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Baobab Resources (BAO)

Business description

Baobab Resources is focused on developing its Tete iron-vanadium-titanium open-pit project in central-western Mozambique. A Pre-Feasibility Study is expected to commence in Q411.

Share price chart

Share chart
Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2010A 0.0 (2.0) (2.0) (1.4) N/A N/A
2011A 0.0 (6.1) (6.1) (3.6) N/A N/A
2012E 0.0 (2.5) (2.4) (1.3) N/A N/A
2013E 0.0 (2.5) (2.5) (1.0) N/A N/A

Last updated on 09/12/2011

Latest research

Scoping study analysis

Update | Mining | 06/12/2011

Maiden Ruoni N resource

Update | Mining | 03/11/2011

Tenge/Ruoni results

Update | Mining | 08/09/2011

Tenge-Ruoni opportunity

Update | Mining | 04/05/2011

Monte Muande revelation

Update | Mining | 25/03/2011

Monte Muande revealed

Update | Mining | 01/02/2011

Grades up

Update | Mining | 14/12/2010

Higher grades identified

Update | Mining | 12/11/2010

Exploration update

Update | Mining | 03/11/2010

South Zone update

Update | Mining | 09/09/2010

Further drilling

Update | Mining | 17/08/2010

Resources to quintuple?

Update | Mining | 28/07/2010

Investment summary

Baobab has announced positive results from a scoping study on its Tete project (iron/titanium/vanadium) in Mozambique. The study modelled the Ruoni North inferred resource comprising 93Mt of the 267Mt resource inventory. Two scenarios were assessed and both demonstrated viable project fundamentals. The most compelling economics were obtained from scenario B, producing 1Mtpa of pig iron, rather than 3Mtpa of titano-magnetite concentrate as in scenario A. Scenario B has an initial capex estimate of US$690m and returned a NPV(10) of US$1.4bn (before tax) over a mine life of 25 years, whereas A has a US$448m initial capex estimate and returned a NPV(10) of US$467m (before tax) over a 15-year mine life. While both cases reveal viable economics, plans for on-site smelting of pig iron provides significant value to the project.

Last updated on 09/12/2011

Industry outlook

Short- to mid-term weakness in iron ore prices is possible as underlying demand remains weak.

Last updated on 09/12/2011

Key management

Jeremy Dowler, Chairman
Ben James, MD

Company address

49 Phillimore Street
Fremantle, 6160
Australia
+618 9430 7151
View website



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