Projects

Robe Mesa

 Project

(CZR 85%)

Iron Ore

The Robe Mesa deposit is CZR’s cornerstone project: a low strip ratio, low capex Direct Shipping Ore (DSO), with a rapid, low-cost path to production.

All Native Title agreements are in place with the Robe River Kuruma Traditional owners, mining licences are granted and environmental and technical studies are nearing completion.

Robe Mesa is a quality asset, with Ore Reserves of 27.3Mt at 55.5% Fe (62.2% Fe calcined) with a Resource base of 45.2Mt at 56% Fe (62.7% Fe calcined).

The iron-ore in the Robe Mesa is from the centre of the Robe palaeo-channel which contains a well-characterised and well-known pisolitic ore-type.

The ore has low phosphorous and upgrades well by driving off, or calcining, the volatile components, principally water. Discussions with potential clients indicate that the product is readily accepted as a DSO.

Following completion of a Pre-Feasibility Study in 2020 that outlined a project with robust economics, a Definitive Feasibility Study and process for approvals is now underway.

The definitive feasibility study is looking at optimization of the proposed scale of mining, haulage route, shipping location and capital spending as upsides to the PFS results.

Key Project Metrics1

Mine Production Estimate

Value
Production Rate
Mtpa
3.5
Mine Life
Yrs
8.0
Life of Mine Strip Ratio
Waste:Ore
1.0
Ore Reserves
Mt
27.3
Low-grade Stockpile
Mt
3.4
Waste (includes 256kt of Inferred Resource)
Mt
24.1

Project Economic Estimates (100% basis)

Base Case
Spot Price
US$90/t
US$106/t
IRR
%
70
149
Revenue
A$m
2,376
2,909
EBITDA
A$m
650
1,140
Free Cash Flow
A$m
260
604
C1 Cash Cost2
A$/wmt FOB
57
57
Pre-production Capex
A$m
87
87
Life of Mine Capex
(pre-production, sustaining and closure)
A$m
116
116
NPV (10% discount rate)
A$m
138
342
1. CZR release to ASX; 8 May 2023
2. Includes capitalised waste and Port fo Ashburton Consortium export facility tariff

Robe Valley - A well known iron ore product

  • Robe Mesa has similar grade specifications to Rio Tinto’s Robe Valley Fines and FMG’s Super Special Fines
  • Robe Mesa LOM priced at 22% discount to the 62% Fe benchmark, based on long-run actual prices sourced from Platts
Product
Fe
SiO2
AI2O3
P
Robe Mesa – 2023 JORC Ore Reserve
55.5
6.39
2.92
0.038
Rio Tinto – Robe Valley Fines
56.4
5.50
3.10
0.030
FMG – Super Special Fines
56.5
6.40
3.10
0.055
FMG – Fortescue Blend Fines
58.2
5.60
2.50
0.065
BHP – Jinbao Fines
56.5
7.31
1.69
0.041
BHP – Yandi Fines
57.0
6.35
1.70
0.045
Atlas Iron – Atlas Fines
57.5
6.50
1.95
0.090
Platts 58% Fe index (IODFE00)
58.0
6.00
2.90
0.060

Comparison made between Robe Mesa Ore Reserves and operating mines of similar grade specification in
the Pilbara, Western Australia (note CZR is currently not producing from Robe Mesa)
Source: S&P Global Platts Iron Ore and Metallurgical Coal Specifications Tree (2021)