Tigers Realm Coal (TIG) has made the successful transition to production at Project F in Far East Russia. TIG’s first shipments of coal commencing July this shipping season are a major de-risking milestone. They prove the mine to port logistics and transshipment process, and acceptance of our coals into the international and local Chukotka markets.
TIG has updated the potential value of the Project F 1 Mt/y operation. The update takes into account recent operating performance and changes to exchange rate, fuel price and vendor payments following TIG’s move to 100% ownership of Amaam North, including Project F. The figure below highlights the range of potential values for Project F at 1 Mt/y for FOB HCC coking coal prices between $110 and $200/t FOB, and Russian Ruble to US dollar exchange rates between 50:1 and 70:1.
For most of 2017, hard coking coal (HCC) prices have ranged from $150 to $200/t FOB and the exchange rate has been approximately 60 Rubles:1 US$. Under these conditions the After Tax NPV of Project F, using a discount rate of 10%, is estimated to be between $250 million and $425 million.
TIG snapshot
- A 632 Mt resource base of high quality metallurgical coal with potential for further growth in a stable,supportive jurisdiction –Chukotka, Far East Russia
- An outstanding project location on the Bering Sea coast, 37 km by road to the TIG owned coal port with competitive delivery routes to Asian customers
- Phase One of Project F (Amaam North) in production, ramping up to 600,000 t/y and 100% owned
- Relatively low capital expenditure required to grow Project F to a +2 Mt/y capacity with further expansion potential thereafter
- Tigers Realm Coal is on track to become one of the lowest cost metallurgical coal producers in the world
- Strong support from major shareholders and in-country stakeholders through pre-development phase into production.