Globe Metals & Mining (ASX:GBE) said its bankable feasibility study (BFS) for the Kanyika Niobium Project in Malawi returned a post-tax net present value (NPV) of AU$1.46 billion, with a post-tax internal rate of return (IRR) of 48%, according to a Wednesday Australian bourse filing.
The company said the study found average annual earnings before interest, taxes, depreciation, and amortization (EBITDA) of AU$293 million, with a pre-tax NPV of AU$2.18 billion, and net sales revenue over the life of mine of AU$9.98 billion.
The project has a 24-year mine life with first production of niobium oxide expected in early 2028, underpinned by an ore reserve of 33.8 million tonnes at 3,050 parts per million niobium pentoxide and 142 parts per million tantalum pentoxide, the filing added.
The company's shares surged past 11% in recent Wednesday trade and earlier reached their highest since October 2021.