Australasian Resources' shares rise after project confirmedFont Size: Decrease Increase Print Page: Print June 18, 2008 SHARES of Australasian Resources rose as much as 24 per cent today after it confirmed the strength of its Pilbara project.
A 2011 commissioning for Australasian Resources’ (ASX: ARH: quote) Balmoral South Iron Ore Project is now planned, with the bankable feasibility study confirming it has robust economics and will deliver to shareholders a net present value of $3 billion based on projected cash flows for the company for the 28 year life of the project.
The completion of the study now allows for partner Shougang Holdings (Hong Kong) to finalise its investment decision.
Forecast cash flows are based on ARH receiving 50% of free cash flow under the proposed funding model with Shougang and are based on constant prices forecast for concentrate and pellets from 2009.
Australasian Resources managing director, Andrew Caruso, said: “The completion of the feasibility study represents a critical milestone towards our aspiration to be a significant, sustainable and profitable producer of quality iron ore products."
“This study highlights the robust economics of the project and the significant benefit it will provide to Australasian and its shareholders for many years to come,” he said.
Shares rose as high as $1.65 today, before settling at $1.53, 15% higher than its previous close.
ARH Price at posting:
0.0¢ Sentiment: None Disclosure: Held
