 / oz |
Processing Rate |
400,000 tpa |
Mine Life????????????????? ???????????????????????????????????????? |
5 years |
?
Key Financial Results:???????????
Revenue? |
$261 M |
Net cashflow |
? |
(after royalties and capex, before tax)????????? ?????? |
$71 M |
IRR?? |
36% |
Editing by Reiner Simanjuntak