Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Investor Presentation (July 2022)
21 slides from Magnetite Mines's investor presentation, Jul 1, 2022
Slide 1: Razorback High Grade Iron Ore Project
For personal use only Razorback High Grade Iron Ore Project Premium Iron Ore July 2022
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 the Annual Report at 30 Magnetite Mines Limited ("MGT"). It is not recommended that any person makes
Slide 3: Corporate Overview
Corporate Overview For personal use only SHARE PERFORMANCE AND REGISTER Market Cap $0.10 180 $0.09 160 $98.58M $0.08 $0.07 140 120 Share Price (A$) (Share price $0.026 09 June 2022) Volume (M) $0.06 100 $0.05 80 $0.04 Cash 60 $0.03 $0.02 40 $20.14M $0.01 $- 20 0 (09 June 2022) BOARD AND OTHER SHAREH
Slide 4: Board & Management
Board & Management Strong leadership team with experience in resources and company growth For personal use only Board BOARD OF DIRECTORS Mark Eames Peter Schubert Malcolm Randall Jim McKerlie Paul White Simon Wandke BA Metallurgy (Hons) MBA MAUSIMM NON-EXECUTIVE DIRECTOR Dip Applied Chem, FAICD BA E
Slide 5: The High-Grade Price Premium
The High-Grade Price Premium For personal use only FASTMARKETS IRON ORE INDEX GRADE SPREADS (US$/TONNE) 60 40 20 0 US$/t -20 -40 -60 -80 58% Fe $/tonne discount to 62% Fe 65% Fe $/tonne premium to 62% Fe 5
Slide 6: The Braemar and Razorback: Large Mineral Resource, Long Life
The Braemar and Razorback Large Mineral Resource, Long Life For personal use only LARGE, ACCESSIBLE MINERAL RESOURCES Ore Mineral Mass Rec (Mt, Fe % SiO2 % AI2O3 % P% LOI % Magnetite % Resource (eDTR %) • Company Mineral Resources of Dry) 5.7Bt including Muster Dam1,2,3,4 • 240km to Adelaide from Ra
Slide 7: Attractive, Staged Development Pathway
Attractive, Staged Development Pathway Expansion Potential For personal use only Single-Step Expansion STAGE 1 STAGE 2 STAGE 3 Staged Expansion 15.5Mtpa plant throughput 31.0Mtpa plant throughput 46.5Mtpa plant throughput = 3Mtpa capacity = 5Mtpa capacity = 7Mtpa capacity Schematic design of wet-pla
Slide 8: Unlocking the Braemar
Unlocking the Braemar Large Mineral Resource, Long Life For personal use only 8% of mineral resource STAGE 1 RELIES ON ONLY: 4% of Braemar strike 0.3% of tenure area May 2021 Mineral Resource Outline 8
Slide 9: Existing Infrastructure
Existing Infrastructure For personal use only Existing open access heavy freight network – 25t axle loads Whyalla Port increasing throughput capacity Existing rail access and trans-shipment Transmission line operation into Capesize vessels 50km purpose built private all-weather haul road and rail si
Slide 10: Compelling Economics
Compelling Economics Highlights For personal use only STAGED DEVELOPMENT PATHWAY KEY OPERATIONAL AND FINANCIAL METRICS • DFS based on minimum upfront capital PFS Plant Staged Single-Step Unit • Expansion Study significantly increases projected IRR Optimised1 Expansion Expansion Stage 1 Stage 1,2, 3
Slide 11: Building our ESG Platform
Building our ESG Platform For personal use only MGT EARLY ACTION ESG ASPIRATION • GHG accountability • Grid-connected power supply, high • Renewable power Environmental embedded renewable generation • Minimising scope 3 emissions Sustainablity • Sustainable, non-competing use of Investigating the pr
Slide 12: Delivering Razorback: Key Milestones Achieved
Delivering Razorback Key Milestones Achieved For personal use only Pre-Feasibility Study (PFS) delivered successfully July 2021 demonstrating financial and technical viability of Razorback project Positive Expansion Study completed for the Razorback Iron Ore Project demonstrating the business ca
Slide 13: Indicative Development Schedule
Indicative Development Schedule* For personal use only 2022 2023 2024 2025 DFS Study Project Financing Permitting, Environment & Native Title Detailed Design Procurement Construction & Commissioning Production *Schedule subject to review as part of DFS currently underway 13
Slide 14: Delivering Premium Iron Ore to High Demand Markets
Delivering Premium Iron Ore to High Demand Markets For personal use only Project Highlights Market Advantage Corporate Substantial resource Decarbonisation Building an ESG with expansion requires high-grade roadmap optionality product Low initial Focus on unlocking Tier 1 jurisdication project capit
Slide 15: References
For personal use only References 1. ASX Announcement – 24/05/21 – Razorback Iron Project Mineral Resource Upgrade 2. ASX Announcement – 20/11/18 – Ironback Hill Deposit – JORC 2012 Resource Update 3. ASX Announcement – 01/03/21 – Muster Dam Iron Project Tenements awarded to Magnetite Mines 4. ASX An
Slide 16: Contact
For personal use only Contact investor.relations@magnetitemines.com +61 8 8427 0516 www.magnetitemines.com 16
Slide 17: Appendix
17 For personal use only Appendix
Slide 18: Decarbonisation of the Steel Industry
Decarbonisation of the Steel Industry High grade iron ore is key for net zero For personal use only Schematic summary of possible steel manufacturing Magnetite is key for steel routes and associated emissions intensity (tnCO2eq/tn steel) industry decarbonisation Forming, Feedstock Iron Emissions Tra
Slide 19: First Quartile competitor on a value/margin basis
First Quartile competitor on a value/margin basis Competing on cost curve For personal use only VIU-ADJUSTED TOTAL CASH COST CURVE TOTAL CASH COST CURVE - CFR NORTH CHINA - CFR NORTH CHINA Source: Wood Mackenzie, Magnetite Mines Source: Wood Mackenzie, Magnetite Mines Wood MacKenzie’s Value-In-Use (
Slide 20: Significant Upside Potential
Significant Upside Potential For personal use only RAZORBACK IS ECONOMIC SIGNIFICANT POTENTIAL UPSIDE TO IRR THROUGH THE CYCLE IN A RISING PRICE ENVIRONMENT $250 $250 $200 $200 Stage 1 Stage 3 62% Fe iron ore price – US/t 62% Fe iron ore price – US/t $150 $150 Long-term average = $110/t Long-term av
Slide 21: Advancing Project Approvals and Access
Advancing Project Approvals and Access For personal use only Area Status Upcoming Activities • SA Govt approvals pathway confirmed • Impact assessment and finalization of • Supportive regulator with case manager approvals documentation Approvals appointed • Targeted ML approval award – 2023 • SA Gov