Livewire

CZR Resources:Talking about feted explorers, Mark Creasy is closer than ever to becoming an iron ore producer, albeit boutique.His 53%-owned CZR Resources is poised to deliver the definitive feasibility study into the development of its Robe Mesa iron ore project in the Pilbara. The DFS into a proposed 3.5Mtpa operation has been promised for this month, and here we are. It is boutique all right compared with what its neighbour Rio Tinto does from its adjacent Robe River operations.But 3.5Mtpa will do nicely thank you very much for CZR with its $34 million market cap (14c a share).Ahead of the DFS release, CZR has indicated that at a base case of $US90/t for iron ore, Robe Mesa would generate free cash flow of $A260m and an internal rate of return of 70%.Assume a $US106/t iron ore price and free cash takes off to $A604m and IRR to 149%.Despite the best efforts of all the experts to talk down the iron ore price in the past couple of years, it is still banging asway at $US115/t. Even with all the gloom elsewhere in commodities, the price is just off its average for the 2023 June half year of $US118/t.So while it might be a small fish up there in the Pilbara, it has the makings of being a particularly sweet one. Its modest market cap is pretty much covered by its other interests, including a gold project up near De Grey’s Hemi project.It could be argued then that the iron ore comes for free. The stock was trading at 25c in the opening months of the year.