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 |
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)
