On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (GR: BIN) Advancing Shymanivske Iron Ore Deposit to Production

  • Black Iron’s plan is to produce high-grade pellet feed in Ukraine
  • High-grade pellet feed is forecast to substantially increase in price
  • Close proximity to major infrastructure allows for the project to be built in low-cost phases
  • Recently ranked by CRU in the lowest cost position globally for undeveloped iron ore pellet feed projects

Canadian-headquartered iron ore exploration and development company Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (GR: BIN) is developing the Shymanivske iron ore deposit located in Kryvyi Rih, Ukraine. The company’s intention is to produce high grade pellet feed for sale to steel mills located in Europe, China and the Middle East. Its experienced management team is leveraging major infrastructure including railway, powerlines and ports that are already in place to advance its 100-percent-owned Shymanivske Project to production.

The global iron ore pellets market was valued at approximately $25.22 billion in 2017. The expectation is that it will reach $50.12 billion by 2024 (http://ibn.fm/dfxRy). In addition, iron ore prices are rising significantly. BMO Capital Markets, a Canada-based investment bank, has increased its 2019 forecast for benchmark prices by 24 percent to $78 per tonne (from $63 per tonne) and its 2020-2021 price to $70 per tonne. Regarding the worldwide pellet market, BMO is increasing its average Atlantic Basin pellet premium to $75 a tonne in 2019 (from $59 a tonne) and $55 tonne in 2020 (http://ibn.fm/1hNmN).

At present, Black Iron’s iron ore product sells for approximately $40 per tonne premium (http://ibn.fm/oRBjJ). Iron ore concentrates are one of the vital raw materials used by the steel industry to make sinter or highly valued pellets. Black Iron’s concentrate can be used in either application (http://ibn.fm/VBbLI). The price premium is increasing because of environmental consciousness, mainly in China. A benefit of Black Iron’s ultra-premium product (68 percent iron ore concentrate), upon the Shymanivske Project achieving production, is that less coal is burnt and therefore fewer emissions will be generated per ton of steel produced, as compared to benchmark iron ore containing 62 percent iron.

Moreover, its Shymanivske Project is strategically positioned between markets in Europe, Russia, Asia and the Middle East. This bodes well for the company as the demand for high-grade pellet feed increases across all of these markets. Shymanivske (surrounded by seven producing iron ore mines) lies 330km southeast of Kiev in central Ukraine, in the heart of the KrivBass iron ore mining district (http://ibn.fm/8CSKb).

The Shymanivske Project features a large iron ore deposit with an NI 43-101-compliant resource containing 646Mt Measure & Indicated at 31.6 percent iron. It also has an additional 188Mt Inferred resource at 30.1 percent iron that will be concentrated to the above-mentioned final product containing 68 percent iron. Forecast annual production for phase one of the project is 4.0 dmt (Dry Metric Tonnes), and it is expected to generate sufficient free cash flow to fully self-fund a second phase expansion to produce a total of 8.0 dmt (http://ibn.fm/IiSGG). The company can systematically and efficiently phase build because of its close proximity to rail (2 km), power (20 km), ports (five ranging from 230 km to 430 km) and a skilled workforce.

The Shymanivske project has been ranked by the CRU Group in the lowest position of the business cost curve for pellet feed projects currently under development and as the second-lowest in capital intensity (construction capital divided by annual production) within CRU Group’s extensive database (http://ibn.fm/hdIy1). This low-cost position makes the project economics very robust to any shocks in iron ore price while providing a very high return at current and forecast prices.

The foundation for Black Iron’s positivity regarding the Shymanivske Project moving toward production is strong interest from a number of steel mills and international traders looking to secure a long-term contract to purchase product in exchange for making a substantial equity investment for project construction. Additionally, strong interest is being shown by several European banks and international finance agencies to provide debt financing for project construction. Therefore, the company is moving ahead with this compelling pellet feed project to meet forecast global demand while simultaneously offering a dynamic iron ore opportunity to investors.

The technical and scientific contents of this article have been reviewed and approved by Matt Simpson, P.Eng., CEO of Black Iron, who is a Qualified Person as defined by NI 43-101.

For more information, visit the company’s website at www.BlackIron.com

About QualityStocks

QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. It is part of our mission statement to help the investment community discover emerging companies that offer excellent growth potential. We offer several ways for investors to learn more about investing in these companies as well as find and evaluate them.

QualityStocks (QS)
Scottsdale, Arizona
www.QualityStocks.com
480.374.1336 Office
Editor@QualityStocks.com

Please see full terms of use and disclaimers on the QualityStocks website applicable to all content provided by QS, wherever published or re-republished: http://www.qualitystocks.net/disclaimer.php

Archives

Select A Month
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • February 2008
  • January 2008
  • December 2007
  • November 2007
  • October 2007
  • September 2007
  • August 2007
  • July 2007
  • June 2007
  • May 2007
  • April 2007
  • March 2007
  • February 2007
  • January 2007
  • December 2006
  • November 2006
  • October 2006
  • September 2006
  • August 2006
  • July 2006
  • June 2006
  • May 2006
  • April 2006
  • March 2006
  • January 2006
  • December 2005
  • October 2005
  • September 2005
  • Market Basics

    New to the micro-cap markets?Get answers to your questions about investing in Small-Cap / Micro-Cap Stocks and learn how to protect yourself.

    The Basics

    Newsletter Publishers

    Have an up and coming newsletter and want to be included in our coverage list? Looking to get more coverage and grow subscriptions? Register for coverage.

    Register

    Public Companies

    Are you a Small-Cap / Micro-Cap company looking for coverage? We'd love to hear from you. Fill out our quick contact form or send us a text.

    Get Covered