Episode 203 of Noel Ong's Coffee with Samso introduces what could become one of the most compelling Australian Securities Exchange (ASX) small-cap resource stories of 2025 – Cyclone Metals Ltd – a largely overlooked company with a significant asset in magnetite iron ore.
This episode focuses on the pedigree of Cyclone’s Iron Bear magnetite project. In the Australian market, iron ore is traditionally associated with haematite grading above 62% iron (Fe). However, the industry is shifting. Magnetite is emerging as a key player – and Cyclone Metals holds a project with the potential to deliver premium-grade iron pellets.
“Where can you find a mineral resource business owned by a small-cap junior with a market capitalisation of under A$50 million that has secured funding all the way through to mining and processing?” asks Paul Berend, Executive Director and Chief Executive Officer of Cyclone Metals. “Cyclone began this journey with a market cap of just A$10 million.”
Berend notes that the shift from haematite to magnetite is being driven by the depletion of high-grade haematite deposits. Cyclone’s strategy aligns with this trend, bolstered by a strategic partnership with global iron ore major VALE, which is providing funding support through to production – a rare position for a junior company.
The steel industry’s move towards low-emission production through Direct Reduction (DR) requires high-purity iron pellets. “Not all magnetite deposits are suitable for Direct Reduction Pellets, which is why the Iron Bear deposit is perfectly aligned to allow this process to be achieved,” says Berend.
Cyclone’s recent technical work indicates that iron ore from Iron Bear can be upgraded into pellets exceeding 71% Fe – a distinctive characteristic not commonly found, even among larger producers such as Champion Iron.