Dubbo Project Improved Execution Strategy and Capital Costs

October 28, 2016

Since the release of the Front End Engineering Design (FEED) study in August 2015 based upon one million tonne per annum throughput and a capital cost of US$0.93 billion, AZL has continued to examine ways to reduce the capital cost of the DZP project. This has led the Company to conclude that significant capital cost reductions can be achieved by using a modular construction method. 

Importantly, mine schedules have been adjusted accordingly with full year guidance for FY2017 production remaining unchanged at 65,000 – 72,000 ounces. The cost impact is under review and will be reported at the end of the December quarter.