Strike Resources (ASX:SRK) Limited has chartered a Bulk Carrier Vessel for its first shipment of up to 35,000 tonnes of Apurimac Premium Lump direct shipping iron ore sourced from its Apurimac Project in Peru.
The chartered vessel is scheduled to arrive at the Port of Pisco on or around August 11, 2021.
Ore is being transported by trucks from a local stockpile area into a dedicated storage area within the Pisco Port Terminal.
Haulage of the ore to the port will be completed in advance of the vessel’s scheduled arrival with the loading of about 30,000 to 35,000 tonnes of Apurimac Premium Lump on to the ship expected to take around four days.
Premium pricing
The ore will be exported to China in line with the company’s offtake agreement with good importing International Pty Limited.
The high-grade (65% iron content) Apurimac Premium Lump direct shipping ore (DSO) product is expected to provide a premium to the 62% iron content benchmark price, which results in an additional $US30 per tonne over the current benchmark prices.
Ramping up production
Following this first shipment, the company is ramping up production logistics, targeting multiple repeat shipments to secure annualised sales of around 250,000 tonnes from the Apurimac Project.
The company continues to advance securing additional crushing and transport capacity to meet this annualised target.
According to the company, given the current strong demand and premium prices for high-grade lump iron ore, there is a clear opportunity to generate strong near-term cashflows from this operation.