Giyani Metals

Primary ticker: TSXV:EMM, OTC:CATPF
Stage of development: Development
Primary minerals: Manganese
Project to promote: K.Hill
Project location: Botswana
Website: giyanimetals.com

Giyani Metals is TSX-V listed battery grade manganese developer with projects in Botswana. It has developed a hydrometallurgical process to produce a battery-grade high purity manganese sulphate monohydrate (“HPMSM”), a lithium-ion battery (“LIB”) cathode precursor material critical for EVs, directly from ore supplied by the Company’s own manganese oxide (“MnO”) deposits.

The Company’s flagship asset is the K.Hill Project, which is being developed as an integrated mining and processing operation utilising the Company’s proprietary processing technology. Upon achieving producer status, Giyani is expected to be one of largest producers of HPMSM globally. Currently, over 90% of battery-grade HPMSM is produced in China.

Future mine production from Otse and Lobatse enhances the possibility for Giyani to become an even longer-term supplier of HPMSM to international customers, principally in Europe and North America.

Cash: CAD 7M
Debt: NIL

Major shareholders:
RAB Capital – 9%
MMCAP – 3%
APAC Resources – 1%
Sentry Resource – 1%
Ausbil Investment Management – 1%
Management Ownership – 3%

Financials

Management Profile

Danny Keating – President & CEO
Mr. Keating is a Mining Engineer and Chartered Management Accountant with 30 years of mining and resources industry experience, including several senior leadership roles as CEO of privately held Alufer Mining and Dynamic Mining, as well ASX-listed Lindian Resources. He started his career in South Africa with Anglo American and Gold Fields working in production, as well as project development, project finance and strategy. He later worked in London as a mining analyst and corporate finance executive with Collins Stewart and ABN AMRO. He has practical experience of managing culturally diverse teams across multiple African jurisdictions, as well as cultivating strong relationships with government decision makers, local communities, business leaders and other stakeholders to deliver on business objectives.

What is your rationale for taking part in 121 Mining Investment?

We are looking to update and engage with investors as we progress the development of the K.Hill Project, including the construction and operation of our demonstration plant.

What recent news would you like to highlight to investors attending?

04 January 2024 – Receipt of Environmental Authorization and Mining Licence submittal,

30 November 2023 – US$16M secured via long-term facility with the IDC

31 July 2023 – Results of its PEA Study for the K.Hill Battery-Grade Manganese Project

13 July 2023 – 310% Increase in Indicated Resources for K.Hill Project

What are your key goals in 3 months, 6 months, 12 months?

3 Months:
Receipt of the Mining Licence, which has been submitted as of the year-end December 2023.

6 Months:
Commissioning of the demonstration plant and production of HPMSM samples for potential offtaker evaluation and qualification.

12 Months:
Demonstration plant product qualification with potential customers, full permitting of the K.Hill project, moving towards commercial offtake terms and project financing.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Supply chain and inflationary pressures remain a significant challenge to the development of any new operation. We have developed our K.Hill project to be a low-tonnage, high margin project and so capable of weathering operating and capital cost rises.

What do you think makes your company such a compelling investment?

K.Hill is one of the largest high purity manganese sulphate (“HPMSM”) projects in advanced development outside of China and is ideally located to service the global battery markets. Demand for HPMSM is expected to rise around 10x by 2030 and currently China supplies +90% global production, driving the EV industry to look for responsible and sustainable sources of supply for low cost, mass market EV batteries. The K.Hill Preliminary Economic Assessment reports on the longevity of the K.Hill Project which currently forecasts a project life in excess of 50 years which can supply sufficient battery-grade manganese for generations of Li-ion battery production. Giyani’s production process is also forecast to have a substantially lower carbon footprint than current Chinese producers.

What are the top 3 key investor takeaways?

1. Demand for high purity manganese sulphate, a critical battery metal, is set to increase ten-fold over the next decade and expected to result in a significant supply deficit. With +90% of supply coming from China, alternatives sources are in high demand by OEMs and EV companies.

2. The construction of Giyani’s demonstration plant will provide a platform to facilitate off-take contracts with battery and OEM customers and highlight the low carbon process that makes Giyani an ideal partner for the supply of a critical battery material.

3. The K.Hill project is one of the largest battery-grade manganese projects currently in development with proprietary processing technology, strong environmental and social credentials, a clear roadmap to production and significant geological upside that offers the potential to further extend mine life.