Amur Minerals ups EBITDA projections as Russian asset gets go-ahead for underground mining
AIM-quoted exploration and development company Amur Minerals upped estimates on its global EBITDA for April after its Maly Kurumkon/Flangovy (MKF) drill programme at Kun-Manie, located in the far east of Russia, was opened up for a combination of open pit and underground mining.
Amur increased its projected EBITDA by 78.75% to $2.7bn, based on a long-term nickel price of $7.27 per pound, as a result of the change to open pit and underground extraction methods, as opposed to open pit production only.
"With this area now being the largest source of mineralisation within the mining licence, it is projected that there will be a substantial increase to the global mining potential inventory and EBITDA from that of $2.6bn," said chief executive Robin Young.
The total mining potential of MKF was projected to include a total of 73m ore tonnes, or approximately 12 years of production, averaging mine diluted grades of 0.70% nickel, 0.19% copper, 0.01% cobalt, 0.16 grams per tonne of platinum, and 0.12 grams per tonne of palladium.
"We have maintained a very conservative approach in this assessment by excluding the inclusion of additional revenue potential associated with our by-product metals of copper, cobalt, platinum and palladium," added Young.
As of 1500 BST, shares had climbed 2.73% to 4.52p.