TRE
Toubani Resources Limited
ASX
Investor Presentation
Sentiment:
Investor Presentation
27 January 2025 5:51 PM
Toubani Resources' Kobada Gold Project in Mali demonstrates strong economic potential with a low-cost profile and rapid payback, positioning it as a significant player in the West African gold mining sector.
Better than expected
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
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.
Summary
- Toubani Resources is developing the Kobada Gold Project in Mali.
- The project has a low initial development capital of US$216 million.
- It is expected to produce an average of 162,000 ounces of gold per year.
- The project boasts a low All-In Sustaining Cost (AISC) of US$1,004 per ounce.
- The average annual operating cash flow is estimated at US$158 million.
- The project has a pre-tax Net Present Value (NPV) of US$870 million and a post-tax NPV of US$635 million.
- The Internal Rate of Return (IRR) is 72% pre-tax and 58% post-tax.
- The post-tax payback period is estimated at 1.5 years at a gold price of US$2,200 per ounce, and 1.25 years at US$2,600 per ounce.
- The project has a Mineral Resource of 2.2 million ounces of gold, with 90% in the Indicated category.
- The Ore Reserve is 1.56 million ounces, with 82% being oxide ore.
- The project is designed with a simple, conventional oxide process flow sheet.
- The company is working to finalize its investment framework with the Malian government.
- There are opportunities to expand the project through additional drilling and optimization of mining and processing.
Sentiment
Score: 8
Explanation: The document presents a very positive outlook for the Kobada Gold Project, highlighting its strong economic metrics, low-cost profile, and growth potential. The management team is experienced, and the project is well-positioned in a stable mining region. However, there are still risks associated with operating in Mali and securing financing.
Highlights
- The Kobada Gold Project has a low initial development capital of US$216 million.
- The project is expected to produce an average of 162,000 ounces of gold per year.
- The All-In Sustaining Cost (AISC) is estimated at a low US$1,004 per ounce.
- The project has a post-tax NPV of US$635 million and a post-tax IRR of 58%.
- The post-tax payback period is estimated at 1.5 years at a gold price of US$2,200 per ounce.
- The project has a Mineral Resource of 2.2 million ounces of gold, with 90% in the Indicated category.
- The Ore Reserve is 1.56 million ounces, with 82% being oxide ore.
- The project is designed with a simple, conventional oxide process flow sheet.
- The company is working to finalize its investment framework with the Malian government.
- The project has a low strip ratio of 3.0:1 over the life of mine.
Positives
- The project has a low initial capital expenditure of US$216 million.
- The project has a low All-In Sustaining Cost (AISC) of US$1,004 per ounce.
- The project has a rapid payback period of 1.5 years at a gold price of US$2,200 per ounce.
- The project has a strong Ore Reserve of 1.56 million ounces.
- The project has a simple, conventional oxide process flow sheet.
- The project has a high gold recovery rate of 96% in oxide material.
- The project has a low strip ratio in the initial years, leading to rapid capital repayment.
- The project has a strong Indicated resource to Ore conversion of 78%.
- The project has a large oxide Mineral Resource of 2.2Moz.
- The project has a strong economic leverage in a rising gold price environment.
Negatives
- The project is still in the development phase and requires further approvals and funding.
- The project is subject to risks associated with operating in Mali, including regulatory and political risks.
- The project's financial projections are based on certain assumptions, including gold prices, which may fluctuate.
- The project's fresh rock phase is deferred, which may impact long-term production.
Risks
- The project is subject to regulatory and political risks in Mali.
- Fluctuations in gold prices could impact the project's profitability.
- The project's financial projections are based on certain assumptions that may not materialize.
- There are risks associated with the construction and operation of a mining project.
- The company needs to finalize its investment framework with the Malian government.
- The company needs to secure debt financing for the project.
Future Outlook
The company aims to achieve shovel-ready status in 2025, with a focus on derisking the project, enhancing its value, and growing its resource base. The company is also working to finalize its investment framework with the Malian government and secure debt financing.
Management Comments
- The company is partnering with stakeholders to unlock the value of the Kobada project.
- The company is methodically surfacing the fundamental value of Kobada.
- The company is following a proven pathway for long-term success.
- The company is readying the project for development with over US$1.2 billion in direct future economic benefits for Mali.
- The company is focused on derisking the project and enhancing its value.
Industry Context
The Kobada project is situated in a mature and well-established mining industry in Mali, which is the third-largest gold producer in Africa. The project's low-cost profile and strong economic metrics position it favorably compared to other gold development projects in the region. Recent agreements in Mali demonstrate how the sector is adapting to the new investment framework.
Comparison to Industry Standards
- The Kobada project has a lower strip ratio of 3.0:1 compared to peers like Doropo (4.9:1), Bankan (4.6:1), and Kurmuk (5.3:1).
- The Kobada project has a lower initial development capital intensity of US$36m compared to peers like Kiaka (US$51m), Kon (US$65m), and Twin Hills (US$73m).
- The Kobada project has a competitive AISC of US$1,004/oz, which is comparable to or lower than many of its West African peers.
- The Kobada project has a rapid payback period of 1.5 years, which is faster than many other gold development projects.
- The Kobada project's soft rock characteristics result in a lower bond work index (BWi) of 3.7 kWh/t compared to peers like Bankan (24.3 kWh/t) and Dugbe (20-24 kWh/t).
Stakeholder Impact
- Shareholders are expected to benefit from the project's strong economic returns and potential for growth.
- Employees will benefit from job creation and economic opportunities.
- Customers will benefit from a reliable supply of gold.
- Suppliers will benefit from increased business opportunities.
- Creditors will benefit from the project's strong cash flow and ability to repay debt.
- The local and regional communities in Mali will benefit from significant investment and economic development.
Next Steps
- Finalize the investment framework with the Malian government.
- Secure debt financing for the project.
- Update the Environmental and Social Impact Assessment (ESIA) and Resettlement Action Plan (RAP).
- Conduct further drilling to expand the resource base.
- Optimize mining and processing operations.
- Advance the project towards shovel-ready status in 2025.
Key Dates
- 2021: Kobada has an Environmental and Social Impact Assessment (ESIA) permit approved for the oxide phase.
- 8 Jan 2024: Toubani Resources registered as an Australian Company.
- 2 July 2024: Toubani releases 2024 MRE for Kobada with a 2.2Moz oxide dominant resource.
- 3 July 2024: Implementation Decree of Mali's 2023 placement to advance Kobada.
- 17 Oct 2024: Divesture of Yatela mine approved by Mali after being on care and maintenance since.
- 31 Oct 2024: Toubani delivers highly attractive Kobada DFS.
- 26 Nov 2024: Toubani appoints Endeavour Financial to lead project financing workstream.
- 22 Jan 2025: Allied Gold announces settlement of terms of a Definitive Protocol Agreement with the Government of Mali.
- January 2025: Investor Presentation date.
Keywords
Kobada Gold Project, Gold Mining, Mali, Definitive Feasibility Study, Ore Reserve, Mineral Resource, AISC, NPV, IRR, Capital Expenditure, West Africa, Mining Convention
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.