Giyani Metals has announced the results of the Definitive Feasibility Study (DFS) for its 100%-owned K.Hill Battery-Grade Manganese Project, located in the Kanye Basin, Botswana.
The DFS supports the declaration of Mineral Reserves and demonstrates strong project economics for the production of battery-grade manganese including high-purity manganese sulphate monohydrate (HPMSM) and high-purity manganese oxide (HPMO) for the global battery materials market.
DFS Highlights (Base Case, Real US$, 8% Discount Rate):
- Strong economic returns: a post-tax net present value (NPV), at an 8% discount rate, of US$481.5 million and a post-tax internal rate of return (IRR) of 20.3%.
- Strong free cash flow and operating margins: net free cash flow over the Life of the Project (LOP) is estimated at US$1.6 billion with an operating margin of 46%.
- Dual battery product offerings: HPMSM and HPMO, and a saleable by-product.
- Geological upside: Inferred resources of 4.4 million tonnes are excluded from the LOP, providing potential to extend mine life and support a higher-grade production profile for a longer period.
- Demonstration plant: The successful operation of the demonstration plant has been fundamental in supporting the final development of the process that now serves as the basis for the DFS.
- Further optimization work: Manganese recovery is 87% with additional test work planned to further improve economics. Other initiatives include front-end engineering and design (FEED) work including plant layout optimisation, increased utilization of solar power, evaluation of lower-carbon reagent sourcing options, and expanded international procurement activities, all aimed at reducing capital requirements and further lowering operating costs.
All financial figures are stated in real US$ (constant January 1, 2026, money). NPV is discounted at 8% real to Project start date of April 1, 2027.
Nigel Robinson, Interim Executive Chair of the Company, commented:
“We are pleased to announce the results of the DFS for our K.Hill Battery-Grade Manganese Project in Botswana. These results demonstrate strong economic returns and endorse K.Hill as a unique, mine-to-market battery-grade supplier of manganese to meet growing Western demand, and provide a solid foundation for further optimization and continued development of the Project.
Building on the successful production of both HPMO and HPMSM from our Demonstration Plant in Johannesburg, we are now well-positioned to meet the evolving requirements of the battery and energy storage markets. With China controlling 95% of manganese processing capacity, access to non-China supply of this critical material is constrained. The DFS marks a significant step towards a viable solution.
Alongside the optimization work that we will now be looking to undertake in the next phase of the Project’s delivery; we will be progressing our discussions with strategic partners and evaluating opportunities within the battery-grade manganese sector that have the potential to enhance value for our shareholders.”