Akora Resources’ new MD leads African iron ore charge

Akora Resources’ new MD and CEO expected to drive development of 2Mtpa Bekisopa iron ore project in Madagascar.

Akora’s new boss Peter Bird will replace outgoing MD Paul Bibby, who recently delivered the pre-feasibility study for the project. Pic: Getty Images

• AKO appoints new MD and CEO to drive development of Bekisopa iron ore project

• Peter Bird is a geologist with broad mining industry executive experience

• The company is looking to secure project funding for the 2Mtpa operation

 

Special Report: Akora Resources has appointed a new managing director and CEO in Peter Bird to lead the next stage of the company’s growth at its Bekisopa iron ore project in Madagascar.

The company recently announced a pre-feasibility study into a 2Mtpa direct shipping ore operation, which features a low operating cost of US$42/t and pre-tax cash flow of US$310m using a long-term benchmark iron ore price of US$100/t, with a payback of just 1.8 years.

Over the initial six-year mine life, the DSO operation will deliver positive NPV of US$147m and an IRR of 86% from an initial capital investment of US$61m.

It will also support development of the potential Stage 2 green steel zone to produce a low-impurity, premium-grade >67% iron concentrate.

The next phase is developing a long-term iron ore operation at Bekisopa, with Bird leading the charge.

Prior to joining Akora Resources (ASX:AKO), Bird was executive general manager at Rex Minerals (ASX:RXM), where he played a key role in the copper developer’s sale to Mach Metals.

His prior roles include executive chairman of Zenith Minerals (ASX:ZNC), CEO of Asiamet Resources and non-executive chairman of Excelsior Gold. Bird was also the joint founder and managing director of Heemskirk Consolidated prior to its takeover by a private equity group.

Bird also has extensive capital markets and investor relations experience, having held senior investor relations roles with Newcrest Mining (ASX:NCM), Normandy Mining and Merrill Lynch Equities Australia.

Building Bekisopa

The appointment is expected to build on the recently announced PFS for the project, with the key focus now on securing a strategic partner and delivering funding for Bekisopa.

“In his most recent role he was a leading team member in completing a transaction for the sale of the Hillside copper gold project,” AKO chairman Graeme Hunt said.

“His excellent mix of experience will ensure we deliver shareholder value as he progresses Bekisopa beyond the PFS.”

Bird said the Akora portfolio has tremendous upside with a pipeline of neighbouring projects associated with Bekisopa.

“We recognise the critical role that the high-grade iron ore from Bekisopa will play in the global push to decarbonise, particularly in the development of green steel,” he said.

“I look forward to engaging with our shareholders and our Madagascan stakeholders as we work to bring this high value and pivotal project into reality.”

Outgoing, retiring MD Paul Bibby said Bird is well placed to deliver value to shareholders.

“With the PFS delivered the company is well positioned for the next phase of development with co-operation from the Madagascan Government,” he said.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.