Czr Resources Ltd · ASX:CZR
Czr Resources — Investor Presentation (October 2023)
22 slides from Czr Resources's investor presentation, Oct 12, 2023
Slide 1: Robe Mesa DFS
Robe Mesa DFS Location, Low-cost and 12 October 2023 Outstanding Financial Returns www.czrresources.com 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Disclaimer This Presentation has been prepared by CZR Resources Ltd (“CZR”). This Presentation contains general and background information about CZR’s activities current as at the date of the Presentation and should not be considered to be comprehensive or to com
Slide 3: Important Information and Disclaimer: Forward Looking Statement
Important Information and Disclaimer Forward Looking Statement This Presentation contains “forward-looking statements” and “forward-looking information”, including statements and forecasts which include without limitation, expectations regarding the financial position of CZR, financial performance a
Slide 4: Key DFS Highlights
Key DFS Highlights Operational Financial • Extension of Rio Tinto’s Mesa F orebody • Robe Mesa DFS reveals low costs and outstanding financial returns • DFS Ore Reserve increased from 8.2Mt (PFS) to o Low C1 cash cost of A$49/wmt FOB 33Mt at 55% Fe (61.6% calcined Fe)1 o Base case life of mine EBITD
Slide 5: Corporate Overview
Corporate Overview Share Price Performance Board and Management CZR Share Price and Volume • Mining Engineer and experienced company 30.00 1,600 Russell Clark executive Thousands 28.00 1,400 Non-Executive • Previously MD of ASX listed Australian iron ore 26.00 1,200 Chairman producer Grange Resource
Slide 6: Robe Mesa Iron Ore Mine: DFS Milestones
Robe Mesa Iron Ore Mine DFS Milestones Achieved • 300% increase in Ore Reserves from the PFS to 33.4Mt • Native Title Mining Agreement signed Robe River Kuruma Aboriginal Corporation • All Mining and Infrastructure Licences granted • Consent from PPA to submit Port of Ashburton Export Facility devel
Slide 7: Robe Mesa Overview
Robe Mesa Overview CZR owns 85% of Robe Mesa, with Creasy Group (15%) free-carried to DFS Unique position - highly valuable section of Peters Creek the Robe Valley iron ore deposits, sharing a common orebody with Rio Tinto Outstanding metallurgical testwork confirmed Robe Mesa can substitute R
Slide 8: Robe Mesa Ore Reserve and Mine Plan
Robe Mesa Ore Reserve and Mine Plan Exceptional orebody with low technical risk and very low strip ratio of 0.6 : 1 Ore Reserve expanded to 33.4Mt at 55% Fe • High calcined Fe (61.6% Fe calcined) and low Al and P make Robe Mesa an attractive iron ore product Staged pit shells: • Mining starts
Slide 9: DFS Mine Plan
DFS Mine Plan Mining schedule (first quarter contains pre-strip for civil works) Scheduled to produce 3.5 Mtpa, ramping up to 5 Mtpa 2,500 16.0 in year 5 – initial 8 year life of mine 2,000 14.0 12.0 Key design parameters include: 1,500 10.0 wst:ore 8.0 kt • Minimal pre-strip, with an exceptiona
Slide 10: Robe Mesa – Infrastructure & Approvals
Robe Mesa – Infrastructure & Approvals All infrastructure associated with the mine site and CZR development area including tenure haul road are covered by granted mining and miscellaneous licences Key mine site infrastructure includes: 38km private haul road Accommodation village Contracto
Slide 11: Robe Valley – A well known iron ore product
Robe Valley – A well known iron ore product CZR to produce two iron ore products Boundary between CZR’s Robe Mesa deposit and Rio Tinto’s Mesa F deposit Robe Mesa Fines (62.2% Fe calcined) Robe Mesa LG Fines (59.5% Fe calcined) Robe Mesa Fines has similar grade specifications to Rio Tinto’s
Slide 12: Robe Valley – Metallurgy & Processing
Robe Valley – Metallurgy & Processing Robe Mesa sinter samples & substitute ores Metallurgical testwork shows Robe Mesa has low internal variability and technical risk Comp ID Composite Description Fe SiO2 Al2O3 P LOI (%) (%) (%) (%) (%) Physical results demonstrate: SINT_01 Upper zone startup m
Slide 13: Port of Ashburton
Port of Ashburton POA Export Facility 13
Slide 14: Port of Ashburton Consortium (PAC) Corporate and Operating Structure
Port of Ashburton Consortium (PAC) Corporate and Operating Structure CSL, CZR and Strike (SRK) have established a separate company (PAC JV) to assess and secure approvals for the construction of an iron ore export facility from the Port of Ashburton (POA Export Facility) located only 171km from Ro
Slide 15: Haulage Operations
Haulage Operations Hub and spoke model that optimises haulage cycle times and efficiency Contractor haulage, targeting 60m super-quad road trains to improve efficiency and safety Haulage from Robe Mesa to the intermediate stockyard located at the Onslow Hub, and direct to the POA Export Facility
Slide 16: POA Export Facility
POA Export Facility Only existing multiuser port facility located in the West Pilbara PAC JV plans to develop a 5Mtpa iron ore export facility, with construction planned to commence in Q2 2024 Located within the Port of Ashburton Eastern Port Precinct and utilising the existing East Quay Tru
Slide 17: Marine Transhipment Vessel
Marine CSL Whyalla (www.cslships.com/vessel/whyalla) Transhipment Vessel TSV operations by CSL Australia, using the CSL Whyalla, a self-propelled transhipment vessel (TSV) with a self- unloading system, capable of loading cape-sized vessels (170,000 t) TSV handling simulations have been complete
Slide 18: Robe Mesa Iron Ore Pricing
Robe Mesa Iron Ore Pricing Iron Ore Price Estimate 60 day rolling average 220 Robe Mesa Fines product to be priced and hedged against P62 benchmark price 200 180 Base case P62 benchmark price of US$90/t CFR 160 used in financial analysis (currently US$117/t) USD/dmt CFR China 140 Discount appl
Slide 19: Capital and Operating Costs
Capital and Operating Costs • Low capital and operating cost through collaboration and infrastructure sharing • Delivering long-term and sustainable outcomes for stakeholders and CZR shareholders 100% Basis CZR Share (85%) Unit Cost Unit Cost % of C1 Robe Mesa Pre-Production Capex Estimate Operating
Slide 20: Financial Analysis
Financial Analysis Key Financial Metrics Units Base Case Current YTD3 Base Case Assumption Cash Flow (A$M) 250 500 Cummulative Cash Flow (A$m) P62 Price Assumption (CFR) US$/dmt 90 117 Annual Cash Flow (A$m) 150 300 P62 Price Assumption (CFR) A$/dmt 132 174 50 100 Exchange Rate USD : AUD 0.68 0.67 R
Slide 21: Funding
Funding CZR’s proposed financing strategy for Robe Mesa Summary Funding Sources and Uses considers the following key factors: Sources (A$m) 100% Basis CZR Share Senior Loan Facility 115.1 80.3 Secure a fully funded solution for the pit-to-port supply chain Working Capital Facility 10.0 8.5 New Pro
Slide 22: ASX:CZR www.czrresources.com
ASX:CZR www.czrresources.com Stefan Murphy Managing Director stefan.murphy@czrresources.com +61 8 9468 2050 22