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Strike Resources to export its WA iron ore in June

Mon 02 May 22, 2:00pm (AEST)
Iron Ore 8 Mining Port
Source: iStock

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Key Points

  • Strike targeting 55,000 tonnes of ore on ship from Port Hedland Utah Point in June
  • Development of Paulsens East project located in the Pilbara sees share price up 45% YTD
  • Logistics contract with Odell Mining Services locks in delivery of Paulsens East stockpile to Utah Point

Strike Resources (ASX:SRK) is set to export 50,000 tonnes of iron ore in June this year from Utah Point, Port Hedland, extracted from Strike Resources’ Paulsens East Iron Ore project in the Pilbara region of WA. 

The company has executed an agreement with logistics provider Odell Mining Services to deliver the ore from site to an export facility at Utah Point by truck. To this end, the company notes also an 18km haul road connecting Paulsens East to the nearest public highway is to be complete by mid-May. 

At the completion of works, Odell trucks will have direct access to Paulsens East from the nearest major public route, Nanutarra Road. 

Map of Strike's Paulsens East project
Map of Strike's Paulsens East project

Share price up 45% year to date 

Strike Resources’ is having a healthy year on the charts so far with the company’s shares up 45.45% since the start of the year to 16cps. On January 4, the price sat at 11cps. 

On a one week basis, the price has risen by 16%, and 18% over the last month. Should the June export of 50,000 tonnes go ahead as planned, the company is positioned to leverage desirable iron ore prices at double what they were at the very start of covid. 

Strike Resources’ market cap currently sits at $43.2m. 

Strike permitted to export 200,000 tonnes per year 

Strike Resources has previously executed a capacity allocation from the Pilbara Ports Authority (PPA) at Utah Point for 200,000tpa. PPA is to visit the Paulsens East site in the coming weeks after which additional documentation locking in Strike’s right of access to port services will be executed. 

Strike intends to begin trucking ore from its Paulsens East stockpile on 1 June 2022 using the newly constructed haulage road connecting the project to Nanutarra road. 

Strike's charts for the last six months compared to the All Ords
Strike's charts for the last six months compared to the All Ords

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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