Koppamurra Pre-Feasibility Study
Released
Released
Announcement PDF
ASX: AR3 | MARKET ANNOUNCEMENT ASX Release: 25 June 2026
Pre-Feasibility Study and maiden Ore Reserve
confirm Koppamurra as a compelling project
PFS validates Koppamurra as Australia's most advanced ionic clay rare earths project:
Strong returns, low capital, a clear path to production and significant growth potential
A$858M
Post-Tax NPV₈
99%
Post-Tax IRR
0.9 Years
Post-Tax Payback (from first production)
A$178M
Initial CAPEX
12 Years
Initial Life of Mine
1,860 t
Avg. Annual TREO Production
US$38.32/kg TREO
All-In Sustaining Cost
• Compelling economics: A$858m NPV; 99% IRR; ~1yr payback
• Capital-light development: Only A$178m initial CAPEX
• Highly attractive product: High-value MREO basket with exposure to constrained heavy REE markets
• Low technical risk: Shallow open pit mining, simple heap leach flowsheet and rapid progressive rehabilitation
• Long-term optionality: Large resource base, with clear mine life extension potential
The total Life of Mine Production Target (and forecast financial information derived from the Life of Mine Production Target)
referred to in this announcement is underpinned by approximately 71% Probable Ore Reserves and the remaining
approximately 29% by Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred
Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral
Resources or that the Life of Mine Production Target itself (or the forecast financial information) will be realised.
Overview
Australian Rare Earths Limited (AR3 or the Company) has completed a Pre-Feasibility Study (PFS) for its flagship 100%-
owned Koppamurra Rare Earths Project (Koppamurra or the Project) in South Australia, delivering very strong project
economics that firmly establish Koppamurra as one of the most compelling rare earth development opportunities in
Australia:
• Exceptional returns on attractively low capital spend: Base Case after-tax NPV₈ of A$858 million and after-tax
IRR of 99% on initial capital expenditure (CAPEX) of just A$178 million — a capital efficiency ratio rarely seen in the
resources sector and a clear signal of the value embedded in this asset.
• Strategic exposure to high-value rare earths with rapid payback: Capital payback in just 0.9 years post-tax, with
annual production of Mixed Rare Earth Oxide (MREO) feedstock containing approximately 1,860 tonnes of Total
Rare Earth Oxides (TREO) including a strategically critical suite of magnet rare earths — neodymium,
praseodymium, dysprosium and terbium — along with yttrium, gadolinium, samarium and lutetium. All are
increasingly critical to Western supply chains, with most subject to Chinese export controls.
• Significant upside beyond the PFS mine plan: The PFS draws on a maiden Ore Reserve of 26Mt at 920ppm TREO
and processing capacity of 3Mtpa for an initial 12-year mine life. The broader resource and substantial Exploration
Target provides potential to materially extend mine life beyond the initial PFS case in a capital efficient manner.
• Processing route delivers low-cost, low-complexity operations: Koppamurra's ionic adsorption clay
mineralisation supports shallow, free-dig open-pit mining combined with a proven heap leach flowsheet and rapid
progressive rehabilitation — a simple, low-cost combination that is the key driver of the project's robust
economics.
• Tier-1 Australian Jurisdiction and Government support: Strategically located in South Australia, a Tier 1 mining
jurisdiction, the critical minerals project is supported by the Australian Government through the International
Partnerships in Critical Minerals Program, including a $5 million grant.
• Permitting advancing to deliver new western supply at a critical time: Scoping Report published by the South
Australian Department for Energy and Mining. Mining Lease Application (MLA) targeted for 2026 submission, with
environmental studies well progressed. Targeting first production by 2029 when the attractive mix of rare earths
within Koppamurra’s MREO is expected to be in high demand from Western producers of rare earth permanent
magnets – especially so with the new G7 stipulation that at least 40% of western rare earths supply must come
from non-Cina sources by 2030
• Opportunity to establish a new industry in regional South Australia and build on Australia’s sovereign
capability in rare earths: A new mine in regional South Australia will support ~100 direct jobs during operations
with economic benefits and opportunities flowing to the region while also enhancing Australia’s sovereign supply
chain capacity, supporting the development of a reliable Western supply chain of rare earth products.
