The below valuation translates into $4.40 per share. Way above kandakers estimate of $1.20 per share which is what this should be trading at.
Simberi values Kakanda project at $731.5-million (U.S.)
2008-06-25 11:37 MT - News Release
Mr. James Hershaw reports
SIMBERI MINING CORPORATION: UPDATED KAKANDA PROJECT TECHNICAL REPORT
Simberi Mining Corp. has received a National Instrument (NI) 43-101-compliant technical report on the Kakanda copper-cobalt project in the Katanga province in the Democratic Republic of Congo (DRC). The Kakanda project consists of extensive tailings deposits and hard rock resources known as the North and South pits. This report is an update to the original Sept. 15, 2006, technical report prepared by MPH Consulting to reflect current copper and cobalt prices, and revised capital and operating costs.
The resource assumptions for the Kakanda project are:
- Tailings Deposit - Measured + Indicated Mineral Resources:
- 18.5 million tonnes averaging 1.2% Copper and 0.15% Cobalt (NI 43-101 Compliant);
- North and South Pit Hard Rock Deposit - Historical Resources:
- 18.6 million tonnes averaging 3.19% Copper and 0.19% Cobalt (Not NI 43-101 Compliant).
The table shows preliminary economic evaluations for the Kakanda Tailings Deposit project only, as additional exploration and analyses of the North and South Pit hard rock deposits are required. The final joint venture terms for the Kakanda project, including royalties, taxes and payback provisions, are being negotiated with Gecamines, the DRC state-owned mining company. It is anticipated overall project life and economics will be improved for the Kakanda project by including the North and South pit hard rock deposits.
PRELIMINARY ECONOMIC EVALUATIONS FOR THE KAKANDA TAILINGS DEPOSIT PROJECTPreliminary Copper Cobalt Capital Operating Before Internaleconomic prices prices costs costs tax net rateevaluation U.S.$ per U.S.$ per U.S. U.S.$ present of returncase lb. lb. $millions per ton value U.S. (%) $millions 20% discountTailingsdeposit $1.75 $13.00 $348 $27.80 $116.3 37%2006 basecaseTailingsdeposit $2.00 $15.00 $396 $30.97 $155.2 36%2008 basecaseTailingsdeposit $3.80 $48.00 $396 $30.97 $731.5 130%2008 spotmetal price
Simberi representatives are continuing negotiations with the DRC government officials and Gecamines to finalize the terms of the joint venture agreements for the development of the tailings and hard rock deposits. While uncertainties exist, both parties have committed to concluding discussions and formalizing the documentation in the near term.
As per the rules pertaining to NI 43-101 Resources and Reserves definitions:
The Kakanda North and South Pit Hard Rock Deposits are defined as historical resources based on information from prefeasibility and feasibility studies completed in 1997 by the geological consulting firm Steffen, Robertson and Kirsten and subsequently reviewed by MPH Consulting Limited. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources. Simberi is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
The Kakanda Tailing Deposit is evaluated by a preliminary economic analysis based on mineral resources that are not mineral reserves that have a demonstrated economic viability.
The Qualifying Person who co-authored the Kakanda Technical Report and reviewed this press release is Howard Coates, on behalf of MPH Consulting Limited.
We seek Safe Harbor.
