Ore Resources (ASX:OR3) has unveiled a capital-light DSO plan for Kangaroo Hills that could put the lithium project into production in less than two months from project commencement.
The Scoping Study outlines $24.9M of capital, a pre-tax NPV of $220.8M and $237.5M in post-capital, pre-tax net cash flow over an initial 16-month mine life.
Keep it simple
The model is deliberately stripped back.
Mine the pegmatite. Crush it. Truck it to Esperance. Ship it.
By avoiding a full spodumene concentrator at the outset, Ore expects to reduce capital, shorten construction time and get to market faster. The study forecasts 1.19Mt of DSO production at an average 1.07% Li₂O grade.
Table 1: Key physical parameters.
The economics do the talking
The study uses a DSO price assumption of A$430/t CIF against operating costs of about A$210/t.
That translates to forecast revenue of $513.4M, a pre-tax IRR of 4,995% and payback in under four months.
The numbers are eye-catching, although this remains a Scoping Study rather than a final investment case, with approvals, funding and offtake still to be secured.
Table 2: Key financial outcomes.
A resource to underpin it
Ore also declared a maiden Kangaroo Hills Mineral Resource of 3.10Mt @ 1.01% Li₂O, with roughly 90% classified as Indicated.
More than 1Mt of additional Indicated DSO material inside the broader economic pit shell was left out of the initial production schedule, providing potential mine-life upside if pricing supports it.
Managing Director Nick Rathjen said the contractor-led model is designed to deliver a rapid, low-capital path to early cash flow.
Figure 1: Kangaroo Hills and Miriam Lithium Projects – Plan View.
What’s next
Ore is advancing Mining Licence and environmental approvals while discussing offtake and potential non-dilutive prepayment funding with strategic partners. FID is targeted for mid-2027.
Ore sorting, metallurgy and more drilling could add further upside.
Kangaroo Hills already had the lithium, now it has a much clearer route to the cash register.
