Polymetals Resources Ltd (ASX:POL) has made transformational optimisations to its restart plan for the Endeavor Silver, Lead and Zinc mine in the Cobar region of central New South Wales, which will offer highly impactful economic improvements to the project’s metrics.
The technical work achieved startling economic upgrades from the original mine restart plan, increasing the net present value (NPV8) of Endeavor to $414 million from $201 million, its internal rate of return (IRR) to 345% from 91% and its free cash flow (before tax) to $609 million from $323 million.
Based on a 10-year mine life, the company’s new mine plan also predicts earnings before interest, taxes, depreciation and amortisation (EBITDA) of $89 million per year in the first five years.
Impressive outcomes for restart
“The work completed by the technical team has generated impressive outcomes for the Endeavor Mine Restart,” Polymetals executive chair Dave Sproule said.
“It epitomises the Polymetals can-do and innovative approach to mining projects and the board has little doubt on delivery of the practical and timely path to cash flow.
“In addition to this great value, we are also moving to test several ideas to unlock contained gold and silver from the existing stored tailings using hydrometallurgical techniques, and we are actively engaged in exploration to expand the mineral resource of the deposit to extend mine life.
“The quality of Endeavor Mine asset, our Cobar Basin operational familiarity, the significant remaining metal endowment and enormous exploration potential, provides a platform for substantive and long-term returns for our shareholders and the region.
“The company would like to thank its staff and consultants who assisted with the extensive work behind the Endeavor Mine Plan (EMP), and we look forward to returning the Endeavor Mine to a profitable and long-term operation.”
Targeting production in H1 2025
The mine currently holds payable metal reserves of 260,000 tonnes of zinc, 10.6 million ounces of silver and 90,000 tonnes of lead.
POL expects to spend about $28 million in pre-production capital expenditure and a maximum of $30 million in initial phases of development.
The company has targeted the first half of the 2025 calendar year for first production, with about nine months of pre-development activities ahead.
Next steps will be to finalise a $30 million debt facility to support redevelopment. Polymetals has already begun refurbishment on-site, repairing underground infrastructure – those efforts will ramp-up as funding becomes available.
In the meantime, POL is progressing near-mine exploration with further drilling at its Carpark Prospect underway.