12 August 2015

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
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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_P2-S1-Report-Findings_V3.2_10082015.pdf” btn_target=”_blank”]Rukwa Definitive Mining Feasibility Study – Phase 2, Stage 1 – Pre-Feasibility Study,Final Report Findings[/ott_teaser]