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Black Iron 5% Higher After Preliminary Economic Assessment Projects $3B NPV

Black Iron Inc. (BKI.TO) is up about 5% at 60 cents a share after filing a Preliminary Economic Assessment Report for its Shymanivske iron ore property in the Ukraine, based on the resource estimate in the company's NI 43-101 report.

The assessment outlines an operation producing 7.3 million tons per year of 67% iron ore pellet plant feed, projecting a 42.1% internal rate of return and a $3.0 billion net present value at an 8% discount rate.

The report also outlines Black Iron's option to produce 7.6 million tons per year of 65% pellets, which generates a much higher NPV of $4.1 billion, along with a reduced IRR of 35.2%, due to higher construction costs.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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