Iron Road Ltd · ASX:IRD
Iron Road — Shareholder Meeting (November 2013)
28 slides from Iron Road's shareholder meeting presentation, Nov 29, 2013
Slide 1: Feeding the Growing High-End Supply Gap
Feeding the Growing High-End Supply Gap Annual General Meeting 29 November 2013
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: Iron Ore Market Dynamics
Iron Ore Market Dynamics • Iron ore price stable in 2013, trading The big three suppliers account for between US$110 - 150 per tonne, about half of global supply mostly within US$120 - 140 range • No shortage of buyers and most BHP market predictions are slowly turning Rio Tinto Billiton Rest of Wor
Slide 4: Iron Ore Market Dynamics
Iron Ore Market Dynamics • Consistent history of equity market analysts over estimating future supply, by between 100Mt to 450Mt • China increasingly working to improve efficiencies and reduce pollution • High quality feedstock to become more desirable over time to balance expanding volumes of low g
Slide 5: Iron Road's Vision
Iron Road’s Vision Iron Road’s vision is to become a trusted and reliable supplier of premium iron concentrates to the Asian marketplace. 5
Slide 6: Central Eyre Iron Project (Iron Road 100%)
Central Eyre Iron Project (Iron Road 100%) • Large scale magnetite project • 20 million tonnes per annum of concentrate production from 2018 • Expected mine life +30 years • High quality concentrate (~67% Fe) will assist steel mills reduce pollution and improve efficiencies • Coarse concentrate to b
Slide 7: DFS Maximising Economic and Competitive Advantages
DFS Maximising Economic and Competitive Advantages Mining Processing Rail Port Market Conventional open pit Common and proven Significantly shorter Sheltered, deep Delivering what mining mechanical process than Pilbara and location with short jetty customers want – high Low strip ratio Brazilian rou
Slide 8: Large Scale, Long Life Project
Large Scale, Long Life Project 3,000 Largest Measured + Indicated magnetite Mineral Resource in 2,500 Australia. Underpins long life M+I Resources - tonnes (millions) operation: 2,000 • Mineral Resource 1,500 Resource Category Measured (tonnes) 3.7Bt @ 16% Fe* Indicated (tonnes) • Exploration Target
Slide 9: Iron Road's Natural Advantage
Iron Road’s Natural Advantage Iron Road’s mineralisation has a natural advantage – the earth’s forces have done much of the hard work already Does not require pelletising Coarse brittle rock – lower grinding cost Less impurities Easily processed Iron Gneiss – conventional grinding and spirals/gravit
Slide 10: Natural Advantage Leads To Premium Quality, Lower Cost
Natural Advantage Leads To Premium Quality, Lower Cost 72 CEIP high quality (higher revenue) Bulk of competition 70 coarse grind (higher margin) 68 66 % iron 64 62 60 58 Iron Road Competitor 56 0 20 40 60 80 100 120 140 160 P80 10
Slide 11: CISRI Test Work Shows Marvellous Results
CISRI Test Work Shows Marvellous Results Bulk test programme at the China Iron & Steel Research Institute Group (CISRI), Beijing Can be used in sintering and pelletising Substitutes for Brazilian Fines, Pilbara Fines or Chinese domestic concentrates Replacement of Pilbara Fines lowers fuel level con
Slide 12: Price Adjusted Cost Curve
Price Adjusted Cost Curve • PFS determined FOB operating costs (ex-State royalty) of A$59 per dry metric tonne, reiterated as a realistic assumption • Highly competitive operating CEIP estimate range cost profile, would theoretically place CEIP in the second quartile of the 2013 price adjusted CFR C
Slide 13: Supportive State Government
Supportive State Government • Major Development status declared by Deputy Premier John Rau • Recognises significance to South Australia of Iron Road’s integrated iron export project • Allows for project approvals to be considered at highest level of government • Clear and transparent framework to ac
Slide 14: Infrastructure Corridor a Major Development
Infrastructure Corridor a Major Development Corridor • Minimise impact, one corridor only • Comprises rail, pipeline, power line, service road, pump station Infrastructure features • Scalable design philosophy • Potential to link into the Trans-Australian rail network, increasing catchment to ~25% o
Slide 15: First and Only Capesize Port in South Australia
