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Geovic Mining Corp. - Future Cobalt Producer in Cameroon
Geovic Mining Corp. (Geovic) aims to be the world’s largest primary producer of cobalt by late 2010 through its 60% ownership of Geovic Cameroon PLC (GeoCam). GeoCam’s Mine Permit covers 1,250 square kilometers in Cameroon, Africa, and provides exclusive production rights to seven large cobalt-nickel-manganese deposits. The first of the seven deposits, Nkamouna (pronounced ka-moon-ah), is currently under development, anticipated to commence production in late 2010.
Nkamouna’s proven and probable ore reserves are 54.7 million tonnes at average grades of 0.25% cobalt, 0.69% nickel, and 1.33% manganese. This reserve yields 11.7 million tonnes of concentrates grading 0.74% cobalt, 0.99% nickel, and 3.78% manganese suitable as a feedstock for the Company’s unique processing facility. An additional 145 million tonnes of inferred resources at the Mada deposit, the second of the seven properties under development, is adjacent to the Nkamouna processing plant.
A 43-101 Technical Report dated January 17, 2008 estimated that the Nkamouna Project will deliver after-tax cash flow (discounted at 8%) of US $704 million, an IRR of 56.3%, and a payback of 2.0 years based on 60% debt financing, 40% equity financing, and 3-year average metal prices (ended October 2007) of $20.08/lb cobalt and $11.16/lb nickel, respectively. Average operating costs during the first 19 years of production are estimated at $3.12 per pound of saleable cobalt, net of nickel byproduct credits. The strength of the estimated project economics are attributed to the unique physical properties of these specific laterite deposits, and should be enhanced further by the addition of circuits to process byproduct manganese and scandium.
Cobalt has many diverse applications, including rechargeable batteries for cell phones, computers, and hybrid electric vehicles, super-alloys for jet engines, chemicals, wear resistant alloys, catalysts, and magnets. Global cobalt demand in 2007 was 59,900 tonnes compared to 31,000 tonnes in 1997, and in early 2008 cobalt prices briefly exceeded their all-time high of more than $50/lb.
Geovic is committed to sustainable development and social responsibility. Our long-term success is directly related to the welfare of the people and communities where we operate. Consequently, the Company has developed its GeoAid program to ensure that sustainable and high quality environmental and socio-humanitarian standards are an integral and essential component of our mining projects.
The Company is based in Grand Junction, Colorado, and its common shares (GMC) and three series of warrants (GMC.WT, GMC.WTA and GMC.WTB) are traded on the Toronto Stock Exchange. To our knowledge, Geovic is one of the few pure cobalt plays in the investment universe.
As this website contains forward looking statements, please see the “Disclaimer” link herein.