• Offtake discussions to accelerate: Offtake discussions with strategic partners will now accelerate as pilot-
scale operations deliver MREO samples to potential customers, especially for those seeking to secure rare earth
feedstock rich in heavy rare earths from Australia, with the PFS outlining product volumes, timing and quality to
be delivered. Pilot-scale operations commencing imminently at ANSTO’s new world-class piloting facility in
Sydney, marking a first-of-its-kind piloting program for an Australian ionic clay rare earths project.
Management Commentary
"The PFS reflects years of careful, methodical work across drilling, environmental studies, metallurgical testwork and
engineering, and I'm proud to share these results. We have been deliberate and strategic at every step — designing the
project and positioning the business for long-term success. Today's results are the validation of that approach, and I
express my thanks to everyone who contributed.
On the numbers themselves: an after-tax NPV₈ of A$858 million and an IRR of 99% on A$178 million of initial capital,
with payback in 0.9 years — these are exceptional results and the hallmark of a project designed with simplicity in mind.
The continued evolution of the project flowsheet has culminated in a low complexity design, resulting in capital light
development, at an exceptionally competitive capex position globally.
Beyond the numbers, the Koppamurra MREO basket assemblage could not be more relevant or strategically critical to
Western customers today. With China’s export controls covering not only dysprosium and terbium but also expanded
across yttrium, samarium, gadolinium and lutetium, Koppamurra is poised to fill the growing Western need to secure
sustainable and reliably sourced rare earth feedstock. This urgent need is now being addressed by concerted policy
action globally, most notably through the recent G7 declaration. This aims to reduce dependencies on a single supplier
outside the G7 and partner countries for rare earths and permanent magnets to under 60 per cent by 2030 and
continuing to decrease further over time, with an ambition to reach 50 per cent as soon as possible. The challenge is
significant, and so too the opportunity.
AR3 will be the first company in Australia to process ionic clay rare earth ore through a continuous pilot-scale circuit —
at ANSTO's new facility in Sydney, backed by the Australian Government because it recognises the same strategic value
we do. That pilot is generating real product samples, real engineering data, and real conversations with potential
customers and partners.
The work that sits behind this PFS — the environmental studies progressing toward our Mining Lease Application, the
government relationships, the ANSTO partnership, five years of disciplined drilling and engineering — has been building
steadily toward this point. The path ahead is clear: Detailed Feasibility Study initiation, Mining Lease submission,
product qualification, adding more tonnes through the drill bit and advancing offtake and funding discussions. We have
the study, the resource, the government support, and now a compelling set of results to underpin every conversation
we walk into."
Travis Beinke, Managing Director and CEO, Australian Rare Earths Limited
Table 1: Key Financial and Production Metrics — PFS Base Case
The PFS economic evaluation is as at Financial Investment Decision (“FID”) and payback period is from first production.
* Base Case pricing using the average of two highly regarded independent market analysts, Adamas Intelligence and Argus
Media Q2’2026 long term Western forecasts to 2040. While some elements of their forecasts differ materially, both are
considered credible and reflect the uncertainty in a maturing western sourced rare earth pricing market.
Metric Unit PFS Base Case
Processing Capacity Mtpa 3
Life of Operation (PFS mine plan) Years 12
Ore Reserve Mt 26
Average TREO Feed Grade ppm 924
TREO Recovery % 68
MREO Recovery % 68
Average Annual Production (TREO) t 1,860
Average NdPr Production t 435
Average Dy and Tb Production t 57
Average Y Production t 238
Average Sm Production t 69
Average Gd Production t 67
Average Lu Production t 4
Basket Price TREO* US$/kg TREO 139
Operating Costs (ex-Royalties) US$/kg TREO 34.14
All-In Sustaining Cost (AISC) US$/kg TREO 38.32
Initial CAPEX A$M 178
Pre-Tax NPV₈ A$M 1,196
Pre-Tax IRR % 113%
Post-Tax NPV₈ A$M 858
Post-Tax IRR % 99%
Post-Tax Payback Period Years 0.9
Cautionary Statement
The Pre-Feasibility Study (“PFS” or “Study”) referred to in this announcement has been undertaken by Australian Rare
Earths (“AR3” or the “Company”) in conjunction with various independent consultants, to determine the viability of the
development at the Koppamurra Rare Earths Project in South Australia (“Project” or the “Koppamurra Project”). The PFS
is based on technical and economic assessments of a level of accuracy commensurate with a prefeasibility study.
