Image Resources Nl · ASX:IMA
Image Resources Nl — Investor Presentation (October 2018)
35 slides from Image Resources Nl's investor presentation, Oct 11, 2018
Slide 1: Boonanarring Mineral Sands Project Investor Presentation
1 For personal use only Boonanarring Mineral Sands Project 100%-owned; high-grade; zircon-rich 80km north of Perth in Western Australia On-track for first production in 4th QTR 2018 Investor Presentation October 2018 Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statements
Forward Looking Statements 2 For personal use only This presentation has been prepared by the management of Image Resources NL ("Image”, “IMA“ or the ‘Company’) in connection with meetings with investors and potential investors and not as specific advice to any particular party or person. The inform
Slide 3: Investor Snapshot
Investor Snapshot 3 For personal use only Opportunity to invest in a company transitioning from advanced explorer to profitable miner before it realises full valuation Company fully funded to positive cashflow $50M as debt; $25M as equity only $52M project capital1 Plant and equipment acquir
Slide 4: Investor Snapshot
Investor Snapshot 4 For personal use only Binding off-take agreement in place for 100% of production Project NPV A$235 million1; IRR 125%1; 13 month payback1 metrics have strengthened with 12% zircon price rise on 1 October 2018 Company market cap. A$133M2 Share price $0.142 Notes: 1 – Per
Slide 5: Products and Applications
Products and Applications 5 For personal use only Key products are zircon and titanium dioxide Zircon sand is processed into zirconium compounds, intermediate products and zirconium metal for a variety of applications; Ceramics (tiles); 55% demand Foundry Sands (castings); 14% Refractories (
Slide 6: Products and Applications
Products and Applications 6 For personal use only Key products are zircon and titanium dioxide Titanium dioxide (TiO2) from rutile and ilmenite is processed into titanium based products and titanium metal for a variety of applications; Ultra-white pigments (paint, paper, plastic); ~90% demand
Slide 7: Project Locations
Project Looking Forward Locations Statement 7 For personal use only LOCATION North Perth Basin in Western Australia 80 km north of Perth CBD Proven mineral sands address Including majors Iluka and Tronox Infrastructure rich paved roads, power, gas pipeline water, telecommunications etc
Slide 8: Project Types and Locations
Project Types and Locations 8 For personal use only 1,000 km2 tenements portfolio Atlas Ore Reserves 100% focus on mineral sands Probable: 9.5Mt @ 8.1% HM Strandline projects (dry mining) Dredge mining prospects Boonanarring Ore Reserves Multiple opportunities for a second Proved: 9.3 Mt @ 8
Slide 9: Ore Reserves
Ore Reserves Forward Looking Statement 9 For personal use only QUALITY ORE RESERVES JORC Code (2012) Compliant High HM, VHM and very high zircon at Boonanarring High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) Project/Deposit Category Volume Tonnes % HM % Slim
Slide 10: Products and Prices
Products and Prices 10 For personal use only Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product.
Slide 11: Bankable Feasibility Study Base Assumptions
Bankable Forward Feasibility Looking Study Statement 11 For personal use only Base Assumptions Start mining at Boonanarring Dry, open-cut mining Production rate - 500 dry tonnes per hour • 3.7M dry tonnes per year Conventional gravity separation using spirals Product: Heavy Mineral Concent
Slide 12: Boonanarring – Production Statistics
Boonanarring – Production Statistics 12 For personal use only Average annual production at Boonanarring 220k tonnes HMC; containing; • 60kt zircon (70kt/year in 2019-20) • 130kt ilmenite • 5kt rutile • 3kt leucoxene 5.5 years mine life with ability to add 3-4 years additional ore reserves
Slide 13: Boonanarring – Production Statistics
Boonanarring – Production Statistics 13 For personal use only Boonanarring Project Production Forecast - updated July 2018 2018 2019 2020 2021 2022 2023 Total Ore processed (Kt) 700 3,600 3,800 3,700 3,800 3,500 19,100 Ore grade (%HM) 6% 8% 11% 6% 8% 11% 8% Assemblage (% of HM) 42.7 270.0 429.4 207.
