Akora Resources Ltd. · ASX:AKO
Akora Resources — Investor Presentation (April 2024)
39 slides from Akora Resources's investor presentation, Apr 17, 2024
Slide 1: Iron ore for tomorrow’s steel making
Iron ore for tomorrow’s steel making. Equity Raising Investor Presentation 17 April 2024 Paul Bibby Managing Director Website – www.akoravy.com ASX:AKO
Slide 2: Disclaimers
Disclaimers The information in this Presentation is of a general nature and does not purport to be complete nor does it contain all the Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ information which a prospective invest
Slide 3: Cleaner iron ore for tomorrow’s steel making
Cleaner iron ore for tomorrow’s steel making. AKORA Resources (ASX: AKO) is focused on the development of four high-grade iron ore projects in Madagascar. Flagship Bekisopa Iron Ore Project has a 194.7* million tonne (Mt) Inferred JORC Resource with very low impurities able to produce a premium-pric
Slide 4: Madagascar has multiple major mines and exploration projects
Madagascar has multiple major mines and exploration projects. Some of the world’s largest miners operate in Madagascar including Rio Tinto, and Sumitomo which operates the Ambatovy Project, one of the world’s largest nickel mines. The country is also host to other numerous commodities including copp
Slide 5: High-grade iron ore in Madagascar
High-grade iron ore in Madagascar DSO Outcrop Trench 36: High-grade lump and fines iron ore ~67% Fe* DSO weathered zone, 2.2m at ~66% Fe* * AKO Prospectus, ASX Announcement 11/12/20 Iron ore for tomorrow’s steel making. 5
Slide 6: Bekisopa and Satrokala projects (100% Akora)
Bekisopa and Satrokala projects (100% Akora). Location Growing Bekisopa JORC Resource * Becoming a globally significant iron ore district * ASX Announcements 23/3/22 and 11/4/22 Iron ore for tomorrow’s steel making. 6
Slide 7: Our plan is to develop the Bekisopa Project in two stages
Our plan is to develop the Bekisopa Project in two stages. Stage 01 Produce +62% Fe direct shipping ore (DSO) * • Production ramps up to 2 million tonnes pa • Uses a US$100 / tonne benchmark price • Payback 2.1 years • Generates US$50m pre-tax at year 3 and • US$100m cash flow at the 2 million tonne
Slide 8: Bekisopa Scoping Study
Bekisopa Scoping Study. * Robust DSO start-up financials. Low CAPEX Case highlights. At a benchmark price of US$100 / tonne Future drilling should add DSO tonnes and mine life and further enhance the project economics . Annual production Initial mine life Capital Cost Cash flow (pre-tax) 2Mt 5 years
Slide 9: Bekisopa Scoping Study
Bekisopa Scoping Study. * Delivers US$50 million cash from year 3. Low CAPEX Case US$M 250 • 2023 Drilling in the North and Central Zones will add DSO tonnes and additional mine life to the 200 Pre-feasibility Study 150 100 • This additional mine life should boost Scoping Study Financial metrics, in
Slide 10: Bekisopa Iron Ore Project, high grade direct ship iron ore at surface
Bekisopa Iron Ore Project, high grade direct ship iron ore at surface, over an expansive readily upgradable high-grade iron ore resource. * * ASX Announcement 2/3/22 Iron ore for tomorrow’s steel making. 10
Slide 11: Continued drilling success at Bekisopa Project
Continued drilling success Only 50% of 6km major ground magnetic anomaly has been drilled, each drilling campaign has at Bekisopa Project. successfully added additional resource tonnes. AKORA has drilled 250 holes across four campaigns totalling over 8,400m at Bekisopa. * Fourth drilling campaign of
Slide 12: Satrokala Project offers considerable upside
Satrokala Project – just 40kms to the southwest of Bekisopa - offers considerable upside. +60% Fe rock chips along 10km strike length. * A magnetic survey completed 8 November 2023 will assist in pinpointing exploratory holes for maiden drilling proposed in Q2 2024. 68.03%Fe average 64.63%Fe average
Slide 13: Satrokala Project Magnetic strike features
Satrokala Project Magnetic strike features. A strong and continuous magnetic anomaly, 10km long identified at Satrokala. * This magnetic feature is 66% longer than at the more advanced high-grade Bekisopa Iron Ore Project, 40km to the north-east. 8 magnetic units have been modelled, which occur alon
Slide 14: A pit to port solution