First and Only Capesize Port in South Australia • Port site secured at Cape Hardy, sufficient for potential third party access and facilities • 30Mtpa capacity at commissioning 20Mtpa initially reserved for CEIP • Cost effective expandability, scalable to +90Mtpa • Modular jetty and wharf structure
Slide 16: CEIP Port Facilities
CEIP Port Facilities • Strategic Asset – Will be only Cape-size port from Esperance to Port Kembla – Potential to be the only Australian port capable of handling ULOC (300,000+ dwt vessels) • Well situated – Favourable climate and protected waters allows year round shipping – No vessel movement rest
Slide 17: Port Is Well Located To Markets
Port Is Well Located To Markets • Well located to Asian markets • Two routes to Asia offers security of supply at minimal additional cost • Australian ports enjoy significant geographic advantage to Asian customers over Brazil, Canada and West Africa 17
Slide 18: Keeping Communities Involved
Keeping Communities Involved • Dedicated community team, although every employee is a ‘community ambassador’ • Involved in local events and community sponsorships • Keeping communities informed through: – Community information sessions – Regular updates in the local press – Presentations to communit
Slide 19: Community Engagement Update
Community Engagement Update Port • Public Information Sessions at Port Neill and Tumby Bay • Port Neill Reference Group • Tumby Bay and Districts Community Consultative Group briefing Utilities Corridor • We have met with most impacted landowners Mine • Community Project Updates – Warramboo and Wudi
Slide 20: Gawler Iron Project (Iron Road 90%)
Gawler Iron Project (Iron Road 90%) • Potential for 1-2Mtpa development that may provide early sustaining cash flows • Average in situ grades ~25% iron, with higher grade zones of ~36% iron • Indicative concentrate 67-71% Fe (p80 @ 106µm) • Stage III Resource definition and metallurgical drilling co
Slide 21: Gawler Scoping
Gawler Scoping Metallurgical test work • Geological and metallurgical DTR test programmes extended to verify expected recoveries from Boomer deposit • Bulk sample transported to Germany for preliminary design of ore processing facility Infrastructure Studies • Airstrip – Wynbring upgrade • Rail sidi
Slide 22: FY2013 Highlights
FY2013 Highlights Definitive Feasibility Study Major development recognition ▪ South Australian Government ▪ Nearing completion Development (infrastructure) appn submitted Resource upgrade Port site confirmed ▪ Largest Measured + Indicated magnetite ▪ Initial deep water port capacity of 30Mtpa, reso
Slide 23: Next Steps for 2014-15
Next Steps for 2014-15 • DFS estimate complete by end 2013, report Q1 2014 • Complete Government submissions and applications • Keep community involved and informed • Continue iron ore marketing efforts • Source project partner and financing for CEIP development • Initiate operational readiness plan
Slide 24: Delivering Australia's Next Fully Integrated Iron Supply Business
Delivering Australia’s Next Fully Integrated Iron Supply Business • Long term market dynamics positive • Strategic value in securing a long life and scalable source of supply • Consistent high quality product expected over entire life of project – at a time of steadily declining hematite quality and
Slide 25: Disclaimer
Disclaimer Delivering Australia’s Next Fully Integrated Forward-Looking Statements Iron Supply Business 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 looki
Slide 26: Appendices
Disclaimer Appendices 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 s
Slide 27: Board and Management
Board and Management Peter Cassidy Non Executive Chairman Board Key Investors Julian Gosse Non Executive Director The Sentient Ian Hume Non Executive Director Group 73% Jerry Ellis AO Non Executive Director Leigh Hall AM Non Executive Director Andrew Stocks Managing Director Larry Ingle General Mana
Slide 28: CEIP Resource Statement
CEIP Resource Statement CEIP Global Mineral Resource Tonnes Fe SiO2 Al2O3 P Location Classification (Mt) (%) (%) (%) (%) Measured 2,222 15.69 53.70 12.84 0.08 Murphy South/Rob Roy Indicated 474 15.6 53.7 12.8 0.08 Inferred 667 16 53 12 0.08 Boo-Loo Inferred 328 17 52 12 0.09 Total 3,691 16 53 13 0.0