Strike Resources Limited · ASX:SRK
Strike Resources — Shareholder Meeting (November 2013)
24 slides from Strike Resources's shareholder meeting presentation, Nov 28, 2013
Slide 1: 2013 AGM Managing Director's Presentation
For personal use only 2013 AGM Managing Director’s Presentation November 2013
Slide 2: Disclaimer
Disclaimer For personal use only This material contains certain forecasts and forward-looking information, including regarding possible or assumed future performance, costs, production levels or rates, prices, reserves and resources or potential growth of Strike Resources, industry growth or other t
Slide 3: Creating value by developing a large scale high grade iron ore project in Peru
Strike Resources – creating value by developing a large scale high grade iron ore project in Peru For personal use only Iron ore project developer, focussed on the high grade (57% Fe) large scale (20 Mtpa) Apurimac magnetite project in Peru Well funded - $13 million cash enough for 12 – 18 months of
Slide 4: Agenda
Agenda For personal use only Iron Ore Market Why Peru? Corporate History Projects 4
Slide 5: The iron ore market continues to show resilience as other commodity prices fall
The iron ore market continues to show resilience as other commodity prices fall For personal use only Iron Ore Price Remains Firm China continues to Rest of the world still grow, now coming China expected to to come off a very high base produce around 1 •Significant urbanisation •Absolute growth rat
Slide 6: Peru is an attractive destination for mining investment
Peru is an attractive destination for mining investment For personal use only Peru is geographically very well placed for exporting minerals to China and USA • Legal reforms carried out in early 2000s - modelled on International best practice • Aim to provide stable environment to secure medium to l
Slide 7: Peru is a globally significant producer of commodities
Peru is a globally significant producer of commodities with significant new projects planned over the next 10 years For personal use only Rank – Latin Rank – Peru is a globally significant producer of minerals Mineral America Worldwide • Peru is the largest producer of gold, zinc, tin and lead in La
Slide 8: Peru has the strongest growth of South American countries and a healthy investment rating
Peru has the strongest growth of all of the South American countries and a very healthy investment rating second only to Chile in the region For personal use only Investment grade Latin America benchmarking Country S&P Fitch Moody’s Chile A+ A+ Aa3 Peru BBB+ BBB+ Baa2 Mexico BBB BBB Baa1 Brazil BBB
Slide 9: Strike's share price history indicates upside potential
Strike’s share price history indicates tremendous upside potential, now it has 100% project ownership, community access and iron prices remain strong For personal use only SRK Share Price $3.00 April 2008 Iron Ore Prices Third party offer today are similar to Feb 2007 values Strike’s prices in 2008
Slide 10: Achievements during 2013
Achievements during 2013 For personal use only Consolidated ownership of Peru projects - SRK now 100% Exited Indonesia coal project - $4,300,000 cash received Perth based corporate overhead significantly reduced MD relocated to Peru - where the action is! Important community approvals secured Cuervo
Slide 11: Projects focussed in the Apurimac and Cusco regions in southern Peru
Strike’s projects are focussed in the highly prospective Apurimac and Cusco regions in southern Peru, home to several world class projects For personal use only Apurimac (100% Strike) • Flagship project • Very high grade Magnetite ore: 269Mt at 57.3% Fe • Short term target of 500 Mt • Production Tar
Slide 12: Pre-feasibility study completed in 2008 (updated 2010) on Apurimac project
Pre-feasibility study completed in 20081 (updated in 20102) on Apurimac project indicates clear potential for development of a world class iron ore project For personal use only Production target 15 – 20 million tonnes per year of iron-ore concentrate • Base case of 20Mtpa of concentrate produced by
Slide 13: Apurimac project benchmarks well against comparable iron ore projects
Strike’s Apurimac project benchmarks well against other comparable iron ore projects around the world For personal use only High Grade Low Operating Costs Low Capital Intensity 13
Slide 14: Drilling planned for 2014 at Opaban concessions and Sillaccassa
Drilling planned for 2014 to expand resources at Opaban concessions and test magnetic targets at Sillaccassa, 25km to the west of Opaban For personal use only OPABAN I OP1-072 OP1-072 OP1-072 OP1-076 OP1-076 OP1-076 OP1-076 OP1-076 OP1-076 OP1-074 OP1-073 OP1-074 OP1-074 OP1-074OP1-073 OP1-073 OP1-0
Slide 15: Regional exploration also planned for 2014
Regional exploration is also planned for 2014, in areas with identified magnetic anomalies and outcropping iron mineralisation For personal use only Magnetic Survey 15
Slide 16: Planning to recommence drilling at Apurimac in 2014
Strike is planning to recommence drilling at Apurimac in 2014, with environmental impact study already underway For personal use only 2013 2014 SHORT TERM PLAN Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Opaban Environmental Study (EIA) EIA submitted for approval by Ministry of Energy and Mines
Slide 17: Evaluating small scale, near-term production to generate early cashflows
Strike is also evaluating alternatives to commence small scale, near- term production, to generate early cashflows For personal use only Strike has already created a stockpile of high grade DSO material • 8,000 tonnes has been mined by local ‘community miners’ • 65% Fe, 0.04% P, 0.013% S • Arrangeme
Slide 18: Building a strong Social License with local communities
Strike is focussed on building a strong “Social License” with local communities – agreements in place with two communities For personal use only Good community relations are critical for success In Peru • Local communities control surface land rights • Dealing with communities can be challenging at
Slide 19: Substantial exploration assets in the Cusco region of Peru
Strike also holds substantial exploration assets in the Cusco region of Peru For personal use only Strike holds concessions comprising 17,000 hectares in Cusco • Current JORC Resource of 104Mt at 32.6% Fe with exploration upside • Mineralisation remains open along strike and at depth • Centred on a
Slide 20: Summary - back on track for significant value creation
Summary - with 100% project ownership and community approvals for exploration, strike is back on track for significant value creation For personal use only Iron remains a good business, with demand and prices expected to remain firm Strike has cash reserves sufficient to advance priorities for 2014
Slide 21: Appendices
For personal use only APPENDICES 21
Slide 22: JORC Resource Tables
JORC Resource Tables For personal use only Combined Mineral Resources for Opaban 1 and Opaban 3 Category Project Density t/m3 Mt Fe% SiO2% Al2O3% P% S% Inferred 4 127.19 56.7 9.66 2.7 0.04 0.2 Indicated Opaban 1 4 133.71 57.57 9.46 2.54 0.04 0.12 Indicated Opaban 3 4 8.53 62.08 4.58 1.37 0.07 0.25 T
Slide 23: Competent Persons Statements
COMPETENT PERSONS STATEMENTS For personal use only The information in respect to mineral resources and other exploration results at Cerro Ccopane is extracted from the report entitled "Cerro Ccopane Resource and Funding Update" released by Strike to the ASX on 30 July 2013 and available at www.strik
Slide 24: Thank You
For personal use only Thank You Peru Australia William Johnson Shane Murphy – Media & Investor Managing Director Relations Strike Resources FTI Consulting Tel: +(511) 715-8090 +61 8 9485 8888 wjohnson@strikeresources.com.au +61 420 945 291 shane.murphy@fticonsulting.com 24
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