Jameson Resources (ASX:JAL) Announces Feasibility Update and Reserve Confirmation for Crown Mountain Project
Feasibility and Reserve Update
Jameson Resources Limited (ASX:JAL) has provided an update on the feasibility of its Crown Mountain Hard Coking Coal project. The company has confirmed that the Proven and Probable Reserves from the 2020 Bankable Feasibility Study remain valid after reviewing updated economic inputs including capital and operating cost inflation, coal price changes, and foreign exchange forecasts.
Economic Impact
The Feasibility Update reveals a 28% increase in pre-production capital costs, rising from US$309 million to US$394 million, and a 15% increase in cash operating costs to US$102.79/t. Despite these increases, the project’s pre-tax NPV10 has surged by 200%, reaching US$942 million, underscoring the project’s enhanced economic viability.
Executive Comments
Nicole Hollows, Chair of Jameson Resources, stated, “The Feasibility Update has indicated significant increases to the Project’s high-level economics. With the continued progress of the Environmental Assessment process, this update highlights the advanced position of the Project compared with greenfield projects in Canada, Australia or other key producer locations.
There has been more than US$ 20 billion in steelmaking coal M&A in the last year highlighting that
existing producers have limited options for organic growth. Crown Mountain’s position as the
most advanced steelmaking coal project in Canada and its substantial underlying value is further
enhanced by the Feasibility Update which demonstrates the project’s cost competitiveness
compared to current and planned production. Continued progress of the regulatory process will enable the project to be developed to meet the identified shortfall in premium steelmaking coal supply in the medium and long term.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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