Iron Road Ltd (ASX:IRD) Reports Strong Q4 Activity and Payments
Milestone Payments Received
Iron Road Ltd (ASX:IRD) has successfully secured a $3.0 million non-dilutionary milestone payment from Amp Energy. This payment is part of ongoing developments related to the Cape Hardy Industrial Port Precinct and follows a previous payment of $1.5 million. The total non-dilutionary payments received from Amp since September 2024 now amount to $5.0 million.
Project Developments
In conjunction with the milestone payments, Northern Water has made notable progress, with non-refundable monthly instalments paid through to December 2024. The option for Northern Water to purchase land at Cape Hardy has also been extended by three months. Recent geotechnical investigations have commenced, enabling preparations for a proposed desalination plant, aimed at supporting the Cape Hardy site’s potential as a green iron industrial precinct.
Central Eyre Iron Project Progress
On 16 January 2025, Iron Road announced significant advancements in a Scoping Study by WSP Australia. The study evaluates a 130km slurry transport solution from the Central Eyre Iron Project to Cape Hardy. The proposed solution is aimed at reducing community disruption compared to alternative transport methods. A finer-grind direct-reduced iron concentrate product will align with market demands, attracting potential investors.
Financial Performance
As the quarter ended, Iron Road reported cash reserves of $5.5 million with no debt, indicating a healthy financial position. The net cash inflow from operating and investing activities during the quarter reached $2.6 million. The company’s strategic marketing efforts could potentially attract experienced industry stakeholders.
Executive Comments
Larry Ingle, Chief Executive Officer of Iron Road Ltd, expressed confidence in the company’s strategic direction, stating, “We are encouraged by the progress made across our key projects which positions us well for future developments.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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