TRE
Toubani Resources Limited
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Activities Report
29 July 2024 7:03 PM
Toubani Resources significantly upgraded its Kobada Gold Project's Mineral Resource Estimate to 2.0Moz in the Indicated category, marking a 30% increase from the 2023 estimate and advancing towards an updated Definitive Feasibility Study (DFS).
Better than expected
The company increased the Kobada Mineral Resource Estimate to 2.0Moz in the Indicated category, a 30% increase from the 2023 MRE.
Capital raise
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.
Summary
- Toubani Resources increased the Kobada Mineral Resource Estimate to 2.0Moz in the Indicated category, a 30% increase from the 2023 MRE.
- Shallow, free-dig oxide resources classified as Indicated increased 44% to 1.4Moz of contained gold.
- The grade of Indicated resources increased by 10% to 0.87g/t gold.
- Over 80% of the oxide Inferred resources targeted in the resource definition drill program were converted to Indicated.
- The Indicated resources will underpin Ore Reserve studies as part of the DFS Update, which is on track for completion later this year.
- The State of Mali adopted the Implementation Decree of the 2023 Mining Code.
- The company spent approximately A$1,975,000 on exploration and evaluation activities during the quarter.
- Payments to Directors for the quarter ended 30 June 2024 were A$114,000 for gross wages, fees, and superannuation.
Sentiment
Score: 7
Explanation: The document presents a positive outlook with significant resource upgrades and progress on the DFS. However, the need for future capital raises and the potential dilution from the Mali government's equity interest temper the overall sentiment.
Highlights
- The Kobada Mineral Resource Estimate was successfully upgraded to 2.0Moz in the Indicated category, a 30% increase from the 2023 MRE.
- Indicated oxide resources increased 44% to 1.4Moz of contained gold.
- The grade of Indicated resources increased by 10% to 0.87g/t gold.
- Exceptional resource definition drilling delivered intercepts such as 71m at 1.86g/t gold from 79m and 19m at 20.6g/t gold from 105m.
- The DFS Update is on track and due later this year.
- The State of Mali adopted the Implementation Decree of the 2023 Mining Code, which is expected to lead to regulatory stability.
- Ma Wilcox was appointed to the Board of Directors, bringing expertise from West African gold project development.
- Toubani funded the development of a new community vegetable garden for the Kobada village.
Positives
- Significant increase in Indicated resources, enhancing the project's economic viability.
- High-grade drill intercepts demonstrate the potential for further resource expansion.
- Advancement of the DFS Update, which will provide a clearer picture of the project's economics.
- Adoption of the 2023 Mining Code in Mali, potentially leading to a more stable regulatory environment.
- Strengthening of the Board and DFS owner's team with experienced personnel.
- Community engagement initiatives, fostering positive relationships with local stakeholders.
Risks
- Exploration and evaluation expenditures were A$1,975,000 for the quarter, indicating significant cash burn.
- 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.
- The Mali Government is entitled to a free carried 10% equity interest in MaliCo, which could dilute the Company's ownership interest.
Future Outlook
The DFS Update is on track for completion later this year, targeting the end of the September quarter, and the company anticipates making an investment decision on the Kobada Gold Project in 2025.
Management Comments
- Managing Director, Phil Russo, commented: 'We delivered on a significant objective in the June quarter with a highly successful resource definition program informing a substantial increase in our Indicated resources to 2.0 million ounces in total.'
- Managing Director, Phil Russo, commented: 'To achieve this strong result, as well as increase our Indicated grade by 10%, is an excellent outcome that sets the Kobada DFS Update due later this year for a positive outcome.'
- Managing Director, Phil Russo, commented: 'The adoption of the 2023 Mining Code was also a significant step towards a return to regulatory stability for the industry, which will provide increased confidence to investors as we advance the Kobada DFS Update and reveal Kobada as a robust, highly attractive and technically simple oxide development project.'
Industry Context
The adoption of the 2023 Mining Code in Mali is a significant development for the mining sector, potentially attracting more investment and stabilizing the regulatory environment. The appointment of Ma Wilcox, who oversaw the successful development of the Abujar Gold Mine (later acquired by Zhaojin Capital for A$750 million), adds valuable expertise to Toubani's board.
Comparison to Industry Standards
- The resource grade of 0.87g/t gold is comparable to other open-pit oxide gold projects in West Africa.
- Companies like West African Resources, which successfully constructed the Sanbrado Gold Mine, provide a benchmark for project development in the region.
- The increase in Indicated resources to 2.0Moz positions Kobada as a potentially significant development asset in the region.
Stakeholder Impact
- Shareholders: The resource upgrade and DFS progress are likely to be viewed positively, potentially increasing shareholder value.
- Employees: Continued project advancement provides job security and potential for career growth.
- Customers: Not directly applicable as the company is in the development phase.
- Suppliers: Increased activity related to the DFS and potential future development could lead to more business opportunities.
- Creditors: The need for future capital raises may impact the company's ability to secure favorable financing terms.
Next Steps
- Finalization of the DFS Update, targeting the end of the September quarter.
- Continued discussions with the State of Mali on the Kobada Gold Project.
- Advancing the Project towards an investment decision in 2025.
- Replicating the success of the Kobada vegetable garden with other surrounding villages.
Key Dates
- 12 September 2022: Date of the Prospectus
- 24 November 2022: Listing date on ASX
- March 2020: Completion of West African Resources Sanbrado Gold Mine
- May 2024: Zhaojin Capital acquired Tieho Minerals for A$750 million
- 30 June 2024: End of the June quarter
- 03 July 2024: Mali adopts 2023 Mining Code Implementation Decree
- 31 July 2045: Expiry date of Kobada Operating Permit
Keywords
Kobada Gold Project, Mineral Resource Estimate, Definitive Feasibility Study, Gold, Exploration, Mali, Mining Code, Resources
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.
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 5:51 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.
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.