Akora Resources delivers high-quality, low capex results from Bekisopa DSO with pre-feasibility study

Akora Resources (ASX: AKO) has confirmed a low capital cost entry case of US$60.6 million and a pre-tax cash flow of US$310m over an initial six-year mine life with a pre-feasibility study (PFS) for its wholly owned Bekisopa iron ore project in Madagascar.
Start-up costs will include US$6.8m for engineering, procurement, construction and management, with a 15% contingency and a capital payback of 1.8 years from first production.
The pre-tax cash flow uses a long-term benchmark iron ore price of US$100 per tonne to deliver a pre-tax net present value of US$147m and an 86% internal rate of return from the initial capital investment.
DSO operation
Akora has based the PFS on a 2 million tonnes per annum direct shipping ore (DSO) operation to output blended grade lump and fines products for use by global blast furnace steelmakers, generating revenues of approximately US$789m.
The company has estimated an average life-of-mine iron grade of 62% for lump product and 61% for fines over the first six years of operation, during which time the company will deliver 40% lump and 60% fines products.
The PFS builds on a positive scoping study released in November 2023 that confirmed Bekisopa to be economically viable using contractor labour, mining equipment and mobile processing equipment in the development phase to contain upfront capital costs.
Strong credentials
Akora managing director Paul Bibby said the study boasted strong financial, operational, environmental and production credentials.
“Our team has worked hard to deliver this PFS on time and the expectation is that potential strategic investors will re-engage with us,” he said.
“We believe that further drilling at Bekisopa will confirm additional mine life and the achievable vision of a multi-decade, high-grade iron ore project beyond the initial DSO start-up phase.”
He said the study showed a pathway to a financial investment decision in mid-2026, with first shipment in the second half of 2027.
High-quality project
Chair Graeme Hunt said the PFS had proven Bekisopa to be a high-quality project.
“The excellent progress by Akora’s team in just over four years from listing and a year since the positive scoping study speaks volumes to the company’s focus and the quality of the Bekisopa iron ore resource,” he said.
“This PFS provides the encouragement to continue progressing Bekisopa as we focus on delivering a strategic investor and funding arrangement that meets our shareholder and investor objectives.”