Kibo Mining: Rukwa DMFS update

RNS Number : 8183V
Metal Tiger PLC
12 August 2015


12 August 2015


Metal Tiger Plc

("Metal Tiger" or the "Company")




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:

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:


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 (Nominated Adviser)

Sean Wyndham-Quin

Neil Baldwin

Tel: +44 (0) 2033 683 555


SI Capital (Sole Broker)

Nick Emerson

Andy Thacker

Tel: +44 (0) 1483 413 500


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.

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