43 slides from Image Resources Nl's shareholder meeting presentation, May 21, 2018
Slide 1: Boonanarring Mineral Sands Project: The next cab off the mineral sands rank
1 For personal use only Boonanarring Mineral Sands Project: The next cab off the mineral sands rank Annual General Meeting Of Shareholders 21 May 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: Forward Looking Statements
Forward Looking Statements 3 For personal use only All such forward-looking information and statements are based on certain assumptions and analyses made by the Company’s management in light of their experience and perception of historical trends, current conditions and expected future developments,
Slide 4: Investor Snapshot
Investor Snapshot 4 For personal use only Opportunity to invest in company transitioning to profitable mining operator Company fully funded to positive cashflow $50M as debt; $25M as equity Project construction underway (only $52M project capital1) Plant and equipment already acquired Firs
Slide 5: Investor Snapshot
Investor Snapshot 5 For personal use only Opportunity to invest in company transitioning to profitable mining operator Binding off-take agreement in place for 100% of production Project NPV A$197 million1; IRR 104%1; <2 year payback1 metrics do not include 1 April 2018 zircon price rise Comp
Slide 6: Project Location
ProjectLooking Forward Location Statement 6 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 7: Boonanarring Project Comparison
Boonanarring Project Comparison 7 For personal use only High HM and Zircon grades relative to peers HM grade Zircon grade* VHM HM Grade (%) Zircon (%) 14.0% 25% VHM Grade Zircon % Image Resources (IMA) Boonanarring project 12.0% 21.5Mt @ 8.3% HM and up to 24.5% Zircon 20% 10.0% 15% 8.0% 6.0% 10% 4.0
Slide 8: Ore Reserves Comparison
Ore Reserves Forward LookingComparison Statement 8 For personal use only IMAGE Source: TZMI; May 2017
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: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 11 For personal use only
Slide 12: Foreign Exchange Rate
Foreign Forward LookingExchange StatementRate 12 For personal use only 1.15 1.00 0.85 More favourable 0.70 0.55
Slide 13: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 13 For personal use only
Slide 14: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 14 For personal use only
Slide 15: Bankable Feasibility Study: Base Assumptions
Bankable Forward Feasibility Looking Study Statement 15 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 16: Bankable Feasibility Study: Key Financial Metrics
Bankable Forward Feasibility Looking Study Statement 16 For personal use only Key Financial Metrics Original BFS* Updated BFS** Pre-Tax NPV (@ 8%) A$135M A$197M Pre-Tax IRR 64% 104% Payback period (months) 22 16 Mine life 8+ years Project capital cost A$52M includes ~$8M for land * ASX A
Slide 17: Boonanarring – Production Statistics
Boonanarring – Production Statistics 17 For personal use only Note: 2023 information includes the start of production at Atlas.
Slide 18: Boonanarring – Project EBITDA
Boonanarring – Project EBITDA 18 For personal use only Note: 2023 information includes the start of production at Atlas.
Slide 19: Boonanarring – Relative Comparison to Gold
Boonanarring – Relative Comparison to Gold 19 For personal use only Basis of comparison: Average of full years 2019 and 2020 Boonanarring Project Average annual revenue: ~A$160 million Average annual costs: ~A$80 million Gold Project equivalent Assumed average gold price: A$1,600 per ounce A
Slide 20: Bankable Feasibility Study: Other Key Project Metrics
Bankable Forward Feasibility Looking Study Statement 20 For personal use only Other Key Project Metrics Binding offtake contract for heavy mineral concentrate (HMC) • 100% of HMC production for life of project • Market-based pricing model • Full credit for TiO2 products • No minimum product specif
Slide 21: Plant and Equipment (select examples)
Plant and Equipment (select examples) 21 For personal use only Wet Concentration Plant Mineral Separation Plant (Option) Slurry Booster Stations & pipelines Power poles, wires & transformers HMC Stackers Mine Slurry Unit Plus much, much more.
