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 33.4Mt at 55.0% Fe (61.6% 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. The Robe Mesa Definitive Feasibility Study was released on 10 October 2023 and demonstrated strong financial returns.

Key Project Metrics

Mine Production Estimate

Units
Value
Production Rate
Mtpa
3.5 – 5.0
Mine Life
Years
8.0
Life of Mine Strip Ratio
Waste : Ore
0.6
Ore Reserves
Mt
33.4
Robe Mesa Fines
Mt
26.4
Robe Mesa LG Fines
Mt
7.0
Waste (includes 314kt of Inferred Resource)
Mt
18.4

Key Financial Metrics

Project Economic Estimates (100% basis)

Units
Base Case
Current YTD
P62 Price Assumption
US$/dmt CFR
90
117
Exchange Rate
USD : AUD
0.68
0.67
Revenue
A$m
2,808
4,116
C1 Cost
A$m
1,751
1,751
All-In-Sustaining Cost
A$m
1,879
1,879
Delivered Cost China (AUD)1
A$m
2,603
2,716
EBITDA
A$m
824
2,027
Capex (pre-production)
A$m
109
109
Capex (LOM)1
A$m
128
128
Free Cash Flow (pre-tax)
A$m
598
1,801
Free Cash Flow (post-tax)
A$m
419
1,262
NPV (8% pre-tax)
A$m
366
1,152
NPV (8% post-tax)
A$m
256
820
IRR (post-tax)
%
62
159
Payback (post-tax)
Years
2.5
1.5

Pre-Production Capex (100% basis)3

Units
100% Basis
CZR Share
Robe Mesa and Onslow Hub
A$m
109
91
POA Export Facility
A$m
79
39
Total
A$m
188
130

Environmental and Social Benefits

Units
Base Case
Current YTD
Native Title and State Royalties
A$m
225
329
Corporate Taxes
A$m
179
539
LOM Opex (FOB)
A$m
1,867
1,867
LOM Total Economic Value Add
A$m
2,271
2,735
1. Includes AISC, freight and royalties.
2. Excludes port capex as captured in PAC tariff as an operating cost
3. Includes $17 million of contingency

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 Fines
55.6
6.36
2.91
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
Platts 58% Fe index (IODFE00)
58.0
6.00
2.90
0.060
Comparison between Robe Mesa (non-operating) and mines of similar grade specification in the Western Australia.
Source: S&P Global Platts Iron Ore and Metallurgical Coal Specifications Tree (2021)