Geovic Mining die Kobaltaktie

The production costs of $3.12/pound cobalt are all-in and include direct operating costs ($1.99/lb cobalt), indirect operating costs ($0.42/lb) and production taxes ($0.71/lb) based on three year average metal prices of $20.08 cobalt and $11.16/lb nickel. The indirect operating costs include product marketing, insurance and land and ocean freight to general global destinations. Environmental bond and reclamation/closure costs are also included in indirect costs.

Please contact us if you have further questions. We appreciate your interest in Geovic.

Sincerely
Dave Beling >>>>>>>>>>>>>>>>>>>>>>>><end of message<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

The feasibility study goes on to show a capex cost of $398 million to build the facility. At Cobalt prices of $20 and Nickel prices of $11, the study highlights a payback of capital in 2.9 years, an after tax IRR of 33% and an NPV(8%) of $695 million.

Cobalt prices are currently nearer to $45 so the math is even more intriguing than what the Feasibility study alludes to. Geovic has 101 million shares outstanding and a market cap of around $175 million. Sadly, as the following chart shows, the trend on GMC is down. Investors are simply not enthralled with the Feasibility data. I am blown away by all of this.

Cobalt prices are twice as high as those used in the Feasibility study. Payback of capex is in less than 3 years at $20 Cobalt. What’s not to get excited about? My advice in these markets is to use technical weakness to acquire positions. Looking at the Geovic chart below, I suggest trying to acquire shares in the $1.50 range (ca. 1,- EUR) on weakness if you can.

Source: www.goldeditor.com

tommy  

Representatives of the Alliance visited the project site in August 2007 and have begun optimizing the feasibility study received in late 2007. The Alliance is collaborating with GeoCam's group of experienced personnel with a goal to reduce capital and operating costs and further improve project economics. The optimization study will also evaluate expected benefits from the addition of processing circuits to produce manganese carbonate and scandium in view of recent substantial price increases in these commodities. GeoCam anticipates that the Alliance will finish the optimization study by mid-2008.

Water Permits Granted:

On January 25, 2008 GeoCam received from the Ministry of Energy and Water Resources the two water permits necessary for Nkamouna project development. One permit authorizes GeoCam to divert adequate water from a local watercourse for both project construction and operations phases. The second permit authorizes discharge of project waters to local surface waters, subject to meeting regulatory standards.

Infrastructure Improvements:

GeoCam has initiated construction to expand its self-contained field compound to accommodate part of the construction workforce expected to arrive starting in mid-2008. The site has been cleared and graded and construction of 34 housing units is expected to be completed in the next few months. Engineering has also commenced to construct additional housing facilities in the nearby town of Lomie and onsite to accommodate the complete construction work force of Cameroonian and expatriate personnel that will be needed to build the project.

GeoCam has also entered into negotiations for access road improvements and a major communication upgrade at Nkamouna. A permit application has been submitted to the Cameroon government for installation of a private airstrip to service critical requirements during construction and operations. Engineering and design of the facility is nearly complete and discussions are underway to secure a contract for its construction.

Financial Due Diligence Progressing:

Citibank, GeoCam's financial advisor, has engaged Behre Dolbear International Ltd. as the technical and market monitoring consultant and Environmental Resources Management Ltd. as the environmental and social consultant, both of which are working for Citibank and the eventual syndicate of project lenders. Teams from these organizations are scheduled to visit the Nkamouna project site during the coming month as part of their due diligence examination.

Drilling Program:

GeoCam is continuing its drilling and test pitting program with the aim of further defining reserves and resources at the Nkamouna and Mada deposits. A second contract drill has arrived in Cameroon and plans call for drilling starting this month. Geovic expects to disclose NI 43-101 compliant information on the drilling results when available. In the interim, Geovic will soon begin to post drill progress on www.geovic.net.

