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Audited Results for the Year to 31 December 2025
Zanaga Iron Ore Company Ltd reported audited results for the year ending December 31, 2025, highlighting significant progress in its project development strategy which identified four initiatives leading to US$2.2 billion in cash cost savings. Key developments include positive DRI product quality test work, increasing revenue potential to US$11,325 million, completion of a pellet plant feasibility study, and a single 30Mtpa pipeline feasibility study estimating US$986 million in upfront capex but reducing total capex by US$357 million. The company also initiated a dry tailings management study with potential cash expenditure reductions of US$1,280 million. Financially, ZIOC completed a US$23.01 million fundraise in March 2025, using US$15 million to repurchase Glencore's 43% stake, and subsequently secured a binding term sheet in February 2026 with Red Arc Minerals Inc for a strategic investment of up to US$25 million in Tranche One and an optional US$125 million in Tranche Two. The company also raised £5.7 million (approximately US$7.7 million) in a 2026 equity raise. As of December 31, 2025, the company had a cash balance of US$1.28 million, increasing to US$5.40 million by Ju...
About this update from Zanaga Iron Ore Co. Ltd.
Zanaga Iron Ore Company Audited Results for the Year to 31 December 2025 1 July 2026 2025 Highlights and events to 30 June 2026 Project Development Strategy · Four targeted, high-impact initiatives were identified at the beginning of 2025. Throughout the year, the costing and feasibility of these initiatives were completed, delivering US$2.2 billion in cash cost savings1. 1) Direct Reduction Iron ("DRI") product quality test work: o Positive test work results confirming the ability of the Zanaga Iron Ore Project (the "Zanaga Project" or the "Project") to produce DRI grade pellet feed concentrate with low impurities: § Stage One (hematite) concentrate grade results: 68.5 %Fe, 1.05 %SiO₂, 0.47 %Al₂O3, 0.034 %P § Stage Two (magnetite) concentrate grade results: 69.1 %Fe, 1.96 %SiO₂, 0.40 %Al₂O3, 0.028 %P o Confirmation of DRI-grade pellet feed has increased the Project's revenue potential to US$11,325 million[1],[2] over the life of mine. 2) Pellet Plant Feasibility Study: o A feasibility study was completed to verify the likely costs to construct and operate both 2.5 Mtpa hot and 2.5 Mtpa cold pellet plants in the Republic of Congo. o While the Republic of Congo could be suitable, current market conditions are less competitive than those in other jurisdictions. The Group continues to explore locations near steel producers that offer lower-cost long-term gas and power tariffs to improve investment opportunities. 3) Single Pipeline Feasibility Study: o A feasibility study was commissioned in Q2 2025 to evaluate the construction of a buried 30Mtpa pipeline as part of Stage One. o Total upfront capex for one pipeline is estimated at US$986 million, increasing Stage One capex by US$349 million but reducing total capex by US$357 million compared to a two-stage approach. A 30 Mtpa pipeline could eliminate the booster station and its fuel use, potentially cutting total operating costs by US$950 million over the mine's life. o While the incremental NPV impact is limited-higher Stage One cash investment offsets Stage Two savings-the Group sees strategic value in a single pipeline configuration and will keep evaluating it prior to a construction decision. 4) Dry Tailings Management: o A study was initiated in Q2 2025 to revise the 2014 Feasibility Study tailings storage facility ("TSF") design to align with internat...
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