Zanaga Iron Ore Co. Ltd. · LSE:ZIOC
Zanaga Iron Ore — Non-Deal Roadshow (April 2011)
20 slides from Zanaga Iron Ore's roadshow presentation, April 2011
Slide 1: Investor Presentation Roadshow
Investor Presentation Roadshow November 2010 Presentation April 2011
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE This document, which is personal to the recipient, has been issued by Zanaga Iron Ore Company Limited (the “Company”). This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for
Slide 3: Investment Highlights
Investment Highlights JORC resource of 4.0bn tonnes at 33.9% Fe • Significant upside along strike and at depth Planned production of 45 mtpa of high grade product Strategic & funding partnership with Xstrata Project fully funded to completion of FS ZIOC has complete flexibility in funding
Slide 4: Zanaga Project History: Work programmes
Zanaga Project History Work programmes Combined PFS/Value Feasibility Study Initial Order of Magnitude Engineering Exercise 24 month Exploration Study PFS completion completion target 2007/8 2009 2010 2011 Q1 2014 US$21mm spent US$106mm spent Est. >US$200mm spend Corporate Milestones May : Exclusive
Slide 5: Key developments since the IPO
Key developments since the IPO Xstrata exercised option to acquire 50% + 1 share in Jumelles Limited, which owns the Project, in Feb 2011 • Zanaga Project now funded to completion of Feasibility Study • Partnership with major mining company focussed on building an iron ore division • ZIOC has compl
Slide 6: Strategic partnership with Xstrata - what does it mean?
Strategic partnership with Xstrata - what does it mean? • Xstrata owns 50% + 1 share in the Zanaga Project • Xstrata has management control of the Zanaga Project • Xstrata has a contractual obligation to deliver a Feasibility Study to international best practice standards and Xstrata internal guidel
Slide 7: Zanaga JORC resource upgrade
Zanaga JORC resource upgrade Resource Table • Expansion of resource to 4.0bnt Tonnes Fe SiO2 P Al2O3 Mn LOI 47km Classification (Mt) (%) (%) (%) (%) (%) (%) • Grade improvement to 33.9% Fe Measured - - - - - - - >10km not drilled (north) Indicated 1,720 36.3 41.4 0.046 2.70 0.10 1.20 • Drilling to 2
Slide 8: Value Engineering Exercise and PFS
Value Engineering Exercise and PFS • Value Engineering Exercise including Scope and Options Review commenced • Multi discipline expert team assembled covering all elements of the project scope • Initial workshops generated and prioritised specific ideas and opportunities with strong potential to imp
Slide 9: ZIOC Strategy
ZIOC Strategy • Focus on maximising value of the Zanaga Project • Formal rights under the JV Agreement • Board representation/Technical Committee representation • Appointment of in-house engineering expertise • Assess post-FS funding opportunities • Ensure long term maximisation of value for Zanaga
Slide 10: Xstrata has the one off right to acquire ZIOC's stake at NPV
Xstrata has the one off right to acquire ZIOC’s stake in the Zanaga Project at NPV on completion of the FS • Valuation criteria : • 10% real discount rate • Pricing based on index forward curve and/or average of CRU and AME prices • FS assumptions • CRU/AME prices are currently significantly higher
Slide 11: Long-term fundamentals for iron ore prices look positive
Long-term fundamentals for iron ore prices look positive AME/CRU average real long-term Current global cost curve for iron prices (FOB) v current consensus ore fines for delivery into China Usc/dmtu (US$pertonneCIFChina) 300 Australian FOB spot prices 160 250 120 200 US$65/t plus Brazil Freight 80 A
Slide 12: Investment Highlights
Investment Highlights JORC resource of 4.0bn tonnes at 33.9% Fe • Significant upside along strike and at depth Planned production of 45 mtpa of high grade product Strategic & funding partnership with Xstrata Project fully funded to completion of FS ZIOC has complete flexibility in funding
Slide 13: Corporate overview
Corporate overview Top 10 Shareholders Listing : London Stock Exchange AIM market Fund Manager % O/S Shares (m) 1 Directors 72.5% 204.4 2 BlackRock 8.3% 23.3 Ticker : ZIOC LN 3 F&C Asset Management 5.5% 15.5 4 TT International 3.3% 9.3 5 Company Related Holdings 2.0% 5.57 Market Cap : GBP 423m
Slide 14: Appendix
Appendix
Slide 15: Republic of Congo Overview
Republic of Congo Overview • Congo (Brazzaville), NOT TO be confused with Democratic Republic of Congo - Population of c.4m with low density (12 people/km2) • Rated equivalent security and political risk to Mozambique 1 • Politically stable since end of civil war in 1999 - President Denis Sassou-Ngu
Slide 16: Zanaga Project Overview
Zanaga Project Overview 9.7km 47km 5.4km 25 Km Zanaga 5.7km Itabirite Mafic amphibolites Base Location Zanaga orebody footprint Drill zones Zanaga MPD CAMP Comilog Mn Railway Railway Zanaga Heavy Haul Railway 1930's Narrow Access Jetty Gauge Railway Brazzaville Channel Loading Platform M ay om b
Slide 17: Board of Directors
Board of Directors Colin Harris Clifford Elphick Director Non-Executive Chairman •Former Project Director for the Zanaga Iron Ore Project • Founder & CEO of Gem Diamonds •Former Project Director for Rio Tinto’s Simandou iron ore project • Managing Director of E Oppenheimer and Son for 14 years, for
Slide 18: Gallery
Gallery Surface evidence of iron content 7 drill rigs operating 24 hrs a day Removal of core sample Drill rig at work on Mount Lebayi Core sample Logistics base in Pointe Noire 17
Slide 19: Gallery
Gallery Sample analysis Dedicated on-site clinic Administering polio vaccinations Environmental team School improvement programme School improvement programme 18
Slide 20: Contact
Contact :Presentation Investor Andrew 2010 November Trahar Corporate Development and Investor Relations Manager Zanaga Iron Ore Company Limited +442073991105 www.zanagairon.com
Zanaga Iron Ore Company — Non-Deal Roadshow (April 2011) on 6ix