BD:African Eagle’s Tanzania nickel study may attract investors
RESULTS from African Eagle Resources ’ study of its Dutwa nickel project in Tanzania may serve to attract interest from the world’s major mining houses to invest in the project, valued at $870m.
"We have endeavoured to keep majors aware of what we are doing," Mark Parker, MD of the London- based metals explorer, said in an interview yesterday.
"We are not in a position to bring in a major as a strategic investor until we complete a prefeasibility study at the end of the year," he said.
An updated, independent financial model prepared for the feasibility study in March this year indicated the project was valued at $870m at a nickel price of $10 a pound, with cash operating costs of about $3,40 a pound, African Eagle said yesterday.
The projected capital payback of Dutwa is between three and five years, the company said.
African Eagle aims to deliver a definitive feasibility study on the project by the end of the fourth quarter of next year. "There’s no shortage of potential acquirers," Asa Bridle, a mining analyst at London-based Seymour Pierce Investment, said.
"The project would add substantially to an existing portfolio."
The value of the project dwarfs African Eagle’s market capitalisation of $50,6m. After seeing its shares plunge 25% on Monday, the company’s stock rallied as much as 22%, before closing 2,2% higher at 92c.
