EDM Resources Inc

EDM Resources is advancing the Scotia zinc-lead-gypsum mine in Nova Scotia, Canada towards commercial production in 2024. The project benefits from existing infrastructure including a permitted processing facility, tailings storage, roads, power, and water management systems.

An updated 2021 pre-feasibility study outlined a 14-year conventional open pit mine life with average annual production of 35 million pounds of zinc, 15 million pounds of lead, and 413,000 tonnes of gypsum. Forecast C1 cash costs are low at US$0.50 per pound of zinc.

The study estimated an after-tax NPV of $128 million at an 8% discount rate and an after-tax IRR of 65% based on base case metal price assumptions. The initial capital cost is only $30.8 million. EDM has secured a US$24 million project financing facility and offtake agreements.

EDM is now focused on starting mining operations and ramping up to commercial production in 2024. At that point, the company expects to generate annual EBITDA of $13-41 million. Trading below 10% of its estimated NAV, EDM sees potential for a major re-rating as it transitions to a cash flowing producer.