Larvotto’s countdown to first processing – set to kick off within 12 months – just received a major shot in the arm thanks to a standout definitive feasibility study (DFS).
The study delivered an eye-popping post-tax net present value of $694 million using an 8 per cent discount rate. It also forecast an annual EBITDA of $251M and a free cash flow of $128M after tax every year for 8.2 years.
Although the DFS is built on conservative price assumptions using US$2850 (A$4367) per ounce for gold and US$41,000 (A$62,800) per tonne for antimony, the value gets a massive uplift when spot prices are plugged in.
Under current market conditions, the project’s net present value explodes to a whopping $1.269 billion, with projected annual EBITDA hitting $354M and free cash flow soaring to $198M.
The DFS’s most startling discovery may be its all-in sustaining costs, which are forecast to come in at a jaw-dropping negative rate of $1367 per gold equivalent ounce, once credits from antimony production are factored in.
Larvotto is targeting a yearly output of 40,566 ounces of gold and 4878 tonnes of antimony from the mine. Construction of the upgraded 525,000 tonnes per annum processing plant – up from 250,000tpa – is expected to begin in the next couple of months.
The Hillgrove district is no newcomer to mineral wealth. The region has seen more than a century of mining activity. However, the company says modern exploration techniques such as IP are proving there is still plenty of the good dirt left to uncover above its current ore reserve of 606,000 ounces grading at 6 grams per tonne gold equivalent.
Larvotto controls 51 tenements in total at its fully-owned Hillgrove grounds, including exploration leases, mining leases and mining purpose leases.
The renewed momentum for further resource growth comes as antimony emerges as a critical mineral in global supply chains for use in flame retardants, semiconductors and defence technology.
With the Hillgrove mine’s legacy as one of Australia’s few major antimony producers, Larvotto is perfectly positioned to step up as a key global supplier – potentially delivering up to 7 per cent of the world’s output. As geopolitical tensions push nations to secure local sources of critical minerals, Hillgrove gives Larvotto a serious edge in the race to meet soaring demand.
With fresh targets in hand and a low-cost pathway to discovery from IP geophysics now proven at Hillgrove, Larvotto appears to be setting itself up as one of the most compelling antimony-gold plays on the ASX radar.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
