Iron Road Ltd · ASX:IRD
Iron Road — Non-Deal Roadshow (March 2013)
29 slides from Iron Road's roadshow presentation, Mar 19, 2013
Slide 1: Long Life, High Quality Iron Ore Opportunity
For personal use only Long Life, High Quality Iron Ore Opportunity Investor Roadshow, March 2013
Slide 2: Disclaimer
Disclaimer For personal use only Forward-Looking Statements This presentation contains forward looking statements concerning the projects owned by Iron Road Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates
Slide 3: Iron Road's Vision
Iron Road’s Vision For personal use only Iron Road’s vision is to become a trusted and reliable supplier of premium iron concentrates to the Asian marketplace. 3
Slide 4: Iron Ore Market
Iron Ore Market For personal use only • Australia likely to remain the dominant supplier out to China’s Steel Industry 2045, given location and sovereign advantages over West • Likely to see rationalisation, Africa and Brazil elimination of smaller, inefficient plants • Globally, capital costs all w
Slide 5: Iron Road's Strategy
Iron Road’s Strategy For personal use only Key to achieving this vision is IRD’s pathway to development that recognises current market constraints and utilises the common product specification of its two South Australian resource districts to enable a flexible development strategy. Central Eyre Iron
Slide 6: Central Eyre Iron Project
Central Eyre Iron Project For personal use only Large, long life project with an opportunity for an industry partner to finance and build infrastructure • Iron Road currently 100% ownership • Mineral Resources sufficient to support long life operation, plant and infrastructure funding requirements •
Slide 7: One Billion Tonnes of Concentrate
One Billion Tonnes of Concentrate For personal use only Significant growing resource base – underpins long life operation Exploration targets 3,000 • Current Mineral Resource- Mineral Resource Tonnage - millions 2.6 billion tonnes @ 16% Fe* 2,000 • Ultimate Mineral Resource is likely to be at the up
Slide 8: Iron Road's Natural Advantage
Iron Road’s Natural Advantage For personal use only Iron Road’s mineralisation has a natural advantage – the earth’s forces have done much of the hard work already Does not require pelletising Coarse brittle rock Less impurities Iron Gneiss Easily processed 8
Slide 9: Iron Road's Natural Advantage
Iron Road’s Natural Advantage For personal use only CEIP Magnetite Gneiss Typical BIF Age Archean Proterozoic Geological history High grade metamorphism Low grade metamorphism Mineralogy Granular, low impurities Microcrystaline, impurities vary 1½mm average, crystalline sharp Magnetite grain Very fi
Slide 10: Premium Grades, Lower Processing Costs
Premium Grades, Lower Processing Costs For personal use only 72 EMG-Beyondie VMC-Yalgoo CEIP high grade (higher revenue) IRD-CEIP (40 micron) coarse grind (higher margin) 70 ARH-Balmoral IRD-CEIP (53 micron) Concentrate Grade - % iron AGO-Ridley IRD-CEIP (75 micron) GRR-Southdown 68 GBG-Karara CXM-B
Slide 11: CEIP Competitive Advantages
CEIP Competitive Advantages For personal use only Resource Quality Infrastructure Political Risk Proximity to Markets Long life and easily Very low. Government CEIP upgradable, producing Viable solution to fill support to stimulate Favourable (South Australia) consistent high quality infrastructure
Slide 12: Economic and Competitive Advantages
Economic and Competitive Advantages For personal use only Mining Processing Rail Port Low strip ratio of 0.8:1 Common and proven Significantly shorter Sheltered, deep location mechanical process than Pilbara and with short jetty = reduced Brazilian routes capital cost 12
Slide 13: 2012 Seaborne Iron Ore Cost Curve – CFR China
2012 Seaborne Iron Ore Cost Curve – CFR China For personal use only • Current indications suggest CEIP position would be slightly to the right of the 50 percentile – lower 3rd quartile of today’s CEIP seaborne iron ore cost curve • CEIP product expected to receive a long term pricing of circa 14% ov
Slide 14: Quality Product = Quality Margins
Quality Product = Quality Margins For personal use only 67% Fe ~62% Fe • Concentrator delivers consistent 67% Fe ~57% Fe over entire +30 year project life • +30 year high value mine, expansion $/t Gross Margins potential Cash • Steel mills will pay a quality differential Costs for Iron Road concentr
