Centaurus Metals Limited · ASX:CTM
Centaurus Metals — Resources Rising Stars 2013
25 slides from Centaurus Metals's conference presentation, Oct 2, 2013
Slide 1: Within our grasp: The Jambreiro Iron Ore Project
Within our grasp: The Jambreiro Iron Ore Project For personal use only • Low costs • Strong margins • Long life Resources Rising Stars, 2 October 2013 Darren Gordon – Managing Director
Slide 2: Disclaimer
Disclaimer This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation does not take into a
Slide 3: Overview
Overview Developing low capital, operating cost mines near existing infrastructure + customers in SE Brazil For personal use only Jambreiro Project fully permitted for 2-3Mtpa domestic production: Off-take and financing discussions well advanced to underpin $130M development Robust project with life
Slide 4: Brazil – Latin America's Economic Powerhouse
Brazil – Latin America’s Economic Powerhouse For personal use only World economic ranking: 6th Ranking in Latin America: 1st GDP growth (2012) 1.5% Revised GDP growth forecast (2013): 3.0% Population: ~195M Iron ore exports: >320Mtpa Steel production: ~35Mtpa By 2050, the Brazilian population is exp
Slide 5: 2014 Soccer World Cup
2014 Soccer World Cup For personal use only 5
Slide 6: Brazilian Iron Ore Market
Brazilian Iron Ore Market Large domestic market for iron ore consumption For personal use only Significant market opportunity with major steel mills located within 150km radius of key Centaurus Projects Brazil Crude Steel Production (Mt) Brazil Iron Ore Consumption (Mt) 23% 23% Forecast Forecast 70
Slide 7: Brazilian Mining Code – Proposed Changes
Brazilian Mining Code – Proposed Changes Will no longer exist. Instead a combined exploration and mining lease will be granted For personal use only Exploration Licences under a public tender process. Licence will have an initial term of 40 years. Mining Leases As per Exploration Licence Previ
Slide 8: Centaurus Key Personnel – Board and Management
Centaurus Key Personnel – Board and Management Centaurus Metals Board Centaurus Metals Board Didier Murcia – Independent Non-Executive Chairman John Westdorp: Chief Financial Officer For personal use only Chartered Accountant, 20 years resource experience, former CFO of Iron Ore Producer, Lawyer, 25
Slide 9: Brazilian Domestic Project Hub
Brazilian Domestic Project Hub For personal use only 9
Slide 10: Domestic Project Hub
Domestic Project Hub For personal use only • 216Mt JORC Resource base – four projects • Cornerstone = 350km Jambreiro Project (128Mt) – 110km from Ipatinga steel- 110km making region • Initial JORC Ore Reserve at Jambreiro of 48.5 Mt 140km • Future growth potential: Canavial, Candonga, Passabem, Ita
Slide 11: Overview
Jambreiro – Overview For personal use only Bankable Feasibility Study – November 2012: Production: 2Mtpa @ 64.5% Fe Life-of-Mine Revenue: A$847M Operating costs: A$16.20/tonne EBITDA: A$556M, annual cash flows: A$62M Post-tax NPV: A$140M, IRR: 33% @ A$47/t Pre-production CAPEX: A$136M Consistent and
Slide 12: Financial Evaluation from BFS
Jambreiro – Financial Evaluation from BFS Key Financial Outcome For personal use only Total Revenue A$847M EBITDA A$556M Capital Costs A$136M Annual Average Operating Cash Flow A$62M Operating Cash Cost (per tonne of product – LoM) A$16.2/dmt NPV8% Pre-tax A$242M NPV8% Post-tax A$140M Pre-tax IRR 47
Slide 13: Process Flowsheet
Jambreiro Process Flowsheet For personal use only Estimated NPV Benefit from Spiral Introduction – A$12.7 million 13
Slide 14: Site Layout
