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Akora Resources (ASX:AKO) is positioning itself to become a major supplier of cleaner, higher-grade iron ore, with its flagship Bekisopa Project in Madagascar offering both near-term cashflow and long-term exposure to the booming demand for green steel.

Unlocking Madagascar’s high-grade iron ore future

The company controls four prospective projects across 308km2, but Bekisopa is the clear focus. The deposit already boasts a 194.7 million tonne JORC Inferred Resource with very low impurities, capable of producing a premium-priced concentrate grading over 68% iron.

That grade is critical for emerging Direct Reduced Iron–Electric Arc Furnace (DRI-EAF) technology, which allows steelmakers to cut their reliance on coal and dramatically reduce carbon emissions.

In the near term, Akora is pursuing a stage one direct shipping ore operation at Bekisopa, designed to deliver two million tonnes of product annually for six years.

Ore will average 61.6% iron and be shipped to traditional Blast Furnace–Basic Oxygen Furnace steelmakers, generating early revenues while laying the foundation for further development.

Mining is expected to be straightforward, with shallow open pits that avoid the need for drill and blast, and ore to be hauled to the Port of Toliara for export via transshipping barges and offshore loading.

Figure 2: New bypass road from RN7 highway to be used to access Toliara Port, due for completion mid-2026.

A pre-feasibility study completed in March 2025 highlighted the strong economics of the project. At a benchmark price of US$100 per tonne, Bekisopa’s starter operation delivers an impressive internal rate of return of 86%, a pre-tax net present value of US$147M and a payback period of just 1.8 years.

Start-up capital of around US$60.6M is projected to unlock more than US$300M in pre-tax cashflow over the initial mine life, with cash costs forecast at a highly competitive US$42 per tonne free-on-board.

Figure 3: Bekisopa high-grade iron ore project PFS confirms a robust 2Mtpa DSO Operation with an 86% IRR. Source: Akora ADU Presentation.

The opportunity doesn’t stop with direct shipping ore (DSO). Beneath the surface lies extensive magnetite mineralisation, underpinning Akora’s ambition to establish a long-life operation producing DRI-grade concentrate.

With global demand for low-carbon steel rising sharply, the ability to deliver a consistent +68% iron product places Bekisopa in the sights of steelmakers across Asia, the Middle East and Europe seeking premium feedstock.

Management sees substantial upside ahead. Only ~40% of the mineralised DSO trend has been evaluated, while an exploration target of 500 million to one billion tonnes points to the scale of the opportunity.

Figure 4: Bekisopa’s DSO sits above an expansive multi-decade inferred magnetite resource.

Work programs are being advanced to secure government support, mining licences and environmental approvals, alongside a strategic partner process to align offtake and financing options.

As the company targets a final investment decision in the first half of 2026, Akora Resources is shaping up as one of the ASX’s most compelling iron ore growth stories.

From near-term production and cashflow to the potential of a multi-decade premium concentrate business, Bekisopa offers a clear pathway to value creation while helping supply the greener steel industry of the future.

AKO’s Australian Security Exchange-listed share price is currently trading at $0.099 (1:00 pm UTC+ 8 hours)

The Market Bull: "Akora eyes premium iron ore growth from Madagascar"