SYDNEY (Indonesia Today) – Sumatra Copper & Gold Plc has completed the pre-feasibility study for Stage 2 of its 100%-owned Tembang gold project in Sumatra. The project is predicted to generate gross revenues of US$738 million.
According to the pre-feasibility study, total project net cash flow will be around US$222 million, while overall project C1 cash cost at around US$43 per ounces after silver credits.
Stage 2 pre-production capital expenditure is estimated at US$40 million, while the earliest start date of mining is brought forward by three years to 2015.??
Stage 1, meanwhile, is expected to generate US$261 million of revenues. Combined with Stage 2’s US$477 million revenues, Tembang project is expected to generate US$738 million of revenues.??
The study is based on US$1,500 per ounce of gold and US$30 per ounce of silver prices. Gold is currently traded at US$1,778 per ounce. (bintang@theindonesiatoday.com)
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