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 |
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 |
Source: S&P Global Platts Iron Ore and Metallurgical Coal Specifications Tree (2021)
