Sydney, Dec 1, 2017 AEST (ABN Newswire) - New Century Resources (ASX:NCZ) has released a positive feasibility study for its Century Zinc Mine in Queensland. Highlights of that study include the following.

- Average EBITDA - $449 million (US$1.25/lb zinc price).

- Annual zinc production -- 264,000 tpa zinc metal.

- Throughput - 15 Mtpa.

- Operating costs (C1) - US$0.38/lb payable.

- Operating costs (AISC) - US$0.50/lb payable.

- Start-up capital costs - AU$50 million.

- First production - 3Q18.

Analyst comment: this was an excellent achievement for New Century, considering that the acquisition of the Century Zinc Mine was completed less than 6 months ago. Most of what the study revealed has been released in previous company announcements so there are no major surprises, but we believe three main points are worth reiterating.

- Low operating costs - the project's forecast AISC is US$0.50/lb, compared to the current spot zinc price of US$1.43/lb, making the operation one of the lowest-cost zinc projects globally.

- Zinc production - forecast production is 264,000 tonnes of contained zinc metal per annum, making the operation the fifth largest globally in terms of production. We believe that this, combined with the low operating costs, means the company's EBITDA margin will be greater than A$500 million per annum (US$1.40/lb zinc price).

- Fully funded to production - given the significant existing infrastructure, capital costs are forecast at $50 million, with a maximum cash drawdown of $62 million (including working capital). Funds of more than $100 million are available (current cash, plus Sprott debt facility), which means the company is fully funded to production and covered for any over-runs.

With the feasibility study now complete New Century's hard work begins, with production targeted for 3Q18. We look forward to further updates on the project's development in the interim, and note also that the company is assessing the potential to mine and blend its hard-rock resources with tailings; this, we believe, could add significant long-term value to the company.

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About New Century Resources Ltd

New Century ResourcesNew Century Resources Limited (ASX:NCZ) is an Australian base metal producer operating the Century Mine in Queensland with the aim of becoming one of the world's top 10 zinc producers.

New Century acquired the Century Mine when it ceased production in 2016 and has executed an economic rehabilitation plan comprised of upgrading the mine's existing world-class infrastructure. This rehabilitation was completed in August 2018 when the mine successfully entered production.

New Century Resources is initially focusing on the existing ore reserves to produce zinc in the lowest cost quartile globally. Substantial mineral resources exist on the mining leases which will provide a significant opportunity for mine life extension and metal production increases from the mine's operations.


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