The total Life of Mine Production Target (and forecast financial information derived from the Production Target) referred
to in this announcement is underpinned by approximately 71% by Probable Ore Reserves and the remaining
approximately 29% by Inferred Mineral Resources and have been prepared by Competent Persons in accordance with
the requirements of the JORC Code (2012).
There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that
further exploration work will result in the determination of Indicated Mineral Resources or that the Production Target itself
(or the forecast financial information) will be realised.
The Company has satisfied itself that the Inferred Mineral Resources included in the Life of Mine Production Target are
not the determining factor in project viability. The Project economics modelled without any Inferred Resources and only
based on Ore Reserves retains a robust Post-Tax NPV8 of $652 million. The Inferred Mineral Resources included in the Life
of Mine Production Target are allocated across the 12 year mine life with an average of 23% Inferred Mineral Resource
across the first 10 years ranging from 2% to 33%. The expected payback period for the Koppamurra Project is less than
one year.
The Life of Mine Production Target and associated forecast financial information are based on assumptions and modifying
factors which may prove to be inaccurate, and there is no certainty that the forecast outcomes will be achieved.
The Company confirms that the Ore Reserves estimates, and Mineral Resources estimates have been prepared by
Competent Persons in accordance with the requirements of the JORC Code.
This announcement has been prepared in compliance with the JORC Code 2012 Edition (JORC 2012) and the ASX Listing
Rules. All material assumptions on which Life of Mine Production Target and the forecast financial information is based
have been provided in this announcement and are also outlined in the JORC 2012 table 1 disclosures in the ASX release
“Maiden Ore Reserves positions Koppamurra for development” 25 June 2026.
This document contains forward-looking statements, including statements regarding production targets, forecast
financial information, development plans and project economics.
Forward-looking statements are subject to risks, uncertainties and assumptions, many of which are outside the control
of the Company. These include, but are not limited to, commodity prices, exchange rates, regulatory approvals, funding
availability and operating performance.
While the Company considers all the material assumptions to be based on reasonable grounds, there is no certainty that
they will prove to be correct or that the production target or estimated outcomes indicated by the PFS (such as the
financial forecasts) will be achieved. The production target and estimated outcomes indicated by the PFS (such as the
financial forecasts) are also subject to various risk factors. See the Cautionary Statements and Forward-Looking
Statements at the end of this announcement.
Given the uncertainties involved and detailed in this announcement, investors should not make any investment decision
based solely on the results of the PFS.
Pre-Feasibility Study Overview
Australian Rare Earths Limited (AR3 or the Company) is pleased to report the results of the Pre-Feasibility Study for its
flagship Koppamurra Rare Earths Project in South Australia. The PFS confirms the potential for the Project to be developed
as a technically viable, capital light and long-life rare earths operation based on shallow open-pit mining with rapid
progressive rehabilitation, heap leach processing and offsite calcination to produce a strategically valuable MREO
feedstock product for supply to customers with rare earth oxide separation capabilities, either in Australia, the EU, U.S. or
other suitable destinations.
The Koppamurra Project is located approximately 30 km southeast of Naracoorte on the Limestone Coast of South Australia
— a well-serviced region with sealed road access, established infrastructure, and a capable regional workforce. The Project
is wholly owned by AR3 and benefits from strong federal government support through a A$5 million grant under the
Australian Government's International Partnerships in Critical Minerals (IPCM) program.
The development case is underpinned by more than 65,000 metres of drilling across 6,042 drill holes, a completed bulk
sample pit, comprehensive metallurgical testwork programs conducted by ANSTO, CSIRO, Bureau Veritas, BML, the
University of Toronto and other specialist providers, together with pilot-scale processing soon to commence at ANSTO's
new critical minerals facility in Sydney — the first such ionic clay REE pilot in Australia.
Financial Outcomes
The Investment Case: Outstanding Returns on Low Capital
The financial outcomes of the Koppamurra PFS are exceptional by any measure in the rare earths sector. An after-tax IRR of
99% against an initial capital requirement of A$178 million represents a value creation profile that investors in resources
development very rarely encounter at the PFS stage. What underpins this is the fundamental geology: shallow, free-digging
ionic adsorption clay mineralisation that is ideally suited to low-cost heap leach processing with rapid and progressive
rehabilitation, keeping capital costs low and delivers a strategically valuable mix of in demand magnet rare earths along
with yttrium, gadolinium, samarium and lutetium all increasingly critical to Western supply chains, and many subject to
Chinese export controls.
