Amur Minerals Increase Projected Profit Amid Russia Mine Prospects

LONDON (Alliance News) - Amur Minerals Corp said Monday it is increasing its projected global ...

Alliance News 16 April, 2018 | 2:06PM
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LONDON (Alliance News) - Amur Minerals Corp said Monday it is increasing its projected global profit based on the potential at its Kun-Manie nickel copper sulphide project in far east Russia.

The projected earnings before income tax, depreciation and amortisation has increased by 78.8% to USD2.7 billion from USD1.6 billion in October. This is because Amur based its previous projection on open pit mining only. Kurumkon/Flangovy will be mined by a combination of open pit and underground extraction methods.

The total mining potential, according to Amur, is projected to include a total of 73 million ore tonnes - the equivalent of 12 years of production. 32 million will be mined underground while the remaining 41 million will come from the four open pits.

CEO Robin Young said: "We are pleased to provide this update on the mining potential at our nickel copper sulphide deposit located at Kun-Manie which is based on our February 2017 Mineral Resource Estimate. The global 73 million ore tonne mining potential contains more than 400,000 tonnes of projected metallurgically recovered nickel supporting the operation for at least 12 years providing an indicated EBITDA of USD2.6billion. 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."

"Additional open pit mining potential is being evaluated which is directly related to last year's highly successful drill programme where an ore tonnage increase of more than 251% at Ikenskoe/Sobolevsky, Kubuk and the area between is underway using the March 2018 updated mineral resource. 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 USD2.6 billion."

Shares in Amur Minerals were trading up 2.7% Monday at 4.52 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Security Name Price Change (%) Morningstar
Rating
Amur Minerals Corp 2.80 GBX -11.11 -
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