Image Resources Nl · ASX:IMA
Image Resources Nl — Investor Presentation (March 2019)
25 slides from Image Resources Nl's investor presentation, Mar 12, 2019
Slide 1: Boonanarring Mineral Sands Project
1 Boonanarring Mineral Sands Project 100%-owned; high-grade; zircon-rich 80km north of Perth in Western Australia On-track for positive cashflow end 1st QTR 2019 Euroz Securities Institutional Conference 12-13 March 2019 Rottnest Island, WA Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements 2 This presentation/document has been prepared by the management of Image Resources NL ("Image”, “IMA“, or “the Company”). The information presented includes an indicative outlook of the business activities of Image for the calendar year (CY) 2019 and is pro
Slide 3: Investor Snapshot
Investor Snapshot 3 Company transitioning to profitable miner and realisation of full valuation Company fully funded to positive cashflow Project construction and commissioning complete 30 Nov 2018 • ‘on-budget’ and ‘on-schedule’ Production commenced 1 Dec 2018 1st bulk shipment HMC product
Slide 4: Investor Snapshot
Investor Snapshot 4 Company transitioning to profitable miner at a time of supply shortage of zircon Binding off-take agreements in place for 100% of HMC production for life of mine Project NPV A$235 million1; IRR 125%1; 13 month payback1 metrics have strengthened with 12% zircon price rise on
Slide 5: Products and Applications
Products and Applications 5 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 (furnace linings); 10%
Slide 6: Products and Applications
Products and Applications 6 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 Welding rods (flux coa
Slide 7: Project Location
Project Looking Forward LocationStatement 7 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. Local communities an
Slide 8: Project Types and Locations
Project Types and Locations 8 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 @ 8.6% HM Probable: 10.5M
Slide 9: Ore Reserves
Ore Reserves Forward Looking Statement 9 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 % Slimes HM Tonnes VHM Ilmen
Slide 10: Products and Prices
Products and Prices 10 Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product.
Slide 11: Bankable Feasibility Study
Bankable Forward Feasibility Looking Study Statement 11 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 Concentrate (HMC) • Productio
Slide 12: Boonanarring – Production Statistics
Boonanarring – Production Statistics 12 Average annual production at Boonanarring (5 yrs) 240k tonnes HMC; containing; • 60kt zircon (70kt/year in 2019-20) • 130kt ilmenite • 6kt rutile • 4kt leucoxene 5.5 years mine life with ability to add 3-4 years additional ore reserves
Slide 13: Boonanarring – BFS Production Statistics
Boonanarring – BFS Production Statistics 13 Boonanarring Project Production Forecast - updated July 2018 2018 2019 2020 2021 2022 2023 Total Ore processed (Kt) 700 350 3,600 3,800 3,700 3,800 3,500 19,100 Ore grade (%HM) 6% 7% 8% 11% 6% 8% 11% 8% Assemblage (% of HM) 42.7 270.0 429.4 207.2 285.0 378
Slide 14: Boonanarring – 2019 Guidance
Boonanarring – 2019 Guidance 14 2019 CY Production and Profitability Guidance1,2 Production Guidance 2020 Forecast Ore processed (million tonnes) 3.4-3.7 3.6-3.8 HMC3 produced (000 tonnes) 220-240 280-300 HMC sold (000 tonnes) 220-240 280-300 Costs (AU$) Project operating costs4 (million) $85-95 $85
Slide 15: Boonanarring – Ramp-up Production
Boonanarring – Ramp-up Production 15 Operating Statistics – December 2018 January 2019 February 2019 Item Unit Actual Budget Variance Actual Budget Variance Actual Budget Variance FPP/WCP runtime hrs. 639 558 15% 646 632 2% 599 571 5% FPP Ore Feed t 232,664 167,400 39% 217,341 205,720 6% 226,940 236
Slide 16: Zircon Prices
Zircon Prices Forward Looking– Statement Actual and Forecast 16 Current price for Tronox premium grade zircon
Slide 17: BFS Financial Metrics
BFS Financial Forward LookingMetrics Statement 17 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 ~$8M for land 1 - ASX
Slide 18: Upside Potential
UpsideLooking Forward Potential Statement 18 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 Reserves in all aspects an
Slide 19: Boonanarring High-Grade Extension
Boonanarring High-Grade Extension 19 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 in IX00250 Importantl
Slide 20: Projects Pyramid – Strand Deposits
Projects PyramidStatement Forward Looking – Strand Deposits 20 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 JORC Code (2012); follo
Slide 21: Projects Pyramid – Dredge Prospects
Projects PyramidStatement Forward Looking – Dredge Prospects 21 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 (2004). 45Mt; 3.0%HM;
Slide 22: Potential Royalty from Tronox
Potential Royalty from Tronox 22 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 arrangements with Tronox or o
Slide 23: Image Corporate Snapshot
Image Corporate Snapshot 23 Diverse and experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.17* Bob Besley – Independent Chairman 12-Month Price Range: A$0.08– 0.18 Patrick Mutz – Managing Director Shares on Issue: 957m Chaodian Chen - Non-Executive Director Market Cap
Slide 24: Use of Solar Energy
Use of Solar Energy 24 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 requirements for mine and process
Slide 25: Contact
For further information Contact 25 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
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