Zanaga Iron Ore Co. Ltd. · LSE:ZIOC
Zanaga Iron Ore — Investor Day (March 2025)
32 slides from Zanaga Iron Ore's investor day presentation, Mar 18, 2025
Slide 1: Zanaga Iron Ore Investor Day Presentation
18 March 2025 Zanaga Iron Ore Investor Day Presentation
Slide 2: Disclaimer
Disclaimer This document, which is personal to the recipient, has been issued by Zanaga Iron Ore Neither this document nor any copy of it may be taken or transmitted into the United Company Limited (the “Company”). This document does not constitute or form part of States of America, its territories
Slide 3: Investor Day Agenda
Investor Day Agenda ▪ Executive Summary ▪ Fundraise and Glencore Buyback Transaction ▪ Corporate and Project Strategy ▪ Iron Ore M&A: Case Study and Value Perspectives ▪ Conclusion ▪ Appendix
Slide 4: Investment Highlights
Investment Highlights 1 Feasibility Study completed and updated, permits in place 2 High Quality Product (with further enhancement potential) 3 Low Operating Costs 4 Attractive Project Economics, 100% ownership 5 Stable Jurisdiction with a Supportive Government 6 Experienced Management Team 4
Slide 5: Experienced Board and Management
Experienced Board and Management Board of Directors Key Management Clifford Elphick Andrew Trahar Non-Executive Chairman Corporate Development and IR Manager • >36 years experience in the mining sector • >17 years mining transaction experience • Founder and CEO of Gem Diamonds Ltd • Co-Founder Visio
Slide 6: Corporate Overview
Corporate Overview Ownership Structure1 (post Tranche 2 equity completion) Overview of the Zanaga Iron Ore Project • Located in the South West of Republic of Congo (Brazzaville) Strategic Other Investors shareholders • Extensively studied since 2007 (>US$330m invested) 36-38% (Post tranche 2) 56.8%
Slide 7: Location and overview of logistics route options
Location and overview of logistics route options 30Mtpa project requires construction of mine, process and operations infrastructure at Zanaga Site, buried pipeline, and concentrate handling facilities at Pointe Indienne. Mayoko Gabon 80km Djambala Congo Zanaga Project DRC 95km Angola Zanaga Mossend
Slide 8: A strategic asset with bottom quartile operating costs
A strategic asset with bottom quartile operating costs The Zanaga Project would be one of the most competitive high-margin iron ore assets globally – across all stages of development .. making Zanaga Competitive on a Global Scale 2030 Iron Ore Mine China Delivered CFR Cost (Value in Use Adjusted, Re
Slide 9: Fundraise & Glencore Buyback Transaction
Fundraise & Glencore Buyback Transaction
Slide 10: Fundraise and Glencore Buyback Completed
Fundraise and Glencore Buyback Completed Fundraise and Glencore shareholding buyback overview ZIOC and Glencore agreed a full 43% shareholding buyback for Glencore Guava Others US$15m (4.1p/share) Ltd 43.0% 11.8% 45.2% ▪ Glencore director resignation and cancellation of offtake rights upon completio
Slide 11: ZIOC fundraise involved investment from multiple significant strategic investors
ZIOC fundraise involved investment from multiple significant strategic investors Greymont Bay Consortium Gagan Gupta, Founder of Arise Port & Logistics Mark Cutifani: Former CEO of Anglo American plc Gagan Gupta: Founder and CEO of Arise, developing (2013-2023), Chairman of Vale Base Metals and
Slide 12: Corporate & Project Strategy
Corporate & Project Strategy
Slide 13: New strategic direction targets high value upside opportunities
New strategic direction targets high value upside opportunities Background Investor engagement process resulted in key agreed next steps ▪ Project enhancement workstreams identified for immediate acceleration ▪ Formal discussions with Strategic Project Investors to launch immediately as part of cons
Slide 14: Demand for premium products is driving a major iron ore market shift
1 DRI Test Work Demand for premium products is driving a major iron ore market shift Decarbonisation of the steel supply chain is expected to drive a supply-demand deficit in premium higher grade iron ore products – reinforcing Zanaga’s strategic value Seaborne iron ore demand forecasts (Mt) Super h
Slide 15: The ability to achieve DRI specification has the potential to transform the Zanaga Project
1 DRI Test Work The ability to achieve DRI specification has the potential to transform the Zanaga Project Opportunity for Zanaga Project to achieve significant price premium if DRI-grade product can be achieved, with the potential to create substantial upside value for the project Iron ore price di
Slide 16: Zanaga's DRI test work programme
1 DRI Test Work Zanaga’s DRI test work programme Summary Value Impact Potential New technologies have been proven since Zanaga 2014 FS – amenable to processing Zanaga’s ore Step 1: Laboratory-scale test work capable of completion within short timeframe US$6bn+ Step 2 (optional): Pilot scale te
