Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Global Iron Ore & Steel Forecast Conference (March 2022)
22 slides from Magnetite Mines's conference presentation, Mar 29, 2022
Slide 1: Global Iron Ore & Steel Forecast Conference
Global Iron Ore & Steel Forecast Conference March 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE The purpose of this presentation is to provide general information about Magnetite Mines Limited ("MGT"). It is not recommended that any person makes any investment decision in relation to MGT based on this presentation. This presentation contains certain statements which
Slide 3: Steel intensity of use models widely used, but many issues
Steel intensity of use models widely used, but many issues Steel usage versus per capita GDP Conventional analysis suggests steel intensity in a country increases as countries develop, peaking then plateauing (‘peak steel’) But many other factors at play, such as trade, stocks, technology, GDP c
Slide 4: Forecasting Accuracy – 2015 perspective
Forecasting Accuracy – 2015 perspective Peak steel in 2015? Iron ore oversupply? “BHP Billiton is expecting at least another ten “China’s steel production has already hit a peak, years of iron ore oversupply before the market or to put it another way, it has hit a turning balances out.” point.” CISA
Slide 5: Actual outcomes
Actual outcomes Traditional steel production stable; growth shifting from China to newly industrialising economies Asia (excluding China) and Africa has over 60% of global population but only 17% of crude steel production Without large scale, long lead investment, production exposed to operati
Slide 6: Lower-emissions steel from high-grade ore
The Iron Ore Market Fastmarkets iron ore index grade spreads (US$/tonne) Lower-emissions 60 steel from high- 40 grade ore 20 0 US$/t -20 “To succeed in decarbonizing the global steelmaking industry there needs to be a -40 greater recognition of how much the iron -60 ore supply base needs to change.
Slide 7: The Braemar and Razorback: Large Resource, Long Life
Large Resource, Long Life The Braemar and Razorback LARGE, ACCESSIBLE MINERAL RESOURCES Company Mineral Resources of 5.7Bt including Muster Dam1,2,3,4 240km to Adelaide from Razorback. ESTABLISHED INFRASTRUCTURE NEARBY Heavy freight open access rail. High voltage powerlines connected to main
Slide 8: Existing Infrastructure
Minimal Capital Crystal Brook-Broken Existing Infrastructure Hill railway connects to Whyalla Port Proposed rail loop to mine site Whyalla expected to have capacity for increased throughput Strong investment Stage case for constructing a rail loop to allow 1 - 132kV Transmission Strong investm
Slide 9: Staged Development of a new iron ore province - the Braemar
Company Strategy Staged Development of a new iron ore province - the Braemar South Australia Favourable Large Razorback Low-capital, long- Experienced team business setting resource with life development is systematically with growing iron world-class readily fundable assembling the ore demand, infr
Slide 10: Delivering Premium Iron Ore to High Demand Markets
Delivering Premium Iron Ore to High Demand Markets LONG LIFE LOW INITIAL HIGH-GRADE DELIVERING with OPTIONALITY PROJECT CAPITAL PRODUCT Large 5.7bn tonne Staged Razorback First ore on ship 68% Fe product5 resource development with planned for late with expansion ESG advantages Higher than any 2024/e
Slide 11: Attractive, Staged Development Pathway
Unlocking the Braemar Attractive, Staged Development Pathway STAGE 1 STAGE 2 STAGE 3 15.5Mtpa plant capacity 31.0Mtpa plant capacity 46.5Mtpa plant capacity = 3Mtpa capacity = 5Mtpa capacity = 7Mtpa capacity A STAGED DEVELOPMENT APPROACH offering outstanding returns with future expansion options D
Slide 12: Expansion Study Overview
Expansion Study Key operational and financial metrics Overview Unit Staged Expansion Single-Step Expansion PFS Plant Optimised1 Iron ore price US$/t 110 110 110 (62% Fe) COMPLEMENTARY to the current DFS AUD:USD : 0.71 0.71 0.71 • DFS based on 3Mtpa of capacity and minimum upfront capital exchange
Slide 13: Robust Economics
Significant Upside Potential Robust Economics 62% Fe iron ore price – US/t IRR % & all-in 62% breakeven price $250 $200 Stage 11 Stages 1-32 $150 31% 42% US$/t 19% 27% Long-term average = $110/t $100 Stage 1 - all-in 62% breakeven price = $53/t3 $50 Stage 3 - all-in 62% breakeven price = $40/t 20% 4
Slide 14: Environment, Social and Governance (ESG)
Environment, Social and Governance (ESG) POWER is anticipated to be sourced from the South Australian grid, forecast to be 97% renewables-powered by 20257, delivering an expected low scope 2 emissions profile. PREMIUM HIGH-GRADE PRODUCT supports the steelmaking subsector targeting low scope 3 em
Slide 15: Indicative Development Schedule
Indicative Development Schedule* 2021 2022 2023 2024 2025 Pre-Feasibility Study DFS – Funding DFS – Study Decision to Mine Project Financing Permitting, Enviro & Native Title Detailed Design Procurement Construction & Commissioning Production *Schedule subject to review as part of DFS currently unde
Slide 16: Next Steps
Next Steps Delivering Premium Iron Ore to High Demand Markets DELIVERING THE DFS - ADVANCE RAZORBACK FINANCE EXPANSION OPTIONALITY work programs underway DRILLING programs demonstrated Planning and Meeting key Future engagement of lender infrastructure key engineers Hydrology – requirements
Slide 17: References
References 1. ASX Announcement – 24/05/21 – Razorback Iron Project Mineral Resource Upgrade 2. ASX Announcement – 20/11/18 – Ironback Hill Deposit – JORC 2012 Resource Update 3. ASX Announcement – 01/03/21 – Muster Dam Iron Project Tenements awarded to Magnetite Mines 4. ASX Announcement – 30/06/21
Slide 18: Appendix
Appendix MAGNETITE 18. MoioN c€ §
Slide 19: Corporate Overview: Capital Structure
Corporate Overview 180 0.10 160 0.09 0.08 140 0.07 120 CAPITAL STRUCTURE Share price (A$) 0.06 Volume (m) 100 0.05 Shares 3,159 M 80 0.04 60 0.03 Unlisted 153.1M 40 0.02 Options (various – avg. 20 0.01 $0.03) - - Share Price* A$0.034 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec
Slide 20: Board Members & Management
Board Members & Management Peter Schubert Mark Eames Malcolm Randall Jim McKerlie EXECUTIVE CHAIRMAN & CEO BA Metallurgy (Hons) MBA MAUSIMM Dip Applied Chem, FAICD BA Economics (Hons), Dip Fin Mgt TECHNICAL DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Peter was appointed Executive Mark has
Slide 21: Board Members & Management
Board Members & Management Paul White Stephen Weir Trevor Thomas Master of Business Administration B.Eng Hons (Mech), Grad Dip. Appl. Fin. SIA MEarthSci (Hons) MAIG, MAUSIMM NON-EXECUTIVE DIRECTOR CHIEF DEVELOPMENT OFFICER GENERAL MANAGER (GEOLOGY) Paul has a track record of driving Most recently St
Slide 22: Lid
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