Exploration and development company Iron Road said on Thursday that investors and potential partners in large-scale magnetite developments would need to take a long-term view amid subdued global conditions and rising domestic energy costs that were weighing on the sentiment of Australian project developers.

The developer of the Central Eyre Iron Project (CEIP) in South Australia said the September quarter was marked by “steady and constructive” due diligence engagement with prospective investors and partners, even as the global investment climate for iron-ore projects remained cautious.

“The current subdued global investment climate for iron-ore project developers clearly necessitates investors and potential strategic partners taking a longer-term view,” the ASX-listed company said in its quarterly report. “Volatile domestic power pricing has also weighed on near-term magnetite developer sentiment and the outlook for energy intensive Australian minerals processing operations more generally.”

Iron Road is advancing its CEIP magnetite project, which it says has demonstrated strong direct reduction (DR) grade credentials. A recent South Australian government-commissioned Magnetite Global Comparison Study found the CEIP deposit compares favourably with other global resources, with concentrate grading nearly 70% iron and low impurities.

The company continues to work closely with the state’s Department for Energy and Mining and has also deepened collaboration with Revera Energy – a Carlyle-backed energy infrastructure firm – at its Cape Hardy Industrial Port Precinct. The two companies are exploring potential integration of green hydrogen feedstock into future green iron manufacturing at the port.

“Iron Road and Revera Energy are evaluating collaboration opportunities associated with the potential for Revera Energy’s initial planned 1 GW electrolyser capacity and green hydrogen production to be utilised as a future feedstock for manufactured green iron products,” the company said.

The Cape Hardy precinct has been flagged as a potential hub for renewable energy and minerals processing, and Revera’s proposed 1 GW hydrogen facility recently received approval for environmental monitoring infrastructure.

Elsewhere, Iron Road is broadening its portfolio through a farm-in agreement with Red Tiger Resources over its Mulgathing project, targeting heavy mineral sands in South Australia’s Gawler region. Fieldwork, including clearance surveys with traditional owners and environmental applications, is paving the way for exploration drilling in December.

The company ended the quarter with A$2.7-million in cash and no debt, after cutting exploration and evaluation expenditure to A$193 000 from A$570 000 in the previous quarter.

Despite headwinds in financing and power markets, Iron Road said its focus remains on long-term value creation through the CEIP and associated downstream opportunities. The company argues that global demand for high-grade iron-ore and decarbonised steelmaking technologies will ultimately support the economics of magnetite projects such as CEIP.