Equatorial Resources Limited · ASX:EQX
Equatorial Resources — African Iron Ore Conference 2011
28 slides from Equatorial Resources's conference presentation, Jun 8, 2011
Slide 1: Large Scale Iron Projects in Africa
Large Scale Iron Projects in Africa For personal use only African Iron Ore Conference ASX: EQX Cape Town June 2011
Slide 2: Disclaimer Important Notice
DISCLAIMER Important Notice For personal use only • This document should be read in conjunction with any public announcements and • 3D and 2D modelling of new aeromagnetic survey data over Equatorial Resources reports (including financial reports and disclosure documents) released by Equatorial Mayo
Slide 3: Africa's Next Major Iron Company
Africa’s Next Major Iron Company For personal use only Multibillion tonne Iron Exploration Targets* Access to existing, operational rail and port Strong balance sheet, fully funded exploration program Board and management with proven track record in Africa *Exploration Targets: The estimates
Slide 4: The Great Urbanisation Has Only Just Begun
THE GREAT URBANISATION….. For personal use only HAS ONLY JUST BEGUN % urban 100 90 Japan UK Netherlands Brazil Korea 80 Spain France 'Line of best fit' Russia USA R2= 0.6093 Thailand Germany 70 Malaysia Taiwan Italy 60 50 Philippines Indonesia 40 China 30 India Vietnam 20 10 US$'000s/capita 0 (PPP,
Slide 5: ...And Will Be Driven by China and India
…AND WILL BE DRIVEN BY CHINA AND For personal use only INDIA • Current urbanization rate of 46% is WORLD POPULATION 2011 • Urban population expected to grow predicted to rise to 73% by 2050 by 250M people by 2030 (UN) China 19% Other • Expected to build the equivalent of • China will build 20,000 to
Slide 6: Global Demand
GLOBAL DEMAND For personal use only The scale of Chinese Seaborne demand is breathtaking 1000 Global Seaborne Demand 900 800 700 Million Tonnes 600 500 400 300 200 100 0 2009 2010 2011E 2012E 2013E 2014E 2015E China Japan Korea Taiwan Europe Rest of world * Source: GTIS, Macquarie Research, May 2011
Slide 7: Global Iron Ore Supply
GLOBAL IRON ORE SUPPLY For personal use only And China is increasingly sourcing supply from new regions Chinese imports from non-traditional supply regions …..Where will new supply come from? * Source: Shipping sources, ISSB, Macquarie Research, May 2011, May 2011: Big 4 supply Regions: 7
Slide 8: West African Iron Ore: The Next Major Iron Ore Province
WEST AFRICAN IRON ORE: For personal use only The next major iron ore province Source: Zanaga Iron Ore Company 8
Slide 9: West African Iron Ore: High Quality, Massive Scale, Low Cost
WEST AFRICAN IRON ORE: For personal use only High Quality, Massive Scale, Low Cost High Quality, Coarse Grain ore Low cost of production Potential supply pipeline of >500mtpa by 2020 (up to 25% of global supply)* Alternative source of supply for global steel manufactures Transport infrastr
Slide 10: Equatorial Resources: Iron Project Exploration Targets
EQUATORIAL RESOURCES For personal use only Africa’s Next Major Iron Company Iron Project Exploration Targets* Hematite (40- Itabirite (30- TOTAL 65% Fe) 45% Fe) (30-65% Fe) Mayoko- 500 – 900Mt 1.8 – 3.0Bt 2.3 – 3.9Bt Moussondji Badondo 200 – 300Mt 1.1 – 1.9Bt 1.3 – 2.2Bt Total: 700 – 1,200Mt 2.9 – 4
Slide 11: Republic of Congo
REPUBLIC OF CONGO For personal use only (“CONGO BRAZZAVILLE”) Stable country attracting multi-billion dollar investment Former French colony, recently celebrated 50 years of independence Total, Eni and Chevron operating in ROC for ~30 years Real GDP Growth rate in 2010 of 9.1%* * World Economi
Slide 12: Mining in the Republic of Congo
MINING IN THE REPUBLIC OF CONGO For personal use only Active development of strong mining industry Economic diversification away from dependence on oil New mining code adopted in 2005 Favourable fiscal terms for miners • 3% Royalty on Revenues • 10% government participation on conversion to Mi
Slide 13: Mayoko-Moussondji Iron Project - 100% owned
MAYOKO-MOUSSONDJI IRON PROJECT - 100% owned For personal use only Emerging iron province 46km of prospective iron strike Drill program commencing Operational railway line High grade hematite potential Deep water port 13
Slide 14: Mayoko-Moussondji Iron Project
MAYOKO-MOUSSONDJI IRON PROJECT For personal use only 14
