latest Zanaga iron research note by Edison out now. Click below to read

Glencore Xstrata and Zanaga Iron Ore Company (ZIOC) have agreed to revise the scope of the Zanaga iron ore project (ZIOP), which will now be advanced on a staged development basis. The lower capex requirement and higher capital efficiency have substantially reduced the project’s execution risk.

The feasibility study, due in late Q114, will now focus on a12Mtpa pellet feed project, also incorporating an early-stage 1-2Mtpa DSO operation (total 14Mtpa), which will provide near-term cash flow. As the iron ore fundamentals remain strong, ZIOC shares should be supported by the upcoming FS results and the expectations of the investment decision.  

Glencore Xstrata and Zanaga Iron Ore Company (ZIOC) have agreed to revise the scope of the Zanaga iron ore project (ZIOP), which will now be advanced on a staged development basis. The lower capex requirement and higher capital efficiency have substantially reduced the project’s execution risk. The feasibility study, due in late Q114, will now focus on a 12Mtpa pellet feed project, also incorporating an early-stage 1-2Mtpa DSO operation (total 14Mtpa), which will provide near-term cash flow. As the iron ore fundamentals remain strong, ZIOC shares should be supported by the upcoming FS results and the expectations of the investment decision.