REG - Zanaga Iron Ore - Update on Improved Project Economics

Zanaga Iron OreAnnouncement

Mon 07:00

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RNS Number : 7662U  Zanaga Iron Ore Company Ltd  11 August 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR

11 August 2025

Zanaga Iron Ore Company Limited

("ZIOC" or the "Company")

Update on Improved Project Economics Driven by High-Grade DRI Pellet Feed
Product

Key Economic Highlights 1 :

·      Post-tax NPV (10%) increased 37% to US$5,206 million

·      IRR increased to 26.7%, reflecting enhanced project returns

·   FOB operating costs (including Royalty) expected to remain competitive
at approximately US$27/tonne

·    Proposed Life of Asset: 30 years of premium DRI grade pellet feed,
with a planned production of 12 million tonnes per annum ("Mtpa") during Stage
1 and 18 Mtpa during Stage 2

·     Increased price premium expected due to higher iron content with low
impurities

Zanaga Iron Ore Company Limited (AIM: ZIOC), the iron ore development Company
focused on advancing its flagship Zanaga Project in the Republic of Congo, is
pleased to report a material improvement in the Project's targeted economics,
driven by the ability to produce a high grade Direct Reduced Iron ("DRI")
pellet feed product following recent laboratory confirmation from the
metallurgical test work and process flow sheet optimisation.

This positive economic impact assessment follows the announcement on 25 June
2025 regarding test results confirming the ability to produce a high-grade
product suitable for DRI pellet feed. The in-house evaluation offers guidance
on the project's targeted economics, while also updating the Company capital
and operating cost estimates for the revised process plant configuration to
achieve DRI grade pellet feed specification from the Zanaga Project. The
Company's technical consultants have indicated that capital and operating
costs are unlikely to differ significantly from those in the 2024 FS cost
update exercise and therefore, the Company has used the capital and operating
costs from the 2024 FS cost update to produce the economic evaluation above.
Updated capital and operating costs for the revised process design are
expected to be obtained by Q4 2025, after which the Company will announce the
Project's enhanced development plan.

The high-grade DRI grade pellet feed, confirmed through detailed metallurgical
testing and processing flow sheet optimisation, is expected to command a
significant price premium in global markets, especially from iron and steel
makers focused on enhanced efficiency, lower operating costs, and reduced
emissions associated with electric arc furnace iron and steel production.

Martin Knauth, CEO of ZIOC, commented:

"Zanaga Project's ability to produce an enhanced specification to meet the
growing sector of low-emission DRI, a key step in producing green steel, is a
significant achievement and drives a considerable positive re-rating of the
Project's valuation.

The global DRI market's supply from mine assets is expected to decline
markedly in the coming years, forcing iron and steel makers to invest in
downstream upgrading infrastructure; Zanaga Project's ability to support this
premium market from source is viewed as a lucrative opportunity."

The Company will integrate these updated results into its ongoing projects and
plans, while actively engaging with potential partners and offtake
counterparts. A detailed presentation on the economic assessment is available
on the Company's website:

https://www.zanagairon.com/investors/presentations/
(https://www.zanagairon.com/investors/presentations/)

For further information, please contact:

 Zanaga Iron Ore Company Limited                             Andrew Trahar

 Corporate Development and Investor Relations Manager        +44 20 3916 5021

 Panmure Liberum Limited                                     Scott Mathieson / John More

 Nominated Adviser, Financial Adviser and Corporate Broker   +44 20 3100 2000
 Shard Capital Partners LLP                                  Damon Heath

 Corporate Broker                                            +44 20 7186 9952
 BlytheRay                                                   Tim Blythe / Megan Ray / Will Jones

 Public Relations                                            +44 20 7138 3204

                                                             Zanaga@BlytheRay.com

About ZIOC:

Zanaga Iron Ore Company Limited (AIM ticker: ZIOC) is an iron ore exploration
and development company, with its flagship asset being the 100%
owned Zanaga Iron Ore Project, located in the Republic of Congo. The
Government Mining Licence, Environmental Permit, and Mining Convention are all
in place for this project.

The Zanaga Iron Ore Project is a highly significant asset with a 6.9 billion
tonne resource and 2.1 billion tonne reserve, aimed at 30Mtpa production of
high-grade DRI pellet feed with very low impurity levels. A 2024 Feasibility
Study confirmed its strong economic viability. When fully developed, Stage One
(12Mtpa) and Stage Two (18Mtpa expansion) together could establish Zanaga as
one of the largest iron ore mines worldwide. With all key permits secured,
Zanaga is well positioned to benefit from increasing demand for high-quality,
low-impurity iron ore, utilising low operating costs and an efficient slurry
pipeline to the port.

In light of the changes in the world's economy and the increasing demand for
low-carbon steel production, the Zanaga Project is well-positioned to become
one of the largest producers of high-grade premium DRI pellet feed iron ore
concentrate.

The Zanaga Iron Ore Company Limited LEI number is 21380085XNXEX6NL6L23.

 1  Based on a DRI Pricing Case (65% Fe CFR China US$115/t, 68% Fe CFR China
US$130/t)

 

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