TRE
Toubani Resources Limited
ASX
Investor Presentation - Kobada Gold Project DFS
Sentiment:
Feasibility Study
30 October 2024 6:05 PM
Toubani Resources' definitive feasibility study for the Kobada Gold Project reveals compelling economics, with a post-tax NPV8% of US$635 million, a 57.5% IRR, and a 1.5-year payback period at a US$2,200/oz gold price.
Better than expected
The project's financial metrics, including NPV, IRR, and payback period, significantly exceeded expectations.
Capital raise
The company will need to raise capital to fund the project's development, construction, commissioning, and operation.
Summary
- The Kobada Gold Project's definitive feasibility study (DFS) shows very positive results.
- The project has a post-tax NPV8% of US$635 million and a post-tax IRR of 57.5%.
- It has a rapid payback period of just 1.5 years at a gold price of US$2,200/oz.
- The project's all-in-sustaining cost (AISC) is estimated at US$1,004/oz.
- The initial development capital is estimated at US$216 million, which is considered low for the sector.
- Average annual gold production is projected at 162,000 ounces over a 9.2-year mine life.
- The project has a significant 1.56Moz Ore Reserve, with 82% being oxide.
- The DFS includes 2.0Moz of Indicated Mineral Resources, representing 90% of the total 2.2Moz Mineral Resource Estimate (MRE).
- The study uses a gold price of US$1,650/oz for Ore Reserve estimation and US$2,200/oz for financial modeling.
Sentiment
Score: 9
Explanation: The DFS results are exceptionally positive, showing strong financial projections and a low-risk profile. However, the need for future funding and ongoing government negotiations introduce some uncertainty.
Highlights
- Post-tax NPV8% of US$635 million (US$897 million at US$2,600/oz gold price)
- Post-tax IRR of 57.5% (73.4% at US$2,600/oz gold price)
- Payback period of 1.5 years (1.25 years at US$2,600/oz gold price)
- AISC of US$1,004/oz (US$1,031/oz at US$2,600/oz gold price)
- Initial development capital of US$216 million
- Average annual gold production of 162,000 ounces
- 1.56Moz Ore Reserve
- 2.2Moz MRE, with 2.0Moz in the Indicated category
Positives
- Very strong financial projections with high NPV, IRR, and rapid payback.
- Low initial capital expenditure compared to peers.
- High proportion of oxide ore, leading to lower operating costs.
- Large and well-defined mineral resource and ore reserve.
- Simple and conventional processing flowsheet.
- Significant exploration upside potential.
Negatives
- Funding for project development is not guaranteed, and may be dilutive to existing shareholders.
- Discussions with the Malian government regarding the mining convention are ongoing and may impact project economics.
- Fresh rock processing is deferred, potentially delaying full production capacity.
- Sensitivity to gold price and other macroeconomic factors.
Risks
- Uncertainty regarding securing future funding for project development.
- Ongoing negotiations with the Malian government on the mining convention.
- Potential for unfavorable movements in gold price, operating costs, and other macroeconomic factors.
- Risks associated with exploration and resource definition, particularly in relation to fresh rock resources.
Future Outlook
The company is confident in the project's optionality and ability to absorb ongoing discussions with the State of Mali on the Mining Convention for Kobada. The company plans to achieve shovel-ready status in 2025, with a path to production in 2026. Further exploration is planned to enhance and grow the project.
Management Comments
- Kobada ascends to the big leagues
- Kobada DFS delivers a step change in project profile and increased regional significance
- Kobada is a large, continuous deposit extending over 5km of strike
- Kobada is predominantly oxide and remains open along strike in both directions, as well as at depth
- Kobada is a compelling low-cost asset
- Kobada ticks all of the boxes
- Kobada can withstand significant unfavourable movements in macroeconomic and technical variables
- Kobada is an attractive asset today, but can be even better tomorrow
Industry Context
The Kobada Gold Project's DFS results compare favorably to other West African gold development projects, particularly in terms of its low capital intensity and high-grade oxide resource. The project's strong economics and relatively low AISC position it competitively within the region.
Next Steps
- Further drilling to increase fresh rock resources and expand later pit stages.
- Geotechnical studies to refine pit wall design and reduce mining costs.
- Optimization of mining and processing schedules.
- Confirmatory testwork to validate processing assumptions and potentially reduce capital costs.
- Self-performance of non-process infrastructure to reduce costs and improve timelines.
- Discussions with the Malian government on a new Mining Convention.
- Revision and resubmission of the ESIA.
- Commencement of the Relocation Action Plan (RAP).
Key Dates
- July 2, 2024: Company's ASX release detailing the current Mineral Resource Estimate for the Kobada Gold Project
- October 31, 2024: Date of the Kobada Gold Project Definitive Feasibility Study presentation and ASX release
Keywords
Kobada Gold Project, Definitive Feasibility Study, Gold, Mining, West Africa, Mali, Ore Reserve, Mineral Resource, Financial Projections, Capital Expenditure
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.