RE:RE:level 2 West High Yield (W.H.Y.) Resources Ltd. Announces Completion of Positive Pre-Feasibility Study for Magnesium Oxide Production Plant Key Pre-feasibility Study ("PFS" or the "Study") highlights:
-- Robust Project Economics: Post-tax net present value ("NPV") (discount rate 5%) of $871.8 million and post-tax internal rate of return ("IRR") of 72.03% using a long-term magnesia ("MgO") baseline price of $1,500/metric tonne ("Mt") and an exchange rate of CAD$1.00 = US$0.73. -- Production profile: Annual average production of 86,500 tonnes of 98% purity MgO product at capacity. -- Low capital intensity: Initial capital expenditures ("CAPEX") of $205.4 million including mine preproduction, processing, and infrastructure (access roads and site preparation) -- Competitive cost profile and rapid payback: All-in-Sustaining Cost ("AISC") of $375/Mt of MgO product, a post-tax payback of 1.5 years, with $1,489 million cumulated cash flow and $871 million discounted cumulated cash flow over 20-year projected life of the project for the purposes of the PFS. *Based on 250K tonnes per annum of ore throughout.