This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Yearly Production By Resource Classification (Graphic: Business Wire)

Stocks in this article: PGRX

Damon Barber, President and Chief Executive Officer of Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the “Company”), is pleased to announce that a team of internationally-respected engineering and consulting firms has completed work on a Pre-Feasibility Study (“PFS”) for the Company’s potash project in the Holbrook Basin of Eastern Arizona. The study was performed by Tetra Tech Inc. (“Tetra Tech”), a leading provider of consulting, engineering, construction management and technical services worldwide.

Highlights Include: (1)

  • 1.42 million tons per year operation (2)
  • $825 million estimated capital cost
  • $1.4 billion NPV at an 8% discount rate (3)
  • 27% after-tax IRR (3)
  • Initial mine life of 26 years
  • Life of mine operating costs of $115 per ton
  • Peak production of 1.55 million tons (4)
  • 33 million tons of total MOP production over initial 26 year mine life
  • Approximately 1.3 million tons per annum of production over life of mine
(1)   The Pre-Feasibility Study contains two cases, a “Base Case” which economically evaluates only Measured and Indicated Resources and a “Development Case” which includes the anticipated conversion of Inferred Resources into Measured and Indicated Resources from the Company’s upcoming infill drilling program. The Company intends to develop the Project in accordance with the Development Case, which it believes is the optimal approach and realistic given the Company’s historic and anticipated conversion of Inferred Resources to Measured and Indicated Resources. The results in this press release are based on the Development Case which contemplates a mining schedule that contains 57.7% Measured and Indicated Resources and 42.3% Inferred Resources being mined over an initial 26 year mine life. The term “Resource” does not equate to the term “Reserve.” Under U.S. standards, mineralization may not be classified as a “Reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.
(2) Nameplate operation based on average production from years 6 through 10.
(3) Based on prices of $430 per tonne FOB Vancouver for standard product, $450 per tonne FOB Vancouver for granular product and $480 per ton delivered U.S. Midwest for granular product. Assumes 100% equity.
(4) Year 7
 

“The completion of the Pre-Feasibility Study represents a significant milestone in the development of our Holbrook Project,” said Mr. Barber. “The goal of our work was to lower the risks of financing, development, construction and mining operations while simultaneously increasing returns on capital. The PFS shows the results of that effort. We have optimized the operation for the current resource and significantly reduced the risks of the project for investors. The PFS estimates confirm our view that the Holbrook Project has the potential to become a high quality, long-life, conventional potash mine with robust economics. We look forward to completing our Definitive Feasibility Study as soon as possible and developing a scalable, low-risk, mining operation.”

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs