Akora Resources Ltd. · ASX:AKO
Akora Resources — Noosa Mining Conference 2023
23 slides from Akora Resources's conference presentation, Nov 15, 2023
Slide 1: Cleaner iron ore for greener steel
For personal use only Cleaner iron ore for greener steel. Noosa Mining Conference November 2023 Paul Bibby Managing Director akoravy.com ASK:AKO
Slide 2: Disclaimers
Disclaimers This corporate presentation contains forward looking statements which constitute “forward looking information” within Forward Looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward For personal use only the meaning of securities l
Slide 3: Cleaner iron ore for greener steel
Cleaner iron ore for greener steel. Akora is developing a high-grade For personal use only iron ore mine in Madagascar to serve the steel industry’s accelerating decarbonisation. Bekisopa Project JORC Resource (Inferred) Green Steel Resource (Inferred) 194.7Mt 34.0Mt Average head grade 32% Fe Averag
Slide 4: Steel is critical to decarbonise
Steel is critical to decarbonise. Steel demand is forecast to For personal use only Crude Steel Production^ Actual (World Steel Association) grow to around 2.7 billion Mt Forecast (BNEF) tonnes by 2050*. 2800 2400 The world’s electrification requires an enormous amount of steel. 2000 Steel required
Slide 5: The steel industry is turning green
The steel industry is turning green. Map of planned or under construction DRI-EAF plants and capacity. Million tonnes To reach net zero emissions by For personal use only 2050, steelmakers are now switching production methods from blast furnaces that consume coal to direct reduced iron (DRI) process
Slide 6: DRI technology reduces carbon emissions significantly
DRI technology reduces carbon emissions significantly. Traditional steelmaking Green steelmaking For personal use only High-grade Iron Iron ore + Continuous ore pellets Fossil fuel Coking Basic Oxygen casting and electricity Renewable- Coal Furnace rolling powered Electric arc electrolysis furnace B
Slide 7: DRI technology is growing fast
DRI technology is growing fast. Bloomberg New Energy Finance BNEF Net Zero Scenario 2050* For personal use only (BNEF) predicts DRI technology Total steel production to account for 59% of primary 2,747Mt steel production by 2050*. Total primary steel production Steelmakers account for up to 11% of a
Slide 8: DRI technology requires iron ore with low impurities
DRI technology requires iron ore with low impurities and grades above 67% Fe. BNEF Net Zero Scenario 2050* For personal use only DRI-grade iron ore demand 2050 889Mt To produce 889Mt of steel from DRI processes in 2050 will require a tenfold increase in high-grade iron DRI-grade iron ore supply 2020
Slide 9: Bekisopa and Satrokala projects
Bekisopa and Satrokala A globally significant clean iron ore district. projects (100% Akora). Location Growing JORC Resource For personal use only Cleaner iron ore for greener steel 9
Slide 10: AKORA's cleaner iron ore is perfect for greener steel made by DRI
AKORA’s cleaner iron ore is perfect for greener steel made by DRI. Bekisopa iron ore upgrades For personal use only BEKD10 to a +68% Fe concentrate at 41% Fe head grade 75 microns. 44% Fe head grade Ultra low impurities A finer grind will deliver even higher iron grades and much 0.5% SiO2 lower impu
Slide 11: Our plan is to develop the Bekisopa Project in two stages
Our plan is to develop the Bekisopa Project in two stages. Stage 01 Stage 02 For personal use only Produce +62% Fe direct shipping ore (DSO) Produce premium-priced +68% Fe concentrate Mine, crush, and screen ore to produce 62%+ Fe lump and Funds from Stage 1 to be used to add grinding and separation
Slide 12: Continued drilling success at Bekisopa Project
Continued drilling success Shallow drilling has indicated a significant iron ore body. at Bekisopa Project. AKORA has drilled 250 holes For personal use only across four campaigns totalling over 8,400m at Bekisopa. Fourth drilling campaign of 904.9m across 65 holes completed in August 2023. Drilling
Slide 13: Bekisopa Scoping Study. Robust DSO start-up financials
Bekisopa Scoping Study. Robust DSO start-up financials. Drilling should add DSO tonnes and mine life. Low CAPEX Case highlights. Annual production Initial mine life Revenue Free cash flow For personal use only 2Mt 5 years US$545m US$270m Capital cost NPV10 (pre-tax) IRR (pre-tax) Capital payback US$
Slide 14: Bekisopa Scoping Study. Capital costs comparison
Bekisopa Scoping Study. Capital costs comparison. Low CAPEX Case Low OPEX Case For personal use only ‘Low CAPEX Case” ‘Low OPEX Case” Area $US million $US million Mining 0.5* 1.9* Crushing and Screening 4.2* 17.5* Mine site facilities 10.8 10.8 Solar power 1.6 1.6 Roads 21.0 50.0 Haulage 0* 10.9 Por
Slide 15: Cash flow and NPV sensitivity analysis
Bekisopa Scoping Study. Cash flow and NPV sensitivity analysis. Low CAPEX Case NPV Sensitivity Analysis For personal use only US$M 250 200 Iron Ore Price -10% +10% 150 Opex +15% -15% 100 50 Discount 12% 8% 0 -1 1 2 3 4 5 -50 Capex +15% -15% -100 Capital Cash Flow Cum. Cash Flow US$M 75 100 125 150 1
Slide 16: A pit to port solution
A pit to port solution. ~360km from Bekisopa Project to Toliara. Infrastructure For personal use only Up to ~50km of road to be built or upgraded between Bekisopa Project and Satrokala Project. RN7 Highway Elevation Change - Satrokala to Toliara 2000 1000 0 0 50 100 150 200 250 300 350 Cleaner iron
Slide 17: Satrokala Project offers considerable upside
Satrokala Project offers considerable upside. +60% Fe rock chips along For personal use only 10km strike length. A magnetic survey completed 8 November 2023 will assist in pinpointing exploratory holes for maiden drilling proposed in Q2 2024. 68.03%Fe average 64.63%Fe average Cleaner iron ore for gr
Slide 18: The Madagascar advantage
The Madagascar advantage. Madagascar can easily ship to For personal use only Asian steelmakers as well as DRI pellet manufacturers around the world. 01 Close to rapidly growing 02 Close to DRI pellet Indian iron and steel industry. manufacturers in Middle East and Europe. 03 Competitive shipping 04
Slide 19: Working in with our host communities
Working in with our host communities. Working together with local people For personal use only to deliver positive outcomes. 01 Frequent consultation 02 03 Contributing educational and 04 Knowledge transfer and Developing water ensures support is strong for generating jobs for local medical supplied
Slide 20: Board and management
Board and management. A seasoned For personal use only mining team with wide experience in Africa. Mike Stirzaker Paul Bibby Matthew Gill Non-Executive Chairman Managing Director Non-Executive Director Over 30 years’ commercial experience in mining A metallurgist with over 35 years’ experience A min
Slide 21: Corporate Snapshot
Corporate Snapshot ASX:AKO Share price Market capitalisation Debt Shares on issue Cash AKOO options For personal use only $A0.175 A$16.6m Zero 94.9m A$1.8m 7.2m 14 November 2023 14 November 2023 30 September 2023 14 November 2023 30 September 2023 Expiring 25 May 2026 52 week high $0.225, low $0.135
Slide 22: Larry Fink quote on green industries
“Companies that have a market valuation over a billion dollars – won’t For personal use only be a search engine, won’t be a media company, they’ll be businesses developing green hydrogen, green agriculture, green steel and green cement.” Larry Fink BlackRock CEO Source: https://www.cnbc.com/2021/10/
Slide 23: Contact us
Contact us Paul Bibby For personal use only Managing Director paul.bibby@akoravy.com AKORA Resources Ltd 211 McIlwraith Street, ACN 139 847 555 Princess Hill, Victoria, ASX: AKO Australia 3054 eNews Join the conversation Follow us Subscribe to our e-news: @AkoraResources linkedin.com/company/ akorav