Advertisement

Sunkar Resources shares rocket on feasibility study

Shares in mining group Sunkar Resources leapt almost 180 per cent on Thursday after a feasibility study on its Chilisai Phosphate Project estimated an internal rate of return of 17.2 per cent before tax.

Shares in mining group Sunkar Resources leapt almost 180 per cent on Thursday after a feasibility study on its Chilisai Phosphate Project estimated an internal rate of return of 17.2 per cent before tax.

Discounted at 10%, the net prsent value of the project is estimated to be $715.2m, with estimated earnings before interest, tax, depreciation and amortisation (EBITDA) of $278m per annum in 2017 and $533m by 2025.

Advertisement - Article continues below

The study predicted that the total construction cost for both phases of the project will be $1.94bn.

The nominal cash cost of di-ammonium phosphate (DAP) production is estimated at $195 per metric tonne at 2017 and $232 in 2025, while for mono-ammonium phosphate the cost is expected to be $171 in 2017 and $219 by 2025.

Serik Utegen, Chief Executive of Sunkar, said: "The study outlines robust economics for this major project with attractive IRRs [internal rates of return], drawing on Chilisai's natural advantages of low cost mining, proximity to sulphur and well established regional infrastructure, as well as attainable markets both locally in Kazakhstan and internationally to Western China and through Black Sea ports.

"The study has identified no major technical hurdles with the Chilisai Project and we currently anticipate announcing the award of the basic engineering contract in the second half of this year, leading to stage I production by the last quarter of 2016."

The share price had rocketed 178.79% to 11.50p by 15:05 Thursday.

NR

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

How “support” and “resistance” can help you spot trading opportunities
Sponsored

How “support” and “resistance” can help you spot trading opportunities

Technical analysis can help traders manage risk and decide where to enter and exit a trade. One simple form of technical analysis is the concept of “s…
6 Jul 2020
House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
A first-half home run for investment trusts
Sponsored

A first-half home run for investment trusts

The investment trust sector has seen some extraordinary performance in the first half of this year. Max King looks at what's behind it, and asks: is i…
7 Jul 2020