Slide 1: Boonanarring Mineral Sands Project: The next cab off the mineral sands rank
1 Boonanarring Mineral Sands Project: For personal use only The next cab off the mineral sands rank Investor Presentation August 2017 Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statement
Forward Looking Statement 2 For personal use only Certain statements made in connection with this communication, including, without limitation, those concerning the economic outlook for the mining industry, expectations regarding prices, exploration or development costs and other operating results,
Slide 3: Company Description and Focus
Company Forward Description Looking and Focus Statement 3 For personal use only Image Resources NL ASX: IMA Emerging mineral sands producer Actively focused on fast-tracking the development of its 100%-owned, high-grade and high-zircon flagship Boonanarring mineral sands project in the North Perth B
Slide 4: Project Location
ProjectStatement Forward Looking Location 4 For personal use only LOCATION North Perth Basin in Western Australia 80 km north of Perth CBD Proven mineral sands address Including majors Iluka and Tronox Infrastructure rich paved roads, power, gas pipeline water, telecommunications etc.
Slide 5: Projects Types and Locations
Projects Types and Locations 5 For personal use only 1,000 km2 tenements portfolio 100% focus on mineral sands Strandline (dry open cut mining) projects Dredge mining projects
Slide 6: Projects Pyramid - Dredgeable
Projects Forward Pyramid Looking - Dredgeable Statement 6 For personal use only Mineral Resources – Accessible by Dredge Mining Projects ranked by HM Grade 25-67% Leucoxene; 90+%VHM; Bidaminna <5% slimes; 45Mt; 3.0%HM; 100Mt exploration 6.5% Zr+Ru target Titan-Telesto 140Mt; 1.9%HM; 12.8% Zr+Ru Caly
Slide 7: Projects Pyramid - Strand Deposits
Projects Forward Pyramid Looking – Strand Deposits Statement 7 For personal use only Mineral Resources – Accessible by Dry Open-Cut Mining Projects ranked by combined Zircon plus Rutile Boonanarring Focus 43.8Mt; 5.6%HM; of BFS 20.7% Zr+Ru Atlas 18.1Mt; 6.0%HM; 15.8% Zr+Ru Red Gully 6.0Mt; 7.7% HM;
Slide 8: Boonanarring Project Comparison
Boonanarring Project Comparison 8 For personal use only High HM, VHM and Zircon grades relative to peers HM grade Zircon grade VHM HM Grade (%) Zircon (%) 14.0% 25% VHM Grade Zircon % Image Resources (IMA) Boonanarring project 12.0% 21.5Mt @ 8.3% HM and up to 24.5% Zircon 20% 10.0% 15% 8.0% 6.0% 10%
Slide 9: Ore Reserves
Ore Reserves Forward Looking Statement 9 For personal use only QUALITY ORE RESERVES JORC Code (2012) Compliant 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 % Slim
Slide 10: Ore Reserves Comparison
Ore Reserves Forward LookingComparison Statement 10 For personal use only IMAGE Source: TZMI; May 2017
Slide 11: Bankable Feasibility Study: Base Assumptions
Bankable Forward Feasibility Looking Study Statement 11 For personal use only Base Assumptions Start mining at Boonanarring Dry, open-cut mining Production rate - 500 dry tonnes per hour • 3.7M dry tonnes per year Conventional gravity separation using spirals Product: Heavy Mineral Concent
Slide 12: Bankable Feasibility Study: Key Financial Metrics
Bankable Forward Feasibility Looking Study Statement 12 For personal use only Key Financial Metrics Pre-Tax NPV A$135M (8% discount rate) Pre-Tax IRR 64% Mine life 8+ years Project capital cost A$52M includes ~$8M for land Payback period 22 months
Slide 13: Bankable Feasibility Study: Sensitivity Analysis
Bankable Forward Feasibility Looking Study Statement 13 For personal use only Sensitivity Analysis
Slide 14: Monthly Revenue, Costs and Cash Flow
Bankable Forward Feasibility Looking Study Statement 14 For personal use only Monthly Revenue, Costs and Cash Flow
Slide 15: Project Capital Comparison
Project Forward Capital Looking Comparison Statement 15 For personal use only Source: TZMI; May 2017
Slide 16: Start-up Capital / Revenue Ratio
Start-up Forward Capital Looking / Revenue Ratio Statement 16 For personal use only Source: TZMI; May 2017
Slide 17: Commodity Demand Rising
Contact Commodity Demand Rising 17 For personal use only TiO2 pigments – pigment price rise picking up pace. Price increases are getting stronger and a new round of price hikes is coming by mid-year. Cristal announced global price rises of $250/t for most regions, and €350/t in Europe. (Source: FNZC
Slide 18: Commodity Prices Projected to Rise
Contact Commodity Prices Projected to Rise 18 For personal use only Zircon- We forecast two more quarterly increases of +US$100/t and then two further US$50/t increases. That would take the price from around US$860/t at the start of 2017, to US$1350/t by 2H18, our forecast price peak. (Source: FNZC
Slide 19: Commodity Prices Rising
ActualLooking Forward Commodity Prices Rising Statement 19 For personal use only
Slide 20: Commodity Prices Rising
ActualLooking Forward Commodity Prices Rising Statement 20 For personal use only
Slide 21: Commodity Prices Rising
ActualLooking Forward Commodity Prices Rising Statement 21 For personal use only
Slide 22: Commodity Prices Rising
ActualLooking Forward Commodity Prices Rising Statement 22 For personal use only
Slide 23: Other Key Project Metrics
Bankable Forward Feasibility Looking Study Statement 23 For personal use only Other Key Project Metrics Binding offtake contract for heavy mineral concentrate (HMC) • 100% of HMC production for life of project • Market-based pricing model • Full credit for TiO2 products • No minimum product specif
Slide 24: Plant and Equipment (select examples)
Plant and Equipment (select examples) 24 For personal use only Wet Concentration Plant Mineral Separation Plant (Option) Slurry Booster Stations & pipelines Power poles, wires & transformers HMC Stackers Mine Slurry Unit Plus much, much more.
