- Review the company's progress during the past year;
- Highlight the targets for the next 12 months; and
- Provide an updated valuation for the company.
Analyst Comment: News flow from Minbos was slower than we originally anticipated during the second half of 2015, mainly due to the potential merger of the Cacata project with the joint venture partner not proceeding. 2016 however started brightly as Minbos completed a capital raising ($3.4m) at a 150% premium to their share price, which allowed for the BFS to commence.
We believe the next 12 months will potentially be the most important in the company's history, as the release of the first stage of the BFS (currently underway) will determine the processed route for the projects development (wet or dry processing facility). We favour the dry facility (simple scrub and screen of ore) due to the lower initial capital cost requirement (TSI estimate - US$40m - 100% project) as well as potentially allowing mining to commence as early as next year.
Valuation: We maintain our belief that the market has overlooked the substantial underlying value at the Cacata project, as we determined an after tax valuation for 100% of the project of US$280m. We discounted our valuation by 50% as a number of our assumptions require confirmation (BFS). This however still results in a valuation of $0.033/share, which is a significant premium to the current share price ($0.004/share).
This information is general information only. Any advice is general advice only. Neither your personal objectives, financial situation or needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice. Adam Kiley (AR No. 458224) is an authorised representative of Intelligent Financial Markets Pty Ltd (AFSL No. 426359).
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About Minbos Resources Limited
Minbos Resources Limited (ASX:MNB) is an ASX-listed exploration and development company focused on phosphate ore within the Cabinda Province of Angola and the adjoining areas of the far western DRC. Through its subsidiaries and joint ventures, the Company is exploring over 400,000ha of highly prospective ground hosting phosphate ore. Minbos is focussing on the development of the high grade Cacata project in Cabinda whilst growing its current resource base in incremental stages on the remaining deposits in Angola.
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