Investment Case

A Clear strategy for Growth

IRC is a vertically integrated
producer of industrial
commodities, notably...

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INVESTMENT CASE

IRC is a vertically integrated producer of industrial commodities, notably iron ore concentrates, operating in the Russian Far East and selling to the North Eastern China.

Competitive advantages
IRC currently is a pure-play iron ore producer with a combination of competitive advantages:

  • 1. Geology: high-quality products (65% Fe) that gives a premium margin on our products
  • 2. Geography: at China’s doorstep, deliver its products on an established rail network to the world’s largest iron ore market quicker and more frequently than any other international producer
  • 3. Profitability: with K&S unit cash-cost estimated to be below $US40/t at full-capacity of 3.2 mtpa, using Amur River Bridge
  • Optionality to expand K&S phase 1, which produces 3.2 mtpa iron ore concentrates, has an additional potential of doubling its capacity to 6.3 mtpa in total when phase 2 is being developed in the future.

    In 2017 With K&S mine ramping up and targeting to reach full capacity in 2017, IRC is an attractive investment choice with massive upside potential.

    Quoted on the Hong Kong Exchange (1029), IRC enjoys a solid reputation as a trusted company, and a good track record for delivering on its production targets. This is recognised with numerous awards, including several for corporate governance and communications activities.