Strike all set to ship first iron ore shipment from Apurimac
The maiden shipment of iron ore, and the start of cash flow, from Strike Resources’ (ASX:SRK) Apurimac direct shipping ore project in Peru is imminent.
The chartered bulk carrier vessel is due to arrive at the Port of Pisco on 11 August to take on board the first shipment of up to 35,000 tonnes of premium lump iron ore.
This first shipment should deliver strong cash flow for Strike given that the high grade 65% Apurimac iron ore is expected to command a significant premium to the 62% iron benchmark price that is currently about US$215 per tonne.
Meanwhile, estimated free on board cost is estimated about US$80/t, which makes for some very attractive margins.
Following this first shipment, the company is targeting multiple repeat shipments with the goal of securing annualised sales of about 250,000 tonnes per annum from Apurimac and is securing additional crushing and transport capacity to meet this objective.
“The scheduling of the first shipment of iron ore from the Port of Pisco is a key milestone in the development of Strike’s 100% owned high grade Apurimac iron ore project,” managing director William Johnson said.
“Strike is now focussed on building its local infrastructure in Peru to support an increased annualised production rate in the near term.”
Apurimac currently has a JORC resource of 269.4Mt grading 57.3% iron consisting of 142.2Mt at 57.8% iron in the higher confidence indicated category and an inferred resource of 127.2Mt at 56.7% iron.
There is significant potential to grow this resource given that the deposits are open at depth and along strike with extensive undrilled gravity and magnetic anomalies.
This article was developed in collaboration with Strike 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.