Using the project’s initial marketable ore reserve estimate of 62.6Mt of coal, the PFS found that Buck Creek would be a low capex, high-margin project that is expected to achieve average earnings before interest, taxes, depreciation, and amortisation of $US81 million per annum with average annual total operating costs of $30.19 per tonne free on board barge at its load-out facility.

Paringa CEO David Gay said: “The PFS has confirmed that the Buck Creek No.1 Mine is a strategic, high margin, low capex asset in the heartland of the Illinois Basin coal industry, one of the world’s best mining jurisdictions.

“We are in an enviable position in that we have a low capex and permitted coal project with steady-state annual production of 3.8Mtpa that generates strong EBITDA margins of circa 35% in the current market, with further potential for the project’s strong financial returns to materially improve as domestic and international coal markets recover.”