Iron Road Ltd · ASX:IRD
Iron Road — South Australia Resources & Energy Investment Conference 2013
24 slides from Iron Road's conference presentation, Apr 30, 2013
Slide 1: One Billion Tonnes of Opportunity
One Billion Tonnes of Opportunity For personal use only Opening Up SA’s Next Generation of Developments South Australia Resources & Energy Investment Conference 30 April 2013 1
Slide 2: Disclaimer
Disclaimer For personal use only Forward-Looking Statements This presentation contains forward looking statements concerning the projects owned by Iron Road Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates
Slide 3: Iron Road's Vision
Iron Road’s Vision For personal use only Iron Road’s vision is to become a trusted and reliable supplier of premium iron concentrates to the Asian marketplace. 3
Slide 4: Iron Road's Strategy
Iron Road’s Strategy For personal use only Key to achieving this vision is IRD’s pathway to development that recognises current market constraints and utilises the common product specification of its two South Australian resource districts to enable a flexible development strategy. Gawler Iron Proje
Slide 5: Gawler Iron Project
Gawler Iron Project For personal use only Potential for small 1-2Mtpa development that may provide early sustaining cash flows • Iron Road 90% • Average in situ grades ~25% iron, with higher grade zones of ~36% iron • Metallurgical study of several composite samples indicates excellent beneficiation
Slide 6: Gawler Conceptual Plant Layout
Gawler Conceptual Plant Layout For personal use only • Modular plant layout, designed for rail transport. • ~25km from Trans- Australian rail with connection to bulk ports • Dry process flow sheet, reducing costs • High quality iron concentrate with similar characteristics to CEIP 6
Slide 7: SA's Largest Resources Development Project
SA’s Largest Resources Development Project For personal use only • CEIP is a large development, +30 year mine life • Not just ‘dig and ship’ – on site processing plant brings process skills and technology to the State. • Head office and project team in Adelaide – Not remote controlled • Underpins Ca
Slide 8: Central Eyre Iron Project
Central Eyre Iron Project For personal use only • Mineral Resources sufficient to support long life operation, plant and infrastructure funding requirements • Premium product for a growing market – Typical sinter feed quality is reducing over the long term – Iron Road will provide consistent high qu
Slide 9: Iron Road's Natural Advantage
Iron Road’s Natural Advantage For personal use only Iron Road’s mineralisation has a natural advantage – the earth’s forces have done much of the hard work already Does not require pelletising Coarse brittle rock Less impurities Iron Gneiss Easily processed 9
Slide 10: One Billion Tonnes of Concentrate
One Billion Tonnes of Concentrate For personal use only Significant growing resource base – underpins long life operation Exploration targets 3,000 • Current Mineral Resource- Mineral Resource Tonnage - millions 2.6 billion tonnes @ 16% Fe* • Mineral Resource upgrade 2,000 expected Q2 2013 • Ultimat
Slide 11: Premium Grades, Lower Processing Costs
Premium Grades, Lower Processing Costs For personal use only 72 VMC-Yalgoo CEIP high grade (higher revenue) IRD-CEIP (40 micron) coarse grind (higher margin) 70 ARH-Balmoral IRD-CEIP (53 micron) Concentrate Grade - % iron AGO-Ridley IRD-CEIP (75 micron) GRR-Southdown 68 GBG-Karara CXM-Bungalow CXM-F
Slide 12: CISRI Test Work Shows Marvellous Results
CISRI Test Work Shows Marvellous Results For personal use only • Bulk test programme at the prestigious Beijing based China Iron & Steel Research Institute Group (CISRI) • Confirmed that concentrate performs well in both sintering and pelletising • Iron Road product readily substituted for Brazilian
Slide 13: 2012 Seaborne Iron Ore Cost Curve – CFR China
2012 Seaborne Iron Ore Cost Curve – CFR China For personal use only • Current indications suggest CEIP position slightly to the right of the 50 percentile – lower 3rd quartile of CEIP today’s seaborne iron ore cost curve • To be marketed as a high quality sinter blend, with a larger potential market
Slide 14: Margins and Finance Example
Margins and Finance Example For personal use only 67% Fe ~62% Fe ~57% Fe • Expected long term pricing of ~14% over the reference 62% iron $/t Gross price landed in China with small Margins additional freight Cash Costs • Iron Road delivers consistent 67% iron over entire +30 year project life, while
Slide 15: Economic and Competitive Advantages
Economic and Competitive Advantages For personal use only Mining Processing Rail Port Low strip ratio of 0.8:1 Common and proven Significantly shorter Sheltered, deep location mechanical process than Pilbara and with short jetty = reduced Brazilian routes capital cost 58% of work has been conducted
Slide 16: Beneficiation Plant Layout
Beneficiation Plant Layout For personal use only 16
Slide 17: Deep Water Port
Deep Water Port For personal use only • Cape Hardy offers sheltered, deep water with no dredging or breakwater required • 1.6km modular jetty/wharf structure • 30Mtpa capacity at commissioning • Handymax, Panamax and Capesize capable • 1100ha land secured, potential third party access • Easy and cos
Slide 18: Community and Stakeholder Engagement
Community and Stakeholder Engagement For personal use only • Iron Road is committed to earning its place in communities in which we operate • Investing in local social infrastructure – major sponsor and supporter of local community events • Extensive community programmes in place – now expanding to
Slide 19: Where We Are Now
Where We Are Now For personal use only Gawler Concentrate scoping CEIP marketing Port site of study in definitive and test Government national progress, feasibility work support at significance potential for study well confirming all levels secured early cash advanced advantages flow and appeal 19
Slide 20: On the Road to Production
For personal use only On the Road to Production Subscribe to alerts online www.ironroadlimited.com.au 20
Slide 21: Appendices
For personal use only Appendices 21
Slide 22: CEIP Competitive Advantages
CEIP Competitive Advantages For personal use only Resource Quality Infrastructure Political Risk Proximity to Markets Long life and easily Very low. Government CEIP upgradable, producing Viable solution to fill support to stimulate Favourable (South Australia) consistent high quality infrastructure
Slide 23: Board & Management
Board & Management For personal use only Larry Ingle General Manager Management 2012 was a year of transformation in Alan Millet Infrastructure Manager preparation for execution of our strategy. Aaron Deans Project Manager Fop Vanderhor Project Manager, Gawler Peter Cassidy Non-executive Chairman Bo
Slide 24: CEIP Resource Statement
CEIP Resource Statement For personal use only Central Eyre Iron Project Global Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Location Classification (Mt) (%) (%) (%) (%) (%) Indicated 1,108 16.0 53.2 12.9 0.08 0.4 Murphy South Inferred 668 16 53 13 0.08 1.3 Boo-Loo Inferred 328 17 52 12 0.09
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