Image Resources Nl · ASX:IMA
Image Resources Nl — 19th Annual Mineral Sands Conference 2018
44 slides from Image Resources Nl's conference presentation, Mar 20, 2018
Slide 1: Boonanarring Mineral Sands Project: The next cab off the mineral sands rank
1 For personal use only Boonanarring Mineral Sands Project: The next cab off the mineral sands rank Mineral Sands Conference 19th Annual 21-22 March 2018 Crown Perth Perth WA Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statements
Forward Looking Statements 2 For personal use only This presentation has been prepared by the management of Image Resources NL ("Image”, “IMA“ or the ‘Company’) in connection with meetings with investors and potential investors and not as specific advice to any particular party or person. The inform
Slide 3: Forward Looking Statements
Forward Looking Statements 3 For personal use only All such forward-looking information and statements are based on certain assumptions and analyses made by the Company’s management in light of their experience and perception of historical trends, current conditions and expected future developments,
Slide 4: Investor Snapshot
Investor Snapshot 4 For personal use only Opportunity to invest in company transitioning to profitable mining operator Ø Company fully funded to positive cashflow § $50M as debt; $25M as equity Ø Project construction underway (only $52M project capital) Ø Plant and equipment already acquired Ø First
Slide 5: Company Description and Focus
Company Forward Description Looking and Focus Statement 5 For personal use only Image Resources NL ASX: IMA Emerging mineral sands producer Totally focused on fast-tracking the development of its 100%-owned, high-grade, zircon-rich flagship Boonanarring mineral sands project located 80km north of Pe
Slide 6: Project Location
ProjectLooking Forward Location Statement 6 For personal use only q LOCATION Ø North Perth Basin in Western Australia Ø 80 km north of Perth CBD Ø Proven mineral sands address § Including majors Iluka and Tronox Ø Infrastructure rich § paved roads, power, gas pipeline water, telecommunications etc.
Slide 7: Projects Types and Locations
Projects Types and Locations 7 For personal use only Ø 1,000 km2 tenements portfolio Atlas Ore Reserves Ø 100% focus on mineral sands Probable: 9.5Mt @ 8.1% HM Ø Strandline projects (dry mining) Ø Dredge mining prospects Boonanarring Ore Reserves Proved: 9.3 Mt @ 8.6% HM Probable: 10.5Mt @ 5.9% HM
Slide 8: Projects – Strand Deposits
Projects Forward Pyramid Looking – Strand Deposits Statement 8 Mineral Resources – Accessible by Dry Open-Cut Mining For personal use only Projects ranked by combined Zircon plus Rutile Boonanarring Focus 43.8Mt; 5.6%HM; of BFS 20.7% Zr+Ru Atlas 18.1Mt; 6.0%HM; 15.8% Zr+Ru Red Gully 6.0Mt; 7.7% HM;
Slide 9: Projects – Dredge Deposits
Projects Forward Pyramid Looking – Dredge Deposits Statement 9 Mineral Resources – Accessible by Dredge Mining For personal use only Projects ranked by HM Grade 25-67% Leucoxene; 90+%VHM; Bidaminna <5% slimes; 45Mt; 3.0%HM; 100Mt exploration 6.5% Zr+Ru target Titan-Telesto 140Mt; 1.9%HM; 12.8% Zr+Ru
Slide 10: Boonanarring Project Comparison
Boonanarring Project Comparison 10 For personal use only High HM and Zircon grades relative to peers HM grade Zircon grade VHM HM Grade (%) Zircon (%) 14.0% 25% VHM Grade Zircon % Image Resources (IMA) Boonanarring project 12.0% 21.5Mt @ 8.3% HM and up to 24.5% Zircon 20% 10.0% 15% 8.0% 6.0% 10% 4.0
Slide 11: Ore Reserves
Ore Reserves Forward Looking Statement 11 For personal use only q QUALITY ORE RESERVES Ø JORC Code (2012) Compliant Ø High HM, VHM and very high zircon at Boonanarring High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) Project/Deposit Category Volume Tonnes % HM % Sli
Slide 12: Ore Reserves Comparison
Ore Reserves Forward LookingComparison Statement 12 For personal use only IMAGE Source: TZMI; May 2017
Slide 13: Products and Prices
Products and Prices 13 For personal use only Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product.
