Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Investor Presentation (October 2023)
22 slides from Magnetite Mines's investor presentation, Oct 26, 2023
Slide 1: Premium Iron Ore ... for steel sector decarbonisation
For personal use only Premium Iron Ore ... for steel sector decarbonisation The time is now October 2023
Slide 2: Disclaimer
Disclaimer For personal use only IMPORTANT NOTICE ADDITIONAL INFORMATION The purpose of this presentation is to provide general information about This presentation should be read in conjunction with MGT’s Annual Report at 30 Magnetite Mines Limited ("MGT"). It is not recommended that any person make
Slide 3: Magnetite Mines: Developing Razorback, premium-grade iron ore project in a tier 1 location
Magnetite Mines (ASX:MGT) Developing Razorback: Expansive, premium-grade iron ore project in a tier 1 location For personal use only The Company The Opportunity Focused on 100% Rare, premium-grade Steelmakers are Supportive SA Substantial owned Razorback Magnetite iron ore looking now government re-
Slide 4: Corporate overview
Corporate overview Strengthened Board and Management with development in sights For personal use only Board Management Market Cap Jim McKerlie Chair of the Board Tim Dobson Chief Executive Officer BA Economics (Hons), Dip Fin Mgt, FCA, FAICD BAppSc (Ext.Metallurgy), GAICD, MAusIMM $32M ▪ ▪ Internati
Slide 5: Increasing global steel demand is a certainty
Increasing global steel demand is a certainty Steel is critical to tackling climate change – Razorback is a supply chain critical link For personal use only Production has doubled every 20 years since 1950 … … and more steel is necessary for energy transition Producing 8% of Steel (Mt) required for
Slide 6: Challenging decarbonisation targets have been set
Challenging decarbonisation targets have been set Industry is now committed and seeking new high grade ore supply For personal use only Direct emissions intensity of steel production Major steel producer carbon reduction targets ‘Steel Breakthrough Agenda’ COP27 (2022) ▪ Consistent international sta
Slide 7: The transition away from coal has commenced
The transition away from coal has commenced Razorback to supply high-grade, low-impurity iron ore for replacement technologies For personal use only Coal-using blast furnaces to be replaced over next 5 – 25 years Iron ore grade required Feed Iron Reduction Melting Carbon emissions (t CO2/t) Inputs C
Slide 8: New premium-grade iron ore supply critical to transition
New premium-grade iron ore supply critical to transition Razorback Project positioned to meet urgent new demand For personal use only Razorback >68% Fe concentrates positioned in DR-grade range* High-grade iron ore demand-supply gap to increase Exported Iron Ore – Fe Grade Comparison Australian Hema
Slide 9: The South Australia advantage
The South Australia advantage SA is leading the way to a future green iron economy For personal use only Attracting international investment Value adding Australia’s opportunity can be realised through collaboration and investment in green iron hubs Magnetite + Renewable Energy + Green Hydrogen ✓Tie
Slide 10: Razorback: Expansive, soft, outcropping iron ore
Razorback: Expansive, soft, outcropping iron ore South Australia’s Braemar Iron Formation – a globally significant magnetite province For personal use only The Braemar advantage ▪ Outcropping ore: very low strip ratio Iron Peak ▪ Siltstone-hosted iron ore, not BIF * ▪ Soft relative to WA magnetite o
Slide 11: Outstanding project location in the undeveloped Braemar
Outstanding project location in the undeveloped Braemar Close to potential future green iron hubs at Whyalla & Port Pirie For personal use only Adelaide 240km Open-access rail ~50km Whyalla Port 315km Port Pirie 180km Grid Power 100% renewable by 2030 1111 ~125km
Slide 12: Low risk conventional project configuration
Low risk conventional project configuration Well-proven mining practices and processing technologies For personal use only Open cut mining Magnetic separation Truck haulage to rail siding 12
Slide 13: High-grade Iron Peak deposit: prioritised for production
High-grade Iron Peak deposit: prioritised for production New maiden Ore Reserve For personal use only Iron Peak included in Razorback Project: ✓4km from Razorback deposit ✓Best mass recovery ✓Best concentrate quality ✓First 10 years plant feed Iron Peak ✓Orebody open along strike/depth Mineral Resou
Slide 14: Positive Razorback Project Optimisation Study economics
Positive Razorback Project Optimisation Study economics Results leading to larger scale production and staged expansion strategy For personal use only Staged development pathway manages risk Key project metrics5 Expansion Physical Metrics Unit Base Case Option dry Concentrate production rate 5 10 Mt
Slide 15: Razorback Project economics globally-competitive
Razorback Project economics globally-competitive Highly-competitive cost base on a standardised basis For personal use only Wood Mackenzie 2027 VIU-adjusted (62% Fe eq.) cost curve (US$/t)a,b 1st quartile 2nd quartile 300 250 US$/t (real 2023$) 200 150 10Mtpa 5Mtpa 100 50 - 0% 5% 85% 100% 10% 15% 20
Slide 16: Razorback Project financing concept
Razorback Project financing concept Joint venture with motivated offtakers For personal use only UNINCORPORATED JOINT VENTURE (JV) JV PARTNER 1 Joint Ventures (JV) Our choice of partners $ ▪ Well-proven model for big ▪ World-class asset has attracted Australian iron ore projects over many global ste
Slide 17: MGT's bespoke sustainability platform
MGT’s bespoke sustainability platform Elevating future ESG outcomes through early action and commitment For personal use only Environmental sustainability Social & community inclusion Cultural heritage survey with Ngadjuri team ▪ Enabling future low carbon ▪ Partnering agreement in development steel
Slide 18: Magnetite Mines is well positioned for success
Magnetite Mines is well positioned for success Aligned with timing and acceleration of downstream demand For personal use only KEY MILESTONES NEXT STEPS Confirmed Economics infrastructure updated access for rail including Iron Ngadjuri and power Peak and 2 Bt partnering Key land Bulk agreement Lodge
Slide 19: The opportunity is now
Magnetite Mines For personal use only The opportunity is now Decarbonisation Outstanding Project Progressing to Substantial re-rating Tailwind Credentials Development potential ▪ Premium-grade iron ore ▪ Tier 1 location ▪ Partner interest increasing ▪ Project set for long life needed now to enable ▪
Slide 20: References
For personal use only References 1. ASX Announcement – 09/02/23 – Iron Peak Resource Significantly Improved 2. ASX Announcement – 22/11/22 - Muster Dam Mineral Resource Estimate 3. ASX Announcement – 22/03/23 - Razorback Iron Project Ore Reserves Increase 340% - Update 4. ASX Announcement – 09/06/23
Slide 21: Contact
For personal use only Contact gemma.brosnan@magnetitemines.com +61 8 8427 0516 www.magnetitemines.com 21
Slide 22: Appendix: Mineral Resources and Reserves
Appendix 1 Mineral Resources and Reserves For personal use only Razorback Iron Ore Project (Razorback & Iron Peak deposits combined)a Classification Tonnes (Mt) Mass Rec % Fe % SiO2 % Al2O3 % P% LOI % Magnetite % Indicated 1,675 15.95 18.36 48.02 8.06 0.18 5.46 15 Inferred 1,570 16.09 17.74 48.6 8.2
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