Metal Tiger PLC (LON:MTR) said the completed Pre-Feasibility Study (PFS) for its joint venture project with partner MOD Resources Limited (ASX:MOD) in the Kalahari Copper Belt in Botswana for the T3 Open-Pit looks “very robust”.
In a statement, the AIM-listed investor in strategic natural resource opportunities said the PFS concludes that T3 offers “a low-risk, low capital pathway to copper production supported by improving confidence in the long-term consensus copper price”.
It added that the PFS Base Case with plant throughput of 2.5mln tonnes per annum indicates circa US$730mln of underlying earnings (EBITDA) over 9 years, while the PFS Expansion Case indicates potential for circa US$1.1bn of EBITDA over 12 years.
The firm said the PFS also indicates net pre-tax cashflow of US$530mln, inclusive of development capital, annual free cash flow of US$77mlm before tax from the production start, and a payback of 2.7 years from production start.
Michael McNeilly, Metal Tiger’s chief executive officer commented: “The fact that the JV has taken from discovery to a very robust PFS in little more than twenty-two months is tantamount to the level of work and commitment all the stakeholders have put in to the project.”
He added: “It Is exciting to report that with the robust PFS results to hand both Metal Tiger and MOD are unified in our commitment to progress the project to the next level, and will be commissioning further studies to upgrade understanding to a Feasibility Study level, with work due to commence this quarter.”
In a separate announcement, Metal Tiger also announced that it has sold its remaining shares in Kingsgate Consolidated Limited, bringing its holding down from 11,504,685 shares in KCN to zero. It said that the gross proceeds from the share sales were circa A$3,464,668 (£1,973,209).
Michael McNeilly, commented: “Metal Tiger has decided to sell out of its entire KCN stake to materially increase the cash balance so that it can focus on its existing investments and assess new investment opportunities.”
-- Adds Kingsgate share sale news --