TRE
Toubani Resources Limited
ASX
Investor Presentation
Sentiment:
Investor Presentation
8 September 2024 7:18 PM
Toubani Resources (ASX: TRE) presented an updated investor presentation in September 2024, highlighting the Kobada gold project's significant oxide resource, low AISC, and potential for high production, alongside exploration updates and a DFS update.
Capital raise
Tranche 1 & 2 of a placement announced on 21 August 2024, with Tranche 2 subject to shareholder approval in October 2024.
Summary
- Toubani Resources (ASX: TRE) is developing the Kobada gold project in Mali, West Africa.
- The project has a 2.2Moz Measured and Indicated Mineral Resource, with 76% within 150m of the surface.
- The ore is predominantly oxide, making it relatively inexpensive to mine and process.
- The company is targeting a low All-in Sustaining Cost (AISC) and high production rate.
- A Definitive Feasibility Study (DFS) update is underway, aiming to optimize production and reduce costs.
- Significant exploration upside remains, with approximately 40km of the 50km of regional-scale shear zones yet to be drill tested.
- The company has a proforma cash balance of A$10.8M as of 21 August 2024.
- The market capitalization as of 6 September 2024 was A$45.5M and the share price was A$0.20.
- The company is aiming for gold production in the second half of 2026.
Sentiment
Score: 7
Explanation: The presentation shows a positive outlook for the Kobada project, highlighting its strong resource base, low-cost potential, and experienced management team. However, risks associated with operating in West Africa and securing financing temper the overall sentiment.
Highlights
- 2.2Moz Measured and Indicated Mineral Resource
- 76% of the resource is within 150m of the surface
- Predominantly oxide ore, resulting in low mining and processing costs
- Targeting low AISC and high production
- DFS update underway to optimize production and reduce costs
- Significant exploration upside with 40km of untested shear zones
- Proforma cash balance of A$10.8M (as of 21 August 2024)
- Market capitalization of A$45.5M and share price of A$0.20 (as of 6 September 2024)
- Aiming for gold production in 2H 2026
Positives
- Large, near-surface oxide gold resource (2.2Moz M&I)
- Low stripping ratio and free dig oxide mineralization
- Simple processing and mining operations, resulting in low AISC
- Significant exploration potential with numerous untested targets
- Experienced management team with a strong track record in West African mining
- Positive industry context with significant M&A activity in West Africa
- DFS update expected to further optimize project economics
Negatives
- Relatively small market capitalization compared to peers
- Dependence on successful completion of DFS update and securing financing
- Risks associated with operating in West Africa (political, social, and regulatory)
- Uncertainty regarding the final Convention Agreement with the Malian government
Risks
- Political and regulatory risks associated with operating in Mali
- Financing risks associated with securing funding for project development
- Exploration risks associated with the success of future exploration programs
- Commodity price risk associated with fluctuations in the gold price
- Operational risks associated with the construction and operation of the mine
Future Outlook
The company is targeting gold production in the second half of 2026, pending successful completion of the DFS update, securing financing, and finalizing the Convention Agreement with the Malian government.
Management Comments
- ’Deliver a high production, low cost oxide gold development project over an extended mine life, at a lean upfront capital cost and providing benefits for all stakeholders’
- ’Kobada has the hallmarks to become an operating mine at a low technical risk profile’
Industry Context
The West African gold mining sector is experiencing significant M&A activity, with several projects being developed or acquired. Toubani's Kobada project is positioned to benefit from this trend, given its large oxide resource and low AISC potential.
Next Steps
- Complete DFS Update
- In-country stakeholder consultation on DFS Update
- Advance Convention Agreement
- Progress community engagement initiatives
- Develop funding plan
- Finalise Convention Agreement & update ESIA
- Begin FEED phase and early site works
- Drill high priority regional and depth targets
- Final Investment Decision (FID)
- Commence development
- Continue development
- Target gold production 2H 2026
Key Dates
- May 2024: Investor Presentation
- July 2, 2024: Company announcement of Mineral Resource Estimate
- August 21, 2024: Placement announced
- September 6, 2024: Market Capitalization and Share Price data
- September 2024: Investor Presentation
Keywords
Gold, Mining, West Africa, Mali, Kobada, Oxide, Resource, Exploration, DFS, AISC
TRE
Toubani Resources Limited
ASX
Sector: Materials
Filings with Classifications
Capital raise
30 April 2025 2:40 AM
Quarterly Activities Report
- Toubani announced it had received rm commitments to raise A$29 million in a two-tranche placement.
- The placement includes a ~A$15.2m transformational investment by A2MP Investments DMCC (A2MP) a wholly owned subsidiary of Eagle Eye Asset Holdings Pte Ltd. (EEA), (a single-family oce based in Singapore) and supported by the African Export-Import Bank (Afreximbank), one of Africas most prominent multilateral nancial institutions ('Strategic Investment').
- A2MP and Toubani have also executed a non-binding, non-exclusive debt commitment letter for A2MP to provide Toubani with a minimum US$160m debt facility as part of its ongoing debt nancing process.
Capital raise
30 April 2025 2:28 AM
Notice of Annual General Meeting
- The company is seeking approval for a 10% Placement Facility, which would allow them to issue up to 10% of their issued capital in Equity Securities.
