Akora PFS gives 2Mtpa iron ore operation green light

The PFS for Akora’s Bekisopa project in Madagascar shows a pathway to FID in mid-2026 and first shipment in Q3, 2027. Pic: Getty Images
- A PFS outlines robust economics for Akora’s Bekisopa high-grade iron ore project
- Strong financials include a pre-tax NPV of US$147m and IRR of 86% over an initial six year mine life
- The company believes further drilling will confirm additional mine life
Special report: A little over four years from listing and a year since the release of a positive scoping study on the Bekisopa project in Madagascar, Akora Resources’ PFS has proven a 2Mtpa direct shipping ore operation is economically viable.
The PFS demonstrates a low operating cost of US$42/t for Bekisopa that would generate strong revenues of US$789m from an accelerated production ramp up and reduce the project’s capital payback to 1.8 years.
An improved pre-tax cash flow of $310m using a long-term benchmark iron ore price of US$100/t over an initial six year mine life delivers a positive NPV of $147m and an IRR of 86% from an initial capital investment of US$61m.
Other metrics central to the PFS include an increase in indicated resource tonnage to 8.5Mt at 55.4% Fe from 4.4Mt at 60.9% Fe from only half of the 6km strike length, with future drilling expected to increase resource tonnes and add mine life.
A review of sea freight costs for bulk cargoes from Toliara in southern Madagascar to India west coast port has been assessed at US$14/t versus US$5.5/t as identified in the scoping study, reducing the NPV by ~US$35m.
Product suited for use in lower emissions steel
Akora Resources’ (ASX:AKO) start-up Stage One DSO operation will produce a high-grade circa 61% iron lump and fines product for use by blast furnace-basic oxygen furnace steelmakers, the dominant technology especially in the major hubs of China and India.
DSO operations are expected to deliver strong cash flow and operating cost margin that will support development of the potential Stage 2 green steel zone to produce a low-impurity, premium-grade >67% iron concentrate.
That product will be suited to use in lower emission steel mills, which require high-grade, low impurity feedstocks, currently in short supply globally.

Pathway to FID
With the release of the PFS, AKO managing director Paul Bibby said the expectation was that potential strategic investors would reengage.
“We believe that further drilling will confirm additional mine life and the vision for a many decade high-grade iron ore concentrate project beyond the initial DSO start-up phase is achievable,” he said.
“Bekisopa has been identified as a Government Project of Significance, which has the support of the national government and local communities.
“This PFS shows a pathway to a Financial Investment Decision and first shipment in the second half of 2027.”
What now?
AKO is working with the Madagascan Government’s Mining Ministry to confirm the pathway to FID and into operation.

Discussions are underway with several key Ministries to develop an understanding of the Bekisopa project requirements and agree engagement protocols for development.
Akora will work with the Mines Ministry and Madagascar Mining Cadastre Office (BCMM) to transform the existing Bekisopa tenements into ‘Exploitation/Mining Permits’ by the end of 2025, enabling construction planning to begin.
This article was developed in collaboration with Akora Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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