THE BOURSE WHISPERER: Kibaran Resources (ASX: KNL) has received the results of a Bankable Feasibility Study recently completed at the company’s 100 per cent-owned Epanko graphite project, located in Tanzania.
Kibaran said the BFS has confirmed the viability of a conventional open cut mine and conventional flotation processing plant.
Key results from the BFS include:
Pre-tax NPV of US$197.4 million;
Pre-tax IRR of 41.2 per cent;
Capital Expenditure of US$77.5 million;
Annual EBITDA of US$33.6 million for 15 years;
Mine life of 25 years;
Maiden Proved and Probable Ore reserves of 10.9 million tonnes at 8.6 per cent toalt graphitic carbon (TGC); and
Annual production of 40,000 tonnes per annum of high-grade graphite flake concentrate for first 15 years.
“The study is based on a realistic development strategy and supported by strategic partnerships in European markets. Kibaran Resources managing director Andrew Spinks said in the company’s announcement to the Australian Securities Exchange.
“The positive BFS result enables the company to advance Epanko to production and in parallel further progress its second 100 per cent-owned graphite project at Merelani East and advance the strategic downstream value add opportunities we have announced to date.”
Kibara believes getting Epanko to production and moving Merelani East along will place the company in a good position by providing access to further strategic partnerships in the European, Japan and US markets.
“The emerging battery market will have a significant positive impact on our future graphite sales, given our current sales agreements are solely based on the traditional refractory and expandable markets,” Spinks explained.
“The next few months is an exciting time as we deliver on our specific milestones for the broader development strategy for the company.”