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Zanaga Iron Ore widens FY pretax loss

By BFN News | 12:07 PM | Friday 26 June, 2015

Zanaga Iron Ore has widened its FY pretax loss of $164.8m, from a loss of $6.7m. The result was influenced by impairments on the value of its flagship project. Highlights 2014 and post balance sheet events to June 2015: · Zanaga Project Feasibility Study completed in April 2014 confirming robust project economics; Operating costs expected to be in the bottom quartile; High quality product, aligned with industry expectations for premium pricing; Staged development execution plan minimises upfront capital expenditure, maximises project cash flows, and reduces construction complexity · Announcement of Ore Reserve for Staged Development Project, including maiden Proved Ore Reserve; Total Ore Reserves of 2,070Mt at 33.9% Fe; Proved Ore Reserves of 774Mt at 37.3% Fe · Social Environmental Impact Assessment completed and Environmental Permit application for Stage One lodged with the Ministry of Environment · Mining Licence issued and Mining Convention signed in August 2014 · Work programme and budget for 2015 agreed with Glencore · Cost reductions implemented at the Zanaga Project, as well as across ZIOC's corporate costs, to align the cost base with current market conditions · US$110m impairment of the carrying value of the Zanaga Project due to a reduction in global iron ore prices and continuing volatility of the iron ore market · Cash balance of US$12.5m as at 2014 year end, and a cash balance of $10.4m at 31 May 2015 At 12:07pm: (LON:ZIOC) Zanaga Iron Ore Company share price was -0.37p at 2.38p Story provided by

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