Giyani Metals Corp (TSX-V:EMM, OTC:CATPF, FRA:KT9) has released a definitive feasibility study for its K.Hill Battery-Grade Manganese Project in Botswana, which outlined a projected post-tax net present value of $481.5 million and an internal rate of return of 20.3%.
The study covers the company’s 100%-owned K.Hill project in the Kanye Basin and supports the declaration of mineral reserves for the planned open-pit mine and hydrometallurgical processing facility
The project is designed to produce high-purity manganese sulphate monohydrate (HPMSM) and high-purity manganese oxide (HPMO), materials used in electric vehicle and energy storage batteries. According to the study, the project would have a 25-year mine life and generate estimated post-tax cumulative free cash flow of about $1.6 billion over the life of mine. Initial capital expenditures are estimated at approximately $535 million, including contingency, while total life-of-project capital costs are projected at $679 million.
Giyani said the project is expected to achieve an operating margin of 46%, based on projected revenues of about $4.86 billion from HPMSM and $395 million from HPMO. The company estimated average realized prices of $3,220 per tonne for HPMSM and $4,004 per tonne for HPMO. The feasibility study assumes an annual processing capacity of roughly 220,000 tonnes of dry run-of-mine ore using conventional drill-and-blast mining methods.