Zanaga Iron Ore Co. Ltd. · LSE:ZIOC
Zanaga Iron Ore — Investor Presentation (July 2015)
21 slides from Zanaga Iron Ore's investor presentation, July 2015
Slide 1: Zanaga Project Investor Presentation
Zanaga Project Investor Presentation July 2015
Slide 2: Disclaimers
Disclaimers This document, which is personal to the recipient, has been issued by Zanaga Iron Neither this document nor any copy of it may be taken or transmitted into the Ore Company Limited (the “Company”). This document does not constitute or form United States of America, its territories or poss
Slide 3: Africa's position in the global iron ore landscape
Africa’s position in the global iron ore landscape
Slide 4: The world needs a diversified iron ore supply base: product quality
The world needs a diversified iron ore supply base Product quality is increasingly important • Australian product quality decreasing Consumption of iron ore by product • Fe grade declining and impurity levels rising • China needs higher quality ores more than 10 0% 30 0 0 Consumption by iron ore typ
Slide 5: The world needs a diversified iron ore supply base: concentration of supply
The world needs a diversified iron ore supply base Concentration of global supply remains a concern • The fall in iron ore prices has resulted in a more Australia dominates global iron ore supply concentrated industry supply base 100% • Significant tonnage has been withdrawn from the market, with mo
Slide 6: Africa provides a logical solution
The world needs a diversified iron ore supply base Africa provides a logical solution • The largest pool of untapped natural resources in the world Palinspastic reconstruction of Africa • West African iron ore province with proven – South America at 180ma. resources and a number of good quality Feas
Slide 7: Zanaga Project Overview
Zanaga Project Overview
Slide 8: Zanaga Project Overview
Zanaga Project Overview • World class iron ore project Cameroon Central African Republic • 6,900Mt Mineral Resource • 2,070Mt Ore Reserve Equatorial • High quality, low impurity iron ore product Guinea Republic of Congo • Bottom quartile operating costs Gabon • JV between Glencore & Zanaga Iron Ore
Slide 9: Location
Location ni - vile we a OG
Slide 10: Reserves and Resources
Reserves and Resources >178,000m of exploration drilling has resulted in a large, well defined ore body Mineral Resource Statement Photo Lithology Average Fe Tonnes Fe SiO2 Al2O3 P Classification Mt % % % % SOL Measured 2,330 33.7 43.1 3.4 0.05 Indicated 2,460 30.4 46.8 3.2 0.05 CAN Inferred 2,100 3
Slide 11: Zanaga is a globally significant iron ore resource supported by a large reserve base
Zanaga is a globally significant iron ore resource supported by a large reserve base Zanaga is one of the only large, long-life, assets that is not already under the control of existing major iron ore producers Globally Significant Iron Ore Reserves2 Country Operator Project Status Total Resources (
Slide 12: Feasibility Study Highlights
Feasibility Study Highlights Stage One Stage Two Production 12 Mtpa 30 Mtpa (through 18Mtpa expansion) >30 year minelife >30 year minelife (Significant resource remaining to extend life or expand magnetite operation) Mining Ore types Upper hematite ores (friable and Magnetite ores exposed from minin
Slide 13: Capital and Operating Cost Estimates
Capital and Operating Cost Estimates Stage 1 Stage 2 CAPEX $m Stage 1 Stage 2 OPEX $/dmt 30 yr avg 9-30 yr avg FEED 22 11 Mining & Processing 19.1 17.4 Pre Production 23 - Pipeline 2.4 2.1 Mine Area 614 814 Port Area 6.5 2.7 Pipeline 399 467 G&A 2.0 0.9 Port Yard Facilities 173 243 Cash Cost 29.9 23
Slide 14: Recent changes in iron ore market fundamentals
Recent changes in iron ore market fundamentals • Iron ore market dynamics have shifted dramatically in the last 12 months since publication of the Zanaga Feasibility Study • Iron ore prices have dropped to a 6 year low • Freight, oil and forex rate adjustments have caused a significant reduction to
Slide 15: Asset benchmarking: product pricing impact must be factored
Asset benchmarking Product pricing impact must be factored • Traditional asset benchmarking based on cost curves can no longer be applied to iron ore • FOB cost curve – low relevance, does not factor costs to deliver to customer • CFR cost curve – interesting but remains irrelevant as product premiu
Slide 16: Asset benchmarking: operating cost curves don't give the full picture
Asset benchmarking Operating cost curves don’t give the full picture • The Zanaga Project will be positioned in the middle of the cost curve on the basis of cost to deliver product to Chinese customers • Purely on a CFR basis Zanaga will be competitive with major iron ore producers • However, Zanaga
Slide 17: Asset benchmarking: cash margin position is fundamental
Asset benchmarking Cash margin position is fundamental • Zanaga competes favourably with the majors on a ‘cash margin per tonne’ basis Estimated 2020 iron ore Cash margin per tonne 2020 (US$) Price per dry metric tonne ~$55 FMG Vale BHP Rio Tinto ~$95 Cumulative Potential Production (Mt) Major iron
Slide 18: Pipeline transportation with low risk land access
Pipeline transportation with low risk land access • 366km pipeline to transport pellet feed Planned pipeline route from mine site to port at Pointe-Noire Zanaga Project • Stage One 20” Pipeline Exploration Licenses – Optimal for 12mtpa throughput – 13.2Mtpa capacity for first 5 years of operation du
Slide 19: That will produce a high-grade pellet feed product
That will produce a high-grade pellet feed product The Stage One pellet feed product will have an iron grade of 66%, similar to Brazilian supply High Grade Product with High Fe Content and Low Impurities • High quality, low impurity pellet feed product Iron Ore Indices Specifications • High iron con
Slide 20: Development Timeframe
Development Timeframe 2007-2012 2013 2014 2015 4 years Capital cost $350m spent $2.2bn Exploration, Drilling, and Preliminary Studies 30Mtpa Pipeline Pre-Feasibility Study Staged Development Studies Staged Development scoping study Feasibility Study & SEIA Mining Licence & Convention received Port &
Slide 21: Investment Highlights
Investment Highlights Attractive Project Economics • Large ore body defined to support long life development • High quality product specifications Feasibility Study complete • Confirms attractive technical and economic basis for development • Study work conducted by Xstrata & Glencore Deliverable
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