Slide 17: Pellet Plant Feasibility Study
2 Pellet Plant Feasibility Study Opportunity for development of bolt-on pellet plants, enhancing product quality further and strategic asset value Summary Value Impact Potential Republic of Congo is striving to develop new industrial manufacturing capability. Gas and energy in-country provide idea
Slide 18: Single 30Mtpa Capacity Pipeline Feasibility Study
3 Single 30Mtpa Capacity Pipeline Feasibility Study Opportunity to reduce significant cost and accelerate timing of Stage 2 expansion by building a larger capacity pipeline in Stage 1 Summary Value Impact Potential Opportunity to build a single 30Mtpa capacity pipeline in Stage 1, batch material d
Slide 19: Dry Tailings Feasibility Study
4 Dry Tailings Feasibility Study Ability to significantly reduce volume and cost of tailings management Summary Value Impact Potential Large wet Tailings Storage Facility (TSF) currently planned for base case staged development project Opportunity to utilise paste or filtered tailings technology
Slide 20: Timetable – announcements, transaction, and project enhancement
Timetable – announcements, transaction, and project enhancement Major milestones targeted in the next 6 months Timetable and Milestones Fundraise & Glencore Buyback Project Value Enhancements Strategic deal ✓ 4 Feb ‘25: ✓ Mid Mar ‘25: Q2 ’25: Q2 ’25: Q3 ‘25: Q3 ‘25: Q4 ’25: Power MoU Glencore share
Slide 21: Kami Iron Ore Project Case Study and Value Perspectives
Kami Iron Ore Project Case Study and Value Perspectives
Slide 22: Champion Iron's Kami Project transaction provides a compelling value comparable for Zanaga
Champion Iron’s Kami Project transaction provides a compelling value comparable for Zanaga Dec 2024: Champion Iron sold 49% of its ‘Kami’ Iron Ore Project to Nippon Steel and Sojitz for US$245m, an Enterprise Value of US$500m for the Project. Zanaga provides larger production scale at lower capex in
Slide 23: Value Build Up
Value Build Up Zanaga management intend on conducting product testwork to determine Zanaga’s ability to product DRI grade product. In the event that DRI testwork proves successful, based on Kami’s transaction value, the upside read-across to Zanaga is illustrated below Value Comparable Analysis US$m
Slide 24: Conclusion
Conclusion Zana
Slide 25: Conclusion
Conclusion ✓ 100% project ownership now secured ✓ Led by an experienced team, backed by a highly successful investor base ✓ Robust project fundamentals, supported by extensive study work ✓ Attractive project economics ✓ Large orebody defined to support long life development ✓ High quality product al
Slide 26: Appendix
Appendix Zana
Slide 27: 2024 Feasibility Study cost update confirmed attractive project economics
2024 Feasibility Study cost update confirmed attractive project economics Reasonable capex upfront, with high cash flow generation, enabling self-financing of Phase 2 expansion Returns, Capital and Operating Cost Estimates(1) Phased Capex Profile Capex US$m Stage 1 Stage 2 Stage 1 Stage 2 (Optional
Slide 28: The Zanaga Project is a globally significant iron ore resource
The Zanaga Project is a globally significant iron ore resource One of the only large, high grade, long-life, iron ore assets not controlled by existing major iron ore producers Orebody supports >30 year mine life Large Scale Reserves & Resources …positioning Zanaga as a Globally Significant Reserve1
Slide 29: Current base case: High-grade pellet feed product, key to low carbon steel
Current base case: High-grade pellet feed product, key to low carbon steel (with potential for further improvement) The Stage 1 pellet feed product will have an iron grade of 66%, similar to Brazilian supply. High Grade Product with High Fe Content and Low Impurities Iron Ore Indices High quality,
Slide 30: Low strip ratio
Low strip ratio Low levels of waste material movement per tonne of ore Attractive Resource Profile & Low Strip Ratio… Strip Ratio (Waste : Ore) 4.00 3.52 3.50 3.00 2.50 2.00 1.74 1.50 1.08 1.00 0.93 0.45 0.50 0.34 0.00 Zanaga - Stage 1+2 Zanaga - Stage 1 Brazil Canada Australia South Africa Very low
Slide 31: …aided by cost-efficient infrastructure solutions
…aided by cost-efficient infrastructure solutions Zanaga’s competitive cost position is aided by attractive infrastructure solutions Shorter Distance to Port vs other Major Iron Ore Assets Pipeline Distance (km) 700 670 Significant environmental and cost advantage ‒ 366km concentrate pipeline from
Slide 32: ARISE Special Economic Zone under development
ARISE Special Economic Zone under development Significant progress made in establishing the ARISE Special Economic Zone in Pointe-Indienne Pointe Indienne SEZ construction progress (March 2025) ___________________________ Source: Arise 32