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Ore Resources Limited (ASX:OR3)

ALERT: Price-sensitive ASX Announcement for OR3
Current share price for OR3 : $0.081 -0.009 (-10%)+
Announcement
Release
26 Aug 2026 8:06AM
Price at Release
$0.090
Full Release
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Summary
Ore Resources Limited's Kangaroo Hills Lithium Project (KHLP) is focused on a Direct Shipping Ore (DSO) operation to quickly generate cash flow. Located near Coolgardie, Western Australia, the project is designed as a low-capital, rapid-deployment venture involving open-pit mining and exportation of lithium-bearing pegmatite ore through Esperance Port. The study demonstrates a robust economic outlook with a pre-tax NPV8 of A$220.8 million and a 4-month payback period. Key elements include utilizing existing infrastructure and outsourcing to reduce expenses, while future expansions into spodumene concentrate operations are planned. Market volatility and contractor dependency are primary risks, while pricing sensitivity significantly influences project value.
Key Points
  • Ore Resources Limited is advancing a Kangaroo Hills Lithium Project (KHLP) for Direct Shipping Ore (DSO).
  • The project is located near Coolgardie, Western Australia, and aims to generate rapid cash flow.
  • A DSO study indicates a low-capital, robust operation with a payback period within 4 months.
  • The proposed operation involves open-pit mining and exporting lithium-bearing pegmatite ore.
  • Economic analysis shows a pre-tax NPV8 of A$220.8M and a pre-tax IRR of 4,995%.
  • The project plans to utilize existing infrastructure and contract services to minimize costs.
  • Projected production includes 1.19 Mt of DSO over a 16-month mine life.
  • Key risks include lithium market volatility and reliance on third-party contractors.
  • Sensitivity analysis indicates DSO pricing as the most significant driver for project value.
  • Opportunities for future expansion into a spodumene concentrate operation are considered.
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.