Aim-listed Bellzone Mining has started discussions with a number of parties to explore options to potentially maximise the net present value (NPV) of its major assets, including the Konta port, its ferronickel project and the Kalia iron-ore project, all in Guinea.
Konta port was built at an estimated cost of $120-million and has an installed bulk commodities capacity of four-million tons a year with a footprint and berth capable of extension up to ten-million tons a year.
It has been successfully used for iron-ore exports in 2012 and 2013 and constitutes a viable and rare port facility for both imports and exports.
There is a shortage of port infrastructure for large bulk volume in Guinea and an increase in mining activity, as demand for a number of minerals increases, further enhancing the potential value of this asset.
In terms of the company's mining assets, nickel price increases have steadily reflected the reality of higher demand from electric vehicle manufacturers and limited global supply.
The second stage of the company’s ferronickel project feasibility study is targeted to be completed this year. The first stage of the feasibility study assessed an NPV of $104-million when updated for the current forecast nickel price of $17 500/t.
Meanwhile, high-quality iron-ore, such as found at Kalia and which has a relatively short time-to-market production capability, can offer near-term appeal to certain strategic investors.
A bankable feasibility study on the Kalia iron-ore project has shown an NPV that has been assessed by Bellzone to be positive over a range of different iron-ore prices.