TSX-V-listed Giyani Metals has reported positive definitive feasibility study (DFS) results for its 100%-owned K.Hill battery-grade manganese project in Botswana, with a post-tax net present value at an 8% discount rate of $481.5 million and a post-tax internal rate of return of 20.3%.
The DFS indicates strong free cash flow and operating margins, with net free cash flow over the life of the project estimated at $1.6 billion and an operating margin of 46%.
The plant is designed to process 220,000 tonnes per year of dry run-of-mine ore extracted from the K.Hill open pit, producing high-purity manganese sulphate monohydrate and high-purity manganese oxide.
Inferred resources of 4.4 million tonnes are excluded from the life of the project, providing potential to extend mine life.
Manganese recovery is 87%, with additional testwork planned to further improve economics.
Front-end engineering design work including plant layout optimisation, increased use of solar power, and evaluation of lower-carbon reagent sourcing is aimed at reducing capital and operating costs.
“We are pleased to announce the results of the DFS for our K.Hill battery-grade manganese project in Botswana,” said company interim executive chairperson Nigel Robinson.
“These results demonstrate strong economic returns and endorse K.Hill as a unique, mine-to-market battery-grade supplier of manganese to meet growing Western demand.”
He said that with China controlling 95% of manganese processing capacity, access to non-China supply is constrained, making the DFS a significant step towards a viable solution.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
