Tigers Realm geared for 2015 production

THE results of a recently completed bankable feasibility study have confirmed outstanding project economics and a short lead time to coal production for Tigers Realm in Russia.

Michael Cairnduff

The BFS on the Project F deposit – part of the Amaam North project in far eastern Russia – demonstrated an after tax NPV of $US155 million and an IRR of 28%, producing annual after tax cash flow of $US72 million post ramp-up.

According to Tigers Realm, Project F will be one of the lowest operating cost coking coal mines in the world, with a life-of-mine average FOB cash cost of $US68.50 per tonne.

Cash costs are expects to fall to $US65/t from 2018 post the ramp-up of the mine, while the life-of-mine capital cost (excluding mine closure) is estimated at $US133.3m

CEO Craig Parry said completion of the BFS was a key milestone in Tigers Realm’s transition to producer.

“Our planned production is 1 million tonne per annum of coking coal over an initial mine life of 11 years and by incorporating resources along strike and down dip of the open pit, we could potentially increase project NPV to more than $US315 million,” Parry said.

Tigers Realm controls its entire infrastructure chain, with coal to be trucked from mine and plant on a dedicated 35 kilometre road link to the company’s 100% owned Beringovsky Port coal terminal.

Parry said following the refurbishment and development of the road to the coal terminal, Tigers Realm would be able to cost effectively export quality product to nearby Asian markets.

“Our mining licence and project financing is also progressing to plan, with the approval process ahead of schedule and we expect to have Project F’s mining licence soon,” he said.

Coke test work has confirmed the main product to be a semi-hard coking coal, with very low sulphur and low phosphorus levels.

“We have also encountered strong interest from several financial institutions for the provision of the project development funding, putting Tigers Realm well on track to becoming a coking coal producer by the end of 2015.”

The company has $26.5 million in cash, as at September 30, owns and operates the

Beringovsky Port and has its starter mine fleet at site.