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Geovic Mining Corp - Cobalt Mining Company in Cameroon
Geovic Mining Ltd. (Geovic) aims to be the world’s largest cobalt mining company 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.
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 planned for development, is adjacent to the Nkamouna processing plant.
A September 2008 Optimization Study to 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 $1,024 million (or $614 million net to Geovic's 60% interest), an IRR of 44%, and a payback of 1.9 years based on 100% equity financing and 3-year average metal prices (ended June 2008) of $26.57/lb cobalt and $12.39/lb nickel, respectively. Average operating costs during the first 19 years of production are estimated at $2.04 per pound of saleable cobalt, net of nickel, manganese, and scandium 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.
Due to weak commodity, capital, and credit markets, construction of the Nkamouna plant has been temporarily delayed by GeoCam. Currently, Geovic is performing bench and pilot-scale tests aimed at increasing cobalt yields, reducing capital and operating costs, and lowering overall process risks. Such tests are anticipated to be completed by the end of the third quarter of 2009, as is the publication of an updated NI-43-101 compliant resource/reserve report for the Nkamouna and neighboring Mada properties.
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 Denver, 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. Additionally, as of August 2008 the shares also trade in the U.S. on the Over The Counter Bulletin Board (OTC.BB) under the ticker GVCM. 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.