Tight conditions in the mining services sector and a lower Australian dollar have paid dividends for Altona Mining, which has announced a solid increase in net present value and lower revised capital costs at its Little Eva copper project in Queensland.
West Perth-based Altona told the market a cost review of the definitive feasibility study for Little Eva had revealed a 37 per cent increase in the project's net present value, which was up from $252 million to $346 million.
The review, conducted by GR Engineering Services, also reported an 8 per cent fall in the project's capital cost to $294 million.
Altona attributed the stronger results to a marked reduction in contract mining and engineering costs, a lower Australian dollar and a long-term increase in copper prices, which are nonetheless expected to remain soft over the near-term.
Altona managing director Alistair Cowden said the revised costs would benefit the company as it seeks finance to bring the project to production.
"There are few large scale, financially robust copper projects that are both permitted and located in high skill, low risk environments," he said.
"Little Eva is such a project and one with a very competitive capital cost for the scale of production.
"The marked improvement in costs highlights that the Australian mining sector is regaining its international competitiveness."
While Altona has received environmental approvals and mining leases for the project, it has put other pre-development activities on hold as it works to secure funding.
It said it was considering a range of options, including partnering with miners or pursuing an outright sale.
The company's shares closed the day's trade steady at 15 cents.