GeoCam Shareholders Agree on Geovic Investment and Remuneration:

At the end of 2007 GeoCam's shareholders agreed on final documentation covering the expenditures and advances that were made by Geovic on behalf of GeoCam from inception through the end of 2006. The agreement provides that $23 million of Geovic funding during the period was approved and will be treated as Geovic's contribution to its 60% share of future capital increases by GeoCam, while the minority shareholders contribute cash to GeoCam until their proportionate share contribution is satisfied. Subsequently, all shareholders will contribute their proportionate share of equity required. Under the agreement the remuneration payable to Geovic for provision of these past approved expenditures is recorded as a Geovic loan to GeoCam of approximately $9 million. The loan bears interest and repayment is scheduled to begin one year following the commencement of production from the Nkamouna project.

Physical Upgrading:

GeoCam's ores are particularly amenable to preconcentration prior to metallurgical processing. This is due to the fact that 100% of the cobalt, nearly all the manganese and about half the nickel occur in hard, coarse accretions of asbolane, a mineral that can be readily separated from soft, fine waste and low grade material. As a result, the cobalt grade of run of mine ore is increased from approximately 0.25% to 0.74% prior to hydro-metallurgical processing. This inexpensive pre-concentration step is the prime driver of the strong financial performance expected from producing these unique Cameroonian ore deposits.

In early February 2008 GeoCam completed a summary report incorporating the results of 407 physical upgrading tests completed during the past 18 months on samples from one-meter intervals and 25 tests on composites from these samples. The new report validates the conclusions of testing performed previously with respect to upgrading cobalt in the Nkamouna ore by a factor of nearly three and serves as the basis for the design for this important part of the processing facility.

EPCM Contract Negotiations:

GeoCam continues to negotiate a contract for engineering, procurement and construction management (EPCM) services for building the Nkamouna project. Contract negotiations are expected to be completed within the next few months to facilitate an efficient transition from the optimization study to the further development and construction of the project. Many aspects of final engineering and design are expected to be performed concurrently with the optimization study to expedite the project construction schedule.

Expanding Personnel:

GeoCam is in the process of hiring additional employees, including a General Production Manager, Construction Manager and Mine Manager. As announced previously, the Process Manager was hired in October 2007.

Nkamouna Project and Geovic Background

The Nkamouna project is estimated to contain 54.7 million tonnes of proven and probable ore reserves at average grades of 0.25% cobalt, 0.69% nickel and 1.33% manganese. Technical and financial information about the project are included in a January 18, 2008 43-101-compliant Technical Report prepared by the independent engineering firm, Pincock Allen & Holt. Nkamouna is the first of seven potential cobalt-nickel-manganese deposits to be developed on GeoCam's Mining Permit.

Geovic is also engaged in minerals exploration activities in other parts of the world. The S&P profile and other information are available on the Company's website, www.geovic.net. The Company's financial information is available on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov).

On behalf of the Board

John E. Sherborne, CEO

The foregoing information may contain forward-looking statements relating to the future performance of Geovic Mining Corp. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in Geovic's filings with the Canadian securities regulatory authorities and the Securities and Exchange Commission.

Contacts: Geovic Mining Corp. c/o Vanguard Shareholder Solutions Inc. Keith Schaefer (604) 608-0824 Website: www.vanguardsolutions.ca

SOURCE: Geovic Mining Corp.  

