King River Resources Boosts Finances With Research & Development Tax Rebate
King River Resources Ltd (ASX:KRR) has boosted its finances upon receiving a Research & Development tax rebate of $382,463.65, with funds to be utilised for working capital.
Research into the development of the processing methodology conducted during the 2020 financial year complies with the criteria set out for the Research & Development Scheme and allows the deductible cost of the research to be claimed as a tax rebate.
Robust PFS
KRR recently confirmed its proposed Kwinana plant’s technical and economical viability, as a pre-feasibility study (PFS) for the High Purity Alumina (HPA) Project was released.
The PFS forecast a production rate of 9,000 tonnes per annum of 99.99% HPA once at full production, with project revenue of more than $7 billion over 25 years.
This proposed plant at Kwinana near Perth is where KRR will produce HPA, sourced from an industrial chemical feedstock and utilising its HPA refining process known as ‘ARC’ – highlighting the Aluminium feedstock, the use of only Recrystallisation steps in purification and final Calcination.
King River chairman Anthony Barton said at the time that the PFS was an important milestone for the company.
“This PFS has effectively endorsed our strategy to initially focus on entering the global HPA market, then consider developments at a later date of other high value/high purity commodities sourced from the Speewah vanadium-titanium and fluorspar deposits,” he said.
The details
Highlights of the PFS include:
Production rate of 9,000 tonnes per annum of high purity alumina of 4N purity;
Unit cash costs of A$8,987 per tonne HPA, or A$8.99 per kg HPA, during full production;
Annual EBITDA of A$193 million;
Annual pre-tax free cash flow of A$190 million;
Pre-production project capital cost estimate of A$203.4 million;
Project NPV before tax of A$1,043 million and IRR before tax of 50.8%;
25-year project revenue of A$7,027 million;
25-year project revenue of A$4,715 million; and
25-year project free cash flow of A$4,438 million.
It also flagged the potential for King River to become a major global producer of HPA, outside of Japan, USA, Europe and China.
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