23rd Apr 2014 09:19
LONDON (Alliance News) - Pig iron developer Ironveld PLC Wednesday said a recent definitive feasibility study reaffirmed the viability of its pig iron and ferro-vanadium project, and that it is on track to start construction of the project later this year, with production ready for late 2015.
The pig iron and ferro-vanadium project in Limpopo Province, South Africa has a planned production of 41,966 tonnes of high purity iron, 415 tonnes of vanadium in slag, and 8,269 tonnes of titanium in slag per year from late 2015.
Ironveld said the feasibility study confirmed the project's viability to deliver an exceptionally high grade iron product, at 99.5% Fe, called High Purity Iron, which commands a premium to the pig iron price.
It said the study shows the ability of the project to deliver yearly revenues of GBP26.4 million, with an earnings before interest, taxes, depreciation and amortisation of GBP8.1 million per year, based on current costs and commodity values.
Ironveld said the project is expected to be cash flow positive from the start of production, and capital expenditure is projected to be approximately GBP36 million, a proportion of which it said will be funded out of early cash flow from the project.
The company is developing its project in the Northern Limb of the Bushveld Complex in Limpopo.
Ironveld shares jumped 26% Wednesday morning on the news, trading at 11.20 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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