Bellzone Mining shares plunged over 46 per cent in early Wednesday trading as the company announced limited iron ore resources at its flagship Kalia Mine Project in the Republic of Guinea, West Africa.
The miner said it had to revise its export target from 3.0m-4.0m tonnes to 0.8-1.0m tonnes due to lack of Joint Ore Reserves Committee (JORC) direct shipping ore. It is now expected to deliver 58% of iron content lump and fines products.
The average freight-on-board cost is planned to be in the range of $45-$50 per tonne. The current average cost of shipping a 50-60,000 tonne geared ship is currently $35-$40 per tonne.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The underperformance of the transhipping system was announced in January 2013 and the company informed the market that the re-engineering process would take at least six months.
Bellzone has revised a plan to generate more cash quickly and require less up-front capital.
The new strategy includes trucking its product to port as there is no trans-Guinea railway in place.
The access road for the railway line from the company's Matakan port site to the Kalia mine site will be developed.
Once the railway infrastructure is completed the company plans to develop phase 2 of the greater oxide project and phase three of 3 the magnetite project within the Kalia prospect.
RD
-
Santander axes 1% cashback on spending for Edge account customersSantander will stop awarding cashback on everyday spending for its Edge customers, limiting cashback to just bills
-
Estates without a will hit five-year high – as two in five Brits prepared to go to court over inheritanceFigures from the Ministry of Justice show the number of probate disputes is rising steadily.
