Brockman Mining Ltd. · HKEX:159
Brockman Mining — ASX Spotlight Small to Mid Caps Conference Singapore and Hong Kong 2012
26 slides from Brockman Mining's conference presentation, Oct 16, 2012
Slide 1: Positioned for Real Growth
For personal use only POSITIONED FOR REAL GROWTH Presentation to ASX Spotlight Small to Mid Caps Conference Singapore and Hong Kong – October 2012 Russell Tipper, Chief Executive Officer, Brockman Mining Australia 1
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by and issued by Brockman Mining Limited (“Brockman” or “the Company”) to assist it in informing interested parties about the Company. It should not be considered an invitation or offer to subscribe for or purchase any securities i
Slide 3: Corporate Overview
CORPORATE OVERVIEW For personal use only • Resources company listed on the Hong Kong (Stock Code: 159) and Australian (Stock Code: BCK) Stock Exchanges • Three major business lines: iron ore, copper and transport services • Supported by a diverse shareholder base of international and Australian inve
Slide 4: Corporate Overview
CORPORATE OVERVIEW For personal use only • In 2012, successfully realised a significant step towards achieving this vision by finalising a US$500 million takeover of Australian iron-ore junior Brockman Resources Limited • Highly prospective cornerstone investment in Pilbara, Western Australian hemat
Slide 5: Corporate Strategy
CORPORATE STRATEGY For personal use only Short term Expedite development of the Marillana hematite project located in the eastern Pilbara and associated rail and port infrastructure to full commercial production by 2016 Mid term Advance the Australian exploration pipeline of hematite projects, from
Slide 6: Capital Structure
CAPITAL STRUCTURE For personal use only CAPITAL STRUCTURE FY2011/2012 As at 30 June 2012: HK$:A$7.95 Market capitalisation A$482 million Shares on issue 7.2 billion Options on issue 0.2 billion Enterprise value A$484 million Cash on hand A$42 million Debt A$30 million 6
Slide 7: Significant Value Upside
SIGNIFICANT VALUE UPSIDE Cost of production vs. J.P. Morgan long term iron ore price forecast For personal use only Source: JP Morgan 2012 7
Slide 8: Brockman Mining Positioned for Growth
BROCKMAN MINING POSITIONED FOR GROWTH For personal use only 8
Slide 9: Australian Development Pipeline
AUSTRALIAN DEVELOPMENT PIPELINE For personal use only Pre Project Exploration Development Development • West Pilbara Hub (100%): Duck • Ophthalmia Iron Ore Project • Marillana Iron Ore Project Creek and West Hamersley (100%): (100%): JORC compliant with a combined exploration • Significant DSO grade
Slide 10: Exploration – West Pilbara (100%)
EXPLORATION – West Pilbara (100%) For personal use only • Significant upside to be realised in the West Pilbara tenements providing a potential third near term operation • Initial drilling at Duck Creek and West Hamersley confirms near-surface DSO grade mineralisation in both Project areas with very
Slide 11: Pre Development – Ophthalmia Iron Ore Project (100%)
PRE DEVELOPMENT– Ophthalmia Iron Ore Project (100%) For personal use only • Potentially as significant as Marillana Project with bedded hematite mineralisation (DSO) discovered 15–30 km north of Newman • Prospects include Sirius, Coondiner (Pallas and Castor) and Kalgan Creek • Mineralisation is hos
Slide 12: Project Development – Key Statistics
PROJECT DEVELOPMENT – Marillana Iron Ore Project For personal use only KEY STATISTICS Mineral 1.63 Bt Resource (Measured: 173 Mt, (JORC) Indicated: 1,154 Mt, Inferred: 201 Mt) Mining 1.05 Bt Reserve (Proven: 133 Mt, (JORC) Probable: 916 Mt) Final product 60.5–61.5% Fe grade Average strip 0.8 over li
Slide 13: Resource Summary
Marillana Iron Ore Project Resource Summary For personal use only BENEFICIATION FEED (Cut-off grade: 38% Fe) Mineralisation Resource Tonnes Grade type classification (Mt) (% Fe) Detrital Measured 173 41.6 Indicated 1,036 42.5 Inferred 201 40.7 Pisolite Indicated 117 47.4 Total Measured 173 41.6 Indi
Slide 14: Resource Summary: Marillana Project DSO
