Sundance Resources — Diggers and Dealers Conference 2014
26 slides from Sundance Resources's conference presentation, Aug 4, 2014
Slide 1: Developing the Mbalam-Nabeba Iron Ore Project
DEVELOPING THE MBALAM-NABEBA IRON ORE PROJECT ASX code: SDL Diggers and Dealers Conference Kalgoorlie, Western Australia 4 August 2014
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward – Looking Statements This document has been prepared as a summary only and does not contain all information about the company's assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attach
Slide 3: Step by step: Ticking the boxes
Step by step: Ticking the boxes Since last year’s conference, Sundance has significantly de-risked this Project as we methodically continue to implement the development strategy: Bankable off-take agreement with Noble EPC contract with Mota-Engil Africa for construction of port and rail infrastr
Slide 4: Sundance Board of Directors
Sundance Board of Directors 4
Slide 5: A Pioneer Project for Central Africa
A Pioneer Project for Central Africa 35Mtpa of Direct Shipping Ore (DSO) for minimum 10 years (Stage 1) Continued 35Mtpa of concentrate product from Itabirite for further 15+ years (Stage 2) Construction of a new 510km railway and 70km spur line to transport ore Construction of a new Mineral Termina
Slide 6: High Grade Ore Reserves
High Grade Ore Reserves • High Grade Hematite Ore Reserves totalling 436.3Mt at a grade of 62.6% Fe, with low impurities • High Grade Hematite Resources totalling 775.4Mt at a grade of 57.2% Fe • Additional Exploration Target of 90 to 150Mt at a grade of 55% to 65% Fe on existing tenements* GLOBAL H
Slide 7: Itabirite = Long Mine Life
Itabirite = Long Mine Life • Total Itabirite Resources of 4.05 billion tonnes at a grade of 36.3% Fe • Exploration Target of approximately 9.3 - 13.2 Bt Itabirite at a grade of 30% to 40% Fe on existing tenements* • Proven grind and float beneficiation process to produce a high-grade (66% Fe – 68% F
Slide 8: Dedicated Iron Ore Railway
Dedicated Iron Ore Railway • 510km rail line from Mbarga and 70km spur line from Nabeba to Lolabe port • Standard gauge 32 tonne axle load; 6 trains each comprising 3 locos & 190 wagons • Built to 35Mtpa capacity and design expandable to ~100Mtpa • Predominantly flat – only 640m bridges (no tunnels)
Slide 9: Dedicated Mineral Export Terminal
Dedicated Mineral Export Terminal • Located at Lolabe, 12 km south of the new Kribi Multi-User Port Facility • Deep water near shore berth (25 metres) ; open water jetty – no breakwater • Single berth capacity for 35 Mtpa • Port design optimised to accommodate 300,000 DWT “China-max” bulk ore carrie
Slide 10: Mota-Engil Africa – Port & Rail EPC
Mota-Engil Africa – Port & Rail EPC • Signed EPC contract to build the port and rail infrastructure on 5 June 2014 in Cameroon • A leading international engineering and construction company, a subsidiary of Mota-Engil SGPS, a multidisciplinary Portuguese construction company • Extensive experience i
Slide 11: Mota-Engil - Preliminary Works
Mota-Engil - Preliminary Works • Mobilising a Design Manager for the supervision of all design works • Subcontracting design firms for the Rail and Port Facilities • Awarding the design contracts (rail/port/facilities) within the next few months • Project Planning team in place by the end of August
Slide 12: Project Infrastructure Costs
Project Infrastructure Costs SDL DFS Estimate Mota-Engil EPC ($US; 2010 Real) Contract Price ($US; 2014 Figures) Rail $2,417 billion $3.1 billion $3.5 billion Port $700 million (combined) (combined) • Construction period from Financial Close of 3.5 years; • Standard internationally-recognised contra
Slide 13: Standard Bank
Standard Bank Standard Bank has been appointed the Financial Advisor and non-exclusive Lead Arranger with respect to Project-level funding. • Standard Bank have indicated they plan to use their balance sheet to support the debt raising that will be required for the Project. • Indicative terms receiv
Slide 14: Financing Strategy
Financing Strategy Sources Expression of interest QUANTUM Export Credit Agencies $1.5B Development Funds $1.3B Commercial Banks $0.7B TOTAL indicative debt funding to-date $3.5B • Mota-Engil EPC contract, Standard Bank funding plan and the Noble off-take agreement all underpin debt funding • The fol
Slide 15: Robust Cash Flows and High Returns
Robust Cash Flows and High Returns • Very attractive NPV • Strong cash generating ability • Stage One Capital expenditure pay back in 3.25 years post production 1 Assumptions: Nominal cash flows; Discount rate 12.5%; Iron ore price US$100/t CFR based on real 2014 basis; Freight rate approximately US
Slide 16: Key Milestones to Date
Key Milestones to Date Sundance has continued to deliver and meet key milestones to progress the project. 16 July 2010 25 August 2012 30 November December 2013 April 2014 5 June 2014 Received all Received the 2012 Received strong Tenders for mine EPC Contract signed with Mota- required required Came
Slide 17: Strategic Fit for the Future
Strategic Fit for the Future 2500 • Consensus forecasts show demand will exceed supply from 2017 due to demand continuing to grow as committed supply flattens 2400 • Impending deficit in ~5 years means the right projects will flourish 2300 • Emphasis to remain on higher- grade, low cost projects tha
Slide 18: Next Steps
Next Steps • Complete financing Conditions Key Value Drivers Precedent by end of CY 2014 Project de-risking Improved market sentiment • Award the FEED study for the Following the completion mine plants and associated Infrastructure Mine construction to of the mine and all the infrastructur
Slide 19: Terminal Location Map
| Terminal Location 2 Miner
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Slide 22: Nabeba Trial Mining Site
‘Nabeba Trial Mining Site = a x ~ 3 a : : — SSeS Extent of ~ Trial Mine LIDAR Topographic Surface Surficial Supergene Hematite subgrade Transitional Itabirite Schist ~a
Slide 23: Noble Site Visit
a | 4 Cy 1) we, . Sey, | =| sl = . ua Noble Site Visit.
Slide 24: Mota-Engil Site Visit
Slide 25: Competent Persons Statement
Competent Persons Statement The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Robin Longley, a Member of the Australian Institute of Geoscientists, and Mr Lynn Widenbar, a member of the Australasian Institute of Mining and
Slide 26: Thank You
THANK YOU Sundance Resources Ltd www.sundanceresources.com.au ASX CODE ‘SDL’ 26
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