Taranaki VTM Project Boasts US$1.26B NPV and 39% IRR in Manuka’s Latest Study

Taranaki VTM Project: A National Economic Catalyst

Manuka Resources Limited has taken a significant stride forward with its Taranaki vanadiferous titanomagnetite (VTM) iron sands project in New Zealand. The company’s wholly owned subsidiary, Trans-Tasman Resources Limited (TTR), recently released an updated Pre-feasibility Study (PFS) and Economic Impact Assessment (EIA) that underscore the project’s robust economics and national importance. With an initial capital investment of US$602 million and a projected post-tax net present value (NPV) of US$1.26 billion, the project promises an internal rate of return (IRR) of 39% and average annual EBITDA of US$312 million over a 20-year mine life.

Strategically, the Taranaki VTM project aligns with New Zealand’s government objective to double mineral export earnings from NZ$1.5 billion to NZ$3 billion by 2035. Forecasted to generate NZ$854 million in export revenue annually, it represents over half of the targeted increase, positioning it among the country’s top 12 exporters. The project is also expected to create more than 1,600 new jobs nationwide, with over 1,100 in the Taranaki and Whanganui regions, injecting substantial economic activity locally.

Regulatory Progress and Fast Track Approvals

Following the passage of New Zealand’s Fast Track Approvals Act 2024, TTR lodged its Fast Track Approvals (FTA) application on 15 April 2025. This application seeks approval for Marine and Discharge Consents, critical for offshore mining operations in the South Taranaki Bight. The project’s inclusion in Schedule 2 of the Fast Track Act reflects its regional and national significance and subjects it to expert panel review. Importantly, the approval process mandates stringent environmental safeguards, with TTR’s application detailing 109 operating conditions and comprehensive management plans to protect the marine environment.

Advancing Precious Metals Production in Australia

On the Australian front, Manuka is advancing plans to restart precious metals production at its Wonawinta silver and Mt Boppy gold projects, both located in New South Wales. The Wonawinta silver mine, once Australia’s largest primary silver producer, has a maiden Ore Reserve of 8.4 million ounces of silver and a processing plant maintained in excellent condition. An updated silver reserve estimate is due in May 2025, accompanied by a pre-feasibility study and an Implementation Plan to support a potential restart.

Meanwhile, at Mt Boppy, metallurgical testwork on historic tailings is underway to evaluate the feasibility of installing a processing plant and resuming gold production. The mine plan focuses on reprocessing rock dumps, tailings, and reopening open cast operations. Both projects remain on care and maintenance, with precious metals production scheduled to commence in the 2025 calendar year, contingent on successful debt refinancing.

Financial Position and Outlook

Manuka’s financials reflect ongoing investment in exploration, development, and production readiness. The company reported cash outflows of approximately A$0.3 million related to exploration and production activities during the quarter, with a cash balance of A$0.824 million and total borrowings of A$38.94 million as of 31 March 2025. The refinancing process with a Hong Kong-based lender is progressing, a critical step to underpin the planned production restart and project development.

Executive Chairman Dennis Karp highlighted the strategic value of the Taranaki VTM project and the company’s focus on advancing approvals and project delivery. He emphasized the potential for Manuka shareholders to gain exposure to critical minerals through the project and the significant economic benefits it offers to New Zealand.

Looking Ahead

With the Fast Track Approvals application lodged and the Wonawinta silver reserve update imminent, Manuka is positioning itself for a pivotal year. The company’s ability to secure debt refinancing and navigate regulatory approvals will be key determinants of its success in restarting precious metals production and advancing the Taranaki VTM project toward bankable feasibility and eventual production.