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Rukwa Operational Update
SHUKA MINERALS PLC
(formerly Edenville Energy PLC)
(Incorporated in England and Wales)
(Registration number 05292528)
("Shuka Minerals" or "the Company")
ISIN Code: GB00BN47NP32
AIM Share Code: SKA JSE Share Code: SKA
RUKWA OPERATIONAL UPDATE
Shuka Minerals Plc (AIM: "SKA"), an African focused mine operator and developer, is pleased to provide
an update on the Company's proposed restart of the Rukwa Coal mine in Western Tanzania. This follows
the Company's successful admission to trading on the Johannesburg Stock Exchange on 21 May 2025.
Update:
• A detailed restart Capex plan has been formulated by the senior management on site and members
of the board; this has been approved and initial funding is expected to be drawn in late May 2025 from
the balance of the loan facility with GMI.
• A staged ramp up between June and September 2025 is targeting 500tpcm production by the end of
the period. Further capex will aim to increase this to 2,000tpcm, 3,000tpcm and eventually 5,000 tpcm
by end 2026 / H1 2027.
• Initial restart, equipment servicing, parts replacement and wash plant testing are budgeted at
USD12,600 and this is expected to realise the initial 500tpcm tonnages.
• Further capex of USD132,600, providing additional leased and purchased equipment such as loaders
and excavators is planned to gradually realise the stepped tonnages up to 5,000tpcm.
• Significant capex of c.USD1m+ would be required to increase tonnages beyond 5,000tpcm to
7,500tpcm plus, requiring a parallel wash plant and further machinery and excavators. This will be
assessed by the board in due course.
• The mine has historically produced 4,000tpcm of washed coal, however in recent times production
has been on hiatus awaiting funding and restart plans and also addressing weather issues in the area.
• 63T of stockpiled washed coal will be used to test the wash-plant during restart and then sold; value
at USD45/t is USD2,835.
• A further estimated 60,000T of fines material is also stockpiled and will be offered to previous
contracted cement plants within Tanzania, Kenya and Rwanda at between USD7-8/T which would
realise sales of between USD420,000-480,000 in due course.
• A management assessment of the staged ramp up returns a project NPV10* of USD12.61m and an IRR
of 80% based on a USD45/T sales price and a USD25/T margin for washed coal and utilizes the capex
assumptions above. Fines sales are not included in this calculation. These calculations have not been
independently verified.
• The prospects for further mine expansion are along strike from current operations and where the coal
seam continues. Whilst the seam is occasionally "jogged" a few metres, due to normal and reverse
faulting, it allows for a lower strip ratio as it is near surface with less overburden.
• We will update with further details as the re-start plans progress.
Richard Lloyd, CEO, said:
"The restart of Rukwa is essential to return some operational cashflow to Shuka Minerals. The asset has
lacked the care and funding required to have a meaningful operation. However, a methodical approach to
capex planning and budgeting, as well as benefiting from the sales of stockpiles, will breathe life back into
the operation.
Only modest capex is required to restart operations and test the wash plant. From there we can gradually
ramp up production and return Rukwa to historic levels of production and beyond."
* estimated net present value using a discount rate of 10%.
ENDS
About Shuka Minerals:
Shuka Minerals plc, is a dynamic and innovative mining and development company, committed to
exploring and harnessing Africa's mineral resources. Shuka's focus lies in the acquisition and development
of valuable minerals, aiming to contribute to the sustainable growth and development of local
communities.
Shuka has an operating coal mine in Tanzania, which capacity is under consideration for upgrading by
management depending on funding and strategic direction. Shuka is also considering projects in Zambia,
South Africa, and other African countries that are rich in copper, lead, and zinc.
The Company has signed a conditional Share Purchase Agreement with Leopard Exploration and Mining
Limited ("LEM") to acquire 100% of LEM's share capital. LEM is the registered holder of a large-scale mining
license 12848-HQ-LML issued in December 2014 for a period of 25 years, and which includes the historical
Kabwe Zinc Mine ("Kabwe Mine") located in central Zambia, approx. 110km north of the capital city of
Lusaka.
The Kabwe Mine, was previously operated by Anglo American plc and Zambia Consolidated Copper Mines
Limited, and was mined continuously for 88 years until its closure in 1994, due to the then current
commodity prices. It was ranked as one of the world's highest-grade zinc and lead mining operations and
is considered one of the famous mines in Africa, holding a position of national economic importance in
Zambia.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR") and is disclosed in accordance with the Company's obligations under
Article 17 of MAR.
For Enquiries:
Shuka Minerals Plc +44 (0) 7990 503007
Richard Lloyd - CEO
Strand Hanson Limited +44 (0) 20 7409 3494
Financial and Nominated Adviser
James Harris | Richard Johnson
Tavira Securities Limited +44 (0) 20 7100 5100
Joint Broker
Oliver Stansfield | Jonathan Evans
Peterhouse Capital Limited
Joint Broker +44 (0)20 7469 0930
Charles Goodfellow | Duncan Vasey
Investor Relations
Faith Kinyanjui Mumbi +254 746 849 110
JSE Sponsor +27 11 480 8500
AcaciaCap Advisors Proprietary Limited
Michelle Krastanov | Kay Stoler
By order of the Board
London
22 May 2025
SPONSOR
AcaciaCap Advisors Proprietary Limited
Date: 22-05-2025 08:35:00
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