Aspire Mining Limited is listed on the Australian Stock Exchange (ASX: AKM) and has been operating in Mongolia since 2010.
The Company’s assets are located in Mongolia’s North and is focused on identifying, exploring and developing quality coking coal assets.
Aspire is the owner and discoverer of the world class Ovoot Coking Coal Project (Ovoot Project) and has a 90% interest in the Nuurstei Coking Coal Project (Nuurstei Project). Aspire is also an 80% owner of Northern Railways (NR) LLC which has a 30 year concession to build the Erdenet to Ovoot Railway. NR is a Mongolian registered rail infrastructure company supported by a consortium consisting of China Gezhouba Group Construction International Ltd, subsidiaries of the Fortune 500 listed China Railway Construction Corporation, China Railway 20 Bureau Group Corporation (CR20G) and China Railway First Survey and Design Institute.
The Company has just completed a Pre-feasibility study for the Ovoot Early Development Project (OEDP) based on road delivery of coal from the project to the existing rail head at Erdenet while we await rail development. The results were released on 1 March 2019 and showed a robust starter pit, producing up to 4mtpa over a 9 year life.
The PFS delivered a NPV10 (before tax) of US$586m while mining just 15% of Ovoot’s reserves. First production expected first half 2021. This OEDP can either be extended with further cutbacks or it can be replaced by a larger mining project once the Erdenet to Ovoot Railway is completed.
Following a recent capital raising the Company is now debt free and fully funded to complete a Definitive Feasibility Study in relation to the OEDP by September Quarter 2019.
The Ovoot project is host to 255Mt JORC Coal Reserves and can sustain full scale production of up to 10 Mtpa of saleable coking coal over a 20-year life of mine with a rail connection to rail head at Erdenet.
A marketing study has confirmed favourable medium-term demand, supply and pricing fundamentals for Ovoot coking coal in the Chinese market
In August 2015, Northern Railways was granted an exclusive 30 year concession by the Mongolian government to build and operate the Erdenet to Ovoot Railway. This railway will play an important part in the establishment of a new Northern Rail Economic Corridor through Mongolia, the subject of a trilateral programme agreed by the governments of China, Russia and Mongolia. This economic corridor through Mongolia links closely with Chinese policies to establish a New Silk Road to improve Euro-Asian trade and Russia’s policy of establishing a Euro-Asian economic zone.
Stock Exchange Listing: ASX: AKM Country: Mongolia|China | Russia | Japan | Korea.
Commodity: Coal mining
Why should investors invest in you?
Aspire has released a PFS in relation to the Ovoot Early Development Project which delivers NPV10 of US$586m mining 38Mt or just 15% of existing Coking Coal Reserves. Yet the Company has a market value of A$80m, no debt and A$15m in cash as at 31 December 2018. The Company will be working on closing this gap as it works to bring forward production.
The OEDP leads into either a larger development based on railing coal from the minesite or continue on trucking washed coal to the existing rail head for transport to customers.
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