Metal Tiger PLC Kibo Mining: Rukwa DMFS update (8183V)
August 12 2015 - 3:53AM
UK Regulatory
TIDMMTR
RNS Number : 8183V
Metal Tiger PLC
12 August 2015
METAL TIGER PLC
12 August 2015
Metal Tiger Plc
("Metal Tiger" or the "Company")
Kibo Mining: RUKWA DMFS UPDATE
Metal Tiger (LON: MTR), the natural resources investing company
is pleased to note the announcement today by Kibo Mining plc
("Kibo") (LON:KIBO) confirming the findings from the Mining
Pre-Feasibility Study ("Study") in respect of their Mbeya Coal to
Power Project.
This Study demonstrates significantly enhanced key project
economics and represents a major step forward for Kibo Mining. An
extract of this announcement is provided below and the full text
can be found at:
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12459297.html
Extract of Kibo Mining Announcement:
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX:
KBO), the Tanzania focussed mineral exploration and development
company, is pleased to announce the findings from Phase 2, Stage 1,
Mining Pre-Feasibility Study ("MPFS"), of the Company commissioned
Definitive Mining Feasibility Study (DMFS), concerning the mining
element of the Mbeya Coal to Power Project (MCPP).
Key highlights
- Selected mining method - modified terrace mining method, with
over burden removal by means of a free dig (truck and shovel)
method, and coal seam and inter burden mining by means of
mechanised continuous surface mining method.
- Limited processing in the form of destoning of product required.
- River diversion as identified in the Concept Study proven
unnecessary in Pre - Feasibility Pit Optimization.
- Four alternative mining options for the selected mining method
identified, with the Project financially feasible for all of the
options investigated;
- Annual estimated coal sale revenues of between US$48.4million and US$48.6million;
- All-in cost margin ranges from 49% to 62%. Applying the
aforementioned all-in cost margin, Kibo interprets that an annual
profit margin of between US$24 million to $27 million will be
generated;
- Applying a real discount rate of 5.5% the best estimated Net
Present Value ranges from US$211million to US$244million.
- Internal Rate of Return (IRR) ranging between 33.6% and 53.9%
- Return on Investment (ROI) ranging between 595% and 903%
- Payback Period ranging between 2.6 - 3.65 years
Louis Coetzee, CEO of Kibo Mining, said: "We are delighted with
the results from the MPFS, which have surpassed all expectations.
Figures from the MPFS-report confirm that the Mbeya Coal Mine (as
the mining component of the MCPP) is a very robust project in every
aspect. A comparison with the results and figures announced in our
RNS of 08 August 2014, shows that the project fundamentals are
significantly better than what we originally believed at the end of
the Concept Study. The all-in cost margin is one of the key
indicators that measure the overall robustness of the project and
the latest range has improved from 38% - 45% to 49% - 62%. This is
significantly above the 25% level which is considered "healthy" for
this type of project.
We are also delighted with the new estimated Net Present Value
range of US$ 211million to US$ 244 million, with an associated IRR
of 34% to 54%.
The All-in Cost Margin and Net Present Value ranges are
particularly impressive given the very prudent assumptions applied.
This is evidenced by the use of coal pricing significantly below
the current market price, further reflecting the robust economics
of this project. This is also reflected in the very strong ROI
figures.
In addition to the project's very strong economics the MPFS also
delivered decisive results on technical and environmental levels.
The continuous surface miner proved to be a viable option, which
improved mining efficiency and effectiveness significantly and so
did the fact that the overburden could be mined by using "free
digging". The most important impact of these two aspects are
however not of a technical nature but environmental. The use of the
continuous surface miner made any washing of coal unnecessary,
whilst "free digging" allows total avoidance of any explosives,
i.e. blasting. It is specifically the avoidance of any washing that
frees the project of a very expensive and onerous environmental
liability. The fact that we also do not have to do any river
diversion is a further significant positive environmental
impact".
For further information on the Company, visit:
www.metaltigerplc.com:
Metal Tiger Plc
Cameron Parry (CEO) Tel: +44 (0)207 099
0738
Paul Johnson (Executive Director) Tel: +44 (0)7766 465
617
Spark Advisory Partners Limited Tel: +44 (0) 2033
(Nominated Adviser) 683 555
Sean Wyndham-Quin
Neil Baldwin
SI Capital (Sole Broker) Tel: +44 (0) 1483
Nick Emerson 413 500
Andy Thacker
Notes to Editors:
Metal Tiger Plc is a natural resources focused investing company
quoted on the London Stock Exchange AIM Market ("AIM") with the
trading code MTR and two investment divisions, Direct Equities and
Direct Projects.
The Direct Equities division invests in quoted natural resource
explorers and developers, with a combination of shares and warrants
providing a potential non-debt financing instrument and enhanced
return potential.
The Direct Projects division invests in operational mineral
exploration projects with current investments in Spanish Gold &
Tungsten, Thai Gold, Copper & Antimony, and Tanzanian Gold and
Uranium. The Direct Projects investment division also has working
collaborations to identify new investment opportunities in Russia
(platinum focus) and Turkey (gold focus), in association with
experienced in-country partners.
Metal Tiger's target is to deliver a high return for
shareholders by investing in significantly undervalued and/or high
potential opportunities in the mineral exploration and development
sector timed to coincide where possible, with a cyclical recovery
in the exploration and mining markets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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