EXPLORATION & DEVELOPMENT

Perpetual confident of Beharra's bona fides

Belief is silica sands project will be in production next year

 Beharra is located about 96km southeast of Geraldton, WA

Beharra is located about 96km southeast of Geraldton, WA

The study pointed to Beharra's initial capex being $39 million and its post-tax net present value being $231 million. 

It also "clearly demonstrates that the Beharra end product is suitable for sale into the Asia Pacific glass and foundry sand industries". 

The project would have a bameplate production capacity of 1.5 million tonnes per annum produced from a run of mine production of 2Mtpa. 

The 32 year project is expected to generate total free cashflow of $1.1 billion.  

Perpetual believes there's "scope to reduce operating and capital costs at feasibility study (or other subsequent) stage which would materially improve financial and return metrics for Beharra". 

Perpetual raised $2 million last month from a German institution that paid 8c per new share. 

Shares in Perpetual were down 7.5% to 8.6c in early afternoon trade, capitalising the company at $41 million.  

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