Image Resources Nl · ASX:IMA
Image Resources Nl — Diggers & Dealers Mining Forum 2019
25 slides from Image Resources Nl's conference presentation, Aug 7, 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 Built on-time & on-budget; Production Exceeding Expectations 2019 Guidance Upgraded Diggers & Dealers Mining Forum Kalgoorlie, WA 5-7 August 2019 John McEvoy Chief Financial Officer Imag
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 2020 a
Slide 3: Investor Snapshot
Investor Snapshot 3 Company successfully transitioned to profitable, cashflow positive miner in Q2 2019 Ø Project construction and commissioning completed ‘on-schedule’ and ‘on-budget’ Ø Production commenced 1 Dec 2018 Ø Ramp-up to full production in 2nd month of operations Ø Completed first two qua
Slide 4: Investor Snapshot: profitable zircon miner amid supply shortfall
Investor Snapshot 4 Company transitioning to profitable zircon miner at a time of zircon supply shortfall Ø 30 June 2019 (Six Month) Summary: • Ore Grade 143% of Budget • Zircon grade YTD 112% of budget Rough zircon grains • Zircon 85%+ of revenue • Revenue $67.3M YTD • Project EBITDA $29.5M (2019 G
Slide 5: Image Corporate Snapshot
Image Corporate Snapshot 5 Diverse and experienced Board and Management As at 30 June 2019 (unless stated): Board of Directors ASX Code: IMA Bob Besley – Independent Chairman Share Price1: A$0.30 Patrick Mutz – Managing Director 12-Month Price Range1: A$0.10–0.30 Chaodian Chen - Non-Executive Direct
Slide 6: Products and Applications
Products and Applications 6 IMA produces HMC containing zircon and titanium dioxide Ø Zircon sand is processed into zirconium compounds, intermediate products and zirconium metal for a variety of applications; s Qualitie r § Ceramics (tiles); 55% demand whitene r opacifie istant s heat re sistant §
Slide 7: Products and Applications
Products and Applications 7 Ø 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 coating); § Titanium metal (light, strong, corro
Slide 8: Project Location
Forward Project Looking LocationStatement 8 q LOCATION Ø North Perth Basin in Western Australia Ø 80 km north of Perth CBD Ø Proven mineral sands address § Including majors Iluka and Tronox Ø Infrastructure rich § paved roads, power, gas pipeline water, telecommunications etc. Ø Local communities an
Slide 9: Project Types and Locations
Project Types and Locations 9 Ø 1,000 km2 tenements portfolio Atlas Ore Reserves Probable: 9.5Mt @ 8.1% Ø 100% focus on mineral sands HM Ø Strandline projects (dry mining) Ø Dredge mining prospects Boonanarring Ore Reserves Proved: 9.3 Mt @ 8.6% HM Probable: 10.5Mt @ 5.9% HM Multiple opportunities f
Slide 10: Ore Reserves
Forward Ore Reserves Looking Statement 10 q QUALITY ORE RESERVES Ø JORC Code (2012) Compliant Ø 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 Ilme
Slide 11: Example Products and Prices
Example Products and Prices 11 Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product. Increase in premium Zircon Prices and Grades has increased Zircon Revenue to over 85% of total.
Slide 12: Target Production Rate
Forward Target Production Looking Statement Rate 12 Base Assumptions s w eight*! Ø Start mining at Boonanarring 4 t imes above it Punches Ø Dry, open-cut mining i n r e v enue to lent * -Equiva es per hour at n Ø Production rate - 500 dry tonnes per hour 2,000 ton ades of Ore gr • 3.7M dry tonnes pe
Slide 13: Boonanarring – Production Statistics
Boonanarring – Production Statistics 13 Average annual production at Boonanarring: 5 Year Base Case Ø 240k tonnes HMC p.a. containing: • 60kt zircon (70kt/year in 2019-20) • 130kt ilmenite • 6kt rutile • 4kt leucoxene Ø 5+ years mine life with potential to add 3-4 years additional reserves (north, s
Slide 14: Boonanarring – HM Ore Grade
Boonanarring – HM Ore Grade 14
Slide 15: Boonanarring – Zircon Grade in Ore HM
Boonanarring – Zircon Grade in Ore HM 15
Slide 16: Boonanarring – HMC Production
Boonanarring – HMC Production 16
Slide 17: Recent Announcements
Recent Announcements 17 Ø 13 May 2019: ‘Image Mines Ultra-High-Grade Ore’ § Identification of zone of direct shipping ore (DSO) at up to 95%HM and 70% zircon in the HM § DSO zone 4-6m wide by 1-3m thick and ending approximately 60m along strike and beyond into next mining section; 500 tonnes DSO min
Slide 18: Boonanarring – 2019 Guidance
Boonanarring – 2019 Guidance 18 2019 Guidance & 2020 Units YTD 2019 2020 Forecast1,2,4 Actual Guidance Forecast HMC3 Produced DMT 000s 138 240-260 280-300 HMC3 Sold DMT 000s 116 230-250 280-300 Revenue A$M 67 130-145 180-200 Revenue/DMT Sold A$/DMT HMC 579 568-592 600-650 Project Operating Costs A$M
Slide 19: Upside Potential
Forward UpsideLooking Potential Statement 19 Upside potential at and near Boonanarring Ø 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 20: Boonanarring High-Grade Extension
Boonanarring High-Grade Extension 20 ASX - 13 March & 26 June 2017 Drilling Results (Feb 2017) Ø Confirm 5.6km northern extension of Boonanarring mineralisation Ø Outstanding high grade intersections: § 8m @ 23.8% HM in IX00245 § 8m @ 21.1% HM in IX00244 and § 8m @ 16.3% HM in IX00250 Importantly wi
Slide 21: Projects Pyramid – Strand Deposits
Projects PyramidStatement Forward Looking – Strand Deposits 21 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 22: Projects Pyramid – Dredge Prospects
Projects Forward Looking PyramidStatement – Dredge Prospects 22 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 23: Potential Royalty from Tronox
Potential Royalty from Tronox 23 Royalty agreement in place as of 2014 Ø Small cash payment (already received) Ø 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% Ø Indefinite production schedule Ø Potential for future arrangements with Tronox or o
Slide 24: Use of Solar Energy
Use of Solar Energy 24 Heads of Agreement with Sunrise Energy Group Pty Ltd to provide 2 to 2.5 MWAC solar farm to be: Ø Constructed and operated by Sunrise Energy; Ø Located on Image owned land adjacent to Boonanarring mine site; and Ø Providing 25% of total electricity requirements for mine and pr
Slide 25: Contact
Contact For further information 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 Diggers & Dealers: Booth 125 www.imageres.com.au
Image Resources NL — Diggers & Dealers Mining Forum 2019 on 6ix