- The funds raised from this facility could be used for continued exploration and development activities and/or for general working capital.
Capital raise
29 April 2025 7:33 PM
Capital Raising Announcement
- Toubani Resources is undertaking a two-tranche placement to raise A$29 million.
- The company directors intend to subscribe for an additional A$290,000 subject to shareholder approval.
- A2MP may participate in future capital raisings, subject to negotiation and shareholder approval.
Capital raise
27 April 2025 7:50 PM
Trading Halt Request
- The company intends to make an announcement regarding a proposed strategic partnership and accompanying capital raising.
Capital raise
26 March 2025 1:53 AM
Annual Report
- The company requires additional financing to carry out its exploration and development activities.
- The company is actively strengthening an already impressive asset, reducing uncertainties, and bolstering its readiness for the next steps.
Better than expected
27 January 2025 5:51 PM
Investor Presentation
- The project's low AISC of US$1,004/oz is better than many of its peers.
- The project's rapid payback period of 1.5 years is better than many other gold development projects.
- The project's low initial capital expenditure of US$216 million is better than many other gold development projects of similar scale.
Capital raise
27 January 2025 5:51 PM
Investor Presentation
- The company has appointed Endeavour Financial to lead project financing workstream.
- The company is in discussions with the Mali Government to secure the long-term future of the Kobada Gold Project.
Better than expected
27 January 2025 5:41 PM
Quarterly Activities Report
- The Definitive Feasibility Study results exceeded expectations with a high NPV, IRR, and low payback period.
- The project's low capital intensity and competitive operating costs position it favorably compared to industry standards.
Capital raise
30 October 2024 6:05 PM
Feasibility Study
- The company will need to raise capital to fund the project's development, construction, commissioning, and operation.
Better than expected
30 October 2024 6:05 PM
Feasibility Study
- The project's financial metrics, including NPV, IRR, and payback period, significantly exceeded expectations.
Better than expected
30 October 2024 6:00 PM
Feasibility Study
- The results of the Definitive Feasibility Study were better than expected due to significantly higher than anticipated post-tax NPV and IRR, driven by a combination of higher gold prices and lower than anticipated operating costs.
Delay expected
20 September 2024 4:31 AM
Option Terms and Conditions
- Share issuance may be delayed up to five business days pending receipt of exercise notice, payment, and compliance with the Corporations Act.
Capital raise
8 September 2024 7:18 PM
Investor Presentation
- Tranche 1 & 2 of a placement announced on 21 August 2024, with Tranche 2 subject to shareholder approval in October 2024.
Better than expected
29 July 2024 7:03 PM
Quarterly Activities Report
- The company increased the Kobada Mineral Resource Estimate to 2.0Moz in the Indicated category, a 30% increase from the 2023 MRE.
Capital raise
29 July 2024 7:03 PM
Quarterly Activities Report
- The company has less than 2 quarters of cash available for future operating activities.
- The company will need to raise further cash to fund its operations.
Delay expected
8 July 2024 7:04 PM
Missing type for ID: 4236
- ASX:TRE announces a delay.
Better than expected
1 July 2024 7:09 PM
Mineral Resource Estimate Update
- The 2024 MRE exceeded the Company's expectations in ounces converted and increases in grade.
Capital raise
31 May 2024 2:53 AM
AGM Results
- The company has approval for a 10% placement facility, which allows them to raise capital by issuing new shares.
Better than expected
21 May 2024 7:10 PM
Exploration Update
- The drilling results are better than expected due to the high-grade and wide intersections across multiple areas of the deposit.
Better than expected
29 April 2024 9:32 PM
Quarterly Activities Report
- The initial drill results show numerous near-surface, high-grade oxide intersections, which are better than expected.
Worse than expected
29 April 2024 8:18 PM
Annual Results
- The company reported a loss of $6,625,026, which is worse than the previous year's loss of $5,136,694.
Capital raise
29 April 2024 6:10 PM
Notice of Annual General Meeting
- The company is seeking approval for a 10% Placement Facility, which would allow it to issue equity securities up to 10% of its issued share capital over a 12-month period.
- The funds raised from the potential issue of Equity Securities under the 10% Placement Facility would be used towards continued exploration and development activities and for general working capital.
Capital raise
23 April 2024 7:20 PM
Trading Halt Request
- The company intends to make an announcement regarding a proposed capital raising.
Better than expected
21 April 2024 6:55 PM
Exploration Update
- The document contains better than expected results due to the high-grade gold intercepts reported from the Kobada Gold Project.
Better than expected
10 April 2024 6:22 PM
Exploration Update
- The drilling results are better than expected due to the high-grade and near-surface oxide mineralization encountered.
Capital raise
25 March 2024 6:05 PM
Annual Results
- The Company has finite financial resources and no current cash flow from producing assets and therefore requires additional financing in order to carry out its exploration and development activities.
- There can be no assurance that any such funding will be available to the Company on favourable terms or at all.
Worse than expected
25 March 2024 6:05 PM
Annual Results
- The company's net loss increased from the previous year, indicating a worsening financial performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.