Strong cash flagged from PLA's Smokey Hills

01 February 2006 | 03:03 Code : 7777 Geoscience events
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The company's managing director John Lewins told MiningNews.net the..
PLATINUM Australia is targeting 90,000 ounces of 4E PGM production from its Smokey Hills platinum project in South Africa, output which at current metal prices will equate to cash flow of $US45-50 million per annum.
The company's managing director John Lewins told MiningNews.net the basket value of the 4E PGM produced at Smokey Hills at current metal prices is worth about $US900/oz.
Lewins said an internal study had estimated the capital cost for the project at about $US35 million, with operating costs about $US210/oz.He said the company was using a long-term platinum price of $US400/oz in its studies. This figure generates a cash flow of about $US20 million per annum.Platinum Australia is planning on commencing an open cut at Smokey Hills before switching operations underground in the second year. Throughput at Smokey Hills will be 720,000tpa.A bankable feasibility study for the project is expected to be completed in June this year.

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