18:00 Mon 23 Jan 2017
Kibo Mining Plc - MCPP Update: Integrated Bankable Feasibility Study
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM:
ISIN:IE00B97C0C31
("
January 23, 2017
Kibo Announces Completion of Integrated Bankable Feasibility Study
The IBFS comprises an integration of the Definitive Mining Feasibility Study ("DMFS"), the Definitive Power Feasibility Study ("DPFS"), the Integrated Financial Model for the MCPP and all other relevant technical studies on the MCPP done to date, inclusive of the financial outcomes from the power EPC agreement.
The IBFS concluded that the MCPP is financially, technically and operationally a very robust project.
Key highlights from the IBFS are set out below:
- Total capital requirement for the integrated project reduced 21.1 % from the original integrated prefeasibility study ("
- Indicative MCPP total revenue over an assumed 25-year life of project (Note: the final life of project will be fixed by the final Power Purchase Agreement ("PPA")) of approximately
- Indicative post tax Equity IRR between 21% and 22%, an increase of 11% on the indicative
® Debt tenor: 12 years;
® All in interest rate (post construction): 10%; and
® DSRA facility: 6 months
- Post tax Project IRR ranging between 14.7% and 16%;
- Indicative post-tax payback:
® Equity Payback period: 4 to 5 years
® Debt Payback Period: 11 to 12 years
- Sufficient additional coal resources available from the
- Technical and environmental risk assessment confirmed construction-ready state of the project, with no 'red flags' on the environmental side, bearing in mind the clean coal nature of the plant design.
- The MCPP can be constructed and commissioned within the previously projected schedule duration of 36 months.
The following comprise key highlights from the MCPP definitive feasibility studies (as reported previously):
- Mining
® 122Mt Coal Resource of which 85.9% of stated resource qualifies for inclusion in any future reserve statement. Of this, 39Mt is included in the Pit Design, and is sufficient to satisfy the required indicative coal requirement of 39Mt for 30 years. The Mbeya Coal product exceeds standard technical requirements of the power plant.
® Application of the Mbeya Coal Ltd Special Mining License submitted to the
® Financial Viability of the Mbeya Coal Resource demonstrated
• IRR of 69.2%
• Payback period 2.4 years
• Peak funding requirement of
• All-in cost margin of 39% - (all-in cost margins of above 25% are considered healthy by
•
® Modified Terrace Mining (free dig truck & shovel overburden, continuous miner coal) confirmed as the most accurate and cost effective for the coal mine, and key to optimized mining and power financials
- Power 1
® Required calorific value: 12.85 GJ/t.
® Net power generated: 1,840 GWh/a
® Coal Consumption: 1,497,432 tpa (As Fired)
® Limestone Consumption: 110,359 tpa
® Water Consumption: 4,273,207 lpa
® Solid Waste Incl Ash: 679,306 tpa
1. GWh/a: Gigawatt hours per annum; tpa: tons per annum; lpa: liter per annum.
Notes to Readers.
Readers are referred to Kibo RNS dated
The Company remains restricted in its ability to release certain detailed information relating to the IBFS due to the fact that the Company is engaged in highly confidential discussions with various parties, including regulatory authorities. The release of certain detailed financial information could result in a breach of
The financial information provided in this announcement is a limited extract from the MCPP IBFS that has been conducted to determine the bankability of the MCPP. These figures however remain subject to further evaluation and testing during PPA and funding / investment negotiations which are currently underway. As a consequence, there is likely to be further changes to the figures as the various business streams progress and conclude.
The IBFS results shows the MCPP to be equally strong and robust in respect of the fundamental requirements of all the various stakeholder interests in the MCPP. This puts the Company in a strong position in its ongoing discussions / negotiations with regard to the final PPA as well as with potential funders / investors in the MCPP.
With independent confirmation on the bankability of the MCPP, the Company expects to see a significant increase in interest and support from potential investors and other stakeholders in the MCPP."
Contacts
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+27 (0) 83 2606126
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Chief Executive Officer
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+27 (0) 83 4408365 |
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Corporate Adviser and Designated Adviser on JSE |
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+44 (0) 207 382 8300 |
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Broker |
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+61 8 9480 2500 |
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Nominated Adviser on AIM |
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+44 (0) 203 772 2500 |
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Investor and Media Relations |
The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro projects. At
Finally, the Company also holds the Morogoro (gold) project where the company has also entered into a 50/50 Exploration Joint Venture with
The Company's projects are located in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern
Updates on the Company's activities are regularly posted on its website www.kibomining.com
Corporate and Designated Adviser
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