Iron Road Ltd · ASX:IRD
Iron Road — Shareholder Meeting (November 2012)
25 slides from Iron Road's shareholder meeting presentation, Nov 23, 2012
Slide 1: Through the Looking Glass: A Look Into Iron Road's Future
Through the Looking Glass A Look Into Iron Road’s Future Annual General Meeting, 23 November 2012
Slide 2: Disclaimer
Disclaimer 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 based on specific ass
Slide 3: Iron Road's Vision
Iron Road’s Vision Iron Road’s vision is to become a trusted and reliable supplier of premium iron concentrates to the Asian marketplace. 3
Slide 4: Iron Road's Strategy
Iron Road’s Strategy 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 Project • Large, 20Mt
Slide 5: Board & Management
Board & Management 2012 has been a year of transformation in Larry Ingle General Manager Management preparation for execution of our strategy Alan Millet Infrastructure Manager Aaron Deans Project Manager Fop Vanderhor Project Manager, Gawler Peter Cassidy Non-executive Chairman Board Jeff Reilly Ma
Slide 6: Through the Looking Glass – Our Natural Advantage
Through the Looking Glass Through the Looking Glass – Our Natural Advantage Magnetite gneiss • Earth’s forces have done much of the hard work for us • The rock has been heated to ~1000ºC, typically banded iron formations heated only to ~300ºC • Expels many impurities • Analogous to glass • Results i
Slide 7: Central Eyre Iron Project
Central Eyre Iron Project Large, long life project with an opportunity for an industry partner to finance and build infrastructure • Iron Road currently 100% • Mineral Resources are of sufficient scale to support long life operations, plant and infrastructure funding requirements • Premium product f
Slide 8: Vision of a Successful CEIP
Vision of a Successful CEIP Utilities • Power Community L • Water Processing o c a Partner & Finance Board & t i Mining Management o Rail n Offtake Government Resource Port 8
Slide 9: One Billion Tonnes of Concentrate
One Billion Tonnes of Concentrate Significant Resource base and growing – underpins very long life Exploration targets 3,000 operation Mineral Resource Tonnage - millions • Current Mineral Resource 2.6 billion tonnes @ 16.8% Fe* 2,000 • We now believe that the ultimate Mineral Resource is 1,000 like
Slide 10: Premium Grades, Lower Processing Costs
Premium Grades, Lower Processing Costs 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-Bungalow CXM-Fusion ACS
Slide 11: High Quality IRD Product Versus Pilbara
High Quality IRD Product Versus Pilbara 67% Fe Steel mills will pay a quality differential for IRD concentrates ~62% Fe • Value-in-use characteristics ~57% Fe confirmed for CEIP concentrate in Japanese and Chinese testing $/t Gross Margins • Primary value-in-use benefits derived from increasing effi
Slide 12: Mining
Mining • Large scale conventional mining – standard drill, blast, load, haul operations • PFS “base case” open cut mining operation, low strip ratio of 0.8 to 1 (ratio of waste to ore) • Proven, off-the-shelf equipment Typical excavator Cat 6090, 980 tonne machine 12
Slide 13: Processing
Processing • After mining, ore upgraded by on site concentrator • Process consists of crushing, grinding and magnetic separation – Common process, not new technology – Mechanical processes, not chemical • After separation, ore is stockpiled for load-out onto trains • Proven, off-the-shelf equipment
Slide 14: Rail and Utilities
Rail and Utilities • Project will utilise standard gauge railway • Technical review of potential rail routes • Significantly shorter than Pilbara and Brazilian routes • Alignment preference is to bypass towns • Rail corridor to be utilised for other infrastructure – power, water pipeline • Water sup
Slide 15: Port
Port • East coast of Eyre Peninsula offers sheltered, deep locations with relatively short jetty required reducing capital cost • To serve variety of vessel sizes up to Cape size – same as Pilbara • Port site land acquisition currently underway for Iron Road sponsored facility – Large multi-user fac
Slide 16: Community Engagement
Community Engagement • 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 since 2009 • Toll free contact number and extensive community programmes in place •
Slide 17: Gawler Iron Project
Gawler Iron Project 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 characteristics 67-
Slide 18: Gawler Conceptual Plant Layout
Gawler Conceptual Plant Layout • 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 characteristics to that ex
Slide 19: Capital Efficiency
Capital Efficiency Iron Road seeks to measure the effectiveness of capital utilisation • Discovery cost to date 2.6 cents per Mineral Resource tonne • Discovery cost to date 10.6 cents per concentrate tonne The West Australian, 28 March 2012 19
Slide 20: The Year Ahead
The Year Ahead CEIP i. Delineate a further 400-500Mt of magnetite gneiss with a grade of 16-18% iron at CEIP for 3.0-3.1Bt of Mineral Resource. This would equate to over 500Mt of deliverable magnetite concentrate ii. Lodge Mining Lease Application iii. Lodge application for Major Project status with
Slide 21: Concluding views through Iron Road's "Looking Glass" sees…
Concluding views through Iron Road’s “Looking Glass” sees… An achievable development path with the company transforming from explorer 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 decl
Slide 22: Another View Through The Looking Glass
Another View Through The Looking Glass “IRD may also gain synergy benefits in the “Our modelling suggests that even after future from its first mover advantage in dilution the stock could be worth at least 10 building strategic infrastructure in the times the current share price at start up…” * regi
Slide 23: On the Road to Production
On the Road to Production Subscribe to alerts online www.ironroadlimited.com.au
Slide 24: Appendices
lron Road Appendices
Slide 25: Appendix 1 – CEIP Resource Statement
Appendix 1 – CEIP Resource Statement 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 2.1 Rob R