Current assets                                        $ 79,393    $  9,465
Long term assts                                          3,543         267
                                                     --------    --------
Total assets                                          $ 82,936    $  9,732
                                                     --------    --------
                                                     --------    --------
                               LIABILITIES
Current liabilities                                   $  1,553    $  1,773
Contingent liability                                       241         241
                                                     --------    --------
Total liabilities                                        1,794       2,014
Minority interest in subsidiaries                        1,878           -
                           STOCKHOLDERS' EQUITY
Total stockholders' equity                              79,264       7,718
                                                     --------    --------
Total liabilities and stockholders' equity            $ 82,936    $  9,732
                                                     --------    --------
                                                     --------    --------
               CONSOLIDATED STATEMENTS OF OPERATIONS
          (U.S. dollars in thousands, except share amounts)
                                           Years ended December 31,
                                 ----------------------------------------
                                       2007           2006           2005
                                 ----------   ------------   ------------
EXPENSES (INCOME)
Expenses                         $   14,711   $      6,158   $      2,820
Interest income                      (3,235)          (176)            (1)
Minority interest                    (3,214)             -              -
                                 ----------   ------------   ------------
Net loss before income taxes          (8,262)        (5,982)        (2,819)
Income tax expense (benefit)           (414)           860              -
                                 ----------   ------------   ------------
Net loss                          $   (7,848)  $     (6,842)  $     (2,819)
                                 ----------   ------------   ------------
                                 ----------   ------------   ------------
Net loss per share                $    (0.09)  $      (0.16)  $      (0.07)
                                 ----------   ------------   ------------
                                 ----------   ------------   ------------
Weighted average shares
outstanding                      92,046,871     44,008,591     38,241,826
                   CONSOLIDATED STATMENTS OF CASH FLOWS
                       (U.S. dollars in thousands)
                                               Years ended December 31,
                                           ------------------------------
                                               2007       2006       2005
                                           --------   --------   --------
Cash used in operating activities           $ (9,911)  $ (4,318)  $ (2,185)
Cash used in investing activities             (3,360)      (101)        (3)
Cash provided by financing activities         82,376     12,858      3,087
                                           --------   --------   --------
Net increase in cash and cash equivalents     69,105      8,439        899
Cash and cash equivalents beginning of year    9,374        935         36
                                           --------   --------   --------
Cash and cash equivalents end of year       $ 78,479   $  9,374   $    935
                                           --------   --------   --------
                                           --------   --------   --------

Cash and Cash Equivalents

At December 31, 2007, the Company had cash and cash equivalents of approximately $78.5 million (including cash held by GeoCam) compared to $9.4 million at December 31, 2006.

Operations

2007 Compared to 2006:

We have substantially no current revenue and expect to continue to generate losses and negative cash flows from operations for at least the next two fiscal years.

We had a consolidated net loss of $7.8 million for the year ended December 31, 2007 compared to a net loss of $6.8 million in 2006. The increase in the loss in 2007 was primarily due to higher operating expenses, both in Cameroon and in the United States. The Company had significantly more cash resources in all of 2007 as a result of its two public offerings and the capital contribution to GeoCam by the minority shareholders. GeoCam significantly increased property evaluation costs to $4.2 million in 2007 from $1.1 million in 2006, due to the expanded efforts at its Cameroon properties. Office exploration costs in Cameroon increased to $3.4 million in 2007 from $1.6 million in 2006. This increase was primarily due to an expanded exploration program, the hiring of additional personnel, both company and outside contractors, and the requisite expansion of the supporting infrastructure to support the advancement of the Nkamouna project.

As a result of the additional cash, interest income increased to $3.2 million in 2007 from $0.2 million in 2006. The 2007 loss was reduced by the $3.2 million received by GeoCam from the minority shareholders.

During 2007, the Company also began acquiring mineral properties and incurring exploration costs in Colorado, Wyoming and Arizona. The acquisition of these properties was approximately $2.8 million and the exploration costs were $0.9 million in 2007, of which there was none in the prior year. The Company's administrative expenses also increased to $3.3 million in 2007 from $1.6 million in 2006. The primary components of this increase were attributable to increases in accounting, legal and other professional services as a result of becoming a public company, which increased to $2.2 million in 2007 from $0.7 million in 2006.

The Company's salary expense also increased to $1.5 million in 2007 from $0.6 million in 2006. This increase was due to the hiring of several new employees as well as a salary adjustment for existing officers and key management to make their compensation commensurate with similar sized companies in the mining industry. Stock-based compensation increased to $2.1 million in 2007 from $1.1 million in 2006 due to additional options granted during the year at a higher estimated value. Income tax expense decreased from $0.9 million in 2006 to nil for 2007; the Company anticipates a recovery of $0.4 million of taxes paid in the prior year as a result of its loss in 2007.

