Equatorial Resources Limited · ASX:EQX
Equatorial Resources — Investor Presentation (February 2015)
23 slides from Equatorial Resources's investor presentation, Feb 6, 2015
Slide 1: Corporate Presentation February 2015
For personal use only CORPORATE PRESENTATION February 2015
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS • This document should be read in conjunction with any public elements for Mayoko‐Moussondji were extracted from the Resources, that all material assumptions and technical parameters For personal use only announcements and reports (including financial reports and Company’s ASX
Slide 3: Equatorial's Iron Footprint in Republic of Congo
EQUATORIAL’S IRON FOOTPRINT IN REPUBLIC OF CONGO For personal use only Exploring and developing 100% owned iron projects Large footprints in key iron clusters in Africa Mayoko‐Moussondji fully permitted and ready to build at very low capital intensity Massive regional potential at Badondo Exper
Slide 4: Bienvenue a Congo-Brazzaville!
BIENVENUE A CONGO‐BRAZZAVILLE! For personal use only • Rapid development of major infrastructure • Stable “oil country” actively growing its mining sector • Former French colony, 50 years of independence • Oil majors Total, Eni, and Chevron operating for 30+ years, currently investing over US$2.5Bn
Slide 5: Mining in the Republic of Congo
MINING IN THE REPUBLIC OF CONGO • Mining sector is central to the For personal use only government’s Economic Diversification Program (“Chemin d’Avenir”) • Mining code adopted in 2005 • Favourable fiscal terms for miners • 3% Royalty on Revenues • 10% government participation on conversion to Mining
Slide 6: Mayoko-Moussondji Iron Project
MAYOKO‐MOUSSONDJI IRON PROJECT For personal use only NEAR TERM PRODUCTION OF MAYOKO PREMIUM FINES WITH ACCESS TO EXISTING INFRASTRUCTURE Slide 6
Slide 7: Mayoko-Moussondji Project Summary
MAYOKO‐MOUSSONDJI PROJECT SUMMARY For personal use only • 917 million tonne Total JORC Resource LARGE IRON ORE 917Mt • Near surface Hematite Resource of 182 million tonnes RESOURCE JORC • 2,680 km2 licence area, largest footprint of land in Mayoko region • Only 21km drilled of 47km of identified iro
Slide 8: Highly Favourable Mining Convention
HIGHLY FAVOURABLE MINING CONVENTION For personal use only • Mining Convention signed in December 2014 • Access to the railway and port facilities confirmed for an initial period of 25 years including: • Guaranteed capacity commencing at 500,000tpa in year 1; and • Increasing to 12Mtpa in year seven.
Slide 9: Pre-Feasibility Study Completed
PRE‐FEASIBILITY STUDY COMPLETED For personal use only Pre‐Feasibility Study Results Annual Production 2.5 Mtpa (dry) Operating Costs (LOM ave cash costs FOB): US$39.93 /t Total Capital requirement US$181.16 million Capital Intensity US$72.46 /t Maiden Ore Reserve Estimate 38.5Mt at 42.0% Fe Initial
Slide 10: Pre-Feasibility Study Highlights
PRE‐FEASIBILITY STUDY HIGHLIGHTS For personal use only • Expected operating cash costs of US$39.93/t FOB Pointe‐Noire FOB OPEX BREAKDOWN 45 Life of mine Average (2.5 Mtpa) 40 $39.93/t $13.21/t 35 30 25 $7.16/t $2.34/t 20 15 $14.35/t 10 5 $2.88/t 0 Overall Mining Process G&A Rail Port Slide 10
Slide 11: Scoping Study Highlights
SCOPING STUDY HIGHLIGHTS For personal use only • Total capital required for 2.5Mtpa of US$181.16m CAPEX BREAKDOWN 200 180 $181.16m $1.84m $72.76m 160 140 120 $7.46m 100 $46.28m 80 60 $13.03m 40 $16.16m 20 $23.63m 0 Total Mining Processing Utilities Offsite Construction EPCM Contingency & Site Infras
Slide 12: Low Capital Intensity
