Greenland Minerals& Energy Ltd. said April 6 that it has updated its feasibility studyfor the Kvanefjeldrare earth elements-uranium project in Greenland, incorporating several modificationsthat significantly improve the project's financial outcomes.
Compared to the initial feasibility study, which Greenland Mineralsreleased in May 2015,the company has increased Kvanefjeld's net present value from US$1.40 billion toUS$1.59 billion, while also increasing the internal rate of return from 21.8% to43.4%.
Capital and operating costs for the project have been reduced,with capital costs decreasing from US$1.36 billion to US$832 million. The paybackperiod was likewise reduced from six years to five years.
According to the company, Kvanefjeld's conservative pricing assumptionsdemonstrate the viability of the project even in a low-price environment.