Friday, 16 November 2012

Calling All Dragons - See Black Iron in Toronto

Private investors are being handed the opportunity to become the next Kevin O'Leary, or Arlene Dickinson thanks to an innovative Dragon’s Den-style event.
The Proactive Investors One2One forum promises to provide them direct access to the bosses of some of the nation’s most dynamic growth companies.
This time, the One2One Investor Forum will be held at the Ivey ING Direct Leadership Centre, on November 20. It promises to be an interesting affair, with this compelling investment opportunity on hand for attendees.  
The firm, Black Iron, which just this week handed in its bankable feasibility study for its flagship Shymanivske iron ore project to investors, will make a 20 minute pitch followed by a 10 minute inquisition by a roomful of potential Dragons.
“Our inquisitors are every bit as tough as their television counterparts, but perhaps a little fairer,” says Proactive Investors managing director Craig Ribton.
“How often do private investors get the opportunity to meet the heads of businesses they might invest in?”
The brainchild of Ribton and co-founder Ian McLelland, the One2One Forums offer just that chance.
Although the format is similar to the reality TV series (Proactive says it came up with the idea first), the aim is slightly different. 
“We are about empowering investors, rather than demeaning the people in charge. I don’t think that approach works or has ever worked,” said Ribton.
“Our plan since our inception has been to introduce investors to some of the most exciting and dynamic growth investments out there. 
“We also want to level the playing field for those investors by offering them the kind of access that only fund managers receive.”
In six years, Proactive has organized more than 300 events and introduced investors to some of the stock market’s best-performing stock market listed companies.
Once all the companies have presented, complimentary canapés and beverages are available for 90 minutes during a break-out session, where attendees can mingle with other guests, or ask more questions to the presenters.
Appearing at the Ivey ING Direct Leadership Centre in Toronto from 5:30pm onwards will be Black Iron (see mini-biog below).
Be sure to register HERE
Earlier this week, Toronto-based Black Iron (TSE:BKI) released its highly anticipated bankable feasibility study (BFS) on its Shymanivske iron ore project in Kryviy Rih, Ukraine, which projects a whopping pre-tax 45.9% internal rate of return (IRR) and a net present value of US$3.5 billion. 
The study, done by WorleyParsons Canada Services and two other firms, outlines an operation producing 9.2 million tonnes per year of high grade 68% iron ore concentrate -  “well above” the benchmark of 62.0 per cent.
The US$3.5 billion net present value was estimated with an 8% discount rate, and total capital costs, excluding sustaining capital of US$689 million, were projected at $1.09 billion. 
VP of corporate development Aaron Wolfe says that on a capital sensitivity basis, capex actually went down when compared to the preliminary economic assessment - saving about $4 per tonne, as the new study is supporting 26% more production. 
The project, with proven and probable reserves of 448.2 million tonnes at a grade of 31.1% iron and a measured and indicated resource of 645.8 million tonnes at 31.6% iron, is expected to have a mine life of 16 years. 
The company noted that it believes additional exploration and definition drilling could expand the existing resource at the property, potentially adding up to 5 years to the project's life. 
The NI 43-101 report estimated 2.2 years to payback, with revenue generation projected to start by the first quarter of 2016. Average annual revenue over the life of the mine is estimated at over $1.1 billion.
The Shymanivske property is surrounded by existing infrastructure, including access to power, rail and port facilities. Two operating mines - ArcelorMittal’s Kryviy Rih iron ore complex and YuGOK, owned by Evraz and Smart Holding - are "essentially adjacent" toBlack Iron’s asset, and have been successfully producing a high quality concentrate for years.
Presentations at the One2One forum in Toronto will start at 5:30pm and finish at 7:00pm. If you have any problems registering or queries please email
We look forward to seeing you there! 

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