Three deals deliver
maiden profit to
Iron Ore Holdings
ALWYN VORSTER
MANAGING DIRECTOR
IRON ORE HOLDINGS
Iron Ore Holdings (IOH) owns and manages a portfolio of
hematite and magnetite iron ore tenements and projects within
its central, western and coastal hubs in the Pilbara region of
Western Australia. These projects are all strategically located
within close proximity to existing and planned infrastructure.
Despite challenging world markets, and the mining sector
in particular bearing the brunt in the last 12 months, IOH’s
experienced board and senior management team delivered on
all its key targets during this period. IOH’s central Pilbara asset
commercialisation strategy realised $99 million from three
deals and delivered the company’s maiden profit of more than
$70 million. The cash raised from these deals is greater than all
costs incurred by the company since listing in 2005.
During the year, IOH increased its resources by more than
50%
to a total of 1.6 billion tonnes and added to its tenement
holdings through acquisitions to replenish divested tenements.
The company also made excellent progress in advancing
positive studies on three major projects: Iron Valley, Bungaroo
South and Maitland River, while maintaining a strong safety
performance across the business.
Managing Director Alwyn Vorster believes that IOH’s
business model combines relatively low risk with significant
value upside which will be recognised by the market over time.
“
IOH is quite different from numerous, cash-strapped
exploration companies that have limited assets or development
potential,” he said. “Our model is to find, de-risk and monetise
mineral assets. In one respect this sounds like a fairly generic
description of what mining explorers and developers do, but the
key point of distinction is that return on investment (ROI) drives
our decisions and we recognise explicitly that good returns
are often best achieved by monetising assets at a key point in
a project’s pre-production lifecycle, rather than ploughing on
into self-development.
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