Jameson Resources (ASX:JAL) Releases Feasibility Update for Crown Mountain Coal Project
Project Feasibility Update
Jameson Resources Limited (ASX:JAL) has provided an update on the feasibility of its Crown Mountain Hard Coking Coal project. Independent technical advisers Allnorth, Sedgman, and Stantec reviewed key economic inputs from the July 2020 Bankable Feasibility Study. The review confirmed that the Proven and Probable Reserves remain valid despite increases in capital and operating costs due to inflation and revised market forecasts.
Financial Impact
The feasibility update revealed a 28% increase in pre-production capital costs, rising from US$309 million to US$394 million. Additionally, cash operating costs increased by 15%, from US$89.41 per tonne in the 2021 Yield Optimisation Study to US$102.79 per tonne. Despite these cost increases, the pre-tax Net Present Value (NPV10) surged, reaching US$942 million, underscoring the project’s enhanced economic viability.
Executive Comments
Chair Nicole Hollows 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. 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.”
Future Outlook
Jameson Resources is advancing the Environmental Assessment process and has established partnerships with key Indigenous Nations to support project development. The company plans to undertake additional studies to optimise the feasibility study while progressing regulatory approvals.
Motley Fool contributor Abbie Stokes 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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