Iron Road Ltd · ASX:IRD
Iron Road — Investor Presentation (June 2011)
25 slides from Iron Road's investor presentation, Jun 14, 2011
Slide 1: Prefeasibility Study Presentation
For personal use only Prefeasibility Study Presentation On the Road to Production 14-17 June 2011
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements For personal use only 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: Overview
Overview For personal use only On the Road to Production • Focused on Central Eyre Iron Project (CEIP) • Experienced board, management and study consultants • Supportive key investors • Positive government and local communities • PFS result at the CEIP indicates a robust 12.4Mtpa iron project – Comp
Slide 4: Board & Management
Board & Management For personal use only Chairman Non-Exec Director Non-Exec Director Julian Gosse Ian Hume Jerry Ellis Non-Exec Director Managing Director Company Secretary Matthew Keegan Andrew Stocks Graham Anderson General Land Geology Project Manager Manager Manager Manager Larry Ingle Laura Mi
Slide 5: Corporate Overview
Corporate Overview For personal use only Capital Structure $1.20 Market Cap $129 million $1.00 Shares on Issue 113.7M Options 24.6M $0.80 Share Price $1.135 $0.60 As at 9 June 2011 Major Shareholders $0.40 The Sentient Group 29.2% $0.20 Management 10.6% Columbia University 5.4% $0.00 Dec 08 Dec 09 A
Slide 6: Central Eyre Iron Project
Central Eyre Iron Project For personal use only • Iron Road’s primary project • Centrally located on Eyre Peninsula, South Australia • Well serviced by established towns on road and rail networks • Favourable geographical and climatic location • Supportive state and local governments • Good relation
Slide 7: What Differentiates the CEIP?
What Differentiates the CEIP? For personal use only CEIP magnetite gneiss Typical BIF Age Archaean Proterozoic Geological history High grade metamorphism Low grade metamorphism Mineralogy Granular, low impurities Microcrystaline, impurities vary 1.5mm average, crystalline Magnetite grain size Very f
Slide 8: PFS Summary
PFS Summary For personal use only • Substantial 12.4Mtpa iron product operation outlined • Capital and operating costs compare favourably to similar Australian projects • Close to coast, power and with existing infrastructure • Significant competitive advantages – Coarse grind size (-106 micron) → r
Slide 9: PFS Key Parameters
PFS Key Parameters For personal use only • Commercial viability for a 12.4 million tonne per annum standalone iron concentrate operation Capex – direct A$1,744M • Competitive capital and operating costs Capex – indirect A$517M • Coarse grained magnetite, low variability – excellent product character
Slide 10: Low Strip Ratio
Low Strip Ratio For personal use only • Mine design and scheduling by Coffey Mining • Large scale conventional mining • Open cut operation, with low strip ratio of 0.8 to 1 • Optimised pit depth of 550m – may increase with latest drilling • Excellent geotechnical properties – (15m benches, 70º batte
Slide 11: Large Resource with Great Upside
Large Resource with Great Upside For personal use only 11
Slide 12: Premium Concentrate Product
Premium Concentrate Product For personal use only • Beneficiation design by Mineral Engineering Technical Services (METS) • Grind size of -106µm (p80) resulting in 67% Fe concentrate • Potential -125µm option currently being investigated • To be marketed as a high quality sinter feedstock • Blast Fu
Slide 13: Benchmarking Concentrate Grade
Benchmarking Concentrate Grade For personal use only 72 GIR-Yerecoin EMG-Beyondie VMC-Yalgoo Concentrate Grade - % iron 70 ARH-Balmoral IRD-CEIP (40 micron) AGO-Ridley IRD-CEIP (53 micron) GRR-Southdown 68 GBG-Karara CXM-Bungalow IRD-CEIP (106 micron) ACS-Magnetite Range IRD-CEIP (75 micron) 66 CFE-