Slide 22: Image Wet Concentration Plant
Image Wet Forward Concentration Looking Statement Plant 22 For personal use only
Slide 23: Wet Concentrator Plant 3D Modelling – Looking North
rly Works For personal use only Wet Concentrator Plant 3D Modelling Looking North
Slide 24: Wet Concentrator Plant 3D Modelling – Looking South
rly Works For personal use only Wet Concentrator Plant 3D Modelling Looking South
Slide 25: Project Approvals
ProjectStatement Forward Looking Approvals 25 For personal use only PROJECT APPROVALS Mining Lease & General Purpose Lease Part IV, Environmental Protection Act (WA) – PER EPBC Act (Commonwealth) Land acquisition for processing plant siting and start of mining Groundwater Abstraction Lic
Slide 26: Capital Spend
Capital Spend 26 For personal use only Capital funds to be applied to: Construction, commissioning of the Boonanarring Project (A$52M) Working capital to positive cashflow (A$15M), and Corporate, exploration and financing costs to positive cashflow (A$8M)
Slide 27: Upside Potential
Upside Looking Forward Potential Statement 27 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 Res
Slide 28: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 28 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 i
Slide 29: Projects Types and Locations
Projects Types and Locations 29 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 Proved: 9.3 Mt @ 8.6% HM Probable: 10.5Mt @ 5.9% HM
Slide 30: Projects Pyramid – Strand Deposits
ProjectsLooking Forward Pyramid – Strand Deposits Statement 30 For personal use only Mineral Resources – Accessible by Dry Open-Cut Mining Projects ranked by combined Zircon (Zr) plus Rutile (Ru) BFS assumes mining Tonnes-grades are for Mineral Resources; at Boonanarring Boonanarring and Atlas per J
Slide 31: Projects Pyramid – Dredge Deposits
ProjectsLooking Forward Pyramid – Dredge Deposits Statement 31 For personal use only Mineral Resources – Accessible by Dredge Mining Projects ranked by HM Grade Potential focus area for phase two growth strategy. Positive attributes: Bidaminna • 90+%VHM; Tonnes-grades are for historic Mineral Resour
Slide 32: Potential Royalty from Tronox
Potential Royalty from Tronox 32 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 33: Project Development Schedule
Project Development Schedule 33 For personal use only Targeting first production 4th Quarter 2018 Simplified Boonanarring Project Development Schedule - (high level) 2017 2018 May May Mar Mar Aug Aug Nov Nov Dec Dec Apr Apr Feb Sep Oct Feb Sep Oct Jan Jun Jan Jun Jan Jul Jul Finalisation of Transact
Slide 34: Corporate Snapshot
Corporate Image Snapshot Corporate Snapshot 34 For personal use only Diverse and experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.10* Bob Besley – Independent Chairman 12-Month Price Range: A$0.07– 0.17 Patrick Mutz – Managing Director Shares on Issue: 861m Chaodian
Slide 35: Transition from Explorer to Producer
Contact from Explorer to Producer Transition 35 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 36: Use of Solar Energy
Corporate Snapshot Use of Solar Energy 36 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 elec
Slide 37: Contact
Contact For further information 37 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 38: Additional Information
Forward Looking Statement 38 For personal use only Additional Information
Slide 39: Compliance Statements
Compliance Statements Forward Looking Statement 39 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 40: Mineral Resources – Strand Deposits 1 of 2
Mineral Forward Resources – Strand Deposits Looking Statement 40 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 Leucoxen
Slide 41: Mineral Resources – Strand Deposits 2 of 2
Mineral Forward Resources – Strand Deposits Looking Statement 41 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 Leu
Slide 42: Mineral Resources – Dredge Deposits
Mineral ForwardResources – Dredge Deposits Looking Statement 42 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 43: Compliance Statement for Mineral Resources
Forward Looking Compliance Statement Statements 43 For personal use only COMPLIANCE STATEMENT FOR MINERAL RESOURCES 1. COMPLIANCE STATEMENT Boonanarring/Atlas Mineral Resources The information in this presentation that relates to the estimation of Mineral Resources is based on information compiled b