Kapulo will carry Mawson forward...
This article (almost 1 yr old) seems more relevant now... and can see why some big investors want to be part....
Kapulo will carry Mawson forward...
Kapulo will carry Mawson forward
As the throwaway line made in jest went, Bruce McFadzean’s children were concerned about their inheritance being whittled away as their highly experienced mining executive father took a sabbatical after completing his last job early in 2012. But if it were real, the ungrateful wretches might have cause to be particularly optimistic in the months ahead as McFadzean’s current company Mawson West Ltd becomes a significant copper producer in the Democratic Republic of Congo.
Mawson West is just about to start commissioning its 20,000 tonne per annum Kapulo copper project, and the way McFadzean’s sees it, a significant market re-rate of the company should be on the cards.
His experience tells him the market typically fears the worst at this early stage of a project’s operational life, with reassurance awaited before investment.
Even in Mawson West’s West Perth office, the company staff is said to be “twitchy” ahead of “the both exciting and scary” period of commissioning and first commercial production.
But McFadzean told the Africa Downunder conference in Perth last week that having re-confirmed the project’s bona fides in 2012 and 2013, Mawson West was very confident of both the integrity of the Kapulo orebody and its metallurgical characteristics. He was also very positive about the DRC, noting the increasing presence of significant copper developers and producers in the country.
Mawson West is already established as a producer in the DRC via its Dikulushi operation, which is producing at a rate of about 6000-7000tpa of copper in concentrate.
In total Mawson West is targeting 20,000-30,000t of copper production next year, and 30,000-40,000t in 2016 as Kapulo delivers steady state output.
So-called all-in-cash-costs of US$2/lb are being targeted, though McFadzean believes lower cost output can be achieved.
In terms of mine life, Mawson West is aiming to “close the gap” between the current one year of reserves and 4-5 years of resources at Dikulushi, while Kapulo is “internally” seen as having “10 years and beyond” (versus the current six years of reserves).
The TSX-listed Mawson West had a recent market capitalisation and enterprise value of US$44 million and US$42 million, respectively – with Kapulo fully financed.
Dikulushi was the foundation asset of Anvil Mining, which was taken over by Chinese company Minmetals early in 2012 for US$1.3 billion.
McFadzean quipped that that deal meant those involved with Anvil were now “resting and wealthy”. That may help comfort the children.