• Toubani Resources has released its December quarterly activities report, highlighting the progress of the Kobada Gold Project in Mali.
• The Definitive Feasibility Study (DFS) for Kobada confirmed a post-tax NPV8% of US$635 million, an IRR of 58%, and a payback period of 1.5 years at a gold price of US$2,200/oz.
• The project has substantial Ore Reserves of 1.56Moz with an average annual gold production of 162,000oz over an initial mine life of 9 years.
• All-in Sustaining Costs (AISC) are estimated at US$1,004/oz and C1 Cash Costs at US$825/oz.
• The initial upfront capital cost is US$216 million, including US$18 million in contingency.
• Toubani is actively engaging with the Government of Mali to secure the long-term future of the project.
• The company has commenced Environmental and Social Impact Assessment (ESIA) and other key permitting activities.
• Geotechnical and deep drilling programs are planned, pending formalization of the investment framework.
• Endeavour Financial has been appointed to lead the project financing workstream.
• Toubani is well-capitalized with A$8.5 million in cash as of December 31, 2024.

Score: 8

Explanation: The document presents a very positive outlook for the Kobada Gold Project, with strong financial metrics and progress in government engagement. While there are some risks, the overall tone is optimistic and suggests a high potential for success.

• The Kobada Gold Project has a post-tax NPV8% of US$635 million and an IRR of 58%.
• The project is expected to have a rapid payback period of 1.5 years at a gold price of US$2,200/oz.
• Kobada has substantial Ore Reserves of 1.56Moz.
• Average annual gold production is estimated at 162,000oz over an initial mine life of 9 years.
• All-in Sustaining Costs (AISC) are projected to be US$1,004/oz.
• C1 Cash Costs are estimated at US$825/oz.
• The initial upfront capital cost is US$216 million.
• Toubani has A$8.5 million in cash as of December 31, 2024.
• The company has appointed Endeavour Financial as its financial advisor for project financing.
• The project is expected to be a top-5 gold producing mine in Mali.

• The Definitive Feasibility Study (DFS) confirms Kobada as a significant gold project with strong financial metrics.
• The project has a low capital intensity compared to others in the sector.
• Toubani has established constructive engagement with the Government of Mali.
• The company is progressing with key permitting activities, including the ESIA.
• Toubani is well-capitalized to execute its strategy.
• The project has a rapid payback period of 1.5 years.
• The project has a low all-in sustaining cost of US$1,004/oz.
• The project has a low C1 cash cost of US$825/oz.
• The project has a high internal rate of return of 58%.

• The market currently perceives heightened risk in the region.
• The company has incurred higher than forecast administration expenses.
• There is a variance between the actual expenditure and the use of funds statement in the prospectus.

• The project is subject to the formalization of the investment framework with the Mali government.
• There are potential risks associated with obtaining necessary approvals and permits.
• The project is exposed to general business, economic, competitive, political, and social uncertainties.
• Fluctuations in mineral prices could impact the project's profitability.
• There are risks associated with accidents, labor disputes, and shortages.
• The project is subject to the availability of infrastructure and supplies.
• Pandemics and other risks of the mining industry could impact the project.

Toubani is pursuing an 'Enhance Grow Derisk' strategy to further improve the Kobada project as it moves towards shovel-ready status in 2025. The company is focused on securing the investment framework with the Mali government and progressing permitting activities.

• Managing Director, Phil Russo, stated that development projects as attractive as the Kobada Gold Project are rare.
• He believes the DFS lays the basis for a compelling project and highlights opportunities to make the project even stronger.
• He also noted that Kobada would be a top-5 gold producing mine in Mali, highlighting its importance to the country's economic growth.
• Management recognizes significant opportunities ahead despite the market's perception of heightened risk.

The report highlights a positive trend in the Mali mining sector, with several companies formalizing investment agreements and achieving positive milestones. This indicates a derisking climate in Mali and demonstrates that mining companies are adapting to the new investment framework. Toubani's project is positioned to benefit from this positive environment.

• The Kobada project's post-tax NPV8% of US$635 million and IRR of 58% are strong compared to other gold development projects in West Africa.
• The estimated average annual gold production of 162,000oz is significant, placing it among the top potential producers in Mali, comparable to mines like B2Gold's Fekola mine.
• The AISC of US$1,004/oz and C1 cash costs of US$825/oz are competitive, suggesting a low-cost operation, similar to other low-cost producers in the region such as Resolute Mining's Syama mine.
• The initial capital cost of US$216 million is relatively low for a project of this scale, indicating a capital-efficient development, which is a positive compared to projects with higher capital requirements such as some of the larger projects in Ghana.
• The rapid payback period of 1.5 years is also a positive, indicating a quick return on investment, which is better than many other projects in the region with longer payback periods.

• Shareholders are likely to be positively impacted by the strong financial metrics and development progress of the Kobada project.
• Employees may benefit from job creation and economic opportunities associated with the project.
• Customers (gold buyers) will have access to a new source of gold production.
• Suppliers will benefit from increased demand for goods and services related to the project.
• Creditors may be interested in providing financing for the project due to its strong financial outlook.

• Formalize the investment framework with the Government of Mali.
• Progress the Environmental and Social Impact Assessment (ESIA) and other key permitting activities.
• Execute geotechnical and deep drilling programs.
• Complete confirmatory metallurgical testwork.
• Advance project financing with Endeavour Financial.
• Move towards shovel-ready status for the Kobada Gold Project in 2025.

• 15 Jan 2024: Hummingbird Resources reached agreement on the application of the 2023 Mining Code for the Yanfolila mine.
• 2 July 2024: Toubani substantially increases oxides and grade at Kobada.
• 3 Sep 2024: Allied Gold announces settlement of terms of a Definitive Protocol Agreement with the Government of Mali.
• 11 Sep 2024: B2Gold reaches agreement on terms with Mali Government relating to the framework for the Fekola Complex.
• 12 September 2022: Date of the Prospectus.
• 16 Sep 2024: Robex Resources signs agreement with Mali Government for the Nampala Gold Mine.
• 17 Oct 2024: AngloGold Ashanti and IAMGOLD divesture of the Yatela mine was approved by Mali.
• 31 October 2024: Toubani Delivers Highly Attractive Kobada DFS and the Ore Reserves for the Kobada Gold Project were extracted from this announcement.
• 1 Nov 2024: Kodal Minerals confirm the transfer of its mining license and finalisation of the investment framework for the Bougouni lithium project.
• 24 November 2022: Date of listing on the ASX.
• 29 Nov 2024: Resolute Mining settles all outstanding liabilities with the Government of Mali and signs protocol to migrate Malian assets to the 2023 Mining Code.
• 15 Dec 2024: Gangfeng Minerals held an opening ceremony for the Goulamina lithium mine.
• 31 December 2024: End of the reporting quarter and cash balance of A$8.5m.
• 6 April 2027: Expiry date of the Faraba Research / Exploration Permit.
• 16 August 2027: Expiry date of the Kobada Est Research / Exploration Permit.
• 31 July 2045: Expiry date of the Kobada Operating Permit.