Polymetals Resources enhances financial metrics for Endeavor Mine

Proactive - Interviews for investors

Polymetals Resources Ltd (ASX: POL) executive chairman David Sproule joins Jonathan Jackson in the Proactive studio to discuss the company’s updated mine plan for its Endeavor Silver Lead and Zinc Mine north of Cobar in NSW. The plan promises stronger financial metrics with production set to start in the first half of calendar year 2025. Highlights of the plan include: · A 10-year mine plan with a pre-tax NPV8% of $414 million and an IRR of 345%. · Free cash flow is projected at $609 million and EBITDA at $89 million per annum during the first five years. · Payable metals include 260,000 tonnes of zinc, 10.6 million ounces of silver, and 90,000 tonnes of lead. · Pre-production capex is estimated at $28 million, with a maximum cash drawdown of $30 million. · A 9-month pre-development period with initial production expected in the first half of 2025. The mine plan, which follows the Mine Restart Study released October 16, 2023, indicates significant increases in ore reserves, mine production, free cash flow, net present value and internal rate of return compared to the initial study. Sproule highlighted the impressive outcomes and the company's commitment to innovative mining projects. The company is also exploring techniques to unlock gold and silver from existing stored tailings and expanding the mineral resource to extend mine life. After a successful capital raise in June and the completion of the Endeavor Mine acquisition in July, the final step is to secure a $30 million debt facility. Site refurbishment activities have already begun, focusing on critical underground infrastructure.