Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Shareholder Meeting (November 2021)
25 slides from Magnetite Mines's shareholder meeting presentation, Nov 29, 2021
Slide 1: Chairman's Address & Presentation to 2021 Annual General Meeting
ASX ANNOUNCEMENT 29 NOVEMBER 2021 CHAIRMAN’S ADDRESS & PRESENTATION TO 2021 ANNUAL GENERAL MEETING In accordance with Listing Rule 3.13.3 we attach a copy of the Chairman’s Address and the Company Presentation to be delivered today at the 2021 Annual General Meeting. This report has been authorised
Slide 2: Chairman's Address Annual General Meeting 2021
CHAIRMAN’S ADDRESS ANNUAL GENERAL MEETING 2021 Welcome, Ladies and Gentlemen. My name is Peter Schubert, Chairman and CEO of Magnetite Mines Limited, and on behalf of the Board, I want to thank you for participating in today’s Magnetite Mines Annual General Meeting, being held physically in Perth an
Slide 3: Chairman's Address: PFS, DFS and team appointments
The PFS study work completed and announced in July this year was a transformational moment for the Razorback project demonstrating the opportunity for a high-grade, high-return, long-life operation which leverages the advantages of staged development, available infrastructure and low-cost sustainabl
Slide 4: Chairman's Address: stakeholders, Muster Dam and iron ore market
driving our integration of grid-connected renewable power supply while simultaneously delivering value to shareholders, stakeholders and supply chain partners alike. Engagement is deepening with key stakeholders, including multiple SA government agencies, local landholders and Ngadjuri Nation native
Slide 5: Chairman's Address: staged development and closing
We believe our low-capital staged development approach, and the fact that your Company owns 100% of the Razorback Iron Ore Project, will stand us in good stead as we advance financing options. Finally, I would like to thank all members of the Magnetite team for their efforts and focus on acceleratin
Slide 6: Magnetite Mines Limited Annual General Meeting
Magnetite Mines Limited (ASX:MGT) Annual General Meeting November 29, 2021
Slide 7: Disclaimer
Disclaimer IMPORTANT NOTICE The purpose of this presentation is to provide general information about Magnetite Mines Limited ("MGT"). It is not recommended that any person makes any investment decision in relation to MGT based on this presentation. This presentation contains certain statements which
Slide 8: Company Strategy
Company Strategy Opening up the Braemar in stages SOUTH AUSTRALIA Low capital, long Favourable life development business setting is readily with growing iron fundable with ore demand, high returns5 premiums for high grade products and Large Razorback Experienced team limited new supply resource with
Slide 9: Premium Grade is a Major Advantage
Premium Grade is a Major Advantage The Iron Ore Market “ CRU: “Steelmakers need to adopt best practices that prioritise decarbonisation with existing assets. Some of these best practices include installation of energy efficient technology, optimisation of the blast furnace (BF) burden (e.g. with hig
Slide 10: Favourable Location
Favourable Location LARGE, ACCESSIBLE MINERAL RESOURCES Company Mineral Resources of 5.7Bt including Muster Dam1,2,3* 240km to Adelaide from Razorback ESTABLISHED INFRASTRUCTURE NEARBY Heavy freight open access rail High voltage powerlines connected to main Australian grid FAVOURABLE REGION
Slide 11: Simple Mining with Head Grade Upside
Simple Mining with Head Grade Upside Ore mined from surface – minimal pre-strip5 Ore haul for initial box cut all downhill, flat waste dumps Low PFS strip ratio of 0.16:1 Grade uplift potential from selective mining and/or ore sorting Lateral stratigraphic continuity New geophysics regre
Slide 12: Existing Transport Infrastructure
Existing Transport Infrastructure Minimal Capital • 50km purpose built private all weather haul road and rail siding – vicinity Yunta5 • Existing open access heavy freight network – 25t axle loads • Existing iron ore ports (i.e Whyalla) with capacity 7 7
Slide 13: Existing Power Infrastructure
Existing Power Infrastructure Minimal Capital • 132kV Transmission Line connecting to grid at Robertstown5 • Access to competitive energy with high renewables content • Built under long term Transmission Service Tariff – no upfront capex 8 8
Slide 14: Successful Razorback PFS
Successful Razorback PFS Focused on Development Key Financial and Production Metrics Unit Head Grade Improvement Case* Razorback PFS confirmed long life Iron ore price (62% Fe) US$/t 110 150 initial development leveraging LOM Ore mined (100% reserves) Mt 472.7 472.7 resource scale, low stripping rat
Slide 15: Unlocking the Braemar
Unlocking the Braemar Large Resource, Long Life AREA (KM2) STRIKE (KM) TONNES (MT) TENURE1,2,3 1700 13 5700 PFS RELIES ON ONLY RAZORBACK REGION1,2 1500 20 4200 8% 4% 0.3% RAZORBACK RESOURCE1 20 12 3000 of resource of Braemar strike of tenure area PFS RESERVE4 5 5 473 10
Slide 16: Robust Economics
$- $50 $100 $150 $200 $250 Jul-05 Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Robust Economics Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 Aug-17 Iron Ore prices, 62% CFR Jan-18 Jun-18 Nov-18
Slide 17: Financing
Financing Attractive Risk Profile for Lenders CONVENTIONAL EQUITY PROJECT A$670M CAPEX ENGAGE WITH FUNDING FINANCE (incl. $120m DEBT SENIOR DEBT TO FOLLOW based capital structure contingency) – within FINANCIERS market capacity5 PROJECT envisaged for mine Q4 2021 construction funding FINANCING 25+ y
Slide 18: Building strong ESG platform
Building strong ESG platform Environmental Social & Accountable People Sustainability Community Inclusion Governance & Culture • GHG accountability • Free, prior and informed • Planned ESG framework • Teamwork • Maximising renewable consent model – informed and reporting system • Individual capacity
Slide 19: Advancing Project Approvals and Access
Advancing Project Approvals and Access Area Status Upcoming Activities SA Government approvals pathway confirmed, Preparation of approvals documentation Approvals with supportive regulator (low jurisdictional risk). Targeted approval award – 2023 SA Government consultation underway Broad and targete
Slide 20: Indicative Development Schedule
Indicative Development Schedule 1 1. Schedule subject to review as part of DFS currently underway 15
Slide 21: Key Milestones
Key Milestones Progress & Critical Work Planned Progress on key milestones: Delivered a successful PFS in July 2021 demonstrating financial and technical viability of Razorback project Assembled Owners Team and commenced DFS Commenced drilling programs at Razorback, appointed drilling contract
Slide 22: Delivering Premium Iron Ore to high demand markets
Delivering Premium Iron Ore to high demand markets Long Life Low Initial High Grade with Optionality Project Capital Product Delivering Large 5.7Bt Staged Razorback 68% Fe product5 First ore on ship resources development with • Higher than any of the planned for late routinely with expansion ESG adv
Slide 23: Magnetite Mines: High Grade Iron Ore Concentrate
MAGNETITE MINES High Grade Iron Ore Concentrate
Slide 24: References
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 Announcement – 30/06/21
Slide 25: Mineral Resources & Ore Reserves
Mineral Resources & Ore Reserves • May Razorback resource upgrade5 (JORC 2012) delivered 50% of total resource in the Indicated category JORC Million Mass Re Fe% SiO2% Al2O3% P% LOI% Magnetite % Resources Tonnes (eDTR%) Classification (dry) Indicated 1,494 15.6 18.5 47.9 8.0 0.18 5.4 15.0 Inferred 1
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