Impact: Mildly Positive
Lifezone Metals reported Q2/24 financial results and provided an operational update on its flagship Kabanga Ni project in Tanzania, owned 69.7% by Lifezone, 16% by the government of Tanzania, and 14.3% by BHP (NYSE:BHP, Not Rated). The company reported a net loss of $0.09/sh in Q2/24 and ended the quarter with $63.5M in cash. Kabanga is the one of the world’s largest and highest-grade undeveloped nickel sulphide projects, hosting ~1.6B lbs NiEq at ~2.6% NiEq (attributable to Lifezone). It is anticipated to be a fully integrated 3.4Mtpa underground operation, to be developed in two phases of 1.7Mtpa each. Work is underway on a definitive feasibility study, which is anticipated to be completed by the end of September. Tanzania’s government has already approved the refinery. Lifezone has successfully produced first Ni, Cu, and Co from Kabanga’s source feed at its hydromet pilot program in Perth, Australia. With solid insider and institutional backing, government support, and large-scale infrastructure projects under development in the vicinity, we believe Kabanga is well-positioned to become one of the world’s major nickel sulphide operations. We look forward to results from the DFS, which should wrap economics around this large high-grade deposit and trigger further investment from BHP.