Slide 15: Where We Are Now
Where We Are Now For personal use only Resource Definitive Port site of supports 20 Approvals feasibility national years of process well study well significance production underway advanced secured and growing 15
Slide 16: DFS Gains Over PFS Outcome
DFS Gains Over PFS Outcome For personal use only Almost double Seeking to establish prefeasibility study significant infrastructure production rate at lower business, underpinned by operating cost – middle of iron exports cost curve Up to 25-30% power Only capesize port in South reduction identified
Slide 17: Mining
Mining For personal use only • Large scale conventional open cut mining - drill, blast, load, haul • Main Pit 6.5km long, 1.2km wide, ~500m deep • Strip ratio of ~0.8 to 1 • 15m benches, 70-80⁰ batters • Mobile plant • 56 x Cat 797 360t haul trucks • 7 x Cat 6090 980t face shovels • 25 x Atlas Copco
Slide 18: Processing
Processing For personal use only • On-site crushing, grinding & magnetic separation • Common process, established technology • Ore treatment throughput +100Mtpa • Fixed plant • Primary crushers: 4 x gyratory • Secondary crushers: 12 x cone • Tertiary crushers: 12 x high pressure rolls • Rougher magn
Slide 19: Rail and Utilities
Rail and Utilities For personal use only • Single infrastructure corridor- rail, water & power • Standard gauge heavy rail – 145km mine to port • If linked into wider national rail network – captures ~25% of Australian landmass • Six trains per day each way, 11.5hr cycle • Twin rotary car dumper- 66
Slide 20: Deep Water Port
Deep Water Port For personal use only • East coast of Eyre Peninsula offers sheltered, deep water locations, no dredging or breakwater required • 1.6km modular jetty/wharf structure • 30Mtpa capacity at commissioning • Handymax, Panamax and Capesize capable • Ship loader 6,500tph, 65% utilisation at
Slide 21: Community Engagement
Community Engagement For personal use only • Iron Road is committed to taking its place as a member of the communities in which we operate • Investing in local social infrastructure – major sponsor and supporter of local community events • Extensive community programmes in place – now expanding to i
Slide 22: Major Milestones Achieved to Date
Major Milestones Achieved to Date For personal use only Increased resource by 210% in last two years to 2.6 billion tonnes Potential for 1Bt magnetite with 50 year life and expansion options Infrastructure and export strategy finalised, high quality port site secured Established strong team, experie
Slide 23: Gawler Iron Project
Gawler Iron Project For personal use only Potential for small 1-2Mtpa development that may provide early sustaining cash flows • Iron Road 90% • Average in situ grades ~25% iron, with higher grade zones of ~36% iron • Metallurgical study of several composite samples indicates excellent beneficiation
Slide 24: Gawler Conceptual Plant Layout
Gawler Conceptual Plant Layout For personal use only • Modular plant layout • Modules to be designed for rail transport. • ~25km from Trans- Australian rail with connection to bulk ports • Dry process flow sheet, minimal water required reducing costs • High quality iron concentrate with similar char
Slide 25: Outlook
Outlook For personal use only An achievable development path with the Company transforming from developer to long-life producer by building the business on: • Providing premium quality concentrates to meet growing supply gap to Asian steel producers who face steadily declining feedstock quality in t
Slide 26: On the Road to Production
For personal use only On the Road to Production Subscribe to alerts online www.ironroadlimited.com.au
Slide 27: Appendices
For personal use only Appendices
Slide 28: Board & Management
Board & Management For personal use only Larry Ingle General Manager Management 2012 was a year of transformation in Alan Millet Infrastructure Manager preparation for execution of our strategy. Aaron Deans Project Manager Fop Vanderhor Project Manager, Gawler Peter Cassidy Non-executive Chairman Bo
Slide 29: CEIP Resource Statement
CEIP Resource Statement For personal use only Central Eyre Iron Project Global Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Location Classification (Mt) (%) (%) (%) (%) (%) Indicated 1,108 16.0 53.2 12.9 0.08 0.4 Murphy South Inferred 668 16 53 13 0.08 1.3 Boo-Loo Inferred 328 17 52 12 0.09