Iron Road Ltd · ASX:IRD
Iron Road — RIU Melbourne Resources Round-up (September 2014)
25 slides from Iron Road's conference presentation, September 2014
Slide 1: Central Eyre Iron Project
Central Eyre Iron Project Delivering Iron Ore for the Long Term www.ironroadlimited.com.au September 2014
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statements This announcement contains certain statements with respect to future matters and which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual value
Slide 3: Cautionary Statements
Cautionary Statements Modelling based upon 25 year mine life, consisting of: • Initial 17 years using Proven and Probable Mining Reserve of 2,071Mt @ 15.5% iron (200x100m, 100x50m diamond drill spacing); • Further eight years using 28% Measured, 24% Indicated and 48% Inferred Resources of 1,303Mt @
Slide 4: Iron Road Introduction
Iron Road Introduction Ready to build Australia’s next major magnetite development on the Eyre Peninsula in South Australia Definitive Feasibility Study complete • Study highlights an attractive investment opportunity, with strong rate of return, long production life, and able to withstand price flu
Slide 5: Long Life Magnetite Project
Long Life Magnetite Project 1950+ Construction 700+ Long term operations www.ironroadlimited.com.au 5
Slide 6: Central Eyre Iron Project (CEIP)
Central Eyre Iron Project (CEIP) 100% owned by Iron Road $100 million definitive feasibility study completed 21.5 million tonnes per annum production 2018 production commences 25 years minimum mine life High quality product reduces steel mill pollution Integrated mine, rail and port development www.
Slide 7: Definitive Feasibility Study Key Outcomes
Definitive Feasibility Study Key Outcomes Capital Cost Operating Cost Annual Revenue Capital Intensity US$3.98B US$44.33 US$2.8B US$185 (mine, corridor & port) (FOB)/t (concentrate sales) (per annual tonne) Mine Life NPV (12.5%) Project IRR 25 years $US2.69B 21% (minimum) (ungeared, post-tax) (ungea
Slide 8: Highly Competitive Operating Costs
Highly Competitive Operating Costs • FOB operating costs (ex- State royalty) of US$44.33 per dry metric tonne • Normalising cost curve for prices received, the CEIP is placed in the second quartile of the 2018 price-adjusted CFR China cost curve CEIP • Competitive with recent large- scale Pilbara de
Slide 9: Iron Ore Market
Iron Ore Market Market dynamics • China increasingly working to improve energy efficiencies and air quality • Strategic concern for Chinese steel industry to secure high quality feedstock in order to meet pollution reduction and energy efficiency goals • New supply predominantly below benchmark grad
Slide 10: Iron Ore Market
Iron Ore Market • Iron ore price weakness a short term issue • Supply balance will correct • Robust DFS outcome survives inevitable ups an downs of pricing cycle • High quality, low impurity product still in demand • "I knew [magnetite] concentrate was a superior product but I didn't know how strate
Slide 11: Supportive State and Federal Governments
Supportive State and Federal Governments • August 2013 – Major Development status declared by Deputy Premier Mr John Rau • April 2014 – Major Project Facilitation Status declared by Federal Minister for Infrastructure and Regional Development Mr Warren Truss • Iron Road is the only current South Aus
Slide 12: Post DFS – Increasing Production & Mine Life
Post DFS – Increasing Production & Mine Life New drill campaign (Stage IX) underway with objective of: • Increasing mine life beyond the current 25 years • Increasing annual output to 24Mtpa, delivering concentrate grading ≥66.5% iron and ≤3.5% silica • Stage IX will define the down dip extension of
Slide 13: Post DFS – Project Partnership
