Zanaga Iron Ore Co. Ltd. · LSE:ZIOC

Zanaga Iron Ore — Investor Presentation (March 2012)

18 slides from Zanaga Iron Ore's investor presentation, March 2012

  1. Slide 1: Investor Presentation – March 2012

    Investor Presentation Investor Presentation – March 2012 November 2010 0

  2. 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

  3. Slide 3: Corporate structure

    Corporate structure  Market cap: £287m / US$452m  Share price: £1.03  Shares : 280.4m  Cash on B/S : US$48m  Listed on AIM : ZIOC 50% +1 share 50% -1 share Obliged to fund Feasibility Study costs Zanaga Project 2

  4. Slide 4: Project location

    Project location  Located in the French-speaking Republic of Congo (or “Congo Brazzaville”)  Favourable destination for mining investment  Government recognises importance of the project and is welcoming of international investment 3

  5. Slide 5: Project Highlights

    Project Highlights  4.3Bt resource with upside potential  Two development options - 45 Mtpa railway - 30 Mtpa slurry pipeline  Significant expansion potential  Bottom quartile operating costs  Capex of US$6.1 - 7.5bn  Achievable integrated infrastructure and logistics  Partnered with Xstrata

  6. Slide 6: Timeline

    Timeline Nov 2010 • ZIOC IPO on LSE AIM Feb 2011 • Xstrata option exercised over 50% + 1 share interest in Zanaga Project Nov 2011 • Announcement of Value Engineering Exercise results • Commencement of Pipeline Study June 2012 • Pipeline PFS study complete Q1 2014 • FS completion • Xstrata has the o

  7. Slide 7: 4.3Bt JORC resource with future upside potential

    4.3Bt JORC resource with future upside potential Mineral Resource statement 1  >170,000 metres drilled to date Tonnes Fe P SiO2 Al2O3 Mn LOI (Mt) (%) (%) (%) (%) (%) (%)  Over 60% of resources already in the Measured 149 38.7 0.047 39.1 2.4 0.093 1.2 measured or indicated categories  Upside poten

  8. Slide 8: Large scale, low cost mining operation planned

    Large scale, low cost mining operation planned  Two development options under consideration - 45 Mtpa Railway Option producing sinter fines and magnetite concentrate - 30 Mtpa Pipeline Option producing pellet feed  High quality products similar to Brazilian supply  >30 year minelife 7

  9. Slide 9: Significant expansion potential

    Significant expansion potential  Only ~1.6bn of the existing 4.3bn tonnes JORC compliant resources will be mined over the first 20 years under the 30 Mtpa pipeline scenario 8

  10. Slide 10: Bottom quartile operating costs

    Bottom quartile operating costs  Estimated FOB cash costs : - US$16/t on the pipeline - US$20/t1 on the railway option - excludes 3% royalties and contingency  Drivers of low operating cost - LOM strip ratio of 0.3 - Significant free dig material in the early years of mining - Low grinding duty –

  11. Slide 11: Pipeline option could result in significant operational and financial benefits

    Pipeline option could result in significant operational and financial benefits  Pipeline Study in progress – expected to complete in June 2012  Pipeline option is preferable transport solution for pellet feed - Lower capex (~US$0.9bn saving on transportation direct costs) - Lower opex - Flexibilit

  12. Slide 12: Excellent port site…

    Excellent port site…  Short distance to 20m deep water (minimal dredging) - 1.6km trestle planned Access On-shore facilities Trestle Loading  Good existing onshore Platform facilities in Pointe Noire Dredged Access Channel (9km south of port site)  Land area presents scope for future expansion of

  13. Slide 13: …with extensive land available

    …with extensive land available 12

  14. Slide 14: “Stranded gas” provides low cost power and potential pelletising options

    “Stranded gas” provides low cost power and potential pelletising options ENI power plant, Pointe-Noire  Gas currently being flared in RoC  ENI sponsored power plant Phase 1 in operation  Improvements to national power generation grid underway  Zanaga Project considering gas fired power station a

  15. Slide 15: Partnered with, and leveraging the expertise from, a leading diversified major in Xstrata

    Partnered with, and leveraging the expertise from, a leading diversified major in Xstrata  Xstrata obliged to fund Feasibility Study to internal standards and international best practice  At end of the Feasibility Study Xstrata has a one off right to acquire ZIOC stake in the Project for cash  If

  16. Slide 16: Strategic partner search process

    Strategic partner search process  Exploring potential to introduce strategic partners  Process being conducted jointly with Xstrata  Xstrata intends to fully retain its interest in the Project  Areas of value-add include, but are not limited to : - off-take on commercial terms - access to constr

  17. Slide 17: Responsible approach to business

    Responsible approach to business Local employment Open engagement with communities Dedicated on-site clinic Environmental studies On-site nurseries for rehabilitation Community school rebuilding project 16

  18. Slide 18: Questions

    Questions 17

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