12th Aug 2015 07:21
LONDON (Alliance News) - Kibo Mining PLC shares rose on Wednesday after it said the Mbeya coal to power project in Tanzania will generate almost USD50.0 million in annual revenue and an annual profit of up to USD27.0 million after the company received the results from its mining pre-feasibility study.
Kibo shares were up 17.6% to 4.85 pence per share on Wednesday morning.
The miner said it received the results of phase two, stage one of the mining pre-feasibility study, which is part of the definitive mining feasibility study for the mining element of the coal to power project.
Kibo said the report for the Mbeya project said the company will generate between USD48.4 million to USD48.6 million per year in revenue, with an all-in cost margin between 49% to 62%, which would lead to an annual profit margin of between USD24.0 million to USD27.0 million.
"We are delighted with the results from the mining pre-feasibility study, which have surpassed all expectations. Figures from the mining pre-feasibility study report confirm that the Mbeya coal mine (as the mining component of the Mbeya coal to power project) is a very robust project in every aspect," said Chief Executive Louis Coetzee.
"The all-in cost margin is one of the key indicators that measure the overall robustness of the project and the latest range has improved from 38% to 45%, [compared] to 49% - 62%. This is significantly above the 25% level which is considered "healthy" for this type of project," he added.
The study has also reported the project to have an internal rate of return ranging between 33.6% to 53.9%, with a payback period between two years and seven months to three years and eight months.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Kibo Energy