Proactive Investors - Run By Investors For Investors

Ironbark Zinc advancing development of global zinc project

With over 3.6 million tonnes of contained zinc, Ironbark appears undervalued.
Ironbark Zinc advancing development of global zinc project
The company was recently awarded a mining permit

Ironbark Zinc (ASX:IBG) along with its partner China Nonferrous, continues to make good progress developing the Citronen zinc project located in Greenland.

Citronen is one of the world’s largest zinc projects and recently was awarded a 30 year mining permit, a major milestone in the project’s advancement.

Ironbark continues to work with NFC targeting 70% of the project financing through debt and an option for a further 20% of the project financing through direct project investment.

This funding pathway has the potential to provide an exceptionally un-dilutive financing solution to developing the Citronen project.

NFC is well advanced with the review, re-costing and preparation of the feasibility study report into a Chinese format as required by the Chinese banking sector.

Appointment of engineers

An Australian engineering contracting group, CPC Project Design, has been appointed to assist Ironbark working with NFC on the Citronen project.

CPC work at the study/FEED stage and can proceed through to project implementation with detail design for construction.

Shipping update

Ironbark is progressing work with shipping advisors with regard to the optimal shipping leasing options available.

Ironbark recognises that shipping represents a substantial operational cost and is looking at reducing these through a variety of solutions.

Additional financing

In addition to financing through the NFC assistance, Ironbark is in discussions with major international banking groups and corporate advisors to provided overall banking advice and assistance.

In particular the projects location in Europe makes it a candidate for European Export Credit Agency (ECA) financing funding.

Citronen: An undervalued project

Citronen rates as one of the world’s largest credible zinc development projects at an advanced post-feasibility stage.

In April 2013, Citronen’s feasibility report forecast a pre-tax net present value to the project of US$609 million.

With over 3.6 million tonnes of contained zinc in-ground and market capitalisation of $50 million - Ironbark presents as well undervalued.

Ironbark has been in discussions with several broking institutions and fund managers seeking further coverage and research to improve the market understanding of the Citronen project.

Ironbark considers that Citronen represents a compelling investment exposure to zinc, which has zinc stockpiles at 10 year lows and continuing to fall, driving a strong zinc price.

View full IBG profile View Profile

Ironbark Zinc Ltd Timeline

Related Articles

December 03 2018
Alto’s aim is to expand the gold resources and reserves to recommence profitable mining operations at the Sandstone Gold Project.
man standing in front of piles of bauxite ore
September 06 2018
Metro is targeting around two million tonnes of production this calendar year.
December 11 2018
MGX is focused on mining, water (including mineral extraction from brines, eg, lithium) and battery mass storage

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use