The Base Case post-tax NPV₈ of A$858 million and after-tax IRR of 99% have been calculated on pricing assumptions
derived from using the average of two highly regarded independent market analysis, Adamas Intelligence and Argus Media,
using their Q2’ 2026 long term Western forecasts to 2040. While their forecasts differ, both are considered credible and
reflect the uncertainty in a maturing Western sourced rare earth pricing market.
Product Pricing and Revenue Assumptions
The global rare earth market remains heavily influenced by Chinese supply dominance and evolving geopolitical dynamics,
while the build-out of Western supply chains may contribute to increasing market and price bifurcation between China and
ex-China markets, making long-term price forecasting inherently uncertain.
Recent pricing in ex-China markets, such as spot pricing in Europe indicates an increasingly fragmented market, in
particular for rare earth elements subject to China export controls such as dysprosium, terbium and yttrium.
The Koppamurra PFS outlines the production of a strategically enriched mixed rare earth oxide (MREO) including:
• Neodymium and praseodymium — light magnet rare earths, with growing demand driven by electric vehicles,
robotics, renewable energy technologies and advanced manufacturing
• Dysprosium and terbium — heavy magnet rare earths commanding a significant price premium in the west
following China’s imposition of export controls
• Samarium, gadolinium, yttrium and lutetium — additional value contributors now attracting premium pricing as
Western buyers seek China-independent supply with Koppamurra’s MREO enriched with these elements
Cost Structure and Global Competitiveness
Koppamurra's PFS-level capital cost of $178 million, operating costs of US$34.14/kg TREO (ex-royalties) and all-in
sustaining costs of US$38.32/kg TREO are driven by the fundamental advantages of the mineralisation type and processing
approach:
• Shallow open-pit, free-dig mining eliminates the need for drilling, blasting and hard rock crushing — substantially
reducing mining costs and equipment requirements relative to alternate rare earth mineralisation types. It also
enables rapid, progressive rehabilitation of the land and the return to its former use
• Heap leach processing is a proven, low-capital processing route that avoids complex extraction infrastructure
• Proximity to established infrastructure including the South Australian transport network reduces both capex
and opex. Koppamurra is close to major highways, a short drive from a regional airport, serviced by good port
infrastructure, and does not require a mine camp, saving on construction cost and providing reliable access to
consumables and regional labour
Project Overview
The Koppamurra Project is located approximately 30 km southeast of Naracoorte on the Limestone Coast of South
Australia.
Figure 1 Koppamurra Project Location
Geology and Mineral Resource
A Uniquely Favourable Geological Setting
The Koppamurra Project is located within the Murray Basin of south-eastern Australia along the western margin of the
Naracoorte East Range on South Australia's Limestone Coast. The Project hosts shallow clay-hosted rare earth
mineralisation developed within weathered Pleistocene lacustrine sedimentary clay units overlying Gambier Limestone of
the Murray Group.
Rare earth mineralisation occurs within shallow ionic adsorption clay zones typically developed within 2–3 metres above
the weathered limestone basement — the entire mineralised horizon sits at or near the surface, with thin sandy overburden
requiring minimal material movement. The broad lateral continuity of the REE-enriched smectite-rich clay horizons across
the Project area supports long life, open-pit mining at low cost.
The Koppamurra mineralisation represents an unusual sediment-hosted ionic clay rare earth system formed through
weathering, sedimentary transport and geochemical enrichment linked to far-field granitic source rocks of the Lachlan
Orogen. The ionic adsorption characteristics of the mineralisation mean rare earths are easily liberated using a mild acidic
solution with magnesium sulphate as a desorption agent — the basis for the heap leach flowsheet that drives the project's
low-cost profile.
Figure 2 Typical Cross Section - Koppamurra
Why the rare earth composition matters: The resource contains a magnet rare earth element (MRE) component
accounting for 25% of total TREO, encompassing all four key magnet REEs. The strategically important heavy REEs
dysprosium and terbium (approximately 3% of TREO combined), along with yttrium, gadolinium, samarium and lutetium,
are now subject to China's expanded export controls. This basket composition creates both revenue quality and strategic
market positioning that a deposit containing predominantly light magnet rare earths components (Nd and Pr bearing ores)
cannot match.
The total Mineral Resource estimate of 243 Mt at 751 ppm TREO is a large ionic clay REE resources and is supported by
drilling programs totalling ~65,000m. Approximately 47% of the Mineral Resource is categorised as Measured or Indicated.
