Globe Metals & Mining: Double the price of nickel & 5 times the price of copper!
Globe Metals & Mining CFO Charles Altshuler on 6PR Bulls N' Bears Report
Listen to ASX-listed Globe Metals & Mining CFO Charles Altshuler talk to Matt Birney on the Bulls N’ Bears Report about Globe’s approval to build only the 4th niobium mine on the planet.
TO LISTEN TO THE GLOBE METALS & MINING AUDIO INTERVIEW - CLICK BELOW
Globe Metals and Mining has been developing its Kanyika niobium and tantalum project in Malawi for some years and recently achieved a pinnacle milestone after signing a “mining development agreement” with the Malawi Government that clears the way to build the mine and associated refinery. Niobium mines are extremely rare and a new one hasn’t been built anywhere in the world for decades, albeit the scramble is now on with niobium showing extreme qualities that can potentially radically boost the performance of lithium batteries.
RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears brought to you today by Africa-focused resources company Globe Metals & Mining.
Matt Birney - ASX code: GBE
Matt Birney - I'm Matt Birney and I'm joined now by the CFO of Globe Metals & Mining, Charles Altshuler.
Matt Birney - Hi Charles.
Charles Altshuler - Hi Matt, nice to talk to you today.
Matt Birney - Okay so Globe Metals & Mining has been developing its Kanyika niobium and tantalum project in Malawi for some years and recently achieved a pinnacle milestone after signing a “mining development agreement” with the Malawi Government that clears the way to build the mine and associated refinery. Niobium mines are extremely rare and a new one hasn’t been built anywhere in the world for decades, albeit the scramble is now on with niobium showing extreme qualities that can potentially radically boost the performance of lithium batteries.
Matt Birney - Okay Charles is the signing of this agreement the last hurdle to fall for this project from an approval perspective?
Charles Altshuler - Yes Matt signing this agreement along with the mining license received in August 2021. We are now ready to mine, we are shovel-ready to begin this project.
Matt Birney - Okay so what exactly is niobium used for and how much does it typically sell for?
Charles Altshuler - Niobium in terms of the battery space is used in cathode and anode materials in lithium batteries to increase the speed of the charge to 60 which is 10 minutes and increase the battery capacity by up to two/three times and it generally it sells for $45,000 US dollars per tonne, comparing this to nickel around $23,000 US dollars and copper around $9,000 US dollars.
Charles Altshuler - It's clearly lucrative in comparison to those two metals.
Matt Birney - How many other niobium mines are there around the world?
Charles Altshuler - There are three currently producing niobium mines. The biggest being in Brazil CBMM, the second largest also in Brazil that is Anglo American at Catalão and the third largest in Canada being Niobec.
Matt Birney - All right so I know you've done some financial metrics on this project, let's run through them quickly with some rapid-fire questions and answers. What will it cost to build the project and how long will it take you to pay that back?
Charles Altshuler - The full cost of the project is $250 million US dollars it has a payback of one and a half years.
Matt Birney - Okay so I know you're going to build this thing in stages and potentially use the profits from stage one to help pay for the larger operation, how much money a year how much free cash will stage one churn out? And how long will stage one last for?
Charles Altshuler - Stage one will last for approximately three years and that will provide us approximately $25 million US dollars of free cash per year with around 740 tonnes per annum of niobium oxide.
Matt Birney - Okay so how big of a resource at Kanyika and for how many years will it feed your mine?
Charles Altshuler - The total resource is 68.3 million tonnes and it has a life of mine of 23 years which can be extended to 38 years with further drilling.
Matt Birney - And how much revenue will it produce over the life of mine and what's the expected profit? Let's go with EBITDA.
Charles Altshuler - The total revenue for the life of mine per our feasibility study is $5.6 billion US dollars and the EBITDA is $3.5 billion US dollars.
Matt Birney - Charles Altshuler from Globe Metals & Mining.
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information not advice which you should of course seek independently.
Matt Birney - I'm Matt Birney and this is Bulls N' Bears.
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