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14:08 on
09-02-2010
$0.220
even
15-20 min delay
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Lysander Minerals Corporation is now focused on coal in Ukraine. Through its subsidiaries Ukraine Energy and East Coal Company it owns the Verticalnaya coal mine located in south-east Ukraine which it plans to re-open on a significantly expanded basis.
As of May 2010, there is strong global and strengthening local demand for coal; while the political scene and economic fundamentals are much improved. The Company is a leader in foreign investment into coal mining in Ukraine and will have a "first mover" advantage in assessing other projects.
Verticalnaya has substantial assets including two deep shaft systems. It was placed on care and maintenance following a period of low production consequent to the break-down of the Soviet Union. It has existing management, an initial workforce and nearby rail access. Licenses/permits are largely in place.
The NI 43-101 technical report of September 2008 projects that production will be increased in stages to exceed 3 million tonnes of anthracite per year. Production will include premium anthracite grades together with fines for sale to power stations. Some 23% may be sold as PCI coal for sale to the steel industry. Initially, sales may be within Ukraine but there is export potential. Key project indicators per the report are:
| Initial capital expenditures |
US$ 237.8 million |
| Net present value @12% |
US$ 352.1 million |
| Internal rate of return |
35.2% |
| Average cash operating cost per saleable tonne |
US$ 31.19/tonne |
| Pay back period |
7 years |
| Proven reserves |
16,200,000 tonnes |
| Probable reserves |
11,000,000 tonnes |
| Measured resources |
57,300,000 tonnes |
| Indicated resources |
18,900,000 tonnes |
| Total resources |
76,200,000 tonnes |
Resources are inclusive of Reserves
The NI 43-101technical report filed in March 2010 deals with the Verticalnaya North ("VNP") project which is now planned as a relatively small starter project that will allow longwall production to commence within two years. It will initially access 1.6 million tonnes of coal (only partly included in the Verticalnaya measured resources shown above). On a stand-alone basis, the average cost per tonne of production from VNP is projected to be US$23.25 per tonne.
It is planned to commence construction of VNP in 2010 and development of the main drifts as soon as possible in 2011.
The Company is well positioned - with a very experienced and accomplished Board of Directors, which includes: Mr. John Conlon, whose directorships include Western Canadian Coal Corp. and Coal International PLC, who has extensive experience in underground mining operations and the management of mines.
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Fri Jul 30, 2010 : Corporate Update (more...)
Mon Jul 26, 2010 : Appointment Of Mr. John Byrne To Board Of Director... (more...)
Mon May 3, 2010 : Conditions in Ukraine are Improving Quickly; 2009 ... (more...)
Tue Mar 30, 2010 : Technical Report For Possible Starter Project At T... (more...)
Mon Mar 22, 2010 : Update on Coal Interests (more...)
President's Letter to Shareholders
November 27, 2009
Click here to view PDF
AGM - President's Address to Shareholders
Click here to view PDF
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