Myanmar Metals (MYL) released a Pre-Feasibility Study (FPS) for the starter pit of the Bawdwin Joint Venture (BJV, 51% MYL). Whilst this is only the first of potentially 14 mines on the Bawdwin concession, it still delivers an enviable 13-year mine life producing on average 149ktpa Zn+Pb and 9Mozpa Ag. Pre-production capex is estimated at US$300m (100% basis), incorporating US$33m in contingencies. MYL estimates a pre-tax NPV8 of US$580m and a 30% IRR. The BJV is looking to complete a DFS, attain requisite approvals and commence construction in ~12 months. Bawdwin is a Tier 1 asset with lowest quartile operating costs, low capital intensity and multi decade mine life potential. SPEC BUY.
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