By Mark Gordon, Independent Investment Research
TNG Limited (“TNG” or “the Company”) is targeting a mid-2018 Final Investment Decision (“FID”) for its 100% owned Mount Peake Vanadium-Iron-Titanium Project (“Mount Peake” or “the Project”), located in the Northern Territory (“NT”) of Australia.
A recently completed updated Feasibility Study (“FS”) has confirmed the quality and robustness of the long life two stage project, which will use the proprietary TIVAN™ hydrometallurgical process and supplementary processing to extract maximum value from the titanomagnetite concentrate feed – planned products include premium grade V2O5, TiO2 pigment and pig iron. The Company’s modelling indicates a pre-tax NPV8 of A$4.7 billion and an IRR of 44% for Mount Peake, with up-front capital estimated at A$853 million.
The timing of development is ideal to take advantage of the strong current metals cycle, including rising vanadium prices, which are forecast to remain strong for the foreseeable future; in addition TiO2 and pig iron are expected to consolidate recent gains in prices.