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With the completion of the study process, Macarthur now moves into the delivery and financing phase along with the retirement of the Chief Executive Officer,
Key highlights during the first quarter of 2022 included announcements on the following:
Highlights
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Macarthur's primary areas of focus during 2022 will include the following:
- Project Schedule: The Company will continue to advance environmental approvals, contracts, and pre-development deliverables to ensure that it remains on track with the project schedule defined by the Feasibility Study.
- Strategic Partnerships: Formalising strategic partnerships for the key development and infrastructure required to commercialise the
Lake Giles Iron Project remains a key focus this year. The Company is in active discussions with a number of global corporates that have the potential to add capital and technical capabilities to the project. - Nevada Lithium Assets: The Company continues to examine the potential for strategic partnership(s) that can advance a programme of works to realise an improved value proposition for its 100% owned lithium brine claims in the
Nevada region of theUSA . To assist this process the Company has completed an internal independent valuation of these Nevada Claims. - Graduation on to main board of TSX: The Company intends to progress its plans to migrate from the TSXV onto the main board of the TSX during the course of 2022.
The Company completed a spinout of its Pilbara assets through an initial public offering ("IPO") of Infinity Mining Ltd (Infinity). Infinity under
Effective from
On listing Infinity raised
During the first quarter 2022, Infinity has completed the following activities2:
- Received gold assay results for its first pass 12-hole (724m) RC drilling program, from the Great Northern Gold Prospect Leonora, WA.
- Completed a 194-hole Aircore drilling program at Barlows Gully for a total advance of 679m with pending assay results.
- Exploration work has continued at Victor Bore and Craig's Rest tenements including geological mapping, soil sampling and rock chip sampling with assay results also pending.
- A new comprehensive data compilation and data interpretation program in the Pilbara has identified a range of new target areas to focus on in the future.
- Transferred tenements E45/4735 and E45/5324 to
Macarthur Iron Ore Pty Ltd under which Infinity retains the rights to all non-iron minerals on these two tenements pursuant to a Tenement Sale and Non-Iron Ore Rights Agreement dated11 August 2021 . - Infinity entered into the Zanil/Pointon Sale Purchase Agreement dated
18 October 2021 withZanil Pty Ltd (Zanil) andAlec Pointon (the Zanil Vendors) to acquire 100% of the Central Goldfields Tenements, held by the relevant Zanil Vendor. On the17 March 2022 , these tenements commenced the transfer process to Infinity Mining with the payment of the transfer duties. - In
January 2022 , E45/4685 (Hillside) initially granted on12 January 2017 , was granted a further 5-year extension.
Over the course of Q1 2022, the views of analysts on the iron ore price outlook for the immediate term have been mixed. Whilst demand has been weaker, some analysts consider that
The continued recovery into mid -
As at
Price differentials between low and high-grade ores have traditionally ebbed and flowed with mill profitability and coking coal prices. However, with
As of
Pricing has remained strong during the first half the year with the price for 62% iron ore fines CFR Qingdao trading at
On average, approximately two tonnes of carbon dioxide (CO₂) are emitted for every tonne of steel produced. This accounts for roughly 7% of global greenhouse gas emissions. The trend towards higher grade ores demonstrates a change in demand preferences aimed at factoring in the global shift towards decarbonisation. Macarthur's strategy to meet and help lead the future growth in demand for high grade ore is the right strategy moving into the third decade of this century which will be defined by how industries respond to the challenges of meeting net zero targets.
As outlined by Macarthur in its second quarter update in 2021, the premium for steel products may arguably result in increased direct investment by the rest of the world (excluding
Completing the journey to net zero emissions in steel production has been demonstrated as technically possible by the use of high-grade magnetite and scrap steel in electric arc furnaces with 'green hydrogen' as the reductant. The first green steel production was achieved in
With Macarthur's high grade 1.3 billion tonne magnetite resource, it aims to take advantage of the coming structural shift in global iron ore market and help lead
Both ASX and TSXV continue to demonstrate reasonably synchronised share price trading patterns for MIO and MMS. Although Macarthur's share price has pulled back over the first quarter, this is not an anomaly that is specific to Macarthur, as it reflects the broader patterns and impacts felt across the entire iron ore industry following the pull-back in global prices during Quarter 1 of 2022. Encouragingly, iron ore prices are still above pre-Covid levels, demonstrating the resilience of a sector that supplies a critical global resource necessary for many facets of human endeavour and advancement.
"The first quarter of 2022 was a very active period for the Company as it delivered the Mineral Reserves Statement and completed its Feasibility Study.
Following Andrew's retirement, the
There has been speculation across the investor community around the company seeking to finance the magnetite project using equity, this is not the Boards intent. The Strategic Partnering Board subcommittee is seeking partners for project financing.
As the Company continues to focus on core fundamentals and project delivery, I look forward to sharing the Company's progress with you."
On behalf of the Board of Directors, Mr
Macarthur is an iron ore development, and lithium exploration company that is focused on bringing to production its
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws. All statements herein, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, including but not limited to statements regarding expected completion of the Feasibility Study; conversion of Mineral Resources to Mineral Reserves or the eventual mining of the Project, are forward-looking statements. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include but are not limited to: unforeseen technology changes that results in a reduction in iron or magnetite demand or substitution by other metals or materials; the discovery of new large low cost deposits of iron magnetite; the general level of global economic activity; failure to complete the FS; inability to demonstrate economic viability of Mineral Resources; and failure to obtain mining approvals. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
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