Slide 25: Image Wet Concentration Plant
Image Wet Forward Concentration Looking Statement Plant 25 For personal use only
Slide 26: Offtake Agreement
OfftakeLooking Forward Agreement Statement 26 For personal use only Advantages of HMC Offtake vs Zircon Offtake Results in securing 100% of revenue instead of 70% for zircon only; Provides faster access to revenue; • letters of credit can be converted to cash as soon as each shipment of HMC depa
Slide 27: Upside Potential
Upside Looking Forward Potential Statement 27 For personal use only Upside potential at and near Boonanarring Confirmed potential to extend mine life with high grade mineralisation (ASX announcement 13 March 2017); • Assuming mineralisation in extension area is identical to known Ore Reserves in a
Slide 28: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 28 For personal use only ASX Announcement 13 March 2017 New Drilling Results (Feb 2017) Confirm 5.6km northern extension of Boonanarring mineralisation Outstanding high-grade intersections: 8m @ 23.8% HM in IX00245 8m @ 21.1% HM in IX00244 and 8m @ 16.3% HM
Slide 29: Potential Royalty from Tronox
Potential Royalty from Tronox 29 For personal use only Royalty agreement in place as of A$50,000 cash received 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% Potential for future arrangements with Tronox or others based on large area of po
Slide 30: Project Approvals
ProjectStatement Forward Looking Approvals 30 For personal use only PROJECT APPROVALS Mining Lease & General Purpose Lease Part IV, Environmental Protection Act (WA) – PER EPBC Act (Commonwealth) Land acquisition for processing plant siting and start of mining Groundwater Abstraction Lic
Slide 31: Project Development Schedule
Project Development Schedule 31 For personal use only Targeting first production in early 2018 Simplified Boonanarring Project Development Schedule - (high level) 2016 2017 2018 May May May Mar Mar Aug Aug Nov Nov Apr Apr Apr Dec Dec Sep Sep Feb Feb Oct Oct Jun Jun Jun Jan Jan Jul Jul Jul Finalisati
Slide 32: Transition from Explorer to Producer
Contact from Explorer to Producer Transition 32 For personal use only Generalisation of Transition from Explorer to Producer 10 9 Production 8 (realisation Discovery Project 7 of full value) & Resource Development 6 Delineation (feasibility Relative Value Study Period 5 (excitement; (uncertainty; re
Slide 33: Corporate Snapshot
Corporate ImageSnapshot Corporate Snapshot 33 For personal use only Diverse and experienced Board and Management Share Code: IMA Board of Directors Share Price: A$0.10* Bob Besley – Independent Chairman 12 Month Price Range: A$0.04 – 0.12 Patrick Mutz – Managing Director Shares on Issue: 571.3m Chao
Slide 34: Contact
Contact For further information 34 For personal use only 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 www.imageres.com.au
Slide 35: Compliance Statements
Compliance Statements Forward Looking Statement 35 For personal use only COMPLIANCE STATEMENT FOR EXPLORATION Information in this presentation that relates to Exploration Results is based on information compiled by George Sakalidis BSc (Hons) who is a member of the Australasian Institute of Mining a
Slide 36: Mineral Resources – Strand Deposits 1 of 2
Mineral Forward Resources – Strand Deposits Looking Statement 36 For personal use only Strand Deposits 1 of 2 High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxen
Slide 37: Mineral Resources – Strand Deposits 2 of 2
Mineral Forward Resources – Strand Deposits Looking Statement 37 For personal use only Strand Deposits 2 of 2 Previously Reported Mineral Resources - Strand Deposits; in accordance with JORC Code (2004) @ 2.5% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leu
Slide 38: Mineral Resources – Dredge Deposits
Mineral ForwardResources – Dredge Deposits Looking Statement 38 For personal use only Dredge Deposits 1 of 1 Previously Reported Mineral Resources - Dredge deposits; in accordance with JORC Code (2004) @ 1.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leuc
Slide 39: Compliance Statement Mineral Resources
Forward Looking Compliance Statement Statements Mineral Resources 39 For personal use only COMPLIANCE STATEMENT FOR MINERAL RESOURCES 1. COMPLIANCE STATEMENT Boonanarring/Atlas Mineral Resources The information in this presentation that relates to the estimation of Mineral Resources is based on info