Iron Road Ltd · ASX:IRD
Iron Road — Investor Presentation (September 2012)
19 slides from Iron Road's investor presentation, Sep 28, 2012
Slide 1: Building South Australia’s Largest Iron Ore Project
Building South Australia’s Largest Iron Ore Project Briefing to the Regional Communities Consultative Council (RCCC) Wudinna, South Australia, 28 September 2012
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements 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 based on specific ass
Slide 3: Overview – What is CEIP?
Overview – What is CEIP? Central Eyre Iron Project (CEIP) • Large scale magnetite iron ore project, on Eyre Peninsula • Second largest resources project in South Australian history (after Olympic Dam) • First stage study indicates robust project economics Local Office • Final study assessing product
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Slide 5: Components of CEIP
Components of CEIP Export Mining Processing Customer Infrastructure • Mine site located near • Located at mine site • Rail line to port located on • Final Product - iron Warramboo • Upgrades raw mined ore to east coast of Eyre concentrate, suitable for • Open pit mining premium saleable product Peni
Slide 6: Final Study Stage Underway
Final Study Stage Underway • Final Study Stage (or Definitive Feasibility Study – DFS) currently underway prior to financing and construction • Production rates of 20 million tpa being assessed in DFS work • Would place CEIP as one of the larger iron ore mines in Australia • Over 25 direct employees
Slide 7: What does this mean for South Australia?
What does this mean for South Australia? • Direct Employment – over 1000 during construction, ~500 during operation • Significant flow on employment effects • Thirty year plus life – not a quick shot in the arm, long term stable source of employment – Mining professionals may spend nearly entire car
Slide 8: How Big is CEIP? Comparison to SA Projects
How Big is CEIP? Comparison to SA Projects (millions) 20 CEIP is the largest proposed iron ore development in South Australia, by annual production 15 Proposed annual production 10 Source: Iron Road 5 0 CEIP Southdown (WA) Southern Iron (Arrium) Fusion Wilcherry Hill (Stage 3) 8
Slide 9: How Big is CEIP? Comparison to SA projects
How Big is CEIP? Comparison to SA projects $3,000 (millions) $2,500 CEIP is a large scale Latest Reported Annual Revenue $2,000 project with both longer Iron Road CEIP Iron Road CEIP (PFS Base Case) (Proposed DFS, 20 Mtpa) estimated mine life and Prominent Hill larger projected yearly $1,500 (Copper
Slide 10: Mining and Processing
Mining and Processing • Large scale conventional mining • PFS “base case” open cut operation, with low strip ratio of 0.8 to 1 (ratio of waste to ore) • After mining, ore treated on site by concentrator • Consists of crushing, grinding, magnetic separation – Common process in mining, not new technol
Slide 11: Export Infrastructure
Export Infrastructure DFS examining export route scenarios • Water supply independent of existing infrastructure – Sea water to be used in the process plant – Small desalination plant on site – Using seawater results in 90% reduction of potable water use • High voltage power upgrade – Ideally any ne
Slide 12: Rail
Rail • Technical review of potential rail route ongoing • Alignment preference is to bypass towns • Project will utilise latest standard gauge railway • Rail corridor ideally to be utilised for other infrastructure – water pipeline, power 12
Slide 13: Port
Port • East coast of Eyre Peninsula offers sheltered, deep locations with minimal construction required • Must serve a variety of vessel sizes up to Cape size – same as Pilbara • Port site selection currently underway – Third party port; or – Large Iron Road lead facility (+30Mtpa) • Iron Road port
Slide 14: Community Engagement
Community Engagement • Company wide commitment and interest in community engagement • Iron Road is committed to taking its place as a member of the communities in which we operate • Investing in local social infrastructure - major sponsor and supporter of local community events since 2009 • Toll fre
Slide 15: We enthusiastically explain what we are aiming to achieve
We enthusiastically explain what we are aiming to achieve and are increasing our knowledge about local farming and other businesses and the issues faced by them.
Slide 16: Community Feedback
Community Feedback • Community will remain at the heart of future developments • Iron Road has a focus on openness and transparency – Don’t “gild the lily” with communities – There will be impacts – Seek community input on how to mitigate impacts AND deliver positives as part of process – Eg. local
Slide 17: Summary
Summary • Building long life operation • Significant boost to South Australia • Project will underpin infrastructure improvements across the Peninsula • This project will support the case for other businesses • Community remains at the heart of our decisions • Mining and Agriculture can co-exist
Slide 18: On the Road to Production
On the Road to Production Subscribe to alerts online www.ironroadlimited.com.au
Slide 19: Appendix – CEIP Resource Statement
Appendix – CEIP Resource Statement Central Eyre Iron Project Global Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Location Classification (Mt) (%) (%) (%) (%) (%) Murphy South Indicated 1,108 16.0 53.2 12.9 0.08 0.4 Inferred 668 16.4 52.7 12.8 0.08 1.3 Boo-Loo Inferred 328 17.3 52.4 11.5 0.09