Post DFS – Project Partnership • Focus is on securing secure financing through project partnership, banks and EPC contractor involvement. Data room established for due diligence review • Independent review of Life of Mine operating cost model and financial parameters – customer focused, run by steel
Slide 14: About CEIP Operations: Mining
About CEIP Operations: Mining • Initial 25 year mine life confirmed • Production of 21.5Mtpa • High quality 67% iron concentrate • Premium iron blending feedstock for sinter, which feeds the majority of blast furnaces • In pit crushing and conveying • Gravity separation circuit reduces power demand
Slide 15: About CEIP Operations: Corridor & rail network
About CEIP Operations: Corridor & rail network • 148 kilometre heavy-haul railway • Axle load capacity of 25 tonne • Transporting 10,000 tonnes of iron concentrate from mine to port • Ore cars will be covered and comprise a secure bottom chute for unloading • Potential to connect to national rail ne
Slide 16: About CEIP Operations: Cape Hardy Port
About CEIP Operations: Cape Hardy Port • Deep water port requires no dredging • Initial 70Mtpa capacity • There are third party opportunities for export capacity • Supports Panamax and Capesize vessels • Two berths and single shiploader support efficient turnaround times • 1,100 hectares of land rea
Slide 17: Next Steps, Ready to Build
Next Steps, Ready to Build • Finalising government submissions and applications • Building and strengthening stakeholder relationships • Offtake discussions continue with the north Asian steel industry • Project participation discussions progressing with the recent announcement of the DFS findings •
Slide 18: Delivering Australia's Next Fully Integrated Iron Supply Business
Disclaimer Delivering Australia’s Next Fully Integrated Iron Supply Business Subscribe to alerts online www.ironroadlimited.com.au www.ironroadlimited.com.au 18
Slide 19: Appendices
Appendices www.ironroadlimited.com.au 19
Slide 20: Board and Management
Board and Management Peter Cassidy Non Executive Chairman Board Key Investors Julian Gosse Non Executive Director The Sentient Ian Hume Non Executive Director Group 73% Jerry Ellis AO Non Executive Director Leigh Hall AM Non Executive Director Andrew Stocks Managing Director Larry Ingle General Mana
Slide 21: Key Financial Parameters
Key Financial Parameters Key Financial Assumptions (real 2013 terms) Capital cost estimate (incl. contingencies) US$3.98 billion Pre-stripping and preparatory mining works US$0.48 billion Capital intensity US$185 per annual tonne FOB operating cost (ex state royalty) US$44.33/dmt (dry metric tonne)
Slide 22: Key Operating Parameters
Key Operating Parameters Mine life • 25 years Steady state production • 21.5Mtpa of concentrate • Ore mined • Mine strip ratio Mining 3.57 billion tonnes 1.22 : 1 (waste : ore) over life of mine • Product size of greater • Power demand of 260 • Water requirement of 14 Processing than -130 micron (p8
Slide 23: CEIP Resource Statement
CEIP Resource Statement CEIP Global Mineral Resource Tonnes Fe SiO2 Al2O3 P Location Classification (Mt) (%) (%) (%) (%) Measured 2,222 15.69 53.70 12.84 0.08 Murphy South/Rob Roy Indicated 474 15.6 53.7 12.8 0.08 Inferred 667 16 53 12 0.08 Boo-Loo Inferred 328 17 52 12 0.09 Total 3,691 16 53 13 0.0
Slide 24: CEIP Reserve Statement
CEIP Reserve Statement CEIP Global Mineral Resource Tonnes Fe Location Classification (Mt) (%) Proved 1,871 15.6 Murphy South/Rob Roy Probable 200 15.1 Total 2,071 15.5 This Statement was first announced on 26 February 2014. The Company is not aware of any new information or data which materially af
Slide 25: Large Scale, Long Life Project
Large Scale, Long Life Project 3,000 Largest Measured + Indicated magnetite Mineral Resource in 2,500 Australia. Underpins long life M+I Resources - tonnes (millions) operation: 2,000 • Mineral Resource 1,500 Resource Category Measured (tonnes) 3.7Bt @ 16% Fe* Indicated (tonnes) • Exploration Target
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