Fe Limited (ASX:FEL) (FRA:B4T)
is aiming to begin shipping iron ore product in the second quarter of
2021, according to the company’s latest timelines for its flagship JWD
West Wiluna project.
FEL had a busy December,
submitting a work approval application for the project with the WA
Department of Water and Environment Regulation and beginning
negotiations for infrastructure access.
It expects to begin mining
during the current quarter as it locks in key mining and sales contracts
and makes a final investment decision.
That will be followed, FEL says,
by shipment in the June quarter, alongside an assessment of second-phase
mining at the project, which it hopes to begin in the September quarter.
Sky’s the limit
Late last year, Fe Limited
chairman Tony Sage said shareholders should be extremely excited for the
company’s 2021 prospects.
“With iron ore demand extremely
strong at present having a mature project like JWD that has the ability
to supply high-grade iron ore to the market in the near term has
significant value to our shareholders,” he said.
“We expect to receive this
approval in the Q/E March 2021 and in the meantime, our experienced team
continues to work on port, transport and offtake agreements.”
Sage last week demonstrated his
confidence in Fe’s near-term iron ore production strategy by exercising
five million options, valued at $100,000, some five months before they
were due to expire.
Iron ore market rising
The iron ore market continues to
rise amid strong fundamentals, including increased demand, particularly
from China, and higher prices.
China recently outlined its new
15-year plan which further boosts confidence for FEL and the industry as
a whole.
Iron ore was fetching US$169 per
tonne on Tuesday – not far from the record prices of around US$193/tonne
seen in 2011 during the tail-end of the commodities boom.
FEL's potential
Fe Limited’s latest presentation
shows the company has assets on its books to pique investor interest.
Aside from the JWD project, Fe
also now has a 50 per cent stake in the Yarram iron ore project in the
Northern Territory, meaning the company now has a two-pronged iron ore
production strategy.
Yarram is not as advanced as JWD
at this stage, but Sage said Fe would commence drilling, environmental
and stakeholder work at the beginning of 2021.
Fe hopes the first iron ore
product will ship from Yarram three months after a development decision,
which is expected in the December quarter, following exploratory
drilling and a JORC resource estimate.
In addition to its iron ore
prospects, Fe also has interests in gold and lithium projects in the
Pilbara and multi-element joint venture projects in the Byrah Basin.
Fe shareholders have responded
to the optimism with shares reaching a high of 4.4 cents on Tuesday,
representing a 193 per cent year-on-year rise.
Source: Daniel Paproth |