Minbos looking strong on both corporate and operational levels
Minbos Resources (ASX:MNB) has been making steady progress in the second half of 2020 as it meets key milestones towards establishing a nutrient supply and distribution business that stimulates agricultural production and promotes food security in Angola and the broader Congo Basin.
Management’s vision is to mine Phosphate Rock from the Cácata Deposit and transport it to Porto de Caio where a granulation plant will be built and operated at the industrial site to produce Enhanced Phosphate Rock granules (Phosphate Rock + MAP).
MNB is a social impact company whose ESG (Environmental, Social and Governance) goals are multi-faceted: potential to improve food security and nutrition; decrease levels of poverty and mitigate the impacts of climate change on farmers.
In what was a protracted lead up to receiving the green light, management demonstrated an unwavering commitment to the Cabinda Phosphate Project which following a scoping study published today is now proven to be technically and financially robust.
The endgame is to successfully develop a 21 year mine life operation that is anticipated to generate EBITDA in a range between US$747 million and US$1.1 billion, implying a mid-range after-tax internal rate of return of approximately 50%.
Management is ticking off important preliminary developments as it progresses towards the definitive feasibility stage.
Its performance has been measured and astute, with the coordination of key construction factors such as the study management, design, engineering and estimating work required to complete the DFS design on the Caio Granulation Plant and associated infrastructure, as well as the appointment of HCV Africa to complete two Environmental and Social Impact Assessments (ESIA) for the Cabinda Project having already been organised.
Minbos assembles high profile board
Minbos has also been working towards strengthening the company’s board, ensuring that it has the right balance of operational expertise and administrative capabilities as it moves closer to the finalisation of studies, construction, production and distribution.
The company has appointed three highly experienced non-executive directors to its board, including Zambian entrepreneur Valentine Chitalu who specialises in Private Equity and General Investments.
Chitalu is the co-founder of Phatisa Group, a Private Equity Fund Manager in Sub-Saharan Africa with approximately US$400 million in funds under management in the food and housing sectors.
Minbos has also sought out some valuable experience in the agribusiness sector with the appointment of Paul McKenzie, chairman of ASX-listed Kangaroo Island Plantation Timbers.
McKenzie is also a director of Saudi Agricultural and Livestock Investment Co Australia.
The appointment of Graeme Robertson is an important development as he has plenty of skin in the game being a substantial shareholder.
Robertson has had exposure across the mining, energy and infrastructure sectors, but he also brings valuable expertise in the way of corporate and financial services relating to the agriculture and resources industries.
Robertson now lives in Mauritius where he was a former director of AfrAsia Bank Ltd, a private commercial bank with more than US$3.5 billion in assets.
All three gentlemen have a strong background on the ESG side and will assist with driving the project forward.
Commenting on the merits of the team he has assembled, Minbos chairman Peter Wall said, "The appointment of three highly qualified and highly experienced directors marks an important milestone in the company's strategy of developing the Cabinda Phosphate Project.
‘’The appointments coincide with the company accelerating work on its DFS and deepening strategic ties with Angola and its myriad of agriculture opportunities.
‘’The addition of such high-calibre board members is a reflection of this opportunity before us and will be invaluable as we enter the next phase of growth for Minbos.
‘’The new directors embrace the vision of a nutrient production and distribution business that will make a difference in Middle Africa and deliver strong returns for Minbos shareholders.’’