Slide 14: Boonanarring – Project Margins & EBITDA
Boonanarring – Project Margins & EBITDA 14 For personal use only Boonanarring Project EBITDA Summary - updated July 2018 (AU$million) 2018 2019 2020 2021 2022 2023 Total Revenue 5 127 181 100 139 101 653 Revenue/tonne HMC 455 580 566 526 604 439 544 Operating Costs Mining 18 46 43 42 42 35 226 Proce
Slide 15: BFS Financial Metrics
BFS Financial Forward LookingMetrics Statement 15 For personal use only Key Financial Metrics Original BFS1 Updated BFS2 Updated BFS3 Pre-Tax NPV (@ 8%) A$135M A$197M A$235M Pre-Tax IRR 64% 104% 125% Payback period (months) 22 16 13 Mine life 8+ years Project capital cost A$52M includes
Slide 16: Zircon Prices – Actual and Forecast
Zircon Prices Forward Looking– Statement Actual and Forecast 16 For personal use only Current price for Tronox premium grade zircon
Slide 17: Boonanarring Wet Concentration Plant
Boonanarring Forward LookingWet Concentration Plant Statement 17 For personal use only
Slide 18: Boonanarring Feed Preparation Plant
Boonanarring Forward LookingFeed Preparation Plant Statement 18 For personal use only
Slide 19: Mine Construction
For personal use only Mine Construction 19
Slide 20: Project Development Schedule
Project Development Schedule 20 For personal use only Targeting first production 4th Quarter 2018 Simplified Boonanarring Project Construction Schedule - (high level) 2018 2019 May Mar Mar Nov Aug Dec Apr Oct Feb Sep Feb Jun Jan Jan Jul WCP & Equipment Relocation Project Construction Pre-Stripping O
Slide 21: Upside Potential
UpsideLooking Forward Potential Statement 21 For personal use only Upside potential at and near Boonanarring Confirmed potential to extend mine life with high grade mineralisation (ASX announcement 13 March & 26 June 2017); Assuming mineralisation in extension area is identical to known Ore Rese
Slide 22: Boonanarring High-Grade Extension
Boonanarring High-Grade Extension 22 For personal use only ASX - 13 March & 26 June 2017 New Drilling Results (Feb 2017) Confirm 5.6km northern extension of Boonanarring mineralisation Outstanding high grade intersections: 8m @ 23.8% HM in IX00245 8m @ 21.1% HM in IX00244 and 8m @ 16.3% HM
Slide 23: Projects Pyramid – Strand Deposits
Projects PyramidStatement Forward Looking – Strand Deposits 23 For personal use only Mineral Resources – Accessible by Dry Open-Cut Mining Projects ranked by combined Zircon (Zr) plus Rutile (Ru) BFS assumes mining at Boonanarring Tonnes-grades are for Mineral Resources; Boonanarring and Atlas per J
Slide 24: Projects Pyramid – Dredge Prospects
Projects PyramidStatement Forward Looking – Dredge Prospects 24 For personal use only Mineral Resources – Accessible by Dredge Mining Projects ranked by HM Grade Positive attributes • 90+%VHM; • <5% slimes; Tonnes-grades are for historic Mineral Bidaminna • 25-67% Leucoxene; Resources per JORC Code
Slide 25: Potential Royalty from Tronox
Potential Royalty from Tronox 25 For personal use only Royalty agreement in place as of 2014 Small cash payment (already received) Sliding-scale royalty on production Avg. HM Grade Royalty 2.5% 1.25% 3.0% 2.50% 3.5% 3.75% 4.0% 5.00% Indefinite production schedule Potential for future arrange
Slide 26: Image Corporate Snapshot
Image Corporate Snapshot 26 For personal use only Diverse and experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.14* Bob Besley – Independent Chairman 12-Month Price Range: A$0.07– 0.17 Patrick Mutz – Managing Director Shares on Issue: 953m Chaodian Chen - Non-Executi
Slide 27: Transition from Explorer to Producer
Contact from Explorer to Producer Transition 27 For personal use only Generalisation of Transition from Explorer to Producer 10 9 Project Production 8 Development (realisation Discovery (feasibility 7 of full value) & Resource results; 6 Delineation Relative Value Study Period mine decision; 5 (exci
Slide 28: Use of Solar Energy
Use of Solar Energy 28 For personal use only Heads of Agreement with Sunrise Energy Group Pty Ltd to provide 3-4 MWAC solar farm to be: Constructed and operated by Sunrise Energy; Located on Image owned land adjacent to Boonanarring mine site; and Providing 25% of total electricity requirement
Slide 29: Contact
Contact For further information 29 For personal use only Patrick Mutz Managing Director Image Resources NL info@imageres.com.au Office: +61 8 9485 2410 Ground Floor, 23 Ventnor Avenue West Perth, WA 6005 PO Box 469, West Perth, WA 6872 www.imageres.com.au
Slide 30: Additional Information
Forward Looking Statement 30 For personal use only Additional Information
Slide 31: Compliance
Compliance Forward Statements Looking Statement 31 For personal use only COMPLIANCE STATEMENT FOR EXPLORATION Information in this presentation that relates to Exploration Results is based on information compiled by George Sakalidis BSc (Hons) who is a member of the Australasian Institute of Mining a
Slide 32: Mineral Resources – Strand Deposits
MineralLooking Forward Resources – Strand Deposits Statement 32 For personal use only Strand Deposits 1 of 2 High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxene
Slide 33: Mineral Resources – Strand Deposits
MineralLooking Forward Resources – Strand Deposits Statement 33 For personal use only Strand Deposits 2 of 2 Previously Reported Mineral Resources - Strand Deposits; in accordance with JORC Code (2004) @ 2.5% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leuc
Slide 34: Mineral Resources – Dredge Deposits
MineralLooking Forward Resources – Dredge Deposits Statement 34 For personal use only Dredge Deposits 1 of 1 Previously Reported Mineral Resources - Dredge deposits; in accordance with JORC Code (2004) @ 1.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leuc
Slide 35: Compliance Statements – Mineral Resources
Compliance Statements Forward Looking – Mineral Resources Statement 35 For personal use only 2. COMPLIANCE STATEMENT - Boonanarring/Atlas Mineral Resources The information in this report that relates to the estimation of Mineral Resources is based on information compiled by Mrs Christine Standing, w
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