Tivan Ltd: A lovely set of numbers for a critical mineral used by many but known by few
Tivan Ltd Executive Chairman Grant Wilson on 3AW, 2GB, 4BC & 6PR Bulls N' Bears Report
Listen to ASX-listed Tivan Ltd Executive Chairman Grant Wilson talk to Matt Birney on the Bulls N’ Bears Report about Tivan’s lucrative-looking financial study on its critical mineral resource containing a mineral that is used widely by big industrial players around the globe.
TO LISTEN TO THE TIVAN LIMITED AUDIO INTERVIEW - CLICK BELOW
Tivan is developing its Speewah fluorite and vanadium project near Wyndam in WA’s Kimberly region which it bought last year. In June this year the company signed a strategic alliance with Sumitomo which could lead to a formal joint venture with the Japanese giant becoming sole distributor and marketer of Tivan’s fluorite product. The company recently tabled a pre-feasibility study into the fluorite within its Speewah project and the numbers make for interesting reading.
RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears brought to you today by critical minerals developer Tivan Limited
Matt Birney - ASX code: TVN
Matt Birney - I'm Matt Birney and I'm joined now by the Executive Chairman of Tivan, Grant Wilson.
Matt Birney - Hi Grant
Grant Wilson - Hi Matt, how you going?
Matt Birney - I'm good okay so, Tivan is developing its Speewah fluorite and vanadium project near Wyndham in WA’s Kimberly region which it bought last year. In June this year the company signed a strategic alliance with Sumitomo which could lead to a formal joint venture with the Japanese giant becoming the sole distributor and marketer of Tivan’s fluorite product. The company recently tabled a pre-feasibility study just into the fluorite within its Speewah project and the numbers make for interesting reading.
Matt Birney - Okay Grant we'll get into that PFS in a minute but firstly I know you bought Speewah from King River Resources for about 20 million last year and you've upgraded the resource since then, what is that resource?
Grant Wilson - Yeah we upgraded it on a JORC basis in April to 37.3 million tonnes at 9.1 per cent grade. There's a high grade component as well 8.6 million tonnes.
Matt Birney - Okay so you've just released a PFS, just into the fluorite within Speewah, I know there's vandium a little way away from this deposit. Let's get into some rapid fire questions just on the fluorite PFS. Firstly, what's the initial mine life estimate?
Grant Wilson - 10.5 years.
Matt Birney - And how many tonnes of fluorite will you produce a year?
Grant Wilson - 140,000 tonnes.
Matt Birney - What's the initial CapEx estimation to get into production?
Grant Wilson - Yeah it's low especially for a critical minerals project, around $240 million.
Matt Birney - And how long will it take you to pay that investment off?
Grant Wilson - The PFS found less than three years.
Matt Birney - And how much money is this thing going to make a year on average over that 10 year mine life? Let's go with EBITDA.
Grant Wilson - EBITDA is 115 million a year.
Matt Birney - And what's the pre-tax net present value of the project in today's money?
Grant Wilson - So that yields an NPV of just shy of $500 million and the resource expansion pathway can push that further.
Matt Birney - And how much will it cost you to produce a tonne of fluorspar and what does fluorspar sell for in the market today?
Grant Wilson - C1 cost in the PFS around 300 US, currently for the last quarter China priced around 630 so 50 per cent profit margin. In terms of use, high criticality use cases especially for Semiconductor manufacturing where Australia's never participated and also EV batteries.
Matt Birney - Who buys fluorspar and what's its price journey been over the last decade or so?
Grant Wilson - It's been trending up 6-7 per cent a year unlike other critical minerals. Very steady trends. Our product market is Asia so that would be Japan, Korea, India especially.
Matt Birney - I understand Tivan has been working on creating a joint venture for this project with huge Japanese industrial player Sumitomo. When do you expect that to be finalised?
Grant Wilson - Yeah it's a special relationship that we've earned in Tokyo and we're looking to close out the JV before the end of the year.
Matt Birney - And what will Sumitomo's obligation be?
Grant Wilson - Well they'll be a JV partner and their focus is on the distribution into Asia and obviously project finance.
Matt Birney - Grant Wilson from Tivan.
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information, not advice, which you should of course seek independently.
Matt Birney - I'm Matt Birney and this is Bulls N' Bears.
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