Grängesberg Exploration: Anglo American-deal provides significant validation and financing for ambitious growth plan - Emergers
After the DFS for Dannemora in Dec 2022 showing an IRR of 27% after tax, GRANGEX has now signed a two-fold deal with global mining giant Anglo American. The deal includes a binding term sheet for an Offtake Agreement for Dannemora’s high-grade (68%) low carbon footprint iron ore concentrate worth SEK 15bn (at today’s price) over 11 years and a USD 10m upfront Royalty Agreement. This provides both a significant validation and immediate capital injection, effectively lowering the risk and thereby our discount rate. With an extended production period (11y), strong USD and revised cost and financing structure (taking plans for a larger financing into account), we now find support for a risk-adjusted fair value of SEK 72-94 per share in 12-24m.
Länk till analysen i sin helhet: https://www.emergers.se/grangex_23m/