Economic value of the Kiniero project In the most recent feasibility study, the economic value of the Kiniero project was based on a POG of US$1,650. This POG is now at US$2,558, an increase of 55%. This is impressive, but it is only the tip of the iceberg.
Add to this, the increase in mineral reserves, resulting from the conversion of mineral resources from a lower category to a higher category, and the most recent drilling results. As a reminder, the geological database used in the last study dated from August 2022. In the end, this will be a much larger tonnage, and an extension of the life of the project;
Then, a reduction in the production cost per ounce, a consequence of an increase in the life of the project, and an extended use of the invested capital;
Then, a greater production capacity, justified by the new consolidated tonnage, and improved operational efficiency obtained by more oxidized ores to be processed. A less rich ore but with a reduced processing cost. An efficiency inspired by the Nampala model, to the power of 10;
Then, a lower stripping ratio, because a more efficient operation makes it possible to make lower-grade ores profitable. As a result, less transport to the tailings park, and a slower deterioration of mineral reserves. A way to transform a liability into an asset;
Finally, an establishment agreement to set the tax framework for the project. This translates into tax privileges negotiated with the Guinean authorities, to ensure the country's competitiveness; encourage investments; determine the company's expectations; as a result, an advantageous tax bill and an increase in economic value.
In the next optimized feasibility study, scheduled for September, I believe these new parameters will present a BIGGER project, a catalyst for Robex's future growth.