Image Resources Nl · ASX:IMA
Image Resources Nl — Investor Presentation (September 2018)
34 slides from Image Resources Nl's investor presentation, Sep 24, 2018
Slide 1: Australia's next mineral sands miner
1 For personal use only Australia’s next mineral sands miner Boonanarring mineral sands project 100%-owned, high-grade, zircon-rich flagship project 80km north of Perth in Western Australia Construction of open-cut mine and processing facility to be completed early 4th QTR 2018 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements 2 For personal use only This presentation has been prepared by the management of Image Resources NL ("Image”, “IMA“ or the ‘Company’) in connection with meetings with investors and potential investors and not as specific advice to any particular party or person. The inform
Slide 3: Investor Snapshot
Investor Snapshot 3 For personal use only Opportunity to invest in a company transitioning from advanced explorer to profitable miner before it realises full valuation Ø Company fully funded to positive cashflow § $50M as debt; $25M as equity § only $52M project capital1 Ø Plant and equipment acquir
Slide 4: Investor Snapshot
Investor Snapshot 4 For personal use only Opportunity to invest in a company transitioning from advanced explorer to profitable miner before it realises full valuation Ø Binding off-take agreement in place for 100% of production Ø Project NPV A$235 million1; IRR 125%1; 13 month payback1 § metrics ex
Slide 5: Products and Applications
Products and Applications 5 For personal use only Key products are zircon and titanium dioxide Ø Zircon sand is processed into zirconium compounds, intermediate products and zirconium metal for a variety of applications; s Qualitie r § Ceramics (tiles); 55% demand whitene r opacifie istant s heat re
Slide 6: Products and Applications
Products and Applications 6 For personal use only Key products are zircon and titanium dioxide Ø Titanium dioxide (TiO2) from rutile and ilmenite is processed into titanium based products and titanium metal for a variety of applications; § Ultra-white pigments (paint, paper, plastic); ~90% demand §
Slide 7: Project Location
Forward ProjectLooking Location Statement 7 For personal use only q LOCATION Ø North Perth Basin in Western Australia Ø 80 km north of Perth CBD Ø Proven mineral sands address § Including majors Iluka and Tronox Ø Infrastructure rich § paved roads, power, gas pipeline water, telecommunications etc.
Slide 8: Projects Types and Locations
Projects Types and Locations 8 For personal use only Ø 1,000 km2 tenements portfolio Atlas Ore Reserves Ø 100% focus on mineral sands Probable: 9.5Mt @ 8.1% HM Ø Strandline projects (dry mining) Ø Dredge mining prospects Boonanarring Project currently being Boonanarring Ore Res Proved: 9.3 Mt @ 8.6%
Slide 9: Projects Pyramid – Dredge Prospects
Projects Forward Looking PyramidStatement – Dredge Prospects 9 Mineral Resources – Accessible by Dredge Mining For personal use only Projects ranked by HM Grade Positive attributes • 90+%VHM; • <5% slimes; Bidaminna • 25-67% Leucoxene; Tonnes-grades are for historic Mineral Resources per JORC Code (
Slide 10: Projects Pyramid – Strand Deposits
Forward Projects Looking Pyramid Statement – Strand Deposits 10 Mineral Resources – Accessible by Dry Open-Cut Mining For personal use only Projects ranked by combined Zircon (Zr) plus Rutile (Ru) BFS assumes mining at Boonanarring Tonnes-grades are for Mineral Resources; Boonanarring and Atlas per
Slide 11: Ore Reserves
Forward Ore Reserves Looking Statement 11 For personal use only q QUALITY ORE RESERVES Ø JORC Code (2012) Compliant Ø 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 % Sli
Slide 12: Products and Prices
Products and Prices 12 For personal use only Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product.
Slide 13: Bankable Feasibility Study Base Assumptions
Forward Bankable Looking Feasibility Statement Study 13 For personal use only Base Assumptions e it s w eight*! Ø Start mining at Boonanarring 4 t imes abov Punches Ø Dry, open-cut mining i n r e venue to lent * -Equiva es per hour at n Ø Production rate - 500 dry tonnes per hour 2,000 ton al grades
Slide 14: Boonanarring – Production Statistics
Boonanarring – Production Statistics 14 For personal use only Average annual production at Boonanarring Ø 220k tonnes HMC; containing; • 60kt zircon (70kt/year in 2019-20) • 130kt ilmenite • 5kt rutile • 3kt leucoxene Ø 5.5 years mine life with ability to add 3-4 years additional ore reserves
Slide 15: Boonanarring – Production Statistics
Boonanarring – Production Statistics 15 For personal use only Boonanarring Project Production Forecast - updated July 2018 2018 2019 2020 2021 2022 2023 Total Ore processed (Kt) 700 3,600 3,800 3,700 3,800 3,500 19,100 Ore grade (%HM) 6% 8% 11% 6% 8% 11% 8% Assemblage (% of HM) 42.7 270.0 429.4 207.
