12 October 2015
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company, is pleased to announce significantly improved financials for the Mbeya Coal to Power Project’s (“MCPP”) coal mine component.
Key highlights
The Company and its advisers Minxcon Projects have now completed a financial optimization study for the MCPP coal mine, based on feasibility results received to date.
The impact of optimal gearing for the MCPP coal mine was tested on the surface miner contractor option with the following key results:
- All-in cost margin ranges from 47.9% to 48.1%. Applying the aforementioned all-in cost margin, Kibo interprets that annual earnings before interest and tax (“EBIT”) of between US$ 23.5 million to US$ 23.6 million will be generated;
- Applying a real discount rate of 5.51%, the best estimated Net Present Value (“NPV”) of free cash flow to equity ranges between US$ 214 million and US$ 219 million;
- Equity IRR (leveraged) range between 131% and 146%, with a Project IRR of 54%;
- Cash return on capital invested ranging between 726% and 732%; and
- Project Payback Period before loan of 2.6 years
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[ott_teaser btn_text=”Download” btn_icon=”icon-right-big” btn_url=”https://kibo.energy/wp-content/uploads/Final-RNS-Rukwa-DMFS-Update-12102015.pdf” btn_target=”_blank”]Mbeya Definitive Mining Feasibility Study – Optimized Project Financials[/ott_teaser]