Zanaga Iron Ore Co. Ltd. · LSE:ZIOC
Zanaga Iron Ore — Investor Presentation (November 2012)
24 slides from Zanaga Iron Ore's investor presentation, November 2012
Slide 1: Investor Presentation November 2012
Investor Presentation November 2012
Slide 2: Disclaimer
Disclaimer This document, which is personal to the recipient, has been issued by Zanaga Iron Ore Company Neither this document nor any copy of it may be taken or transmitted into the United States of Limited (the “Company”). This document does not constitute or form part of any offer or invitation t
Slide 3: Corporate information
Corporate information • Listed on AIM in November 2010 Highly Experienced Management & Board • Ticker: ZIOC Clifford Elphick Non-Executive Chairman Founder & CEO of Gem Diamonds • Market cap: £95m ($152m) Former Director of Anglo American • Share price: £0.34 Mike Haworth Non-Executive Director • Sh
Slide 4: Zanaga Project has world class potential
Zanaga Project has world class potential Large Resource Large operation Long life 6.8Bt 30 Mt 30 yrs High Quality Product Low Cost Supportive Government 68% Fe $23/t 4
Slide 5: Republic of Congo is open for business
Republic of Congo is open for business • Successful & established oil and gas industry Cameroon Central African Republic • In operation for over 40 years Equatorial Guinea Republic of Congo • Supportive government with strategy to Gabon diversify into mining Zanaga Project Exploration Licenses • Pop
Slide 6: Large deposit identified
Large deposit identified • Only 25km of the 47km orebody drilled • >176,000 metres drilled • Feasibility Study drilling now complete 9703850mN 9703050mN 9694250mN Camp Itabirite/BIF Mafic amphibolites Basement 6
Slide 7: Large, well defined, long life mineral resource
Large, well defined, long life mineral resource • 6.8 billion tonne Mineral Resource grading 32% Fe • Potential for higher production levels & longer mine life • 69% in Measured & Indicated category • Resource underpinned by >176,000m of drilling • Supports >30 year mine life • Feasibility Study dri
Slide 8: Product and scale places Zanaga amongst the best in the world
Product and scale places Zanaga amongst the best in the world Fe grade vs. Impurity content 0% Highest Iron 2% Minas-Rio Phase 1 Brazil 2 Zanaga 30Mtpa initial phase 4% Alumina + Silica Content 1 China North America Australia – Medium Quality Lowest 6% impurity Other Africa CIS 8% Australia – High Q
Slide 9: Mining and Pipeline transportation
Mining and Pipeline transportation Mining Pit shell (North) • Open pit, low drill and blast operation • Low strip ratio a key driver of low opex • Targeting high quality product with very low impurities 1,200 Indicative topographical profile comparison of Zanaga/Samarco Pipeline transportation 1,000
Slide 10: Water, port site & power infrastructure
Water, port site & power infrastructure Port site design • Attractive port site – 1.6km trestle with minimal dredging to accommodate cape size vessels • Land area presents scope for future expansion (to 60Mtpa) • Good existing onshore support facilities in nearby Pointe Noire Power supply • Initial
Slide 11: Attractive project economics
Attractive project economics Capex Opex Pipeline PFS Area Mining 7.4 (2012 US$) Mine & processing plant 2,348 Processing 11.0 Pipeline 1,194 Port 603 Admin/Overheads 2.5 Power 717 Total Direct 4,862 Pipeline 0.5 Indirects 1,595 Total incl. Indirects 6,457 Port 1.5 Contingency 897 FOB Cost (incl. con
Slide 12: Expected to be positioned at the bottom of the cost curve
Expected to be positioned at the bottom of the cost curve… FOB Cash Costs for 2010 - Saleable Mine Production1 US$/t 120 RoW Brazil Australia China 100 80 60 Expected Cash Cost US$21.09/dmt + Estimated Royalties 40 Zanaga 20 0 0 163 325 488 651 813 976 1139 1301 1464 1627 2010A Cumulative Production
Slide 13: Remaining at the bottom of the cost curve once shipped to China
…remaining at the bottom of the cost curve once shipped to China Global Iron Ore Cash Cost by Company, CFR China High Cost Chinese/Indian Mines 140 Cliffs 120 LKAB Mittal Metinvest Vedanta 100 CSN 80 $/dmt 60 Zanaga Project 40 20 0 0 500 1,000 Source: FMG, Rio Tinto, BHP, Vale, Company Reports, AME,
Slide 14: Leveraging the expertise of a leading diversified major
Leveraging the expertise of a leading diversified major JV Agreement 50% +1 share Zanaga Project 50% -1 share • Xstrata obliged to fund FS costs • $42m cash and no current funding obligations 14
Slide 15: JV Agreement provides optionality to ZIOC
JV Agreement provides optionality to ZIOC • 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 at 100% NPV • Alternatively ZIOC has the right to fu
Slide 16: EBITDA breakdown by commodity for majors
EBITDA breakdown by commodity for majors Iron ore remains the highest margin business for the majors, even in H1 2012 with iron ore around c.$105/t Other s Ore division % Iron 4% contribution to net profit Iron Ore 64% Aluminium 11% Copper 26% Iron Energy 27% Ore Diamonds and Minerals 27% 75% Other
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Slide 23: Zanaga Project continues to show world class potential
Zanaga Project continues to show world class potential Large Resource Large operation Long life 6.8Bt 30 Mt 30 yrs High Quality Product Low Cost Supportive Government 68% Fe $23/t Strategic partnership High standards Funding FS 23
Slide 24: Investor Presentation November 2012
Investor Presentation November 2012
Zanaga Iron Ore Company — Investor Presentation (November 2012) on 6ix