Marillana Iron Ore Project Resource Summary For personal use only MARILLANA PROJECT DSO (Cut-off grade: 52% Fe) Resource Tonnes Fe CaFe AI2O3 SiO2 P LOI classification (Mt) (%) (%) (%) (%) (%) (%) Indicated 84.2 55.8 61.9 3.6 5.0 0.097 9.8 Inferred 17.7 54.4 60.0 4.3 6.6 0.080 9.3 TOTAL 101.9 55.6 6
Slide 15: Reserve Summary
Marillana Iron Ore Project Reserve Summary For personal use only MARILLANA DETRITAL ORE RESERVES Reserve classification Mt Fe (%) Proven 133 41.6 Probable 868 42.5 TOTAL 1,001 42.4 MARILLANA CID ORE RESERVES* Reserve Mt Fe CaFe* Sio2 AI2O3 P LOI classification (%) (%) (%) (%) (%) (%) Probable 48.5 5
Slide 16: Marillana Project: Final Product & Sinter Performance
MARILLANA PROJECT Final product & sinter performance For personal use only FINAL PRODUCT GRADES Fe SiO2 AI2O3 S P LOI 1000°C (%) (%) (%) (%) (%) (%) 60.5 - 61.5 6.0 - 6.5 2.5 - 3.0 <0.02 <0.08 2.0 - 3.0 • Hematite concentrate with a -8 mm +1 mm size specification • Final Fe grades equivalent to majo
Slide 17: Funding Options
Marillana Iron Ore Project Funding Options For personal use only • Engaged with interested parties targeting a joint venture funding arrangement to fund project equity and facilitate debt funding • 30–40% joint venture interest available and 30–100% project off- take available • Vendor financing con
Slide 18: Mine Status
Marillana Iron Ore Project – Mine For personal use only MINE STATUS 2010 DFS confirmed Marillana Project is financially robust and long life 2011 FEED completed and including further engineering and optimisation studies 2012 Native Title agreements and key environmental approvals finalised and appro
Slide 19: Metallurgy and Processing
Marillana Iron Ore Project Metallurgy and Processing For personal use only Simple mining & processing • Shallow, large scale mining • Free dig ore and waste • Life of Mine Strip Ratio very low at 0.8:1 • Simple robust process flow sheet • Positive sintering performance • -8mm +1mm product size – no
Slide 20: Independent Rail Infrastructure
Marillana Iron Ore Project Independent Rail Infrastructure For personal use only INDEPENDENT RAIL OPTION STATUS Underway Prefeasibility Study undertaken by Brockman, Atlas and QR National to evaluate integrated mine, rail and port logistics solution for the East Pilbara region, due end 2012 Underway
Slide 21: Port Infrastructure
Marillana Iron Ore Project Port Infrastructure For personal use only PORT INFRASTRUCTURE STATUS 2008 North West Infrastructure (NWI) established joint venture company : Brockman Mining Limited (37%); Atlas Iron Limited (39%); FerrAus Limited* (24%) * FerrAus Limited is a wholly-owned subsidiary of A
Slide 22: Port Infrastructure – Stockpiles
Marillana Iron Ore Project Port infrastructure – stockpiles For personal use only Phase 1 At 30 Mtpa At 50 Mtpa (Phase 1) (Phase 2) Stockyard 3.0 Mt 5.0 Mt Car dumpers 1 x 10.5 kt/h 2 x 10.5 kt/h Phase 2 1 x stacker 2–3 x stackers Major equipment 1 x reclaimer 2 x reclaimers Rail track 12 km 12 km O
Slide 23: Port Infrastructure – Berths
Marillana Iron Ore Project Port infrastructure – berths For personal use only Phase 1 At 30 Mtpa At 50 Mtpa (Phase 1) (Phase 2) Berths 1 2 Ship size 180,000 DWT 180,000 DWT Phase 2 Wharf 1 x 324 m 2 x 324 m Shiploaders 1 x 7,500 t/h 2 x 7,500 t/h Dredging 6 Mm3 - 23 23
Slide 24: Strategic Investment
STRATEGIC INVESTMENT For personal use only • Large scale, financially robust, long life project with a high quality final product • Foundation shareholder in NWI, securing port capacity allocation • Board and management team with strong depth of mining and iron ore experience • Future highly prospec
Slide 25: Competent Person's Statement
COMPETENT PERSON’S STATEMENT For personal use only The information in this presentation that relates to Mineral Resources and Ore Reserves is based on information compiled by Mr I Cooper, Mr J Farrell and Mr A Zhang. The Ore Reserves statement has been compiled in accordance with the guidelines defi
Slide 26: Contact
CONTACT For personal use only Michelle Manook General Manager, External Affairs michellemanook@brockman.com.au Mobile: +61 417 954 474 117 Stirling Highway NEDLANDS WA 6009 Australia www.brockmanmining.com 26
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