Great reading.
• Global Mineral Resource estimate for Baniaka increased to 760 million tonnes (Mt) representing just 15km (18%)
of the interpreted 85km strike extent
• Detrital iron deposit (DID) and Soft Oxide (SO) Indicated Mineral Resource estimate of 168 million tonnes (Mt)
underpin the Baniaka Preliminary Feasibility Study (PFS), representing only 22% of the Global Mineral Resource
estimate
• Maiden DID and SO Probable Ore Reserve estimate of 101Mt provides Run-of-Mine (ROM) feed for an initial
10-year mine life at a 5Mt per annum (Mtpa) production rate
• Conventional, proven truck and shovel open pit mining operation with low-risk wet scrubbing, screening, and
gravity separation ore treatment flowsheet
• ESG focus with clean, renewable hydroelectricity, no tailings dam (filter and dry stack into an engineered valley
fill), and up to 0.5% of gross revenue allocated to community development
• Initial capital investment of approximately US$200 million for 5Mtpa name plate capacity and associated
infrastructure, including full ownership of strategic and dedicated power transmission line from Grand Poubara
and rail loadout facility connected to the Trans-**on Railway near Franceville
• Average cash cost of US$59 per dry metric tonne (dmt) inclusive of mine gate, road haulage, rail and port, and
transhipment costs to Cape class vessels
• Positive project economics on a real, ungeared, 100% equity basis Pre-Tax Post-Tax
NPV(8) US$610M (AU$938M) US$391M (AU$601M)
IRR 45% 38%
Pay Back - 2.7 years
Note: Based on 0.65 AU$ to US$
• Opportunities to enhance returns include selling a separate higher value Pellet Feed product (assumed mixed
with the Fines in the PFS), and increasing scale to 10Mtpa as soon as project build debt funding permits
• Final investment decision expected in Q2-2023, however pre-development works commenced with Bond
Equipment awarded US$0.5 million first stage detailed design and engineering contract for the processing facility
Nothing more to say other than BUY
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