CXX chairman on Panda Hill DFS: “numbers speak for themselves”

Published at Apr 20, 2016, in Mining

Cradle Resources (ASX:CXX) thinks its Panda Hill project will make $US122 million ($A156.4 million) a year before taxes for a total of 30 years.

It has the results of a definitive feasibility study on its Panda Hill niobium project back, and it’s told its investors that the project will have an annual EBITDA figure of $122 million, based on a project with an upfront capital cost of $196 million and production of 5400 tonnes of niobium per year.

Details of the project, according to the DFS

Details of the project, according to the DFS

The DFS is the latest step in the process of getting the Panda Hill project up and running, with CXX having previously focused on the ability to produce a saleable product from its ferrous niobium ore.

Still to go in the process are securing an offtake agreement and financing for the project – which is why no particular start date on the project has been offered as yet.

CXX has envisioned the project being a stepped process, whereby the first four years of plant throughput of 1.3 million tonnes per annum, and then scales up to 2.6Mtpa after the first for years of operation.

Project numbers after ramp-up

The scaling up process will be funded by the production in the first for years of production.

The post-tax net present value on the project has been pencilled in at $542 million for the first stage, with that to increase to $1.02 billion in the second phase.

Panda Hill resource use over project lifetime

Panda Hill resource use over project lifetime

It also pegged the post-tax internal rate of return at 27%.

For the economics of the project, CXX assumed a $37.56/kg niobium price – which is an amalgam of two desk prices.

CXX told investors that the first stage of the project would chew up 6% of niobium production, but with demand forecast to increase by 3-4% per year it would not be taking a huge chunk of the market growth.

Its chairman Craig Burton told investors that the company didn’t need to say too much about the project now the DFS was out.

“The numbers speak for themselves,” he said.

“This will be the first new niobium producer in 40 years and the only new producer of this rare metal in the foreseeable future.

“The demand for niobium continues to grow strongly due to the burgeoning worldwide demand for new-age materials and associated elements like lithium, graphite, and niobium. Panda Hill is only seeking to capture a modest portion of this ongoing demand growth.”

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!