CoTec Holdings Corp. Notes Portfolio Company Magiron Completes Independent Definitive Feasibility Study Confirming Strong Economics and Rapid Restart Pathway

Executive Summary

• MagIron LLC completed an independent Definitive Feasibility Study (DFS) and Reserve & Resource Statement for restarting its Plant 4 (MN) and Reynolds Pellet Plant (IN).
• The base‑case after‑tax NPV is ~US$1.6 billion with a 27.6% IRR; payback ≈3 years 7 months and mine life ≈32 years.
• CoTec’s ~17% ownership in MagIron translates to an attributable pre‑financing value of roughly US$272 million, underscoring the strategic merit of its investment.

Key Details

• Feasibility Study: Prepared by Behre Dolbear & Company; effective 14 Jan 2026.
• Economic Highlights:
• After‑tax NPV (4.9% discount) ≈ US$1.598 billion.
• IRR ≈ 27.60%.
• Payback period ≈ 3 years 7 months.
• Mine life ≈ 32 years; total LOM production ≈ 84 Mt DR‑grade pellets.
• Capital & Operating Costs:
• Up‑front capital ≈ US$435 million (≈US$190 M for mining/rail equipment, to be leased).
• Life‑of‑mine cash cost ≈ US$92.42 per dry metric tonne FOB Reynolds.
• Production Profile: Average annual DR‑grade pellet output ≈ 2.6 Mt; target 2.5–2.7 Mt/yr after restart.
• Project Timeline:
• Final Investment Decision (FID) targeted early 2026, contingent on financing.
• Refurbishment/upgrade start mid‑2026; commissioning and ramp‑up early 2027.
• Asset Context: Existing facilities represent ≈ US$660 M of historical capex with a replacement value > US$1.3 billion, offering capital‑intensity advantage over greenfield builds.
• CoTec Ownership Impact: 17% stake → attributable pre‑dilution value ≈ US$272 million (based on reported NPV).
• Qualified Persons: Joseph Kantor, Robert Cameron (Reserves/Resources); John Thompson (Mining Engineering); Mark Jorgenson (Processing); Reinis Sipols (Env & Social) – all independent.

Notable Quotes

“The completion of an independent definitive feasibility study represents an important milestone for MagIron… CoTec’s approximate 17% ownership interest … equates to significant attributable value on a pre‑financing dilution basis… This outcome reinforces the strategic rationale behind our investment approach.” – Julian Treger, CEO, CoTec Holdings Corp.