Allegiance Coal Limited (ASX:AHQ) have announced that start-up capital for the New Elk hard coking coal mine (including working capital) has been reduced from US$40M to US$24M following a further review of the New Elk Mine plan by independent mine engineers, Stantec.
What are the key highlights?
- The US$40M start-up capital number in the Start-up Mine Plan was itself a reduction of the start-up capital number of US$56M derived from the New Elk Mine maiden feasibility study also undertaken by Stantec, the results of which the Company announced on 28 November 2019 (Feasibility Study).
- The key takeaway from Stantec’s work is that the delay in capital expenditure does not materially change the total capital and cash operating costs nor in anyway the saleable coal tonnes.
For further information, please view the announcement linked below.