The interview focuses on Marula Mining’s manganese exploration activities in Kenya and their strategic plans for the Larisoro Mine.
Key points from the interview include:
- Exploration Activities: Initial exploration at the Larisoro Mine includes mapping and sampling to establish the strike extensions and continuity of high-grade manganese ore. Early results from this phase have been positive.
- Production Targets and Equipment Upgrades: Marula Mining aims to increase production from an initial target of 5,000 tons per month to 10,000 tons, eventually reaching over 20,000 tons monthly. They plan to achieve this by bringing in new mining, processing, and crushing equipment, with costs around $1.5 million.
- Funding and Investment: The project requires significant investment, including $1.75 million for exploration and additional costs for acquiring equipment and shares in the project. Marula Mining plans to move away from using shares as currency and start funding these investments with cash flow from operations.
- Partnership with QGC: The company has established a relationship with QGC for equipment leasing and investment. QGC aims to become a majority shareholder in Marula Mining, with the strategy of using dividends as a return on their investment.
- Offtake Agreements: They have a trial off-take agreement to deliver 2,000 tons of ore in April as a test, with plans to establish a longer-term arrangement. The ability to ramp up production to 10,000 tons per month will depend on the arrival and installation of new equipment.
- Economics and Market Conditions: The manganese ore’s quality, currently assayed at over 37%, plays a crucial role in maximizing returns. The market price for manganese has been increasing, providing a favorable environment for the project. Marula Mining is also looking at ways to reduce operating costs, especially logistics.
- Cash Flow and Future Plans: Marula Mining expects to generate cash flow from the Larisoro project and other assets like Blasberg and KUSI. The CEO expressed confidence in the company’s ability to transition from equity-based funding to operations-based cash flow.
- Q2 2024 Expectations: The company anticipates Q2 2024 to be a significant quarter, with expected cash flow from multiple projects and further progress in their manganese exploration.
Overall, the interview provides a comprehensive overview of Marula Mining’s strategy, exploration activities, and expectations for the Larisoro Mine project, highlighting their focus on efficient operations, strategic partnerships, and market responsiveness.