Jambreiro – Site Layout For personal use only Mass PRODUCT QUALITY Fe% SiO2% Al2O3% P% Recovery % FRIABLE ORE – Wet Magnetic Separation Head Grade 30.4 52.3 2.7 0.02 Beneficiated Product 66.0 4.1 0.8 0.01 39.4 BFS Assumptions Initial mine life: 9.0 years Strip ratio: 0.97:1 Production rate: 2Mtpa 14
Slide 15: Development Activity
Jambreiro – Development Activity Detailed Engineering and Procurement underway For personal use only Updated JORC Mineral Resource of 128Mt completed Off-take discussions nearing conclusion Financing activities ongoing but reliant on off- take arrangements. On-site activities: Cofferdam for early wa
Slide 16: Land Access & Approval Process
Jambreiro – Land Access & Approval Process Environmental Approvals For personal use only Environmental Impact Assessment (EIA/RIMA) Approved Three stage approval process LP – Issued October 2012 LI – Issued April 2013 LO – Due March Quarter 2015 Strong community support for Project Project Facilitat
Slide 17: Offtake & Financing
Jambreiro – Offtake & Financing Off-take For personal use only General acceptance of the high quality Jambreiro product specification by domestic steel mills Negotiations on key terms of offtake nearing conclusion Targeting Life-of-Mine, take or pay off-take contract Off-take pricing - International
Slide 18: Development Timeline
Jambreiro – Development Timeline Jambreiro Development Timeline For personal use only 2013 2014 2015 Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar EIA/RIMA Approval (LP) On Site Installation Licence (LI) Lodged Construction Offtake Production Commences PAE Approved
Slide 19: New Potential Feed Sources – Canavial
Jambreiro – New Potential Feed Sources Canavial Iron Ore Project For personal use only Maiden JORC resource of 27.6Mt @ 30.5% Fe Beneficiation testwork using Jambreiro flowsheet design is underway Simple environmental approval process for future development Million Material JORC Category Fe % SiO2 %
Slide 20: New Potential Feed Sources – Candonga
Jambreiro – New Potential Feed Sources Candonga Iron Ore Project For personal use only High grade drill results including some DSO grades Maiden resource of 11.9Mt grading at 43% Fe including potential source of DSO of 0.9Mt grading at 58.6% Potential for coarse grained product to support the Jambre
Slide 21: Mine Life Upside
Jambreiro – Mine Life Upside Compact Ore PRODUCT QUALITY Fe% SiO2% Al2O3% P% Mass Recovery % For personal use only Comprises 63.6Mt @ 26% Fe within COMPACT MINERALISATION – BENCH SCALE (Wet Magnetic Separation) overall resource of 128Mt @ 27.2% Fe Head Grade 25.0 55.9 2.2 0.07 Successful testwork ha
Slide 22: Corporate Overview
Corporate Overview Capital Structure Broker Research Shares on Issue 196.0m 12-Month For personal use only Broker Date Recommendation Price Target Options & Performance Rights 14.5m Ord Minnett 20-08-13 Buy $0.75 Share Price A$0.15 Canaccord 09-08-13 Buy $0.70 Market Capitalisation A$29.4m Cash at b
Slide 23: Within our grasp: The Jambreiro Iron Ore Project
Within our grasp: The Jambreiro Iron Ore Project For personal use only • Low costs • Strong margins • Long life Resources Rising Stars, 2 October 2013 Darren Gordon – Managing Director
Slide 24: Mineral Resource Inventory – August 2013
Mineral Resource Inventory – August 2013 Project JORC Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Jambreiro Measured 45.7 28.7 50.7 4.1 0.04 1.6 For personal use only Indicated 38.2 27.0 46.5 3.9 0.05 1.7 Measured + Indicated 83.9 27.9 48.8 4.0 0.04 1.6 Inferred 44.1 25.9 46.6 4.0 0.05 1.4
Slide 25: Project – October 2012 Ore Reserves
Jambreiro Project – October 2012 Ore Reserves For personal use only Ore Reserve Classification Mt Fe% SiO2% Al2O3% P% LOI % Proven 35.4 28.5 49.6 4.3 0.04 1.7 Probable 13.1 27.2 49.0 5.3 0.04 2.4 Total 48.5 28.1 49.4 4.6 0.04 1.9 25