Member Info for NaPoM

If MNH licence area will dwarf zulu epo area for prem

MNH 100% owns the manganese mine and other licences. They are applying to extend the licence area to 80,000 hectares in Namibia. All in public domain.

$70 to $100 per tonne opex..roughly 20%

MNH will be producing 10k tonnes this month equivalent to $1.75m in revenue per month. 10% of which goes to prem. Production to increase to 29k tonnes end of next year. Over $5m revenue per month @ 10% is $500k per month to prem. Better deal than the $100k loan repayments lol

The saving from opex cost from that alone will be huge with Zulu DFS work and RHA dev back to production

Mining equipement to be used on rha and zulu is the best bit about this RNS.

Plant only needs to run 9 days every month to process 6000 tonnes per month. Plant has the capacity for 700 tonnes per day. Issue with power shortages is wearing a bit thin knowing that the plant doesnt need electricity to run 24hrs per day to reach its target of 6000 tonnes per month

RHA revenue when it starts producing will be in 100% USD dollars. So will the managment contract fee. With the cost savings gained from the electrification of the mine and govt funding provided to fund the running cost of the plant, if price of tungsten stays above the current level of $225/$240per mtu, mine is currently able to run profitably. Risk is when price of tungsten dips, it then needs to counter this by exploring deeper underground to get to the higher grades of ore hence the need for funding from the govt. The existing shaft will only allow prem to mine at max 6000 tonnes per month. The long term plan is to build a decline shaft that will allow prem to increase ore feed to the plant to 15k tonnes. In the short term, wont take long for plant to get back to production after the electrification work is complete.

Issues last year was zim main currency was US dollars and RTGS so was susceptible to shortages in foreign currency causing the delay in payments to gold miners. Same fate was suffered by Caledonia last year. Since the switch to RTGS only currency, the demand for US dollars slowed down, ayment to gold miners resumed and gold mines came back on line.

Zimbabwe govt look to foreign companies specifically in the mining sector to resuscitate their economy. Not an easy task but they are doing what they can to make it easier for these companies to do business in Zim. Electrification of RHA by state owned company ZESA is a good example of this.

Foreign mining companies like Caledonia mining retain a bigger % in USD compared to local gold mining companies. Also has better access to capital should they need to expand which local miners dont hence they are struggling
https://youtu.be/vVnvj9nZrgc

Gold mined in Zimbabwe goes to a gold refinery called Fidelity printer in zimbabwe. This ia a well known fact Acker. For base metals, concentrates are exported for processing.

Research Caledonia Mining who are mining gold on youtube. No issues with the current set up.

Acker that only applies to certain minerals. Gold and platinum i think.

Cost of producing in Zim is obviously a lot lower compared to western countries therefore its not as exposed to price volatility. RHA mine is at final stages of development and it has a working processing plant that will be producing in 2020.

Inflation has no effect if revenue generated is paid in US dollars. Only affects prem when sourcing equipment and consumables that they need to import into the country. Funding from the govt will pay for mining contractors at no cost to prem.

Govt has their hopes on mining companies to generate the revenue. Running the mine on electric is still way cheaper compared to running on diesel. Saving $50k to $100k per month alone. Bottom line will improve significantly even without going into exploration to get to the higher grades of ore.

Its not just the epo we are waiting on...RHA will surprise a few when it finally starts producing. Recent photo of transformers arriving means electrification work is at the final stages. Circum investment worth circa $15m underpins current sp so Zulu and RHA still very much undervalued.

James is one of a few still adding...know many PIs holding 1% to 2 % who are already in profit and continue to add more to average up.

How? lol