StockMarketWire.com - Tanzania-focussed mineral explorer and developer Kibo Mining's [LON:KIBO] shares were up in late trading after it reported significantly improved financials for the coal mine component of the Mbeya coal to power project.

The company and its advisers, Minxcon Projects, have now completed a financial optimization study for the MCPP coal mine, based on feasibility results received to date.

The impact of optimal gearing for the MCPP coal mine was tested on the surface miner contractor option with the following key results:

- All-in cost margin ranges from 47.9% to 48.1%. Applying the aforementioned all-in cost margin, Kibo interprets that annual earnings before interest and tax ("EBIT") of between US$ 23.5 million to US$ 23.6 million will be generated;

- Applying a real discount rate of 5.51%, the best estimated Net Present Value ("NPV") of free cash flow to equity ranges between US$ 214 million and US$ 219 million; - Equity IRR (leveraged) range between 131% and 146%, with a Project IRR of 54%;

- Cash return on capital invested ranging between 726% and 732%; and

- Project Payback Period before loan of 2.6 years

Chief executive Louis Coetzee said: "We are delighted to provide this update showing the outcome of the latest, more detailed work undertaken by our advisers for the MCPP.

"In particular, we are delighted with the confirmation of the NPV range of US$214m to US$219m which is solely in respect of the coal mining component and does not include the significantly larger power generation portion of the project.

"This is a large-scale project which is now demonstrably lower risk. With the relatively low capital investment required, the Mbeya coal mine delivers a high project IRR and short payback period.

"The IRR being substantially above the cost of debt makes it an attractive option to consider project level loan financing. The project's robust financials will play in Kibo's favour in respect of the competitiveness and conditions attached to any such loans.

"As each stage of our work on the MCPP is completed, Kibo emerges with a stronger, more valuable project. We will update shareholders with further progress in the near-term in what is a busy operational period for the Kibo team and the MCPP."

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Output at Caledonia Mining Corporation's [LON:CMCL] 49%-owned subsidiary Blanket Mine in Zimbabwe remains on track to achieve target gold production for 2015 of 42,000 ounces.

The company says 10,927 ounces of gold were produced during the third quarter, representing a 5% increase on the gold produced in Q2 2015 (10,401 ounces) and a 10.5% up on a year ago. Production in the quarter is based partly on mine assays and is subject to adjustment following third party assays.

Chief executive Steve Curtis said: "The continued increase in production reflects the improved management control over grade and tonnage. The completion of the tramming loop in June 2015 has increased the underground haulage capacity and allows for an increase in development activity, which is expected to result in further increases in future production.

"Sinking of the no 6 Winze was completed in July and work on equipping the shaft is almost done, after which the horizontal development toward the ore bodies will commence. The start of initial production from the No. 6 Winze remains on target for January 2016.

"Work at Central Shaft continues as planned and the shaft collar is expected to reach a depth of 90 meters by the end of 2015.

"We are confident that the revised investment plan, which was announced on November 3, 2014, will result in progressive increases in production from 2016 onwards when we expect to see the first production from below 750 meters - initially from the No. 6 Winze and subsequently from the Central shaft."

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New World Resources [LON:NWR] produced 1,075 kt of coking coal and 955 kt of thermal coal in the third quarter average prices of €90 and €49 per tonne respectively.

Output for the first nine months totalled 5,716 kt. This comprised 3,155 kt of coking coal at an average price of €92 per tonne and 2,206 kt of thermal coal at an average price of €51 per tonne.

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Landore Resources [LON:LND] reports the completion of a mineral potential investigation on the Junior Lake nickel-copper-PGE project in Ontario.

Landore retained the services of RPA Inc. (RPA) independent engineers of Toronto, Canada, to review and report on the Mineral Potential of the Junior Lake Nickel-Copper-PGE Project.

Chief executive Bill Humphries said: "This report on the Mineral Potential of the Junior Lake property by independent engineers, together with the recently completed geophysical review by a recognized geophysicist in the nickel exploration field, has confirmed the significant value of the Junior Lake project. In addition the above reviews have established the high potential of the B4-7 and VW nickel deposits for continued growth, and have identified substantial potential for further discoveries in the surrounding property."

Overall, RPA is of the opinion that there is excellent exploration potential remaining in many areas of the Junior Lake Property and that more work is warranted. A preliminary economic study that investigates minimum tonnage and grade requirements at a various metal prices is needed to prioritize on-going exploration activities. In general, RPA's opinion is that future exploration activities should focus on increasing the existing resources and discovering new deposits.

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The sector's biggest riser was Regency Mines [LON:RGM] - up by 20% in late trading - while the biggest faller was Lonmin [LON:LMI] - down by more than 15.1%.







At 4:13pm:

[LON:AQP] Aquarius Platinum Ltd share price was +0.13p at 11.38p

[LON:BEM] Beowulf Mining PLC share price was +0.03p at 3.18p

[LON:BKY] Berkeley Resources Ltd share price was 0p at 22.5p

[LON:CEY] Centamin PLC share price was +1.73p at 67.53p

[LON:CHL] Churchill Mining PLC share price was +1.13p at 17.25p

[LON:CMCL] Caledonia Mining Corp share price was +2p at 43p

[LON:CZA] Coal of Africa Ltd share price was -0.02p at 3.38p

[LON:FDI] Firestone Diamonds PLC share price was -1.75p at 21p

[LON:FRES] Fresnillo PLC share price was +3p at 737.5p

[LON:GEMD] Gem Diamonds Ltd share price was -1.37p at 112.63p

[LON:HOC] Hochschild Mining PLC share price was +3.63p at 89.38p

[LON:KIBO] Kibo Mining share price was +0.63p at 5.75p

[LON:KMR] Kenmare Resources PLC share price was -0.04p at 1.94p

[LON:LND] Landore Resources Ltd share price was +0.01p at 0.68p

[LON:NWR] New World Resources PLC share price was +0p at 0.55p

[LON:RGM] Regency Mines PLC share price was +0.01p at 0.03p

[LON:VED] Vedanta Resources PLC share price was +12p at 606.5p



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