Allied Critical Metals Further Highlights Rapid Payback, Capital Efficiency and Infrastructure from Borralha PEA
Executive Summary
- Allied Critical Metals releases supplemental PEA metrics for its 100 % owned Borralha tungsten project, confirming strong economics and capital efficiency.
- After‑tax NPV ranges from $182.7 M (base case) to $963.8 M (high case) with IRR up to 78.4 %; payback as short as 1.2 years from start of construction.
- Initial capital estimated at US$91 M (CAD $124.2 M); life‑of‑mine average annual EBITDA between US$53 M and US$190 M, generating robust free cash flow (~US$70–128 M).
Key Details
- Economic Results (After‑Tax) – Table 1
- Medium case ($1,365/mtu WO₃): NPV $473.4 M, IRR 48.8 %, Payback 2.2 yr (SC) / 4.2 yr (CCP).
- Base case ($962/mtu WO₃): NPV $182.7 M, IRR 27.2 %, Payback 3.8 yr / 5.8 yr.
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High case ($2,049/mtu WO₃): NPV $963.8 M, IRR 78.4 %, Payback 1.2 yr / 3.2 yr.
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Resource Estimate – Table 2 (2025 MRE)
- Measured + Indicated: 13.0 Mt @ 0.21 % WO₃
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Inferred: 7.7 Mt @ 0.18 % WO₃
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Initial Capital Breakdown – Table 3 (CAD / US$)
- Underground development: CAD 21.6 M / US$15.8 M
- Processing plant: CAD 23.1 M / US$16.9 M
- Paste backfill plant: CAD 5.9 M / US$4.3 M
- Surface infrastructure: CAD 6.7 M / US$4.9 M
- Power connection: CAD 9.8 M / US$7.2 M
- EPCM & indirect costs: CAD 16.4 M / US$12.0 M
- Contingency: CAD 6.0 M / US$4.4 M
- Tax incentives (offset): CAD 34.3 M / US$25.1 M
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Subtotal Initial Capital: CAD 123.7 M (~US$91.5 M)
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Operating Cost – Table 4 (US$/t processed)
- Mining: $41.2
- Processing: $13.2
- G&A: $5.0
- Transport: $0.02
- Treatment/Refining Charges: $0.51
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Total: $59.3 (average LOM cost $49/t)
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Cash‑Flow Metrics – Table 5 (US$)
- Base case ($704/mtu): Rev $131,749 k, EBITDA $53,374 k, Free cash flow $35,815 k.
- Medium case ($1,000/mtu): Rev $184,886 k, EBITDA $104,101 k, Free cash flow $70,493 k.
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High case ($1,500/mtu): Rev $274,686 k, EBITDA $189,860 k, Free cash flow $128,785 k.
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Infrastructure Highlights – Grid power (60 kV line, 6.5 km), water recycling, compact site layout, paste‑backfill integration, existing road access.
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Growth Strategy – Fully funded 20,000 m drill program targeting resource expansion, confidence conversion, and potential mine‑life extension beyond the initial 11‑year plan.
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Qualified Persons – Independent QPs (J. Douglas Blanchflower, David Castro López, Miguel Cabal) and company VP Vítor Arezes reviewed and approved technical content per NI 43‑101.
Notable Quotes
“The supplementary disclosure highlights the Project's capital efficiency, strong annual cash generation and well-developed infrastructure platform… the underlying economics of the PEA remain unchanged.” – Roy Bonnell, CEO & Director
All figures are presented in Canadian dollars unless otherwise noted; exchange rate used: CAD 1.3658 = US$1.