Larvotto snapped up the Hillgrove site 18 months ago from administrators for a paltry $8 million, inclusive of a $5 million environmental bond. The project has since become the jewel in the company’s crown.
Fast forward to today and Larvotto’s Hillgrove project is shaping up as a genuine company-maker, with a recent definitive study slapping a jaw-dropping post-tax net present value of $694 million on the operation using an 8 per cent discount rate.
The mine is forecast to pump out a hefty $251 million EBITDA annually and deliver $128 million in free cash flow after tax every year, for more than eight years.
The project is one of the very few advanced antimony plays in the Western world. Antimony is classed as a critical mineral by several governments due to its importance in military and industrial applications, including semiconductors, batteries and flame retardants.
Settlement of the first tranche of 61.6 million new shares is due on August 1, with the second 26.6 million tranche to follow after shareholder approval in late August or early September.
Aitken Mount Capital Partners and Blue Ocean Equities were joint lead managers to the placement.
Larvotto also holds the Mt Isa copper-gold-cobalt project in Queensland and its Eyre multi-metals and lithium ground near Norseman in Western Australia.
But for now, all eyes are firmly fixed on Hillgrove and the looming production date that could put the company on the global critical minerals map.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
