Sign up Australia
Proactive Investors - Run By Investors For Investors

Black Iron shares advance as it brushes off President Trump's steel tariff plan

The company does not expect an adverse impact to the value of its Shymanivske Iron Ore project in the Ukraine
Black Iron shares advance as it brushes off President Trump's steel tariff plan
Iron ore is used in the steel making industry

Shares in Black Iron Inc (TSE:BKI) advanced this week after the firm brushed off US President Donald Trump's plans to impose import tariffs on steel, saying it does not think it will affect global iron ore prices.

Starting this week, the White House says it will put tariffs of 25% on imported steel and 10% on imported aluminium.

READ: Black Iron's project worth another look amid rising iron ore prices

Black Iron notes that the US only consumes around 6% of total global steel produced.

It also does not expect an adverse impact to the value of its Shymanivske Iron Ore project in the Ukraine, given the "very conservative US$62 per tonne benchmark price used in the company’s preliminary economic assessment to estimate the after-tax unlevered 36% internal rate of return on the project as compared to today’s 25% higher benchmark iron ore price of US$78 per tonne".

Black Iron noted that the US produced around 79 mln tonnes per year and is a net importer of 22 mln tonnes per year, which in total is only 6% of global production.

China, meanwhile, which supplies less than 1% of the steel imported into the US, produced 808 mln tonnes in 2016.

There, the company also noted, the demand for high grade iron ore was likely to increase, given the new environmental regulations imposed late last year, which have already resulted in numerous domestic iron ore miners being forced to shut down due to the low quality of iron ore produced. 

The new environmental regulations are driving a shift towards higher quality iron ore both in terms of iron content and use of pellets/pellet feed, said Black Iron.

"Black Iron expects to produce an ultra high-grade premium 68% iron ore product from the project. This ultra-high-grade product is within the top 4% of global production based on grade and highly desirable for China’s steel mills given the new Chinese regulations."

Black Iron shares added 5.26% to C$0.10 on Monday and on Tuesday, closed 10.53% ahead at C$0.10.

View full BKI profile View Profile

Black Iron Inc. Timeline

Related Articles

copper wires
October 12 2018
Leigh Creek will add to the cash being generated by New Mexico-based iron ore business Cobre to fund exploration and development opportunities elsewhere.
copper tubes
May 30 2018
The latest economic study at Parys Mountain has delivered some encouraging numbers against a backdrop of rising base metals prices
March 13 2018
Getting financing will be a "significant" milestone toward the construction, said the group

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© 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