The Mineral Resource estimate was updated in 2026 and is summarised in Table 2.
Table 2: Global Mineral Resource Estimate — Koppamurra Project (JORC 2012)
Mineral
Resource
Category
Material BD TREO TREO-
CeO2
MREO La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3 Gd2O3
Mt g/cm3
ppm ppm %TREO ppm ppm ppm ppm ppm ppm
Measured 0.9 1.6 773 502 25.1 125 271 36 135 27 25
Indicated 113 1.6 766 502 25.3 121 264 35 135 27 26
Inferred 130 1.6 737 486 25.3 121 251 34 130 26 24
Total 243 1.6 751 493 25.3 121 257 35 132 26 25
Summary of Global Mineral Resources continued
Mineral
Resource
Category
Tb4O7 Dy2O3 Ho2O3 Er2O3 Eu2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 U3O8 ThO2
ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
Measured 4 20 4 10 6 1 8 1 102 1 21
Indicated 4 20 4 10 6 1 8 1 106 2 19
Inferred 3 19 4 9 6 1 7 1 102 2 18
Total 4 19 4 10 6 1 8 1 104 2 19
Exploration Target: A Multi-Decade Resource Base in Waiting
Beyond the existing Mineral Resource, the Project carries a significant Exploration Target across the broader southern and
northern extents of the project region. This indicates the potential scale of the full mineralised system and points to a
development asset that could underpin production well beyond the current PFS life of mine. The potential quantity and
grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral
Resource for these areas, and it is uncertain whether further exploration will result in the estimation of a Mineral Resource.
Future drill programs will include the potential to expand the existing Mineral Resource base across the broader Project
area.
Koppamurra 2026 Ore Reserve Estimate
The Maiden Ore Reserve estimate of 26Mt at 920ppm TREO for the Koppamurra Deposit is estimated at 25 June 2026 and
summarised in Table 3. Tonnages and grades are rounded as appropriate and mineral assemblage is reported as parts per
million. Measured and Indicated Mineral Resources have been converted to Probable Ore Reserves only. No Inferred
Mineral Resources are included in the Ore Reserves. Ore Reserves are a subset of Mineral Resources. Ore Reserves are
reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (The Joint Ore Reserves Committee Code – JORC 2012 Edition).
Table 3 Ore Reserve Estimation as at 25 June 2026
Ore Reserve
Category
Material BD TREO TREO-
CeO2
La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3 Gd2O3
Mt g/cm3
ppm ppm ppm ppm ppm ppm ppm ppm
Probable 26 1.6 920 602 141 324 43 167 33 32
Ore Reserve Estimation continued
Ore Reserve
Category
Tb4O7 Dy2O3 Ho2O3 Er2O3 Eu2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 U3O8 ThO2
ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
Probable 4.5 25 4.7 13 7.6 1.6 10 1.4 125 1.4 19
This study summarises the material information pursuant to ASX Listing Rule 5.9. Additional information required by ASX
Listing Rule 5.9 is summarised in JORC Code 2012 – Table 1 Section 4 of ASX release 25 June 2026 “Maiden Ore Reserve
positions Koppamurra for development”.
Figure 3 Koppamurra JORC Classification (>325 ppm TREO-CeO2)
Mining and Mine Design
Low-Impact, Low-Cost Open-Pit Mining
The Koppamurra mine design leverages the inherent advantages of shallow, ionic adsorption clay mineralisation. The
operation will use conventional open-pit truck-and-excavator methods, but the soft, free-digging nature of the clay-hosted
ore eliminates the need for drilling and blasting — reducing operating costs, environmental impact, and equipment wear
compared with hard rock alternatives.
The mine plan is structured around a phased mining sequence to optimise feed grade, maximise MREO recovery and deliver
steady-state throughput of 3 Mtpa (dry basis) to the heap leach facility. The Koppamurra mine design has been developed
with progressive rehabilitation integrated into the mine plan, with disturbed areas progressively restored as mining
sequences advance.
The life-of-mine production schedule demonstrates a relatively consistent ore feed profile throughout most of the
operation, while integrating mining, heap leaching, residue placement and progressive rehabilitation requirements.
The total Life of Mine Production Target (and forecast financial information derived from the Production Target) referred to
in this announcement is underpinned by approximately 71% Probable Ore Reserves and the remaining approximately 29%
by Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and
there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the
Production Target itself (or the forecast financial information) will be realised. The Company has satisfied itself that the
Inferred Mineral Resources included in the Life of Mine Production Target are not the determining factor in project viability.
