EDITOR: | December 6th, 2012

Western Potash Corp. Delivers Feasibility Study with After-tax $2.44 B NPV, 18.6% IRR, 5.6 year Payback and Declares Reserves at Milestone

| December 06, 2012 | No Comments
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December 6, 2012 (Source: Business Wire) —Western Potash Corp. (WPX: TSX) (FSE: AHE) (“the Company”) is pleased to announce the receipt of a positive Feasibility Study (the “Study”) from AMEC Americas Limited (“AMEC”) on the Company’s 100% owned Milestone property in southern Saskatchewan (the “Project”). The Study confirms that the asset is of sufficient size and grade to support primary and secondary potash solution mining for more than forty years at an ultimate production rate of 2.8Mt/yr. The Study included detailed CAPEX and OPEX estimates with a production start up in 2016.

The Study reports that the resulting after-tax project Net Present Value (“NPV”) is $2.44B CAD, with an Internal Rate of Return (“IRR”) of 18.6 % assuming a nominal discount rate of 10%. On a before tax basis, the Project yields an NPV of $3.6B CAD and an IRR of 21%.

Patricio Varas, President and CEO commented, “Our Project is in an enviable, low risk geopolitical and regulatory jurisdiction, which is a key advantage for developers that look for long-term investment predictability. The lower capital intensity of the Project combined with the plant’s efficient operations and high throughput produce a project with attractive rates of return and significant free cash flow. These factors, coupled with the detailed scope of project evaluation, the size and grade of the deposit, and the project development expertise of the management team, presents a unique opportunity for investors and developers to secure an economical, reliable and long term supply of potash.”


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