Slide 16: Boonanarring – Project EBITDA
Boonanarring – Project EBITDA 16 For personal use only Boonanarring Project EBITDA Summary - updated July 2018 (AU$million) 2018 2019 2020 2021 2022 2023 Total Revenue 5 127 181 100 139 101 653 Revenue/tonne HMC 455 580 566 526 604 439 544 Operating Costs Mining 18 46 43 42 42 35 226 Processing 1.2
Slide 17: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 17 For personal use only Current price for Tronox premium grade zircon Projected price increase prior to first production
Slide 18: Key Financial Metrics
Forward Bankable Looking Feasibility Statement Study 18 For personal use only Key Financial Metrics Original BFS1 Updated BFS2 Updated BFS3 Ø Pre-Tax NPV (@ 8%) A$135M A$197M A$235M Ø Pre-Tax IRR 64% 104% 125% Ø Payback period (months) 22 16 13 Ø Mine life 8+ years Ø Project capital cost A$52M • inc
Slide 19: Image Wet Concentration Plant
Forward Image Wet Looking Concentration Statement Plant 19 For personal use only
Slide 20: Site Construction Photos
Site Construction Photos 20 For personal use only
Slide 21: Project Development Schedule
Project Development Schedule 21 For personal use only Targeting first production 4th Quarter 2018 Simplified Boonanarring Project Construction Schedule - (high level) 2018 2019 May Mar Mar Aug Nov Dec Apr Feb Oct Feb Sep Jun Jan Jan Jul WCP & Equipment Relocation Project Construction Pre-Stripping O
Slide 22: Upside Potential
Forward Upside Looking Potential Statement 22 For personal use only Upside potential at and near Boonanarring Ø Confirmed potential to extend mine life with high grade mineralisation (ASX announcement 13 March & 26 June 2017); Ø Potential to process lower grade overlying layer of mineralisation; Ø P
Slide 23: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 23 For personal use only ASX - 13 March & 26 June 2017 New Drilling Results (Feb 2017) Ø Confirm 5.6km northern extension of Boonanarring mineralisation Ø Outstanding high grade intersections: § 8m @ 23.8% HM in IX00245 § 8m @ 21.1% HM in IX00244 and § 8m @ 16.3% HM i
Slide 24: Potential Royalty from Tronox
Potential Royalty from Tronox 24 For personal use only Royalty agreement in place as of 2014 Ø Small cash payment (already received) Ø 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% Ø Indefinite production schedule Ø Potential for future arrange
Slide 25: Corporate Snapshot
Corporate Image Snapshot Corporate Snapshot 25 For personal use only Diverse and experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.12* Bob Besley – Independent Chairman 12-Month Price Range: A$0.07– 0.17 Patrick Mutz – Managing Director Shares on Issue: 953m Chaodian
Slide 26: Transition from Explorer to Producer
Contact from Explorer to Producer Transition 26 For personal use only Generalisation of Transition from Explorer to Producer 10 9 Project Production 8 Development (realisation Discovery (feasibility 7 of full value) & Resource results; 6 Delineation Relative Value Study Period mine decision; 5 (exci
Slide 27: Use of Solar Energy
Corporate Snapshot Use of Solar Energy 27 For personal use only Heads of Agreement with Sunrise Energy Group Pty Ltd to provide 3-4 MWAC solar farm to be: Ø Constructed and operated by Sunrise Energy; Ø Located on Image owned land adjacent to Boonanarring mine site; and Ø Providing 25% of total elec
Slide 28: Contact
Contact For further information 28 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 29: Additional Information
Forward Looking Statement 29 For personal use only Additional Information
Slide 30: Compliance Statement
Compliance Forward Looking Statements Statement 30 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 31: Mineral Resources – Strand Deposits 1 of 2
Mineral Forward Resources Looking Statement – Strand Deposits 31 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 32: Mineral Resources – Strand Deposits 2 of 2
Mineral Forward Resources Looking Statement – Strand Deposits 32 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 33: Mineral Resources – Dredge Deposits
Mineral ForwardResources Looking Statement – Dredge Deposits 33 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 34: Compliance Statement for Mineral Resources
Forward Looking Compliance Statement Statements 34 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 information compiled b
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