The Inferred Mineral Resources included in the Life of Mine Production Target are allocated across the 12 year mine life with
an average of 23% Inferred Mineral Resource across the first 10 years ranging from 2% to 33%. The expected payback period
for the Koppamurra Project is less than one year.
0
200
400
600
800
1,000
1,200
0
1
2
3
4
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12
TREO ppm
Mt
Life of Mine Production Target: Resource Category and Grade
Measured Indicated Inferred Ore Grade
A Proven, Simple and Cost-Effective Flowsheet
The Koppamurra processing flowsheet has been designed to take advantage of the ionic adsorption clay mineralisation
characteristics that make this deposit type uniquely amenable to low-cost processing. The proposed heap leach flowsheet
is technically simpler and significantly lower in capital and operating cost than the processing routes required for hard rock
or non-ionic clay REE projects.
The processing route produces a mixed rare earth oxide (MREO) product through the following key steps:
• Ore is mined, screened and agglomerated before being stacked on a lined leach pad
• Lixiviant of diluted sulphuric acid and magnesium sulphate solution is applied to the heap at ambient
temperatures, selectively extracting rare earth elements
• Pregnant leach solution (PLS) is collected and processed through a simple precipitation and re-dissolution step
as a first stage of removing impurities including aluminium and other gangue elements
• Rare earth precipitation with oxalic acid produces a mixed rare earth oxalate filter cake, which is calcined offsite
to produce the final MREO product for sale
• Reagent availability has been identified with all key reagent volumes able to be sourced from ex-China locations
across Australia and abroad
Metallurgical Performance supported by ANSTO testwork
Recovery assumptions underpinning the PFS financial model are based on an extensive testwork program completed with
the support of ANSTO. Key outcomes from flowsheet testwork include:
• TREO recovery of 68% from Mineral Resource to final MREO product
• MREO recovery of 68%, reflecting the strong leaching response of the magnet rare earth elements
• Low impurity levels in the final product, supporting strong payability in offtake negotiations
• Consistent metallurgical performance across spatially distributed sample locations, providing confidence in the
representativeness of recoveries across the mine plan
Critically, AR3 will be the first company in Australia to conduct pilot-scale processing of ionic clay REE ore through ANSTO's
new pilot processing facility in Sydney. This program — processing approximately 30 tonnes of bulk sample material — will
generate continuous processing data, engineering design inputs for the DFS, and product samples for customer
qualification.
Figure 4 Koppamurra Flowsheet
Figure 5 Birdseye view of the processing plant model
Project Capital and Operating Costs
The Capital and Operating estimates have been prepared as Class 4 Estimates in accordance with Australasian Institute of
Mining and Metallurgy (AusIMM) for prefeasibility-level technical studies.
Capital Cost
The estimated capital costs reflect a 3Mtpa base case operation for a total cost of A$178 million, inclusive of a ~25%
contingency of $35 million. The capital costs exclude the mining fleet with a contract mining model adopted for the PFS. All
mining costs are included as operating cost. The Koppamurra Project is a very low capital cost option.
Table 4 Capital Estimate
Description CAPEX Total (A$m)
Processing Plant 77
Site Infrastructure and Services 48
Temporary Facilities 4
Owner’s Cost 14
Contingency 35
TOTAL (incl. contingency) 178
Operating Cost
Operating Cost estimate for the Project is A$96 million per annum. Table 5 below summarises the operating cost by
category. Mining comprises of 45% of total OPEX, and the process plant costs account for 52% of total OPEX.
Table 5 Operating Costs
Description A$ million
per annum
% of total
Operating Cost
US$/dry t ore
(3Mt)*
US$/kg TREO
(1860 t)*
Mining 43 45 9.32 15.29
Processing 50 51 10.83 17.78
General and Administration 3 3 0.65 1.07
TOTAL 96 100 20.80 34.14
*Assuming a USD:AUD foreign exchange rate of 0.65
Total Mining costs include surface, ore and waste material movement costs. Total material movement has been calculated
based on A$4.2/t for overburden (waste) removal and A$5.4/t for mining of ore. Surface operations encompassing topsoil
removal, clearing and rehabilitations contribute to the overall mining costs of A$43 million per annum.
Process plant operating costs include both fixed and variable costs. Fixed
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