Initiation Report - Minbos Resource (MNB:ASX): DSO potential for phosphate developer

Minbos Resources (ASX:MNB) is developing the high-grade Cacata rock phosphate project in Angola (13Mt at 26% P2O5) and has significantly changed their strategy and corporate structure over the past 12 months. Drill results and long sections indicate a significant portion of this resource has the potential to be Direct Shipping Ore (DSO); although, TSI believes minimal processing may be required. There is significant infrastructure surrounding the project (roads, power & two port options) which will further reduce the initial capital cost requirement (TSI estimate - $US$40m) and could allow for production to commence shortly after a decision-to-mine is made. Valuation We have determined an un-risked valuation for Minbos of $0.048/share based only on the Cacata Project (current SP $0.006/share). However, as a number of our assumptions need confirmation in up-coming studies, we have applied a 50% discount which reduces our valuation to $0.024/share. For the full video report including a site trip to the project, management interviews and detailed analysis (VIEW LINK)