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.

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

Recommended

The top funds to invest in
Funds

The top funds to invest in

Investors continue to favour passive funds in April though figures reveal an actively managed money market fund also caught their eye. We look at wher…
3 May 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
20 Apr 2023
Best junior stocks and shares ISA platforms
Isas

Best junior stocks and shares ISA platforms

A junior stocks and shares ISA is a great way to save for your child tax-efficiently. But it can be confusing deciding which investment platform to ch…
28 Mar 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023

Most Popular

June’s NS&I Premium Bond prize draw - are you this month’s millionaire?
Savings

June’s NS&I Premium Bond prize draw - are you this month’s millionaire?

Two fortunate NS&I Premium Bond winners are now millionaires. Find out here if you’re one of them.
1 Jun 2023
Housing slowdown ‘deeper than anticipated’ as property sales slump
House prices

Housing slowdown ‘deeper than anticipated’ as property sales slump

New data from HMRC shows a fall in property sales - now experts predict a delay to the housing recovery
1 Jun 2023
The best one-year fixed savings accounts - June 2023
Savings

The best one-year fixed savings accounts - June 2023

You can now earn 5% on 1 year fixed savings accounts - the best rate seen in 14 years. We have all the latest rates available now.
2 Jun 2023