Business
Audited Results for the Year to 31 December 2014
Audited Results for the Year to 31 December 2014.
About this update from Zanaga Iron Ore Co. Ltd.
[{"type":"text","content":"\n \nRNS Number : 2960R Zanaga Iron Ore Company Ltd 26 June 2015 \n\n26 June 2015\n \nZanaga Iron Ore Company Audited Results for the Year to 31 December 2014\nHighlights 2014 and post balance sheet events to June 2015\n· Zanaga Project Feasibility Study completed in April 2014 confirming robust project economics\no Operating costs expected to be in the bottom quartile\no High quality product, aligned with industry expectations for premium pricing\no Staged development execution plan minimises upfront capital expenditure, maximises project cash flows, and reduces construction complexity\n· Announcement of Ore Reserve for Staged Development Project, including maiden Proved Ore Reserve\no Total Ore Reserves of 2,070Mt at 33.9% Fe\no Proved Ore Reserves of 774Mt at 37.3% Fe\n· Social Environmental Impact Assessment completed and Environmental Permit application for Stage One lodged with the Ministry of Environment\n· Mining Licence issued and Mining Convention signed in August 2014\n· Work programme and budget for 2015 agreed with Glencore\n· Cost reductions implemented at the Zanaga Project, as well as across ZIOC's corporate costs, to align the cost base with current market conditions\n· US$110m impairment of the carrying value of the Zanaga Project due to a reduction in global iron ore prices and continuing volatility of the iron ore market \n· Cash balance of US$12.5m as at 2014 year end, and a cash balance of $10.4m at 31 May 2015\nClifford Elphick, Non-Executive Chairman of Zanaga Iron Ore Company Limited, commented:\n\"The Zanaga Project achieved numerous significant milestones during 2014. The Feasibility Study concluded more than six years of detailed study work and confirmed the Project's robust economics. Shortly thereafter, we were delighted that the Project received its Mining Licence and that a Mining Convention was signed which established the fiscal and legal framework for the project.\nHowever, these positive developments have been discounted to some extent by a number of significant changes in the global iron ore industry. A major negative impact has been the substantial fall in iron ore prices due to the slow down in the Chinese economy reducing demand, as well as significant supply increases from the m...