Alderon Iron Ore (TSX: IRON) (“Alderon” or the “Company”) announced that it has filed its financial results for its first quarter ended March 31, 2017. All amounts, unless indicated, are reported in CAD dollars.
Mark Morabito, Chairman and Chief Executive Officer of Alderon Iron Ore commented:
“We’ve had a very exciting and busy start to 2017. We effectively re-booted our Kami Project with the release of a re-scoped Preliminary Economic Assessment, strengthened our board, worked with Memorial University in St. John’s to prepare an Economic Impact Assessment study showing the significant number of jobs and considerable contributions to government treasuries that Kami will make, and adopted a new trading symbol, IRON.
These efforts pave the way for continued advancement of the Kami project and capitalize on improved iron ore fundamentals.”
Q1 2017 Highlights
Released the results of a Preliminary Economic Assessment (“PEA”) that was prepared as a result of the Company’s efforts to re-scope the capital and operating costs of the Kami Project given market conditions over the past several years, changes in ownership and management of assets in the Labrador Trough, and the availability of the idled Wabush Scully Mine as a tailings management solution.
- Estimated pre-tax Net Present Value (NPV) at 8% discount rate is $1.377 billion based on an average production rate of 7.8 million tonnes per year of iron ore concentrate at a grade of 65.2% iron, over the life of the mine;
- Total estimated capital cost (excluding sustaining capital) is $897.5 million, reduced from $1.3 billion in the 2012 Feasibility Study
- The FOB concentrate sales price used in the PEA is $65.30 per tonne.
- Internal rate of return (pre-tax) for the project is 23.8%; and
- Projected payback period is 3.9 years
Began trading under the symbol “IRON”