FROM THE BROKING DESK
We’ve had some more positive news from Metal Tiger*†. The PFS for the open-pit, high-grade T3 Copper Project in Botswana has been completed; Metal Tiger owns 30% of this in a JV with the ASX-listed MOD Resources. In a ‘base case’ scenario, with production from Proven and Probable ore reserves and throughput of 2.5Mtpa, the PFS indicates about US$730m in EBITDA over nine years, and — were the expansion case to proceed — an EBITDA of US$1.1bn over 12 years. The JV partners have agreed to proceed with a feasibility study this quarter. Other headlines from the base case PFS were: a pre-tax NPV8% of US$281m, using a long-term US$3.00/lb Cu price, IRR of 39% and payback of 2.7 years.
As CEO Michael McNeilly pointed out, this PFS is “robust”. There’s no doubt that the T3 deposit is an extremely exciting prospect. I don’t think the market has seen a copper project this good for quite a while, and it’s also encouraging that the relationship with MOD is strong; the two parties are working well together to progress this. We should have a full piece out on this later.
In a separate announcement, Metal Tiger has now sold down its position in Kingsgate Consolidated Limited (KCN) to zero. This is the second sell-down in a week, and raised a further £1,973,209 for Metal Tiger. While the company may not have achieved all its ambitions with Kingsgate, it’s certainly proved a very lucrative bit of trading.