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Aspire Mining Limited (ASX:AKM)

ALERT: Price-sensitive ASX Announcement for AKM
Current share price for AKM : $0.250 0.045 (21.95%)+
Announcement
Release
11 Sep 2026 9:54AM
Price at Release
$0.205
Full Release
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Summary
Aspire Mining Limited (ASX: AKM) announced that Glogex Consulting LLC completed an updated JORC 2012 Coal Reserve estimate for the 100%-owned Ovoot Coking Coal Project in Mongolia, effective 31 March 2026, which reconfirms an unchanged total Coal Reserve of 130.1 Mt on a ROM moisture basis of 2.9% comprising 76.8 Mt Proved and 53.3 Mt Probable, and an unchanged Marketable Coal Reserve of 97.9 Mt comprising 60.0 Mt Proved and 37.9 Mt Probable for a washed ‘fat’ coking coal product at 9.0% ash and 10.0% moisture; while the underlying SRK Coal Resource model, pit limits, mineable inventory and reserve classification remain unchanged from the November 2024 estimate, the update reflects revised modifying factors and a lower-capital staged development strategy including a US$69.9 million EPC contract with CCTEG-IEC for the CHPP and Erdenet Rail Terminal coal handling infrastructure, rental of mining equipment for the first three years, contracted haulage fleet supply for the first five years, deferred non-critical infrastructure and some vendor-supplied leased facilities, together with a financing model assuming about US$126.0 million of Mongolian OTC bonds plus about US$42.0 million of deferred EPC payments; based on these assumptions, long-term coking coal pricing of US$230/t DDP Erlian and a 10% real post-tax discount rate, the project generates an updated post-tax NPV10 of about US$1.48 billion and a post-tax real IRR of about 60%, with Phase 1 pre-production capital forecast at US$61.2 million excluding US$24.6 million of working capital and prior expenditure, although the announcement notes ongoing dependencies including road PPP implementation, rail capacity, power, water, final approvals and the inclusion of some Inferred Resources in the production target.
Key Points
  • Announcement dated 11 September 2026 by Aspire Mining Limited (ASX: AKM).
  • Updated Coal Reserve estimate for the Ovoot Coking Coal Project was prepared by Glogex Consulting LLC under JORC 2012.
  • Total Coal Reserve was reconfirmed at 130.1 Mt, comprising 76.8 Mt Proved and 53.3 Mt Probable.
  • Marketable Coal Reserve remains 97.9 Mt, comprising 60.0 Mt Proved and 37.9 Mt Probable.
  • Coal Reserve quantities are unchanged from Aspire’s 22 November 2024 announcement.
  • Aspire holds a 100% interest in the Ovoot Coking Coal Project.
  • The project hosts a 219.4 Mt JORC Coal Resource and is planned to produce a premium washed ‘fat’ coking coal for China.
  • The updated review retained the same SRK Coal Resource model, Coal Reserve model, pit limits, mineable inventory and mine sequence.
  • The life-of-mine schedule is largely unchanged except for being rolled forward about one year.
  • The production target is underpinned by approximately 52% Measured Resources, 36% Indicated Resources and 12% Inferred Resources.
  • The project has advanced into implementation, including execution of a US$69.9 million EPC contract with CCTEG-IEC for the CHPP and ERT infrastructure.
  • Updated development assumptions include rental of the initial mining fleet for three years and contracted road haulage fleet provision for five years.
  • Non-critical site infrastructure is deferred, with some supporting infrastructure assumed to be vendor supplied and leased.
  • The financing model assumes progressive raising of about US$126.0 million through Mongolian OTC bonds across multiple tranches.
  • The financing assumptions include 12% per annum coupon payments, 3% broker success fees and 24-month tenor for each bond tranche.
  • The model also includes about US$42.0 million of deferred payments under the EPC contract.
  • Phase 1 pre-production capital expenditure is forecast at about US$61.2 million, excluding about US$24.6 million of working capital and expenditure incurred to 31 December 2025.
  • Forecast capital expenditure includes US$88.0 million for Phase 1 post-production, US$71.2 million for Phase 2 expansion and US$1,037.3 million of sustaining capital over life of mine.
  • The updated economic evaluation returned a post-tax NPV10 of about US$1.48 billion and a post-tax real IRR of about 60%.
  • The economic model assumes a long-term coking coal price of US$230/t DDP Erlian, China, and a 10% real post-tax discount rate.
  • Production is planned to commence at about 1.5 Mtpa ROM, ramp to about 2.5 Mtpa and later to about 5.0 Mtpa ROM over an operating mine life of about 31 years.
  • The project cost model covers January 2026 to December 2058, including construction and pre-production.
  • Key project dependencies include road PPP delivery, CHPP and ERT completion, rail capacity, power connection, water supply and remaining approvals.
  • Sensitivity analysis indicates project NPV is most sensitive to revenue changes, followed by operating costs and capital costs.
  • The announcement states there is low geological confidence associated with Inferred Resources and no certainty the production target will be realised.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.