Slide 14: Simple Processing
Simple Processing 67.6Mtpa For personal use only MURPHY SOUTH DEPOSIT ROM Ore P80~ 30 mm Mass 100% Crushing Fe: 16.8% SiO2: 53.0% Cleaner W-LIMS HPGR Tails Mass 43% DRY WET Rougher W-LIMS P80~106 m P80~8 mm 61% Fe: 24% Concentrate SiO2: 47 % 12.4Mtpa Tails Mass 18% Mass 39% Fe: 67% Ball Mill SiO2:
Slide 15: Export Solution
Export Solution For personal use only Base case PFS includes slurry pipeline to port PFS includes costs and charges to use a third-party port Potential upside including rail options have been considered at scoping level with encouraging results Project scale sufficient to justify development of stan
Slide 16: Value Through Resource Growth
Value Through Resource Growth 3,000 2,756 2,811 For personal use only Near Term Target 2,597 2,687 • Base case incorporates current 2,478 Murphy South Mineral Resource. 2,304 • Completed extension drilling 2,090 expected to increase Mineral NPV - $ millions 2,000 1,808 Resource by 80-120Mt1 this yea
Slide 17: Value Scenarios
Value Scenarios For personal use only Spot FOB price 30 year project 30 year project Item Units Base Case 1 over current life2, long term life2, Spot FOB resource pricing pricing Capital cost – A$ million 1,744 1,744 1,744 1,744 direct Capital cost – A$ million 508 508 508 508 indirect Contingency A
Slide 18: Future Growth and Development Pathway
Future Growth and Development Pathway For personal use only Additional Resource • On track to define a mineral resource estimate of considerable size and tonnage additional to the current 907Mt identified at Murphy South so far definition, with Stage VI • Exploration Target for the completed program
Slide 19: On the Road to Production
On the Road to Production For personal use only Credible, competitive project at Central Eyre Iron Project • Large scalable production base, simple beneficiation • Realisable capital cost, competitive operating cost • Premium product highly sought after • Large customer and offtake market Strong fut
Slide 20: Contact Details
For personal use only Contact Details www.ironroadlimited.com.au Andrew Stocks +61 8 9200 6020 admin@ironroadlimited.com.au Managing Director +61 403 226 748
Slide 21: Appendices
For personal use only Appendices
Slide 22: Appendix 1a – CEIP Resource Statement
Appendix 1a – CEIP Resource Statement For personal use only Murphy South Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Resource Classification Oxidation Material Type (Mt) (%) (%) (%) (%) (%) Disseminated 242 17.7 52.4 12.0 0.09 0.3 Fresh Banded 53 13.4 54.6 14.1 0.07 0.5 Inferred Transitiona
Slide 23: Appendix 1b – CEIP Resource Statement
Appendix 1b – CEIP Resource Statement For personal use only Boo-Loo Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Resource Classification Oxidation (Mt) (%) (%) (%) (%) (%) Fresh 277 17.3 52.5 11.5 0.095 0.5 Inferred Transitional 13 17.0 52.4 11.6 0.094 10.7 Oxide 38 17.2 52.1 11.6 0.094 10.8
Slide 24: Appendix 1c – CEIP Resource Statement
Appendix 1c – CEIP Resource Statement For personal use only Central Eyre Iron Project Global Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Resource Classification Oxidation (Mt) (%) (%) (%) (%) (%) Fresh 572 17.1 52.7 12.0 0.09 0.4 Inferred Transitional 40 16.5 51.2 13.2 0.07 7.3 Oxide 81 16.
Slide 25: Appendix – Capital Cost Estimate
Appendix 2 – Capital Cost Estimate For personal use only Estimated Estimated Estimated Direct Costs Indirect Costs Contingency A$ Millions A$ Millions A$ Millions Crushing circuit 244.1 Field indirect – 12.0% 209.3 Direct and indirect – 15% 337.8 Fine grind & mag sep 152.4 EPCM – 8.0% 139.5 Milling