Join our daily newsletter At The Bell to receive exclusive market insights
- Strike Resources (SRK) advises that the maiden 35,000 tonne ore shipment from the Apurimac Iron Ore Project in Peru has arrived safely in China
- The company is sending its Apurimac Premium Lump direct shipping iron ore to a steel mill customer in the region, with delivery still pending
- SKR says it locked in a strong price of US$141.50 (A$195 ) per dry metric tonne for the entire 35,000t shipment, protecting it from recent price volatility
- Strike also confirmed it will send a second shipment from Peru to a South American steel mill, at a fixed price above market average
- Shares in Strike Resources are trading flat at 11.5 cents each at 1:22 pm AEST
Strike Resources (SRK) advises its maiden 35,000 tonne ore shipment from the Apurimac Iron Ore Project has arrived safely in China.
The company sent its Apurimac Premium Lump direct shipping iron ore from Peru to a steel mill customer in the region, with delivery still pending at this stage.
SKR locked in a fixed price ahead of the shipment, which it said allowed it to avoid current price volatility within the iron ore market.
Specifically, the steel mill customer agreed to buy Strike’s ore for US$141.50 (A$195 ) per dry metric tonne.
Looking ahead, the producer believes it will be able to command a premium for its high-grade 66 per cent iron Apurimac Premium Lump DSO.
In a statement, Strike Resources Managing Director William Johnson said the business will continue to monitor prices and its hedging position.
“The hedging undertaken by Strike has provided considerable protection to Strike given the recent significant downward movement in iron ore prices,” Mr Johnson said.
“We will continue to monitor iron ore prices and institute further hedging if believed necessary.
“The high grade and quality of the Apurimac Premium Lump DSO provides extra margin to partly counter the dramatic decline in iron ore prices.”
The company also revealed in today’s update that it will soon dispatch its second shipment of iron ore from Peru to a South American steel mill.
The exact price is unclear, however, SKR said it was at a fixed price above market average.
Shares in Strike Resources were trading flat at 11.5 cents each at 1:22 pm AEST.
