Member Info for Dcat80

Route forward and how good it is for us shareholders really depends on the interest in the project. The economics really are outstanding.

I’ve been keeping eyes out for financing of other iron, vanadium or Tio2 projects in last month. Think count is up to 7 projects now in the last month, none of which would have the economics of pitombieras.

An example of a buy out is Marianna resources.

Pea DFS
IRR 153% 36%
NPV $1.37b $1.05b
Capex $261m $309m
Marianna resources taken over after PEA for their 30% share at £167m (£556m 100% basis)

That buy out price was at circa 50% if the PEA NPV or 65% of the FS NPV. If that was the case for pitombieras it’d effectively be in the range of a 15p-19p buy out.

The capex requirement is outside our own means. Last years TMS interview included Brian commenting on how project could be financed if further benefication was done. Mix of offtakes and industrial partner was the answer.

An example of a recent farm in to build can be found in asiamet RNS of 3rd November 2021. In that instance terms were $50m for a 51% interest. The headline numbers of their FS were IRR 19.1%, NPV $133m and capex of $223m (npv/Capex ratio just 0.57). Partner basically farming in at 75% of the project NPV.

Pitombieras economics are much much better with IRR 100%, NPV $96.5m and capex of $18.45m (npv/Capex ratio of 5.23).

Should a partner farm into pitombieras at 75% of NPV it’d be equivalent of an SP at 22p….

BF - I’m fairly certain they’re in talks now

1) They sold Pedra Branca when we were waiting for the FS. Advises were they couldn’t get support to take a small scale PGM project forward themselves i.e. at that stage they'd been in talks to take it forward. Very likely they’ll be in such discussions now with Pitombieras

2) In June advises were financing could complete as soon as start of October. Financing of course isn’t just a matter of making a phone call to the bank.

The question is rather how much interest is there in the project and in what was is that interest? Fund the mine build, drill out deposit to consider larger/different operation or even as you say to acquire it from us.

Fodere been recruiting. Another sign things are moving there..

https://www.linkedin.com/posts/fodere-group_its-a-pleasure-to-announce-welcome-mr-stephen-activity-6974207476606902272-XUkl?utm_source=share&utm_medium=member_ios

Waited all day to see if anyone would post, but no joy!

Aim listed Alien metal announce MOU on potential offtake and financing of their Pilbara DSO iron ore project. Alien spent most of today with an increased MC of £6m on todays news.

Jangada MC is currently £9m MC with cash and investments over £3m I.e. pitombeiras only value at £6m…

https://www.lse.co.uk/rns/UFO/agreement-for-potential-han****-project-finance-ar67cfmyah98a0u.html

Little reminder Han**** resource is at inferred stage with economics at scoping study level. Sure we all remember pitombeiras iron/vanadium is now at feasibility study level which of course means we only use the measured and indicated resource of 5.1mt (the 3.1mt inferred can’t be used in feasibility study level reports).

Despite the all the doom and gloom Minres proceed with financing the Onslow iron project.

Opex on the JV expected at circa $40 per tonne including infrastructure capital charge.

For comparison pitombieras is circa $25 per tonne mining/plant for the iron/vanadium with $30 for logistics

Pitombeiras gets vanadium credits estimated in Technical report of $45 per tonne.

https://clients3.weblink.com.au/pdf/MIN/02559559.pdf

Majority all done to FS already as below shows. It’s just the desliming and flotation of the tailings containing the Tio2 that was required. Been over 4mths since technical report during which time they’d have progressed the work on Tio2 and been engaging with offtakers on at least the iron/vanadium side.

Surprised nothing received yet, it is holiday season for some though so maybe things been slightly held up. Would hope update is soon.

I’ve just added 10.929 shares with cash added to isa earlier….

- [x] Pit design
- [x] Mining method
- [x] Infrastructure
- [x] Mining contractor costs
- [x] Dry magnetic separation capex & opex
- [x] Wet magnetic separation cape & opex
- [x] Logistics
- [x] Metal prices
- [x] Sales costs
- [x] Working capital estimates
All above been completed which is why Iron/vanadium is to FS level

Below are the extra stages required for Tio2, currently at PEA
- [ ] Tio2 Desliming
- [ ] Tio2 flotation

Mesb - I’ve also had a look. Kitwe has a few mines although area is largely copper. Both Tio2 and vanadium can be found in some deposits, they’d be waste so left the tailings.

Jubilee are active in the area sort tailings including vanadium. It could be connected to them and their tailings or be completely different tailings. Link to them below

https://jubileemetalsgroup.com/operations/lead-zinc-vanadium/

Mesb - you need to look table 1.7 in technical report. After separation the tailings go through a desliming and then flotation process with the flotation product Tio2 grade being noted at 42%.

On paper at least it would appear the fodere plant planned at S Africa could manage the grade and throughout required for pitombeiras. It’s also designed/flexible enough for other tricky chemicals found in waste so unlikely to have other processing issues.

I’d be very surprised if fodere tech was incorporated into FS level so soon, although it could be possible testing in a lab or on the small scale plant in Zambia.

More likely proceed with firming up current model to FS. Fodere details either later or done to a PEA level for stage 2 expansion.

Don’t know fodere opex, but they claim to be cheapest process TNG with their tivantech have an opex noted of circa $150 per tonne for a similar process. If you used $150 Against 66k of feedstock that’d be $9.9m additional opex PA. Producing 25k tonnes of pigment grade (98%-99%Tio2) at $3k per tonne would give $75m revenue compared to the $14.5m the Technical report envisages for 66k Ilmenite. Definitely worth some work on…

Mesb - thanks. Looks like a fodere plant could comfortably handle an operation that produced 66kt per annum of Ilmenite concentrate then (pitombeiras).

Fodere claim to be able to process feedstock with 30% Tio2. The concentrate Jangada envisaged in Technical report was 42% so comfortably over.

We all know I believe the real money will be in the Tio2 and producing a higher grade product circa 98%-99% Tio2 purity. That expectation still alive as a later stage..

You use LinkedIn I believe. If you check Luis posted about a invest mining network meeting that was on yesterday

Shouldn’t be cause of any delay. Offtakes and DFS come before rest of financing, although discussions could of course be taking place before

https://www.bnamericas.com/en/news/brazil-takes-action-to-facilitate-financing-for-mining-smes

Possibly. The interview from last June did say on the event of further benefication that financing would probably be through a mix off offtakers and industry partner.

If someone such as largo was to take 25% interest in the project for $12.5m that’d pretty much get the financing over the line without debt. $12.5m for 25% stake would be paying circa 50% if the current NPV for then a financed project.

Depends what interest is out there. Would hope with the outstanding economics they’d be that interest…

St Brides been involved with Jangada for years, maybe since listing.

Fact you don’t know that probably says more about them than you though. They’re useless…

Think it’s more about letting wider market know, not everyone reads this BB or checks website for updates! Fingers crossed timing is more progress has been made and further updates are soon.

Agreed. Presentation is good and I particularly find the simplified discounted cash flow sheet useful. The project economics to peers on page 30 also a good visual aid to highlight how good economics are.

Hopefully this is a matter of setting our current upto date position ahead of some strong newsflow. Plenty due now…

Something else I’ve not seen commented here is the logistics opex. It’s the largest cost to our project totalling $99m in the economic model.

We know offtaker talks include with local buyers (check technical report RNS and earlier RNS). Saving on shipping or even better collection from our site would provide very material cost savings to the project.

Offtaker advances are also common and could form part of the negotiations, albeit often in return for slight discount to product price.