A High Return Australian Base and Precious Metals Project In Construction
Stock Code:
ASX: G1A
Company Exposure:
Lead | Silver
Project Locations:
Australia
The company owns 77.28% of the Abra Base Metals Project (Abra) located in the Gascoyne Region of Western Australia. The Abra deposit was discovered in 1981 and remains one of the biggest undeveloped lead deposits in the world. Abra is fully permitted and within a granted mining lease. The Galena team has prior experience at bringing an exploration project through all stages of development and into production. Galena completed an outstanding definitive/ bankable feasibility study (BFS) for development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing approximately 95kt of lead and 805koz of silver per year after ramp-up. Based on a pre-development capital expenditure estimate of A$170 million, the BFS modelled a pre-tax net present value for Abra (at an 8% discount rate) of A$553 million and an internal rate of return of 39%.
Investment Highlights
- High-grade Abra Base Metals Project in tier one jurisdiction – Granted mining lease and all major permits received
- “In demand” product – Highest grade lead concentrate available globally
- Offtake ~100% committed
- Outstanding feasibility study outcomes – 16-year mine life (1.2mtpa throughput for total of 16.3Mt)
- On-track for first production in 2022 – A$90M equity injection from Toho for 40% JV interest and US$110M of debt from Taurus Funds Management
