23rd Jan 2017 10:09
LONDON (Alliance News) - Kibo Mining PLC said Monday it has finalised the bankable feasibility study for its Mbeya coal-to-power project in Tanzania.
AIM-listed Kibo said the study concluded the project is "very robust", technically, financially and operationally.
The study reduced the total capital requirement for the project by 21% from the original pre-feasibility study and increased the indicative post-tax equity internal rate of return by 11% to between 21% and 22%, said Kibo.
The study also suggests an indicative total revenue of between USD7.50 billion and USD8.50 billion over an assumed 25-year life of the project.
Construction and commission of the project can be completed within 36 months, with the project "construction-ready" on the basis of the technical and environmental risk assessment, according to the study.
"With independent confirmation on the bankability of the Mbeya coal-to-power project, the company expects to see a significant increase in interest and support from potential investors and other stakeholders in the MCPP," said Louis Coetzee, chief executive officer of Kibo Mining.
Shares in Kibo Mining were up 8.3% at 6.50 pence Monday.
By Adam Clark; [email protected]
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