Cash Flows and Obligations

2007 Compared to 2006:

Our primary source of cash during 2006 was proceeds from the sale of our securities. We received $4.5 million from private placements of equity which were completed on May 24, 2006. We also received net proceeds of approximately $9.5 million from the subscription receipt financing upon completion of the reverse takeover transaction on December 1, 2006.

On March 6, 2007, we closed a public offering outside the United States and received net proceeds of $42.6 million after commissions and related expenses.

On April 27, 2007, the Company completed a follow-on offering and received net proceeds of approximately $29.6 million, after commissions and related expenses.

At December 31, 2007 we had cash and cash equivalents of approximately $78.5 million. Our cash resources included approximately $76 million of net proceeds we received from the two public offerings we completed in 2007, including an exercise of the over-allotment option on May 30. The funds are invested in U.S. dollar money market funds which invest in short-term investment grade debt and money market securities.

During the fourth quarter of 2006 the Company's principal source of cash was the reverse takeover transaction that closed on December 1. At December 31, 2006, we had cash and cash equivalents of approximately $9.4 million, and working capital of approximately $7.7 million, compared to cash of $0.9 million and working capital of approximately $0.7 million at December 31, 2005.

Capital Resources and Liquidity

The Company generally expects that GeoCam will require additional financing in 2008 to complete the infrastructure at the Nkamouna project site, build the mine, roads, processing facility and employee housing and to operate the Nkamouna project until cash flow is established after the mine commences operation, which is expected to occur in 2010. We expect that GeoCam should be able to secure project debt financing from one or more of several international financing institutions which have expressed interest in participation, however there are no commitments.

The Company expects that such external debt financing will fund approximately 60%-65% of required capital over the two-year start-up period. The owners of GeoCam will be required to contribute the remaining balance of the project financing arrangements, of which Geovic is responsible for 60% based on its 60% ownership position in GeoCam. Thus, we expect that a significant portion of the cash identified on the balance sheet will be required for that purpose. The Company expects that GeoCam exploration and pre-development activities will significantly increase in 2008, and $6.5 million has been budgeted by GeoCam for those purposes. By summer 2008 GeoCam expects to receive the final results optimizing the feasibility study, which the Company expects will improve project economics and technical aspects of the project. The optimization study will also evaluate expected benefits from the addition of processing circuits to produce manganese carbonate and scandium. Thereafter, GeoCam will proceed diligently to seek commitments for debt and other financing for the Nkamouna project.

U.S. Mining Leases and Claims

Through our wholly-owned subsidiary, Geovic Energy Corp., we are actively engaged in the strategic acquisition, exploration and development of other mineral properties to diversify our portfolio of mineral exploration and development opportunities.

Arizona Properties

Through geologic mapping and geochemical sampling, the Company has identified several new areas of gold and uranium mineralization in the Whetstone Mountains, located 64 kilometers (40 miles) southwest of Tucson, Arizona. The Company located 51 federal lode claims covering approximately 1,000 acres of expected uranium mineralization in the northern Whetstone Mountains. In addition to the indicated uranium mineralization in the area, the pre-Cambrian hosted shear zones also appear to contain anomalous fluorite, copper and gold. In the same general area, the Company also leased approximately 16.8 square kilometers (6.5 square miles) of state of Arizona mineral lands covering a newly identified gold occurrence. The total cost of leasing the state land and staking the mineral claims was about $24,000. The work commitment on the state mineral lands is $41,000 per year. The annual fee to hold the 51 mineral claims on federal lands is approximately $9,000.

