Image Resources Nl · ASX:IMA
Image Resources Nl — Noosa Mining Conference 2017
36 slides from Image Resources Nl's conference presentation, Jul 19, 2017
Slide 1: Boonanarring Mineral Sands Project: The next cab off the mineral sands rank
1 Boonanarring Mineral Sands Project: For personal use only The next cab off the mineral sands rank Noosa Mining Conference 19-21 July 2017 Peppers Noosa Resort Noosa, QLD Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statement
Forward Looking Statement 2 For personal use only Certain statements made in connection with this communication, including, without limitation, those concerning the economic outlook for the mining industry, expectations regarding prices, exploration or development costs and other operating results,
Slide 3: Company Description and Focus
Company Forward Description Looking and Focus Statement 3 For personal use only Image Resources NL ASX: IMA Emerging mineral sands producer Actively focused on fast-tracking the development of its 100%-owned, high-grade and high-zircon flagship Boonanarring mineral sands project in the North Perth B
Slide 4: Project Location
ProjectStatement Forward Looking Location 4 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 5: Projects Types and Locations
Projects Types and Locations 5 For personal use only Ø 1,000 km2 tenements portfolio Ø 100% focus on mineral sands Ø Strandline (dry open cut mining) projects Ø Dredge mining projects
Slide 6: Projects – Dredgeable Mineral Resources
Projects Forward Pyramid Looking - Dredgeable Statement 6 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 Caly
Slide 7: Projects – Strand Deposits
Projects Forward Pyramid Looking – Strand Deposits Statement 7 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 8: Boonanarring Project Comparison
Boonanarring Project Comparison 8 For personal use only High HM, VHM 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%
Slide 9: Ore Reserves
Ore Reserves Forward Looking Statement 9 For personal use only q QUALITY ORE RESERVES Ø JORC Code (2012) Compliant Ø High HM, VHM and very high zircon at Boonanarring Ore Reserves Summary in accordance with JORC Code (2012) Reserve Category Volume Tonnes % HM % SLIMES HM Tonnes VHM Ilmenite Leucoxen
Slide 10: Ore Reserves Comparison
Ore Reserves Forward LookingComparison Statement 10 For personal use only IMAGE Source: TZMI; May 2017
Slide 11: Bankable Feasibility Study: Base Assumptions
Bankable Forward Feasibility Looking Study Statement 11 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 12: Bankable Feasibility Study: Key Financial Metrics
Bankable Forward Feasibility Looking Study Statement 12 For personal use only Key Financial Metrics1 Ø Pre-Tax NPV A$135M (8% discount rate) Ø Pre-Tax IRR 64% Ø Mine life 8+ years Ø Project capital cost A$52M • includes ~$8M for land Ø Payback period 22 months 1. Refer ASX Announcement 30 May 2017 “
Slide 13: Bankable Feasibility Study: Sensitivity Analysis
Bankable Forward Feasibility Looking Study Statement 13 For personal use only Sensitivity Analysis
Slide 14: Monthly Revenue, Costs and Cash Flow
Bankable Forward Feasibility Looking Study Statement 14 For personal use only Monthly Revenue, Costs and Cash Flow
Slide 15: Project Capital Comparison
Project Forward Capital Looking Comparison Statement 15 For personal use only Source: TZMI; May 2017
Slide 16: Start-up Capital / Revenue Ratio
Start-up Forward Capital Looking / Revenue Ratio Statement 16 For personal use only Source: TZMI; May 2017
Slide 17: Other Key Project Metrics
Bankable Forward Feasibility Looking Study Statement 17 For personal use only Other Key Project Metrics Ø Binding offtake contract for heavy mineral concentrate (HMC) • 100% of production for life of project • Market-based pricing model • Full credit for TiO2 products • No minimum product specificat
Slide 18: Plant and Equipment (select examples)
Plant and Equipment (select examples) 18 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 19: Image Wet Concentration Plant
Image Wet Forward Concentration Looking Statement Plant 19 For personal use only
Slide 20: Offtake Agreement
OfftakeLooking Forward Agreement Statement 20 For personal use only Advantages of HMC Offtake vs Zircon Offtake Ø results in securing 100% of revenue instead of 65-70% for zircon only; Ø provides faster access to revenue; • letters of credit can be converted to cash as soon as each shipment of HMC d
Slide 21: Upside Potential
Upside Looking Forward Potential Statement 21 For personal use only Upside potential at and near Boonanarring Ø Confirmed potential to extend mine life with high grade mineralisation; Ø Potential to process lower grade overlying layer of mineralisation; Ø Several other deposits with high grade miner
Slide 22: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 22 For personal use only ASX Announcement 13 March 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
Slide 23: Potential Royalty from Tronox
Potential Royalty from Tronox 23 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 24: Project Approvals
ProjectStatement Forward Looking Approvals 24 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 ü Groundwater Abstraction Licence (Dept of Water
Slide 25: Project Development Schedule
Project Development Schedule 25 For personal use only Targeting first production in early 2018 Simplified Boonanarring Project Development Schedule - (high level) 2016 2017 2018 May May May Mar Mar Nov Nov Aug Aug Apr Dec Dec Apr Apr Feb Feb Sep Oct Sep Oct Jun Jan Jun Jan Jun Jul Jul Jul Finalisati
Slide 26: Historic Commodity Pricing
Contact Historic Commodity Pricing 26 For personal use only
Slide 27: Commodity Prices on the Rise
Contact Commodity Prices on the Rise 27 For personal use only Zircon- We forecast two more quarterly increases of +$100/t and then two further $50/t increases. That would take the price from around $860/t at the start of 2017, to $1350/t by 2H18, our forecast price peak. (Source: FNZC Market Daily,
Slide 28: Commodity Prices on the Rise
Contact Commodity Prices on the Rise 28 For personal use only We increase our ilmenite forecasts and now expect them to double YoY by 3Q17. Given the Chinese impetus behind ilmenite, we forecast ilmenite prices will essentially double in 2017, from $80/t in early 2016 to $160/t FOB by 3Q17. We see f
Slide 29: Transition from Explorer to Producer
Contact from Explorer to Producer Transition 29 For personal use only Generalisation of Transition from Explorer to Producer 10 9 Production 8 (realisation Discovery Project 7 of full value) & Resource Development 6 Delineation (feasibility Relative Value Study Period 5 (excitement; (uncertainty; re
Slide 30: Corporate Snapshot
Corporate ImageSnapshot Corporate Snapshot 30 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 – 0.12 Patrick Mutz – Managing Director Shares on Issue: 537.6m Chao
Slide 31: Contact
Contact For further information 31 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 32: Compliance Statements
Compliance Statements Forward Looking Statement 32 For personal use only COMPLIANCE STATEMENT FOR BOONANARRING AND ATLAS DEPOSITS ORE RESERVES The Ore Reserves statements for the Atlas and Boonanarring deposits have been compiled in accordance with the guidelines of the Australasian Code for Reporti
Slide 33: Mineral Resources – Strand Deposits 1 of 2
Mineral Forward Resources – Strand Deposits Looking Statement 33 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 34: Mineral Resources – Strand Deposits 2 of 2
Mineral Forward Resources – Strand Deposits Looking Statement 34 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 35: Mineral Resources – Dredge Deposits
Mineral ForwardResources – Dredge Deposits Looking Statement 35 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 36: Compliance Statement Mineral Resources
Forward Looking Compliance Statement Statements Mineral Resources 36 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 info