Kibo Mining

Tuesday, 29th May 2018 09:53 - by Rajan Dhall

According to the Tanzanian newspaper Citizen 7000 licenses have been granted to mine in the East African country. For those who don't know much about Kibo, the company are focused on Mbeya Coal to Power Project (MCPP) (formerly known as Rukwa Coal to Power Project) and the Imweru gold project, as well as holding one of the largest  exploration land packages in the Tanzania with assets spanning coal, gold and and nickel-platinum group metals.

So pretty diverse in the metals spectrum and timely with prices managing to hold off the strong USD for now. Also in a note from Guardian stockbrokers the Co. announced that they have been awarded Sepco III, Kibo’s Chinese development partner, the second lot of the Engineering, Procurement and Construction (EPC) (Power) contract involving the construction of the Power Line that will evacuate power from the Mbeya Power Plant in the Songwe District to the TANESCO Mbeya sub-station.

Over to the chart and you can see there are some interesting levels with the 4p market holding as a strong support. We are currently in a strong area of sideways consolidation and only a break of 6.73p would confirm a move higher in my opinion. Interestingly the trendline originating from Sept 14 held nicely just at the end of 2017 and it could be used as support again but it would be a tight stop. 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.