LOW CAPITAL INTENSITY For personal use only Exceptionally low capital intensity of US$72.46 /t driven by availability of existing rail and port infrastructure… Source: Published company data Slide 12
Slide 13: Mayoko-Moussondji Updated Mineral Resource Estimate
MAYOKO‐MOUSSONDJI UPDATED MINERAL RESOURCE ESTIMATE For personal use only • Current JORC Mineral Resource Estimate (Hematite and Magnetite) of 917 MILLION TONNES at 31.4% Fe • Includes Indicated Hematite Resource of 55 MILLION TONNES at 39.3% Fe that formed the basis of the PFS mine plan • PFS inclu
Slide 14: Simple Open Pit Mining
SIMPLE OPEN PIT MINING For personal use only • Simple open pit truck and shovel operations • Initial focus on friable hematite followed by colluvium ore types • Very low strip ratio of 0.58:1 (waste to ore) • Contractor mining with average mining costs of US$13.21 /t Mine Schedule Domains Slide 14
Slide 15: Simple Processing Delivers High Grade Product
SIMPLE PROCESSING DELIVERS HIGH GRADE PRODUCT For personal use only Target Product Specifications: “Mayoko Premium Fines” Fe % SiO2 % Al2O3 % P% S% LOI 1000 Particle Size 64.1 4.5 2.3 0.077 0.015 2.2 ‐8mm • Standard processing techniques to upgrade near surface hematite to a 64.1% Fe product • Produ
Slide 16: Access to Existing Transport Infrastructure
ACCESS TO EXISTING TRANSPORT INFRASTRUCTURE For personal use only Access to rail and port facilities confirmed for 25 years under Mining Convention Guaranteed capacity for all of Equatorial’s rail and port needs RAIL • Operational railway line intersects the project and leads directly to the port
Slide 17: Potential for Future Value
POTENTIAL FOR FUTURE VALUE For personal use only Focused on securing a strategic partnership/financing to unlock value ANALYST COMMENTARY GMP Securities (November 2014): “In any recovery this is one of the betters projects globally, and we expect Equatorial to have at least a 2‐3 year window where
Slide 18: Badondo Iron Project
BADONDO IRON PROJECT For personal use only STRATEGIC LARGE SCALE ASSET WITH DIRECT SHIPPING ORE POTENTIAL Slide 18
Slide 19: Congo Craton: A Cluster of Quality Iron Ore Projects
CONGO CRATON: A CLUSTER OF QUALITY IRON ORE PROJECTS For personal use only Slide 19
Slide 20: Congo Craton: A Cluster of Quality Iron Ore Projects
CONGO CRATON: A CLUSTER OF QUALITY IRON ORE PROJECTS For personal use only • Badondo is strategically located within the emerging cluster of the Congo Craton iron projects: • 90km from Sundance Resources’ Mbalm Project (775Mt @ 57%Fe) • 40km from Core Mining’s Avima Project (580Mt @ 60%Fe) • 45km fr
Slide 21: Badondo: Massive Potential for Exploration Upside
BADONDO: MASSIVE POTENTIAL FOR EXPLORATION UPSIDE For personal use only • Initial drilling confirmed high grade hematite cap up to 66% Fe • Thick and extensive enriched hematite blanket identified • Significant near surface downhole intersections include: • 41.9m at 62.9% Fe in BADDD0001; and • 40.4
Slide 22: Corporate Summary
CORPORATE SUMMARY For personal use only ASX CODE: EQX EQUATORIAL RESOURCES LTD Current Issued Capital 124.4 million shares Fully Diluted 128.8 million shares Market Capitalisation (Undiluted @ A$0.24) A$29.9 million Cash at 31 December 2014 A$38.7 million Board of Directors Major Shareholders Ian Mi
Slide 23: For personal use only
For personal use only Perth: London: Pointe‐Noire: Brazzaville: Level 2, BGC Centre, 28 The Esplanade Suite 1C, 38 Jermyn Street Villa 100, Rue Agostino Neto Rue Loth Perth, WA 6000, Australia London, SW1Y 6DN Quartier Plateau, Centre‐Ville Quartier Télévision GPO Box 2519, Perth, WA 6831 United Kin
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