Giyani Metals Releases Feasibility Study Results for K.Hill Manganese Project

Giyani Metals Corp. has completed a feasibility study for its K.Hill battery-grade manganese project in Botswana. The company announced on November 14, 2022, that the study estimates a post-tax net present value (NPV) of US$481 million at an 8% discount rate and a post-tax internal rate of return (IRR) of 28%.

The study, led by SRK Consulting, outlines an integrated mining and processing operation to produce high-purity manganese sulphate monohydrate (HPMSM) directly from manganese oxide ore mined at K.Hill. HPMSM is a key precursor material for cathode powders used in lithium-ion batteries for electric vehicles.

Initial capital expenditures for the project are estimated at US$281 million. The project is projected to generate an average annual free cash flow of US$99 million, with first commercial production anticipated in 2025. Giyani highlights that the K.Hill ore reserve grade of 18.9% manganese oxide (MnO) is the highest among its listed battery-grade manganese peers.

The study also points to significant upside potential for expansion. Giyani is evaluating nearby prospects, including Otse and southern extensions of K.Hill, which could extend the mine's life. Demand for battery-grade manganese is projected to grow substantially, nearly 30-fold by 2036. The company plans to integrate solar power to reduce its carbon footprint.