Geovic Mining (OTCBB: GVCM; TSX: GMC) released its Final Feasibility Study for its Nkamoua cobalt-nickel-manganese project in Cameroon, Africa. The results appear quite favorable, with Geovic’s 60.5% share of the project holding a $405 million net present value (NPV) assuming three-year trailing average prices for the respective metals, and a $191 million NPV assuming a 15% reduction in these average prices.
The study, completed by world-class engineering firm Lycopodium with input from numerous industry experts including a three-member panel of metallurgical experts, appears to set the stage for project financing later this year, and potentially equity investments from major industrial conglomerates into the project. Offtake demand for the company’s PRIMARY COBALT DEPOSIT, particularly given that it is in the politically stable country of Cameroon, has been very high, so this study could catalyze conclusion of these discussions.
With a market capitalization of roughly $60 million, news of finality regarding the Feasibility Study clearly yields significant upside potential for the Company, particularly if it can solidify offtake and financing arrangements as anticipated.