Admiralty Resources: Mariposa Iron Ore Project Nears Production Milestone
ADY (ADY) Share Update October 2024 Friday 25th
Admiralty Resources Advances Mariposa Iron Ore Project Towards Production
Admiralty Resources NL (ASX: ADY) has announced significant progress in its Mariposa Iron Ore Project in Chile, with the project moving closer to production amid strong global demand for iron ore.
Instant Summary:
- Mariposa concentrator enters production stage, processing over 1,000 tonnes of ore daily.
- 60,000 tonnes of final product stored at the mine with 66-67% Fe grade.
- First shipment of 50,000 tonnes of iron ore concentrate expected by December 2024.
- Ongoing infrastructure improvements, including power supply and road impact studies.
- Entitlement Offer announced to raise up to $7 million.
Project Progress
The Mariposa Iron Ore Project has reached a pivotal stage with its concentrator now operational, processing over 1,000 tonnes of ore daily. The project has accumulated 60,000 tonnes of high-grade iron ore concentrate, poised for shipment.
Significant infrastructure developments have been made, including the completion of a transmission line and ongoing work at electrical substations. Admiralty is also focusing on road impact studies to ensure efficient transportation of minerals to the port.
Corporate Developments
Admiralty Resources has announced a 1 for 1.63 non-renounceable pro rata entitlement offer, aiming to raise approximately $7 million. This move is intended to support further development activities at Mariposa.
In addition, the company reported a net loss after tax of $2.83 million for the fiscal year 2024, reflecting ongoing investments in project development.
Future Outlook
The company is on track to achieve its first shipment of iron ore concentrate by December 2024, a significant milestone that marks the transition from development to production phase. Admiralty's strategic partnerships and capital injections from Hainan have been crucial in advancing the project.
The progression of the Mariposa project towards production is a positive development for Admiralty Resources, potentially boosting investor confidence and stock value. The successful shipment of iron ore by year-end could further enhance market perception and financial performance.
Investor Reaction:
Analysts are likely to view the advancements at Mariposa positively, given the strong demand for iron ore. The entitlement offer may be seen as a strategic move to bolster financial resources for continued project development.
Conclusion:
Investors should closely monitor Admiralty's progress towards its production targets and evaluate the potential impact on their investment portfolios. The company's efforts to enhance infrastructure and secure funding are critical steps in achieving long-term growth.