Manuka Resources (ASX:MKR) Announces Cobar Basin Production Plan and Taranaki VTM Project
Production Plan
Manuka Resources Limited has announced its Cobar Basin Production Plan, aiming to deliver 13Moz of silver along with additional gold credits from the existing Wonawinta Processing Plant. The plan includes a 10-year mine life, processing 10.7Mt of ore with first production expected in Q1 2026. The project forecasts an NPV of A$101 million and an IRR of 109%, with capital costs estimated at A$18.9 million.
Taranaki VTM Project
The company is advancing the Taranaki VTM Project in New Zealand, which boasts a 3.2Bt Vanadium, Titanium, Magnetite (VTM) resource. The updated Pre-Feasibility Study reports an NPV of US$1.26 billion and an IRR of 39%, with a capital expenditure of US$602 million. The project is currently undergoing New Zealand’s Fast Track approvals process and aims for a 20-year mine life with an annual production of 4.9Mtpa of critical minerals.
Acquisitions and Strategic Growth
Recent acquisitions include the CSA Mine from Glencore for US$1.1 billion, Endeavour Mine from CBH Resources, Mineral Hill from Quintana Holdings, and Peak Mine from New Gold for A$76.7 million. These strategic acquisitions enhance Manuka’s portfolio in precious metals and critical minerals, supporting its growth and value creation initiatives.
Financial Forecast
The Cobar Basin Production Plan forecasts an EBITDA of A$22 million per annum at an average A$35/oz silver cost. The project expects net project cashflow of A$161.9 million post-capex. Additionally, the Taranaki VTM Project is projected to generate NZ$854 million in annual revenue, contributing significantly to New Zealand’s target to double mineral export earnings.
Operational Highlights
The Taranaki VTM Project is positioned to support New Zealand’s critical minerals policy, generating over 300 new full-time jobs and injecting NZ$238 million annually into the local economy. Both vanadium and titanium from the project are listed on New Zealand’s Critical Minerals List, reinforcing the project’s national significance.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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