Slide 14: Bankable Feasibility Study: Base Assumptions
Bankable Forward Feasibility Looking Study Statement 14 For personal use only Base Assumptions Ø Start mining at Boonanarring Ø Dry, open-cut mining Ø Production rate - 500 dry tonnes per hour • 3.7M dry tonnes per year Ø Conventional gravity separation using spirals Ø Product: Heavy Mineral Concent
Slide 15: Bankable Feasibility Study: Key Financial Metrics
Bankable Forward Feasibility Looking Study Statement 15 For personal use only Key Financial Metrics Original BFS* Updated BFS** Ø Pre-Tax NPV (@ 8%) A$135M A$197M Ø Pre-Tax IRR 64% 104% Ø Payback period (months) 22 16 Ø Mine life 8+ years Ø Project capital cost A$52M • includes ~$8M for land * ASX A
Slide 16: Project Capital Comparison
Project Forward Capital Looking Comparison Statement 16 For personal use only Source: TZMI; May 2017
Slide 17: Boonanarring – Production Statistics
Boonanarring – Production Statistics 17 For personal use only Note: 2023 information includes the start of production at Atlas.
Slide 18: Boonanarring – Project EBITDA
Boonanarring – Project EBITDA 18 For personal use only Note: 2023 information includes the start of production at Atlas.
Slide 19: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 19 For personal use only
Slide 20: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 20 For personal use only
Slide 21: Other Key Project Metrics
Bankable Forward Feasibility Looking Study Statement 21 For personal use only Other Key Project Metrics Ø Binding offtake contract for heavy mineral concentrate (HMC) • 100% of HMC production for life of project • Market-based pricing model • Full credit for TiO2 products • No minimum product specif
Slide 22: Plant and Equipment (select examples)
Plant and Equipment (select examples) 22 For personal use only Wet Concentration Plant Mineral Separation Plant (Option) Slurry Booster Stations & pipelines Power poles, wires & transformers HMC Stackers Mine Slurry Unit Plus much, much more.
Slide 23: Image Wet Concentration Plant
Image Wet Forward Concentration Looking Statement Plant 23 For personal use only
Slide 24: Early Works: Wet Concentrator Plant 3D Modelling, Looking North
Early Works Wet Concentrator Plant 3D Modelling For personal use only Looking North
Slide 25: Early Works: Wet Concentrator Plant 3D Modelling, Looking South
Early Works Wet Concentrator Plant 3D Modelling For personal use only Looking South
Slide 26: Project Approvals
ProjectStatement Forward Looking Approvals 26 For personal use only q PROJECT APPROVALS ü Mining Lease & General Purpose Lease ü Part IV, Environmental Protection Act (WA) – PER ü EPBC Act (Commonwealth) ü Land acquisition for processing plant siting and start of mining ü Groundwater Abstraction Lic
Slide 27: Project Funding
Project Funding 27 For personal use only Boonanarring is now fully funded to positive cashflow and construction has begun Ø Overall capital requirement: A$75 million § Includes project capital, corporate, exploration, working capital and fund raising fees Ø Debt Facility: A$50 million § A$501 millio
Slide 28: Capital Spend
Capital Spend 28 For personal use only Capital funds to be applied to: Ø Construction, commissioning of the Boonanarring Project (A$52M) Ø Working capital to positive cashflow (A$15M), and Ø Corporate, exploration and financing costs to positive cashflow (A$8M)
Slide 29: Project Capital Breakdown
ForwardCapital Project Looking Statement Breakdown 29 For personal use only Process Plant & Ancillary Costs BFS Capital A$M Ø Indirects (A$0.7M) includes sundry Indirects 0.7 mob./demob., insurance, capital spares, Directs 22.4 survey/geotech. Ø Direct capital costs (A$22.4M): EPCM 3.3 • Plant trans
Slide 30: Upside Potential
