Legacy Iron Ore (ASX:LCY) responds to ASX queries on Mt Celia project

Legacy Iron Ore Limited (ASX:LCY) has provided a detailed response to the further ASX aware letter received from the Australian Securities Exchange on 9 September 2024. The response addresses specific queries related to the Mt Celia project and the company's annual report for the year ended 31 March 2024. The company's Chief Executive Officer, Rohln Rakesh Gupta, has authorized the response, which includes comprehensive explanations and clarifications regarding various aspects of the project and the annual report.

Executive Commentary on Mt Celia Project and Annual Report

The auditors were unable to obtain sufficient, appropriate audit evidence in relation to the recoverable amount of the Mt Celia cash-generating unit due to several key factors, despite management's explanations and forecasts for the Mt Celia project. The company provided a detailed memorandum to the auditors explaining the variances between the initial financial model projections and the actual mining results during the reporting period. The differences were attributed to changes in mineral resource models, operational and environmental challenges, ongoing optimizations and revisions, and potential upside potential. However, the auditors were unable to verify these claims due to the lack of sufficient supporting evidence, leading to significant uncertainty about the CGU's recoverable amount.

Summary of Legacy Iron Ore's Response and Outlook

Legacy Iron Ore (ASX:LCY) has responded to ASX queries regarding the Mt Celia project and the annual report, providing detailed explanations for various aspects raised in the queries. The company has addressed concerns related to the Mt Celia Grade Control Drilling results, the updated Mineral Resource Estimate, and compliance with disclosure requirements. The response also highlighted the challenges faced, including operational constraints, force majeure events, and ongoing optimizations. Looking ahead, the company aims to continue its efforts in revising and optimizing the mining model, with potential improvements in the recoverable amount expected upon completion of ongoing revisions and optimizations.