PROJECTS AND EXPLORATION •
• Capex to achieve first production, within 13 months, of AUD49- million( ZAR560-million)
Flat Mines DFS Orion is also implementing a phased development strategy at the OCP, with the Flat Mines Project as the first step. The initial phase focuses on developing Flat Mines North and constructing a processing plant which will operate at 50 % capacity. This will be followed by the expansion of Flat Mines East and the ramp-up of the plant to full capacity of 65ktpm over 24 months. This approach enables Orion to unlock value in a scalable and manageable way. off-take related funding. While employment opportunities and skills development remain key priorities, these will be realised once project funding is secured.
Leadership transition Following the achievement of these key milestones, Smart decided to step down as MD and CEO, effective 3 April 2025, having made an enormous contribution over a period of more than 12 years, helping to shape Orion’ s evolution from an early-stage explorer and project acquirer, into a base metal mine developer that now holds a premium portfolio of shovel-ready copper projects in South Africa.
“ The completion of the Flat Mines DFS marks an important step towards our objective of unlocking the long-term potential of the OCP. We see immense prospectivity in the Okiep district and strongly believe that the Flat Mines Project will be the first of several mines that Orion will develop in the region. Our aspirational goal is to restore production from the OCP to historical levels, and believe this is an important first step towards achieving that ambition. We remain committed to rapid resource and reserve growth and will have a targeted and disciplined approach to exploration with the aim of delivering additional value from the Okiep region to all stakeholders,” said Smart.
Flat Mines DFS financial highlights
• A NPV( at an 8 % discount rate) o Pre-tax: AUD114-million( ZAR1 423-million) o Post tax: AUD75-million( ZAR935-million)
• IRR of 23 %, pre-tax( 19 %, post-tax)
• Payback period of 5.3 years
• Peak funding requirements of AUD103-million( ZAR1 29-million)
• Total project capital expenditure( including contingency) of AUD128-million( ZAR1 604-million)
• Capital intensity of USD10 383 / t, based on nameplate annual copper production
• All-in-sustaining costs of USD5 270 / t( USD2.39 / lb) of copper metal sold
• All-in-sustaining margin of 41 %
• Average annual production of 6.5kt of copper( peak production of 9.5kt of copper), with a mine life of 12 years
Simultaneously, while moving to the next phase of development, implementation planning is underway to facilitate a seamless transition from study to construction. This includes finalising agreements with service providers for key early works activities and securing long-lead time items essential to the project’ s timeline.
At the time of writing, Orion was also advancing concentrate off-take negotiations, engaging with strategic partners to secure agreements that will optimise commercial terms and enhance long-term revenue streams. The completion of these studies marks a key milestone, allowing Orion to advance its project financing strategy, which will likely be a combination of debt, equity and
Smart has been succeeded by Anthony Lennox, who until now has been a non-executive director of Orion. Lennox has more than 40 years of experience in mining operations, project development and corporate leadership across multiple international jurisdictions. Notably, he served as the MD of Palabora Mining Company( PMC), a significant underground copper mining operation in South Africa which at the time was jointly owned by Rio Tinto and Anglo American. His leadership played a part in extending the life of the mine through a significant capital project now known as Lift 2.
Smart commented,“ I am really honoured to have had the privilege to bring Orion to this very important milestone and equally pleased to hand over in an orderly manner to Tony. Tony’ s plans will ensure a seamless leadership transition with first-hand focus on project execution, stakeholder engagement, and project funding.
“ As a continuing shareholder I am certain that Orion is well set to unlock strong returns for all investors and stakeholders.”
Lennox noted,“ Over the past year, I have had the opportunity to work closely with the Orion team on the completion and delivery of the DFS for both Prieska and Okiep. This has given me substantial insights into the tremendous opportunity that lies in front of us – and I am looking forward to the challenge of leading the team though the construction and development phase, and forward into operations. These are fantastic, large-scale, long-life assets that are rare in the base metals space. My experience at the world-class Palabora mine will stand me in excellent stead for this journey and I am excited and motivated about the chapter ahead.” •
Source: supplied by Orion Minerals
We see immense prospectivity in the Okiep district and strongly believe that the Flat Mines Project will be the first of several mines that Orion will develop in the region. www. africanmining. co. za African Mining Publication African Mining African Mining • May 2025 • 15