Globe Metals & Mining advances Kanyika Niobium Project with optimised capital strategy
May 29, 2024 at 03:51 pm EDT
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Globe Metals & Mining Ltd (ASX: GBE) CEO Paul Smith sits down with Proactive’s Jonathan Jackson to discuss the significant advancement in the Kanyika Niobium Project's capital cost and funding strategy. The project, situated in central Malawi and backed by a large-scale mining licence, has undergone an optimisation study highlighting key financial metrics and an enhanced development approach. Project execution is set to start by late 2024, with construction slated for early 2025. The initiative aims to produce a pyrochlore mineral concentrate with niobium and tantalum for advanced processing. The optimisation study, completed on February 5, revealed a pre-tax NPV of US$1.004 billion and an IRR of 47.08%. The unit cost of niobium pentoxide has decreased by 15% to US$18.90 per kilogram, raising the gross profit margin to 71%. The project is expected to operate for 27 years, with a two-phase development strategy reducing initial capital expenditure from US$70 million to US$46 million, thereby lowering project risk. The total capital funding requirement for Phase 1 is US$46 million, including a 25% contingency. Globe Metals & Mining has established a funding strategy to support the project, minimising shareholder dilution. This includes US$8 million from strategic equity funders, US$15 million in project debt, US$9 million via convertible instruments, and US$14 million from offtake pre-financing. Smith expressed optimism about the project's reception by the Government of Malawi, shareholders and funding institutions. Phase 1 development is mostly on schedule, with minor delays due to the refinery relocation to Malawi. The environmental and social impact assessment (ESIA) and associated incentives are nearing finalisation. Metallurgical test work for the Chlorination Refinery is progressing as planned, with pilot-scale refinery operations to produce marketing samples for offtake agreement discussions. Subsequent updates to the feasibility study will incorporate the construction of the chlorination refinery in Malawi.
Contact Details
Proactive Investors
Proactive Australia Pty Ltd
+61 431 597 771
writers.australia@proactiveinvestors.com
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Globe Metals & Mining Limited is an Australia-based resources company with its Kanyika Niobium Project in Malawi. The principal activities of the Company are to explore, develop and invest in the resource sector. The Kanyika Niobium Project is located in central Malawi, approximately 55 kilometers (km) northeast of the regional center of Kasangu and is secured by large-scale mining license No. LML0216/21 which grants the Company security of tenure and the right to mine niobium, tantalum, and deleterious uranium. The Kanyika Niobium Project in Malawi produces high purity niobium pentoxide and tantalum pentoxide powders. Its drilling programs totaling 33.8 kilometers of percussion and core drilling have defined the extent of mineralization. The Kanyika operations produce a pyrochlore mineral concentrate that contains both niobium and tantalum in commercially valuable volumes to be shipped to a refinery for advanced processing into high purity materials.
GLOBE METALS & MINING LIMITED 
