Giyani’s K.Hill Project Delivers Robust Returns as Demand for Battery-Grade Manganese Grows
TSX-V-listed Giyani Metals has announced positive results from the definitive feasibility study (DFS) for its wholly owned K.Hill battery-grade manganese project in Botswana, highlighting strong economic returns and long-term growth potential.
According to the DFS, the project delivers a post-tax net present value (NPV) of $481.5 million at an 8% discount rate, alongside a post-tax internal rate of return (IRR) of 20.3%.
The study also forecasts strong free cash flow generation and healthy operating margins throughout the life of the project.
Net free cash flow is estimated at $1.6 billion over the life of mine (LoM), supported by an operating margin of 46%.
The K.Hill processing plant is designed to treat 220,000 tonnes per year of dry run-of-mine ore sourced from the open-pit operation.
The facility will primarily produce two high-value battery materials: high-purity manganese sulphate monohydrate (HPMSM) and high-purity manganese oxide (HPMO).
Giyani stated that inferred mineral resources totalling 4.4 million tonnes have not been included in the current life-of-mine plan, providing potential upside through mine-life extensions and a higher-grade production profile over time.
The company also emphasised the successful operation of its demonstration plant in Johannesburg, which played a critical role in refining and validating the process flowsheet now underpinning the DFS.
Manganese recovery rates are estimated at 87%, with additional metallurgical test work planned to further optimise performance and enhance project economics.
Further optimisation initiatives include front-end engineering and design (FEED) work focused on plant layout improvements, increased integration of solar power, assessment of lower-carbon reagent sourcing alternatives, and expanded international procurement strategies aimed at reducing both capital and operating costs.
“We are pleased to announce the results of the DFS for our K.Hill battery-grade manganese project in Botswana,” said Giyani interim executive chairperson Nigel Robinson.
“These results demonstrate strong economic returns and position K.Hill as a unique mine-to-market supplier of battery-grade manganese capable of supporting growing Western demand.
The DFS provides a solid foundation for continued optimisation and future development of the project.”
Building on the successful production of both HPMO and HPMSM at the Johannesburg demonstration plant, Robinson said Giyani is well-positioned to meet the evolving needs of the global battery and energy storage sectors.
He noted that China currently controls approximately 95% of global manganese processing capacity, limiting access to alternative sources of this critical battery material. Robinson added that the DFS marks a significant milestone in establishing a viable non-China supply chain solution.
As the company enters the next phase of development, Giyani plans to continue optimisation work while advancing discussions with strategic partners and evaluating opportunities within the battery-grade manganese sector to enhance shareholder value.
Robinson also acknowledged the efforts of the company’s team and stakeholders throughout the DFS process.
“We look forward to strengthening our relationships during the next phase of Giyani’s development.
The Giyani team has worked tirelessly to advance each of the key workstreams leading up to the publication of the DFS, and I would like to thank them for their dedication and continued commitment,” he said.
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