From Resources Rising Stars [IMG]Centaurus Metals (ASX: CTM)...

From Resources Rising Stars

​

Centaurus Metals (ASX: CTM)
Market Capitalisation: $16.2M at 0.5c (2.7B shares on issue)

Leveraging off a high-quality diversified asset base in Brazil, Centaurus Metals (ASX: CTM) is well placed to capitalise on two key global growth thematics – the current supply shortfall of high-quality iron ore, and the strong long-term demand outlook for battery metals.

The company announced in March that it would undertake a strategic development review of its Jambreiro Iron Ore Project in light of the significant disruption to iron ore supply caused by major Brazilian producer Vale’s decision to suspend its mining operations.

As a result of Vale’s decision, since December 2018 the 62% Fe price has risen by 45% in US Dollar terms to over US$93/t at the time of writing, with ongoing uncertainty regarding Brazilian iron ore exports indicating current pricing levels could be sustained well into 2019.

The Jambreiro Project is a fully-permitted, shovel‐ready development project that is licensed for 3Mtpa of production. It represents a strategic asset in the Brazilian domestic iron ore and steel sector, particularly with the premium pricing that now exists in the market for high grade (65% Fe), low-impurity ore.

Centaurus completed a Bankable Feasibility Study for the Jambreiro Project in 2013, which demonstrated low operating costs and strong economics, however the project was eventually mothballed due to the challenging prevailing market for iron ore.

With iron ore now strongly on the rebound, Centaurus is updating the Jambreiro Feasibility Study to reflect marked improvements in a number of key parameters.

Outside of Jambreiro, Centaurus also holds an outstanding exploration portfolio in Brazil’s Carajás Mineral Province, one of the world’s largest known concentrations of large‐tonnage mineral deposits.