Midwest Vanadium Pty Ltd (MVPL)
Atlantic has acquired 100% of the Windimurra Vanadium Project and is now working towards proceeding with the completion and commissioning of the project, with the project expected to commence production in the third quarter of 2011.
Independent research by CPM shows that the Project will be a lowest quartile cash cost vanadium producer as a result of the following:
- the attractive transaction metrics negotiated by Atlantic that fundamentally restructure the capital base of MVPL and deliver the benefit of over $500 million of prior capital expenditure for a net present value of $68 million of retained debt;
- consolidation of ownership that will streamline the management of the Project under the control of one group;
- the acquisition of the crushing and beneficiation plant that will deliver material long-term cost savings;
- identification of the haematite by-product revenue stream opportunity, thereby releasing significant further cash credits for the Project, driving costs into the lowest quartile; and
- renegotiation of key supply contracts.
The company is assessing whether a selective mining and high grading strategy can be implemented with the potential to release further material cost savings.