Cotec notes MagIron DFS supports restart economics

Executive Summary

• Cotec Holdings Corp. notes that its portfolio company, MagIron LLC, has completed an independent definitive feasibility study for the restart of its Plant 4 facility in Minnesota and the Reynolds pellet plant in Indiana.
• The study confirms strong economic metrics, including a base-case after-tax NPV of approximately $1.6 billion (U.S.) and an internal rate of return of 27.60%, positioning MagIron to become a domestic supplier of DR-grade iron units.
• MagIron targets a Final Investment Decision (FID) in early 2026, with refurbishment commencing in mid-2026 and commissioning expected in early 2027.

Key Details

• Study Details: The definitive feasibility study and reserve/resource statement were prepared by Behre Dolbear & Company (USA) Inc. with an effective date of Jan. 14, 2026.
• Economic Highlights:
  • Base-case after-tax NPV (4.9% discount rate): ~$1,598 million (U.S.).
  • Internal Rate of Return (IRR): 27.60%.
  • Payback Period: ~3 years and 7 months.
  • Mine Life: ~32 years.
• Production Metrics:
  • Average annual DR-grade pellet production: ~2.6 million tonnes.
  • Total life-of-mine production: 84 million tonnes.
  • Life-of-mine average cash costs: ~$92.42 (U.S.) per dry metric tonne (FOB Reynolds).
• Capital Costs:
  • Upfront capital costs: ~$435 million (U.S.).
  • ~$190 million (U.S.) of upfront costs associated with mining and rail equipment expected to be leased.
  • Historical capital investment in existing infrastructure: ~$660 million (U.S.).
  • Replacement value of facilities: >$1.3 billion (U.S.).
• Timeline:
  • Final Investment Decision (FID): Targeted for early 2026 (subject to financing).
  • Refurbishment/Upgrade: Targeted to commence mid-2026.
  • Commissioning/Ramp-up: Targeted for early 2027.
• Cotec Ownership Impact: Cotec holds an approximate 17% ownership interest in MagIron. Based on the reported post-tax NPV of ~$1.6 billion, this interest implies an attributable value to Cotec of approximately $272 million (U.S.) on a pre-financing dilution basis.
• Technical Validation: The study incorporates pilot-plant testwork conducted at the Natural Resources Research Institute at the University of Minnesota, validating MagIron's processing flowsheet.
• Qualified Persons: The study was prepared by independent qualified persons including Joseph Kantor, Dr. Robert Cameron (reserves/resources), John Thompson (mining engineering), Mark Jorgenson (processing/engineering), and Reinis Sipols (environment/social).

Notable Quotes

• Julian Treger, CEO of Cotec: "The completion of an independent definitive feasibility study represents an important milestone for MagIron. Based on the posttax base-case economics reported by the company, Cotec's approximate 17-per-cent ownership interest in MagIron equates to significant attributable value on a prefinancing dilution basis. Using MagIron's reported posttax NPV of approximately $1.6-billion (U.S.), this interest implies an attributable value to Cotec of approximately $272-million (U.S.). This outcome reinforces the strategic rationale behind our investment approach and our focus on advancing assets that strengthen domestic supply chains for critical materials."