AKORA’s Bekisopa Project Secures 25-Year Permit with US$61M Capital and 86% IRR

Regulatory Breakthrough for Bekisopa

AKORA Resources Limited (ASX:AKO) has achieved a significant regulatory milestone with the formal granting of a 25-year mining permit for its Bekisopa high-grade iron ore project in Madagascar. This permit, issued by the Ministry of Mines and registered with the Bureau du Cadastre Minier de Madagascar, provides the company with long-term tenure over approximately 25 square kilometres, effectively transitioning the project from exploration into the development phase.

The permit’s approval follows a thorough review process and reflects the Malagasy Government’s commitment to fostering a sustainable, investment-ready mining sector. For AKORA, this regulatory certainty is a critical enabler, allowing the company to advance detailed feasibility studies, engage with strategic partners, and progress financing discussions with banks and offtake providers.

Compelling Project Economics

AKORA’s Bekisopa project is underpinned by robust economics as outlined in its March 2025 Pre-Feasibility Study. The initial stage targets a six-year mine life with a modest upfront capital requirement of US$61 million. The project promises strong returns, boasting an internal rate of return (IRR) of 86% and a rapid capital payback period of just 1.8 years. Operating costs are low, with a C1 cash cost of US$42 per tonne, supporting a pre-tax cash flow of US$789 million and total revenue of US$310 million.

These figures highlight Bekisopa’s potential as a low-cost, high-margin direct shipping ore operation, producing premium-grade iron ore suitable for greener steelmaking technologies. The project’s scale and quality position it well to meet growing demand for cleaner steel inputs.

Strategic and Social Dimensions

Beyond the technical and financial metrics, AKORA is placing strong emphasis on stakeholder engagement and social licence to operate. The company plans to deepen relationships with local communities and regulators, ensuring compliance with Malagasy environmental, social, health, and safety standards. This approach aligns with global ESG expectations and supports sustainable development in the region.

To retain and incentivise key talent critical to delivering on project milestones, AKORA has introduced a targeted retention and performance rights program. This initiative aligns management and staff rewards with the successful execution of value-driving objectives, including securing financing and advancing development plans. The program’s issuance to directors awaits shareholder approval, reflecting a disciplined governance approach.

Looking Ahead

AKORA’s Managing Director, Peter Bird, described the permit grant as transformational, opening the door to accelerated engagement with strategic partners and financiers. The company’s recent participation at the Mining Indaba Conference in Cape Town generated encouraging interest, reinforcing the project’s strategic value. Moving forward, AKORA will focus on advancing feasibility studies, securing funding, and expanding community initiatives to unlock Bekisopa’s full potential.

With Madagascar’s government demonstrating a clear commitment to mining sector development, AKORA’s Bekisopa project stands at the cusp of delivering significant shareholder value alongside tangible economic and social benefits for the region.