Upside Looking Forward Potential Statement 30 For personal use only Upside potential at and near Boonanarring Ø Confirmed potential to extend mine life with high grade mineralisation (ASX announcement 13 March & 26 June 2017); • Assuming mineralisation in extension area is identical to known Ore Res
Slide 31: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 31 For personal use only ASX - 13 March & 26 June 2017 New Drilling Results (Feb 2017) Ø Confirm 5.6km northern extension of Boonanarring mineralisation Ø Outstanding high grade intersections: § 8m @ 23.8% HM in IX00245 § 8m @ 21.1% HM in IX00244 and § 8m @ 16.3% HM i
Slide 32: Potential Royalty from Tronox
Potential Royalty from Tronox 32 For personal use only Royalty agreement in place as of Ø A$50,000 cash received Ø Sliding-scale royalty on production Avg. HM Grade Royalty 2.5% 1.25% 3.0% 2.50% 3.5% 3.75% 4.0% 5.00% Ø Potential for future arrangements with Tronox or others based on large area of po
Slide 33: Project Development Schedule
Project Development Schedule 33 For personal use only Targeting first production October 2018
Slide 34: Corporate Next Steps
Corporate Next StepsSnapshot 34 For personal use only Ø Finalise equity raising; Ø Complete satisfaction of conditions precedent and drawdown loan; Ø Board to issue Decision to mine; and Ø Initiate formal construction.
Slide 35: Corporate Snapshot
Corporate Image Snapshot Corporate Snapshot 35 For personal use only Diverse and experienced Board and Management Share Code: IMA Board of Directors Share Price: A$0.10* Bob Besley – Independent Chairman 12 Month Price Range: A$0.04 – 0.17 Patrick Mutz – Managing Director Shares on Issue: 611.3m Cha
Slide 36: Euroz Securities Limited Research
Corporate Snapshot Euroz Securities Limited Research 36 For personal use only
Slide 37: Patersons Securities Limited Research
Corporate PatersonsSnapshot Securities Limited 37 Research For personal use only
Slide 38: Contact
Contact For further information 38 For personal use only Patrick Mutz Managing Director Image Resources NL info@imageres.com.au Office: +61 8 9485 2410 Ground Floor, 23 Ventnor Avenue West Perth, WA 6005 PO Box 469, West Perth, WA 6872 www.imageres.com.au
Slide 39: Appendix
Forward Looking Statement 39 For personal use only APPENDIX
Slide 40: Compliance Statements
Compliance Statements Forward Looking Statement 40 For personal use only COMPLIANCE STATEMENT FOR EXPLORATION Information in this presentation that relates to Exploration Results is based on information compiled by George Sakalidis BSc (Hons) who is a member of the Australasian Institute of Mining a
Slide 41: Mineral Resources – Strand Deposits 1 of 2
Mineral Forward Resources – Strand Deposits Looking Statement 41 For personal use only Strand Deposits 1 of 2 High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxen
Slide 42: Mineral Resources – Strand Deposits 2 of 2
Mineral Forward Resources – Strand Deposits Looking Statement 42 For personal use only Strand Deposits 2 of 2 Previously Reported Mineral Resources - Strand Deposits; in accordance with JORC Code (2004) @ 2.5% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leu
Slide 43: Mineral Resources – Dredge Deposits
Mineral ForwardResources – Dredge Deposits Looking Statement 43 For personal use only Dredge Deposits 1 of 1 Previously Reported Mineral Resources - Dredge deposits; in accordance with JORC Code (2004) @ 1.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leuc
Slide 44: Compliance Statement for Mineral Resources
Forward Looking Compliance Statement Statements 44 For personal use only COMPLIANCE STATEMENT FOR MINERAL RESOURCES 1. COMPLIANCE STATEMENT Boonanarring/Atlas Mineral Resources The information in this presentation that relates to the estimation of Mineral Resources is based on information compiled b
Image Resources NL — 19th Annual Mineral Sands Conference 2018 on 6ix