A pit to port solution. * ~360km from Bekisopa Project to Toliara. Established infrastructure Up to ~50km of road to be built or upgraded between Bekisopa Project and Satrokala Project. RN7 Highway Elevation Change - Satrokala to Toliara 2000 1000 0 0 50 100 150 200 250 300 350 * Scoping Study, ASX
Slide 15: Strategic Investor Process
Strategic Investor Process. * Update AKORA has commenced a Strategic Investor Process involving multiple parties, seeking suitable funding partners for the development of our projects. As of 17 April 2024, two parties have submitted Non Binding Indicative Offers, with two more expected in coming wee
Slide 16: Stage Bekisopa development
Stage 2 Bekisopa development. Produce a premium grade low impurity iron concentrate. * Stage 01 Stage 02 – Decarbonisation Iron Feed Produce direct shipping ore (DSO) Produce premium-priced iron concentrate Lump Fines Low capex start-up, producing lump and fines iron ore for Blast Add grinding and s
Slide 17: Steel is critical in a decarbonising world
Steel is critical in a decarbonising world. Steel demand is forecast to Crude Steel Production^ Actual (World Steel Association) grow to around 2.7 billion Mt Forecast (BNEF) tonnes by 2050*. 2800 2400 The World’s electrification requires an enormous amount of steel. 2000 Steel required for each Ste
Slide 18: DRI technology reduces carbon emissions significantly
Direct Reduced Iron (DRI) technology reduces carbon emissions significantly. Traditional steelmaking Green steelmaking High-grade Iron Iron ore + Continuous ore pellets Fossil fuel Coking Basic Oxygen casting and electricity Renewable- Coal Furnace rolling powered Electric arc electrolysis furnace B
Slide 19: The steel industry is turning green
The steel industry is turning green. Map of planned or under construction DRI-EAF plants and capacity. Million tonnes To reach net zero emissions by 2050, steelmakers are now switching production methods from blast furnaces that consume coal to direct reduced iron (DRI) processes. ThyssenKrupp, Arce
Slide 20: DRI technology requires iron ore with low impurities and grades above 67% Fe
DRI technology requires iron ore with low impurities and grades above 67% Fe. To produce 889Mt of steel from DRI BNEF Net Zero Scenario 2050* processes in 2050 will require a DRI-grade iron ore demand 2050 tenfold increase in high-grade iron 889Mt ore supply. High grade low impurity magnetite iron o
Slide 21: Our cleaner +68% iron concentrate should be in demand
Our cleaner +68% iron concentrate should be in demand. Iron concentrate grade Combined impurity levels SiO2 Mined tonnes per product tonne Al2O3 Feed 70% 8% Tonnes ASX:HIO 8 7% ASX:IRD 69% DRI Iron 7 Spec 6% 6 68% ASX:MGT 5% 5 ASX:MIO 67% 4% 4 DRI Impurity ASX:AKO 3% Spec 3 ASX:AKO 66% 2% 2 65% ASX:
Slide 22: AKORA’s cleaner iron ore is believed ideal for greener steel made from DRI
AKORA’s cleaner iron ore is believed ideal for greener steel made from DRI. Bekisopa iron ore upgrades BEKD10 to a +68% Fe concentrate at 41% Fe head grade 75 microns. * A finer grind will deliver even 44% Fe head grade Ultra low impurities higher iron grades and much 0.5% SiO2 lower impurity levels
Slide 23: The Madagascar geographical advantage
The Madagascar geographical advantage. Madagascar can easily ship to Asian steelmakers as well as DRI pellet manufacturers around the World. 01 Close to rapidly growing 02 Close to DRI pellet Indian iron and steel industry. manufacturers in Middle East and Europe. 03 Competitive shipping 04 Madagasc
Slide 24: Working in with our host communities
Working in with our host communities. Working together with local people to deliver positive outcomes. 01 Frequent consultation 02 03 Contributing educational and 04 Knowledge transfer and Developing water ensures support is strong for generating jobs for local medical supplied to local infrastructu
Slide 25: Board and management
Board and A seasoned mining team with wide experience in Africa. management. Graeme Hunt Paul Bibby Matthew Gill Shane Turner Jason Whittle John W Ffooks & Co Non-Executive Chairman Managing Director Non-Executive Director CFO & CoSec General Manager African legal Advisor Spent 34 years with Austral
Slide 26: Corporate Snapshot
Corporate Snapshot ASX:AKO Share price Market capitalisation Debt Shares on issue Cash AKOO options $A0.15 A$14.2m Zero 94.9m A$1.3m 14.7m 15 April 2024 15 April 2024 31 December 2023 15 April 2024 31 December 2023 Expiring 25 May 2026 52 week high $0.215, low $0.125 ASX Share price performance ($A)
