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Kibo Announces Completion of Integrated Bankable Feasibility Study

January 23, 2017

Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to announce finalization of the Integrated Bankable Feasibility Study (“IBFS”) with the delivery of the Integrated Financial Model for the Mbeya Coal to Power Project (“MCPP”).

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 (“IPFS”) figure;
  • 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 US$7.5 to US$8.5 billion;
  • Indicative post tax Equity IRR between 21% and 22%, an increase of 11% on the indicative IPFS post-tax Equity IRR, based on the following conservative debt assumptions:
    • 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 Mbeya Coal Mine to expand the power station to more than double the current design size and plant life.  In this regard, the plant design already makes provision for a future second stage expansion to 600MW (i.e. a further 300MW of capacity with the potential for a third stage expansion of a further 400MW in the long term).
  • 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.
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Kibo Announces Completion of Integrated Bankable Feasibility Study

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