TRE
Toubani Resources Limited
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Activities Report
29 April 2024 9:32 PM
Toubani Resources' March quarterly report highlights promising drill results at the Kobada Gold Project and a completed A$4.0 million placement to advance the DFS.
Better than expected
The initial drill results show numerous near-surface, high-grade oxide intersections, which are better than expected.
Summary
- Toubani Resources is advancing the Kobada Gold Project in southern Mali.
- The project hosts 2.4 Moz in Mineral Resources over a 4.5km strike length.
- A 10,000m resource definition drill program commenced at Kobada Gold Project.
- Initial drill results show numerous near-surface, high-grade oxide intersections.
- Significant drill results include 19m at 20.6g/t gold from 105m and 48m at 2.84g/t gold from 85m.
- An updated Mineral Resource Estimate is expected in 2Q 2024.
- This estimate will underpin Ore Reserve studies as part of the DFS Update due later this year.
- A$4.0m placement was completed to existing and new investors to complete a larger scale DFS for the Kobada Gold Project.
- The company successfully completed its registration as an Australian company as of 8 January 2024.
- Exploration and evaluation activities cost approximately A$654,000 during the quarter.
- Payments to Directors for the quarter ended 31 March 2024 were A$74,000 for gross wages, fees and superannuation.
Sentiment
Score: 8
Explanation: The report is positive due to the high-grade drill results and successful placement, indicating strong potential for the Kobada Gold Project. The sentiment is slightly tempered by the discount on the placement and increased administration costs.
Highlights
- Toubani Resources is progressing towards an update of its 2021 DFS for the Kobada Gold Project.
- The resource definition drill program at the Kobada Gold Project has yielded numerous high-grade, shallow oxide intersections, including 19m at 20.6g/t gold from 105m.
- The company completed a A$4.0 million placement to advance the Kobada Gold Project.
- The company successfully completed its registration as an Australian company as of 8 January 2024.
- The drilling strategy aims to convert areas of Inferred mineralization into higher confidence categories, potentially increasing the mining inventory available in the DFS for the Kobada Gold Project due in the 3Q 2024.
Positives
- High-grade, near-surface oxide gold intersections were confirmed through drilling.
- The A$4.0 million placement provides funding for the DFS update.
- Government engagement in Mali is positive, with the Minister of Mines expressing support.
- The company's Australian registration simplifies its corporate profile.
- The drilling strategy aims to convert areas of Inferred mineralization into higher confidence categories, potentially increasing the mining inventory available in the DFS for the Kobada Gold Project due in the 3Q 2024.
Negatives
- Administration expenses were higher than forecast due to costs related to the Australian continuance and TSX-V delisting.
- The placement was completed at a 14.8% discount to the last closing price and an 11.9% discount to the 20-Day VWAP.
Risks
- Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially.
- The Mali Government is entitled to a free carried 10% equity interest in MaliCo, together with an option to acquire an additional 10% equity interest, which could dilute the Company's ownership interest.
Future Outlook
The completion of the resource definition drilling program is imminent, with assay results to be released as received; the DFS for the Kobada Gold Project is due in the 3Q 2024.
Management Comments
- Chief Executive Officer, Phil Russo, stated that the drilling program delivered exceptional results and strengthens their belief in the inherent value of the Kobada deposit.
- Phil Russo also noted that it's an exciting time to be advancing an enlarged and attractive Kobada project through the development curve, especially with rising gold prices and fewer gold development assets.
Industry Context
The project is advancing at a time of rising gold prices, which makes the economics of the project more attractive. The company is positioning itself to take advantage of the increasing demand for gold development assets.
Comparison to Industry Standards
- The reported drill results, such as 19m at 20.6g/t gold, are considered high-grade compared to average open-pit gold mines globally.
- Companies like Perseus Mining and Allied Gold also operate in West Africa and have similar projects in terms of scale and development stage.
- The DFS update will be crucial to compare the project's economics with industry benchmarks for similar gold projects in the region.
Stakeholder Impact
- Shareholders will benefit from the potential increase in the value of the Kobada Gold Project.
- Employees will have continued employment opportunities as the project advances.
- The local community in Mali could benefit from economic development and job creation.
- Suppliers and contractors will have opportunities to provide goods and services to the project.
Next Steps
- Complete the resource definition drilling program.
- Release assay results as they are received.
- Complete a Mineral Resource Estimate in 2Q 2024.
- Update pit optimization and mining schedule.
- Complete the DFS for the Kobada Gold Project in 3Q 2024.
Key Dates
- 8 January 2024: Toubani Resources successfully completed its registration as an Australian company.
- 31 March 2024: End of the quarterly activities report period.
- 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.
- 26 April 2024: Toubani announced the successful completion of a placement to raise A$4.0 million.
Keywords
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.
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.
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.
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.