Simandou / Simfer Iron Ore Project Feasibility Study: $4.40B NPV, $4.60B Capex
Rio Tinto's Simandou / Simfer Iron Ore Project in Guinea has a Feasibility Study outlining an after-tax NPV of $4.40B and initial capital of $4.60B.
Rio Tinto's Simandou / Simfer Iron Ore Project has reported Feasibility Study results for the iron ore project in Guinea. The study headlines an after-tax net present value of $4.40B at a 8% discount rate. It reflects Rio Tinto's (RIO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $4.40B using a 8% discount rate. Initial capital expenditure is estimated at $4.60B. Economics are based on Specific product pricing determined from a 65% Fe Fines price of US c 136.10 / dmtu CFR China, sourced from average of forecasts from CRU and Wood Mackenzie.
Production and mine plan. The project envisions an open-pit operation. Average annual production is approximately 60 Mtpa iron ore fines.
Resources and ownership. The company holds a 45.05% interest in the project.
These figures are extracted from Rio Tinto's technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 123 Mt | 66.4% Fe, 1.0% SiO2, 1.2% Al2O3, 0.07% P, 2.5% LOI | — |
| Probable | 552 Mt | 65.0% Fe, 0.9% SiO2, 1.8% Al2O3, 0.10% P, 3.9% LOI | — |
| Total Ore Reserves | 675 Mt | 65.3% Fe, 0.9% SiO2, 1.7% Al2O3, 0.09% P, 3.6% LOI | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 66 Mt | 67.1% Fe, 1.9% SiO2, 1.1% Al2O3, 0.04% P, 1.0% LOI | — |
| Indicated | 198 Mt | 66.2% Fe, 1.8% SiO2, 1.5% Al2O3, 0.05% P, 1.8% LOI | — |
| Measured & Indicated | 264 Mt | 66.5% Fe, 1.8% SiO2, 1.4% Al2O3, 0.05% P, 1.6% LOI | — |
| Inferred | 340 Mt | 65.8% Fe, 1.4% SiO2, 1.4% Al2O3, 0.07% P, 2.8% LOI | — |
Our Analysis
- NPV after-tax
- $4.40B
higher than 98% of 360 projects we track
- Initial capex
- $4.60B
105% of NPV
costlier than 98% of 376 projects we track
- Study price assumption
- Specific product pricing determined from a 65% Fe Fines price of US c 136.10 / dmtu CFR China, sourced from average of forecasts from CRU and Wood Mackenzie
The after-tax NPV of $4.40B ranks higher than 98% of the 360 projects we track across all commodities. Its after-tax NPV is well below the company's market capitalisation, a modest slice of the company's value, as you'd expect for one asset in a larger portfolio. Capital runs to about 105% of project NPV, making it capital-intensive, lower than 2% of the 376 projects we track across all commodities. It is one of 26 projects we track for this company, a diversified portfolio, a large-cap developer. The project sits in Guinea, a factor in its overall risk profile.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.