Slide 1: Boonanarring Mineral Sands Project: Marching to Production
1 Boonanarring Mineral Sands Project: Marching to Production AMEC Convention 2018 13-14 June 2018 Crown Perth, WA Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statements
Forward Looking Statements 2 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 information is based on publ
Slide 3: Forward Looking Statements
Forward Looking Statements 3 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, as well as other fact
Slide 4: Investor Snapshot
Investor Snapshot 4 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 capital1) Ø Plant and equipment already acquired Ø First production scheduled
Slide 5: Investor Snapshot
Investor Snapshot 5 Opportunity to invest in company transitioning to profitable mining operator Ø Binding off-take agreement in place for 100% of production Ø Project NPV A$197 million1; IRR 104%1; <2 year payback1 § metrics do not include 1 April 2018 zircon price rise Ø Company market cap. A$114M
Slide 6: Company Description and Focus
Company Forward Description Looking and Focus Statement 6 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 Perth in Western Austral
Slide 7: Project Location
ProjectLooking Forward Location Statement 7 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. Ø Local communities an
Slide 8: Projects Types and Locations
Projects Types and Locations 8 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 9: Projects Pyramid – Strand Deposits
Projects Forward Pyramid Looking – Strand Deposits Statement 9 Mineral Resources – Accessible by Dry Open-Cut Mining Projects ranked by combined Zircon (Zr) plus Rutile (Ru) BFS assumes mining Tonnes-grades are for Mineral Resources; at Boonanarring Boonanarring and Atlas per JORC Code (2012); Boona
Slide 10: Projects Pyramid – Dredge Deposits
Projects Forward Pyramid Looking – Dredge Deposits Statement 10 Mineral Resources – Accessible by Dredge Mining Projects ranked by HM Grade Potential focus area for phase two growth strategy. Positive attributes: Bidaminna • 90+%VHM; Tonnes-grades are for historic Mineral Resources per JORC Code (20
Slide 11: Boonanarring Project Comparison
Boonanarring Project Comparison 11 High HM and Zircon grades relative to peers HM grade Zircon grade* VHM HM Grade (%) Zircon (%) avy 14.0% 25% e e H on of VHM Grade Zircon % Image Resources (IMA) Boonanarring project b l vy of 12.0% 21.5Mt @ 8.3% HM alua porti a He not all and up to 24.5% Zircon 20
Slide 12: Ore Reserves
Ore Reserves Forward Looking Statement 12 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 % Slimes HM Tonnes VHM Ilme
Slide 13: Ore Reserves Comparison
Ore Reserves Forward LookingComparison Statement 13 IMAGE X Mined-out Grade decreasing Source: TZMI; May 2017
Slide 14: Products and Prices
Products and Prices 14 Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product.
Slide 15: Bankable Feasibility Study
Bankable Forward Feasibility Looking Study Statement 15 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 Concentrate (HMC) • Productio
Slide 16: Bankable Feasibility Study
Bankable Forward Feasibility Looking Study Statement 16 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 Announcement 30 May 201
Slide 17: Project Capital Comparison
Project Forward Capital Looking Comparison Statement 17 Source: TZMI; May 2017
Slide 18: Boonanarring – Production Statistics
Boonanarring – Production Statistics 18 Note: 2023 information includes the start of production at Atlas.
Slide 19: Boonanarring Project EBITDA Summary
Boonanarring – Project EBITDA 19 Boonanarring Project EBITDA Summary (AU#039;000) 2018 2019 2020 2021 2022 2023 Total Revenue 8,880 132,600 186,900 97,200 127,200 77,400 630,180 Revenue/tonne HMC 475 589 584 512 578 455 551 Operating Costs Mining 22,400 43,800 40,100 39,300 40,900 36,700 223,200 Proces
Slide 20: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 20 Projected price increase prior to first production Latest price rise not included in financial metrics
Slide 21: Wet Concentration Plant
Image Wet Forward Concentration Looking Statement Plant 21
Slide 22: Site Construction Photos
Site Construction Photos 22 Overburden stockpile Overburden removal Wet Concentration Plant construction
Slide 23: Project Funding
Project Funding 23 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 costs Ø Equity Capital: A$25 million § A$25 million fully-underwritten
Slide 24: Upside Potential
Upside Looking Forward Potential Statement 24 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 Reserves in all aspects a
Slide 25: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 25 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 in IX00250 Importantly
Slide 26: Potential Royalty from Tronox
Potential Royalty from Tronox 26 Royalty agreement in place as of 2014 Ø Small cash payment (already 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 Indefinite production schedule Ø Potential for future arrangements with Tronox or o
Slide 27: Project Development Schedule
Project Development Schedule 27 Targeting first production 4th Quarter 2018 Simplified Boonanarring Project Construction Schedule - (high level) 2018 2019 May Mar Mar Aug Nov Dec Apr Feb Oct Feb Sep Jun Jan Jan Jul WCP & Equipment Relocation Project Construction Pre-Stripping Ore Mining Plant Commis
Slide 28: Corporate Snapshot
Corporate Image Snapshot Corporate Snapshot 28 Diverse and experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.12* Bob Besley – Independent Chairman 12-Month Price Range: A$0.07– 0.17 Patrick Mutz – Managing Director Shares on Issue: 953m Chaodian Chen - Non-Executive
Slide 29: Transition from Explorer to Producer
Contact from Explorer to Producer Transition 29 Generalisation of Transition from Explorer to Producer 10 9 Project Production 8 Development (realisation Discovery (feasibility 7 of full value) & Resource results; 6 Delineation Relative Value Study Period mine decision; 5 (excitement; (uncertainty;
Slide 30: Corporate Snapshot – Use of Solar Energy
Corporate Snapshot Use of Solar Energy 30 Heads of Agreement with Sunrise Energy Group Pty Ltd to provide 3-4 MWAC solar farm to be: Ø Constructed and operated by Sunrise Energy; Ø Located on Image owned land adjacent to Boonanarring mine site; and Ø Providing 25% of total electricity requirements f
Slide 31: Contact
Contact For further information 31 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: Additional Information
Forward Looking Statement 32 Additional Information
Slide 33: Compliance Statements
Compliance Statements Forward Looking Statement 33 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 and Metallurgy. At the
Slide 34: Mineral Resources – Strand Deposits
Mineral Forward Resources – Strand Deposits Looking Statement 34 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 Leucoxene Rutile Zircon (%) (%
Slide 35: Mineral Resources – Strand Deposits
Mineral Forward Resources – Strand Deposits Looking Statement 35 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 Leucoxene Rutile Zircon (
Slide 36: Mineral Resources – Dredge Deposits
Mineral ForwardResources – Dredge Deposits Looking Statement 36 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 Leucoxene Rutile Zircon (%
Slide 37: Compliance Statements
Forward Looking Compliance Statement Statements 37 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 by Mrs Christine Standi