Slide 27: AKORA Resources Investment Case
AKORA Resources Investment Case * DSO Start-Up Low capex High margin, Strong cash flow. Premium Grade Low Impurity DRI Concentrate Long mine life for decarbonising the steel industry * Scoping Study, ASX Announcement 14/11/23 Iron ore for tomorrow’s steel making. 27
Slide 28: Details of the Offer Timetable
Details of the Offer Timetable Event Dates * Announcement of Placement and Proposed Entitlement Offer Wednesday 17 April 2024 Placement issue date Wednesday 24 April 2024 Shares traded on an “ex” entitlement basis Wednesday 24 April 2024 Record Date for eligibility to participate in the Entitlement
Slide 29: Equity raising summary
Equity raising summary Offer Size and Structure • Up to $3.8 million capital raising, comprising:- ➢ A $0.8 million institutional placement (“Placement”), and ➢ Up to $3.0 million via a 1 for 5 pro-rata non-renounceable entitlement offer (“Entitlement Offer”) • Up to 25 million New Shares to be issu
Slide 30: Summary of key risks
Summary of key risks The following contains a summary of some of the key risks associated with There are specific risks which relate directly to the business of AKORA an investment in AKORA Resources. This summary of risks below should be Resources. In addition, there are other general risks, many o
Slide 31: Summary of key risks
Summary of key risks SPECIFIC RISKS An investment in the Company carries risks, including those specific to the Projects, those broader risks which affect the mining industry and those more general risks associated with investing in the share market. This section identifies some of the major risks a
Slide 32: Summary of key risks
Summary of key risks Mineral Resources Exploration involves a significant degree of risk and exploration operations can be hampered by force majeure circumstances and cost overruns for unforeseen events, including unexpected variations in geology, labour availability, COVID-19 restrictions and equip
Slide 33: Summary of key risks
Summary of key risks Upgrading Resource Reserve and resource estimates are expressions of judgment based on knowledge, experience and industry practice. Estimates which were valid when originally calculated may alter significantly when new Categories and information or techniques become available. I
Slide 34: Summary of key risks
Summary of key risks Bekisopa Project Risk The Bekisopa Scoping Study (SS) referred to in this document is insufficient to provide assurance of an economic DSO Stage 1 development case at this stage and there is no certainty that the conclusions of the SS will be realised. The material assumptions r
Slide 35: Summary of key risks
Summary of key risks Occupational Health The mining industry has become subject to increasing occupational health and safety responsibility and liability. The potential for liability is a constant risk. If the Company fails to comply and Safety with necessary OH&S legislative requirements, it could
Slide 36: Summary of key risks
Summary of key risks No Production At present the Company is not generating any revenues from its operations nor has it commenced commercial production on any of its Tenements. There can be no assurance that significant additional losses Revenues will not occur in the near future or that the Company
Slide 37: Summary of key risks
Summary of key risks General Risks Forecasts The Directors consider that it is not possible to accurately predict the future revenues or profitability of the Company or whether any revenues or profitability will eventuate. The business of the Company is dependent upon a number of factors and many of
Slide 38: Summary of key risks
Summary of key risks Reliance on Key The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially upon senior management and its key personnel. There can Personnel be no assurance given that there will be no detrimental impact on the Co
Slide 39: Contact us
Contact us Paul Bibby Managing Director paul.bibby@akoravy.com AKORA Resources Ltd 12 Anderson Street West, ACN 139 847 555 Ballarat ASX: AKO Victoria 3350. Join the conversation Follow us Subscribe to our investor @AkoraResources https://www.linkedin.co relations platform m/company/akora- InvestorH