Slide 15: 2.3-3.9 Billion Tonnes Exploration Target
2.3–3.9 BILLION TONNES EXPLORATION For personal use only TARGET* at 30-65% Fe 46km STRIKE LENGTH of magnetic anomalies prospective for iron mineralisation 2.3 - 3.9 BILLION TONNES* exploration target of iron mineralisation (grade 30% - 65% Fe), of which: • 500 to 900 MILLION TONNES* of enriched
Slide 16: Access to Operational Railway and Port
MAYOKO-MOUSSONDJI IRON PROJECT For personal use only ACCESS TO OPERATIONAL RAILWAY AND PORT Operational heavy haulage rail line passes through the project area and leads directly to the deep water port of Pointe- Noire Railway capable of 10Mtpa and currently being used only for a weekly passenge
Slide 17: Mayoko-Moussondji Iron Project Planned Drill Program
MAYOKO-MOUSSONDJI IRON PROJECT For personal use only PLANNED DRILL PROGRAM 17
Slide 18: Project Development Plans
MAYOKO-MOUSSONDJI IRON PROJECT For personal use only PROJECT DEVELOPMENT PLANS Drilling • Diamond drill program commenced in March (Partners Drilling) • Additional RC and Diamond rigs to commence in July (Wallis Drilling ) Railway • Access agreement signed in September 2010 • Railway study curre
Slide 19: The Badondo Iron Project - 100% owned
THE BADONDO IRON PROJECT – 100% owned For personal use only Strategic location 22km iron strike Identified hematite cap High grade iron 19
Slide 20: Badondo Iron Project Regional Development
BADONDO IRON PROJECT For personal use only REGIONAL DEVELOPMENT 20
Slide 21: 1.3-2.2 Billion Tonnes Exploration Target
1.3–2.2 BILLION TONNES EXPLORATION For personal use only TARGET* at 30-65% Fe Large-scale, high grade potential 22km strike length of magnetic anomalies prospective for iron mineralisation Rock samples revealed hematite iron grades as high as 64.7% Fe at surface with low contaminants Global ex
Slide 22: Badondo Project Development Plans
BADONDO IRON PROJECT For personal use only PROJECT DEVELOPMENT PLANS Field work in June 2011 • Geological mapping and sampling • Preparation of helicopter landing zones • Preparation for drill program Drill Program 2011 • Drill rigs under construction for initial helicopter-supported initial dri
Slide 23: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS For personal use only Proven development experience in the resource sector • Highly respected resource company executive with significant experience in Ian Middlemas company building in emerging markets Non-Executive Chairman • Currently Chairman of a number of ASX l
Slide 24: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM For personal use only Proven operation and development skills; finance and operating experience within major mining houses • French speaking Mining Engineer with 24 years experience in the African mining Jonathan Hericourt industry including Hatch, TWP Projects, Goldfie
Slide 25: Analyst Coverage
EQUATORIAL RESOURCES For personal use only ANALYST COVERAGE GMP Securities “We initiate coverage on Equatorial Resources with a Speculative Buy rating and A$6.10 price target.” GMP Iron Ore Book* Ocean Equities* “A unique African iron ore development play” * Fosters Stockbroking* *January 2011 25
Slide 26: Unique Development Potential and Value Driver
UNIQUE DEVELOPMENT POTENTIAL AND For personal use only VALUE DRIVER SHORT TERM LONG TERM High value DSO production potential High volume, low cost globally based on existing infrastructure significant supply Significant cash generation, low capex Xstrata, Sundance, CMEC accelerating development of n
Slide 27: Africa's Next Major Iron Company
Africa’s Next Major Iron Company For personal use only EQUATORIAL RESOURCES LTD (ASX: EQX) June 2011 Fully Paid Ordinary Shares 101.5 million Market Capitalization Undiluted (@ A$2.50) A$253.7 million Cash A$61.3 million Unlisted Options (Various Expiry and Exercise Prices) 11.4 million Vendor Miles
Slide 28: For personal use only
For personal use only ASX: EQX www.equatorialresources.com.au AUSTRALIA: Level 9, BGC Centre 28 The Esplanade Perth WA 6000 Australia Tel: +61 8 9322 6322 Fax: +61 8 9322 6558 REPUBLIC OF CONGO 03 Avenue de Loango, 2eme. Etage, Ndjindji, Arrondissement 1 EP Lumumba, Pointe-Noire Republic of Congo UN
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