McLaren Minerals forecasts $1.86bn in revenue from McLaren Titanium Project

McLaren Minerals' pre-feasibility survey (PFS) for the McLaren Titanium Project successful Western Australia (WA) forecasts full gross procreation of A$2.78bn and net earlier interest, taxes, depreciation and amortisation (EBITDA) of A$899.7m implicit an archetypal excavation beingness of 15.9 years.

The survey highlights a payback play of 3.7 years, positioning the task arsenic a important contender successful the planetary titanium market.

The PFS revealed an expanded mineral assets estimation (MRE) of 529 cardinal tonnes (mt) astatine 4.5% dense minerals, with 249mt astatine 4.7% dense minerals classified arsenic indicated.

A high-level conceptual pit, evaluated by IHC Mining, is estimated to incorporate 185.7mt astatine 5.85% dense minerals, supporting the projected excavation life.

Financial projections nether blimpish assumptions bespeak a pre-tax nett contiguous worth of A$252.2m and an interior complaint of instrumentality of 26%.

Life-of-mine nett gross is estimated astatine A$2.6bn, with an mean yearly EBITDA of astir A$56.5m.

The task is backed by a simplified engineering survey utilising accepted mineral sands separation equipment, with bulk mining planned utilizing a proven adust mining unit.

More than 60% of the full assets remains unmined, offering imaginable for further valuation successful the upcoming bankable feasibility survey (BFS).

McLaren Minerals managing manager Simon Finnis said: “Given we acceptable retired our PFS and improvement strategy successful our precise archetypal presumption aft acquiring McLaren, we are precise pleased with the results, which person validated and derisked the project. Our updated MRE vastly exceeded our expectations and provides opportunities that volition beryllium studied during the Bankable Feasibility stage, which is owed to commence shortly.

“These outcomes should supply shareholders with assurance that McLaren is not lone viable but a precise robust project, driven by our attack to minimising upfront superior portion maximising returns. I look guardant to progressing a much elaborate survey to physique connected this enactment and measure the opportunities presented by the assets upgrade.”

Located wrong the occidental borderline of the Eucla Basin, the McLaren Titanium Project benefits from proximity to established infrastructure and export facilities. The task features 2 tenements, E69/2386 and E69/2388, spanning 197km² and 136km², respectively.

The improvement aligns with the expanding request for titanium, driven by its applications successful aerospace, automotive and different concern sectors.

The institution plans to beforehand the task towards a BFS, focusing connected optimising mining and processing methods to heighten task economics and sustainability.