TIDMBAO

RNS Number : 4186F

Baobab Resources PLC

20 February 2015

BAOBAB RESOURCES PLC

PRESENTATION

20 FEBRUARY 2015

Baobab Resources plc (AIM: BAO) ('Baobab' or the 'Company') announces that, following the Mining Indaba 2015 conference, a revised presentation is now available on its website. The presentation provides an update on progress being made at the Company's flagship iron and vandium project in the Tete Province of Mozambique (the 'Tete Project'), in which the International Finance Corporation holds a 12.88% participatory interest.

The presentation summarises the Company's strategy to address the challenges faced in the rapidly shifting global raw materials sector and risk averse capital markets. As previously highlighted in the Company's annual results announced on 22 December 2014, Baobab has been investigating reduced production scenarios with smaller capital requirements and has engaged with leading Chinese EPC contractors to further reduce capital costs and fast-track project execution.

As part of these investigations the Company, alongside potential EPC contractors, has been assessing the viability of full vertical integration beyond pig iron and into production of high demand steel products for growing domestic and regional markets. This would involve the addition of a basic oxygen furnace, ladle furnace, continuous casting machine and rolling mill to the current pig iron flow sheet.

The Company will update shareholders in due course as the evaluation progresses and provides a presentation which includes some additional background information on the potential advantages of fully vertically integrated development scenario.

Please download the presentation from: http://www.baobabresources.com/investor/presentations

Commenting today, Ben James, Baobab's Managing Director, said: "As previously communicated, the Company continues to investigate ways of reducing capital costs of its project and the board is assessing the merits of shifting focus towards full vertical integration to finished steel production. In doing so, Baobab is exploring a unique opportunity to become potentially the sole local supplier to Mozambique's rapid growth, import dependent domestic steel market, thereby decoupling the project from flattening global market trends."

ENQUIRIES

__________________________________________________________________________________

 
 Baobab Resources plc 
 Ben James: Managing Director      +258 21 486 404 
 Jeremy Dowler: Chairman           +44 137 245 0529 
 Frank Eagar: Finance Director     +27 76 753 5377 
 
 Canaccord Genuity Limited 
 Henry Fitzgerald-O'Connor         +44 207 523 8000 
 Neil Elliot 
 Chris Fincken 
 
 Tavistock 
 Emily Fenton / Nuala Gallagher    +44 207 920 3150

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCPKCDPBBKBPBD

Baobab Resources (LSE:BAO)
Graphique Historique de l'Action
De Jan 2025 à Fév 2025 Plus de graphiques de la Bourse Baobab Resources
Baobab Resources (LSE:BAO)
Graphique Historique de l'Action
De Fév 2024 à Fév 2025 Plus de graphiques de la Bourse Baobab Resources