The Whetstone Mountain area where the claims are located was previously explored in the 1970s and 1980s by Rocky Mountain Energy (Union Pacific Railroad) and Unocal (Union Oil Co of California), at a time when members of the Company's management were employed by the latter company. Related documentation compiled by those early operators show that the newly acquired properties have significant uranium oxide (U3O8) mineralization hosted in high-angle shear zones within the pre-Cambrian granite complex that forms the core of the Whetstone Mountains. The Company plans to re-drill the historic resource areas, and test for extensions when it begins a drilling program later this year or early 2009.

On the state mineral leases containing the new gold occurrence, the Company collected 33 surface rock chip samples of the previously unexplored area, covering a zone 600 feet x 1,800 feet (185m x 550m), underlain by quartz stockwork with associated alteration features. These samples assayed up to 1.0 gram of gold per tonne (1.0 gm/t), and averaged 0.1 gm/t. Additional sampling is planned, possibly followed by geophysical surveys before a drilling program is designed to test for economic gold concentrations within the indicated epithermal gold-quartz system.

Colorado/Wyoming Properties

We have also targeted and are acquiring fee mineral leases over the known uranium deposits in the Denver-Cheyenne Basin of Northeastern Colorado and Southeastern Wyoming. These 15-year mineral leases cover large portions of the six (6) main known uranium deposits in Weld County, Colorado and Goshen County, Wyoming. As of the end of 2007, we have incurred approximately $2.82 million in leasing costs to acquire approximately 15,500 acres believed to host historical uranium deposits at depths ranging from 120 feet to 600 feet below the surface. The acquired properties are known to host shallow Cretaceous age sandstone "roll-front" uranium deposits. These deposits are believed to average in excess of 7 feet of uranium mineralization, with average grades between 0.07 to 0.20% U3O8, as established by other operators in the 1970s, including Union Oil of California, by whom several members of management of the Company were then employed. Through the leases it now holds, Geovic Energy has control over much of the known mineralized area in Eastern Weld County, Colorado and Goshen County, Wyoming.

Geovic Energy is planning an extensive development-drilling program to re-confirm the historical resources, with the goal of establishing reserves. This will be followed, as soon as practical, by environmental and related engineering studies.

About Geovic Mining Corp.

The Company, through its 60% ownership of Geovic Cameroon PLC, is planning to develop the first of seven potential cobalt-nickel-manganese deposits in Cameroon, Africa. The S&P profile and other information is available at Geovic Mining's website, www.geovic.net.

The Nkamouna project is estimated to contain 54.7 million tonnes of proven and probable ore reserves at average grades of 0.25% cobalt, 0.69% nickel and 1.33% manganese. Technical and financial information about the project are included in a January 18, 2008 43-101-compliant Technical Report prepared by the independent engineering firm, Pincock Allen & Holt. Nkamouna is the first of seven potential cobalt-nickel-manganese deposits to be developed on GeoCam's Mining Permit.

The Company is also evaluating other mineral properties, prospects and interests in the United States and other parts of the world to diversify our portfolio of mineral properties.

The Company's financial information is available on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov).

On behalf of the Board

John E. Sherborne, CEO

Statements contained in this press release that are not historical facts are forward-looking statements (within the meaning of the Canadian securities legislation) that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of metals; the estimation of mineral reserves and resources; the timing and amount of estimated future production, costs of production, and capital expenditures; costs and timing of the development of new deposits; and success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "proposes", "expects", "is expected", "scheduled", "estimated", "intends", or variations of such words and phrases or state that certain actions, events or results "will" occur. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, risks related to operations; actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of development or construction activities and other factors as described in detail in the Company's Annual Information Form and Annual Report on Form 10-K, quarterly reports on Form 10-Q and other filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.


Contacts:
Geovic Mining Corp.
Greg Hill
CFO
(970) 256-9681
Email: ghill@geovic.net

Geovic Mining Corp.
Andrew Hoffman
VP Investor Relations
(720) 350-4130
Email: ahoffman@geovic.net
Website: www.geovic.net

Vanguard Shareholder Solutions Inc.
Keith Schaefer
(604) 608-0824
Website: www.vanguardsolutions.ca


SOURCE: Geovic Mining Corp.