Red Hill Minerals Ltd · ASX:RHI
Red Hill Minerals — Red Hill Iron — Investor Presentation (August 2010)
26 slides from Red Hill Minerals's investor presentation, Aug 20, 2010
Slide 1: ASX cover letter: Investor Presentation
Exploration Office: Ground Floor, 43 Ventnor Ave, West Perth WA 6005 Registered Office: Level 2, 9 Havelock Street, West Perth WA 6005 ABN: 44 114 553 392 Postal Address: PO Box 1160, West Perth WA 6872 Telephone: (61 8) 9481 8628 Facsimile: (61 8) 9481 8445 E-mail: redhillinfo@redhilliron.com.au We
Slide 2: Red Hill Iron Limited Presentation August 2010
RED HILL IRON LIMITED ABN: 44 114 553 392 PRESENTATION AUGUST 2010 RED HILL IRON LIMITED 1
Slide 3: Disclaimer and Warning
RED HILL DISCLAIMER IRON LIMITED Disclaimer and Warning No representation or liability: No representation or warranty is made as to the fairness, currency, accuracy, completeness, reliability or reasonableness of this presentation, or any opinions, conclusions and forward‐looking statements it conta
Slide 4: The Presentation
RED HILL THE PRESENTATION IRON LIMITED ☼ THE COMPANY Structure, Performance, Location ☼ THE JOINT VENTURES Structure, Mineral Resources ☼ MINERAL RESOURCES ☼ FEASIBILITY STUDY RESULTS Summary, Project Costs ☼ ASSETS Inside the JV JV, Outside the JV ☼ REGIONAL PLAY ☼ THE IRON ORE MARKET S Supply l an
Slide 5: The Company: Structure
THE COMPANY Stru tur Structure ASX: RHI Red Hill Iron Listed Ordinary shares on issue: 43,915,686 ASX Code: RHI Substantial Shareholders AQA 8,532,731 Options: Nil AMCI 8,082,422 Share Price 19‐Aug‐10 2.70 Pitt & Assoc 8,375,464 C Cash on hand $4 $4m Mkt Cap $118m Directors / Senior Management Subst
Slide 6: The Company: Performance
THE COMPANY P rf rm n Performance ASX: RHI $8.00 9000 High $7.00 May ‘08 08 $7.00 8000 $6.00 7000 $5.00 6000 n All Ords Red Hill Iron $4.00 5000 Australian $3.00 4000 $2.70 17 Aug ‘10 $2.00 3000 $1.00 2000 $0.00 1000 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 RED HILL IRON
Slide 7: The Company: Location
THE COMPANY L ti n Location RED HILL IRON LIMITED 6
Slide 8: The Joint Ventures: Structure
RHIOJV and THE JOINT VENTURES WPIOP STAGE ONE Stru tur Structure AMCI & ASSOCIATES 51% AQUILA AMCI PITT RESOURCES PUBLIC (WA) PTY LTD & ASSOCIATES POSCO LTD ~$180M 49% 50% 50% 19.8% 18.4% 42.7% 19.1% CULLEN API RED HILL IRON LTD RESOURCES MANAGEMENT 43.9 M SHARES LTD PTY LTD 30% 70% 60%* 40%* 100% M
Slide 9: The Joint Ventures: Resources
THE JOINT VENTURES R ur Resources RHIOJV WPIOP Stage 1 Class Mt Fe % SiO2 % Al2O3 % P % S% LOI % RHIOJV Mineral Resources1 Deposit Mt Measured 75 57.6 5.6 3.3 0.085 0.018 8.14 Cochrane 33 Indicated 226 56.6 6.2 3.8 0.071 0.018 8.43 Jewel 28 Inferred 121 56.2 6.2 3.8 0.068 0.016 9.06 Ken's Bore East
Slide 10: Feasibility Study Summary
FEASIBILITY STUDY Summ r Summary WPIOP FS Presented 5th July 2010 Summary of the study highlights announced by Aquila ☼ The 30Mtpa Project is technically and financially viable ☼ NPV of $ $2.2 billion and IRR of 16.4% ☼ Capital expenditure $5.77 billion including EPCM and contingency ☼ Operating cos
Slide 11: Feasibility Study: Project Costs
FEASIBILITY STUDY Pr j t C Project t Costs WPIOP Capital Expenditure WPIOP Operating Costs Capital Area Opex ($/t)* Area Cost Mining 10.32 ($millions) Processing 2.25 Mine Processing and Infrastructure Mine, 1 863 1,863 Rail Operations 3 34 3.34 Railway and Rolling Stock 1,695 Port Operations 3.57 P
Slide 12: Assets: Inside the JV
ASSETS In id th Inside the JV 33Mt 28Mt 20kms 119Mt 6Mt 45Mt 79Mt 107Mt 6Mt RED HILL IRON LIMITED 11
Slide 13: Assets: Outside the JV
ASSETS Out id th Outside the JV RED HILL IRON LIMITED PANNAWONICA CID PROJECT RHI OWNING 100% OF CID RIGHTS RED HILL IRON LIMITED 12
Slide 14: Pannawonica Project Assets
PANNAWONICA PROJECT ASSETS Planned Drill Hole Locations Out id th Outside the JV Phase 1 : RC drilling To outline the CID mesas and surrounding aprons. COMPLETE Phase 2: Metallurgy Test beneficiation by dry screening. PLANNED Phase 3 : RC drilling Ph d illi 100 x 200 metre infill RC drilling and dri
Slide 15: Assets: Outside the JV (Whitegate, Redgate)
ASSETS Out id th Outside the JV WHITEGATE REDGATE RED HILL IRON LIMITED 14
Slide 16: Assets: Whitegate Drilling
ASSETS Whit g t Drilling Whitegate WHITEGATE HOLE INTERSECTIONS Iron% Alumina% Silica% RZW001 12 metres from 0 metres 56.1 3.6 5.6 RZW002 12 metres from 0 metres 55 6 55.6 39 3.9 79 7.9 WHITEGATE APPEARS MODEST RZW003 4 metres from 0 metres 54.8 4.8 7.9 RZW004 4 metres from 4 metres 56.9 4.2 5.2 The
Slide 17: Assets: Redgate Drilling
ASSETS R dg t Drilling Redgate RED HILL IRON LIMITED 16
Slide 18: Assets: Redgate Drilling
Selected Composites ‐ 48%Fe Cutoff Hole # RH002 E N 413721 7588194 0 Fr To 38 m 38 Fe% 52.5 Al2O3 6.7 SiO2 11.0 ASSETS RH003 RH004 413781 7588354 2 413591 7588374 8 38 48 36 40 52 2 52.2 54.2 64 6.4 5.1 11 5 11.5 8.8 R dg t Drilling Redgate RH005 413541 7588214 2 36 34 52.3 5.5 10.4 RH006 413421 758
Slide 19: Regional Play
On the 10th August Fortescue Metals Group Ltd (FMG) gave a REGIONAL PLAY detailed ppresentation of it’s conceptual p view of the future for its Pilbara iron ore assets including the development of Anketell port. The following two slides overlay the infrastructure relevant to the RHIOJV. Pilbara Iron
Slide 20: Regional Play
REGIONAL PLAY If both the FMG and WPIOP present development concepts come to fruition then Anketell Point and the West Pilbara will be established as a major Australian Iron Ore Province. Pilbara Iron Ore Region FMG Cape p Lambert WPIOP 240 240 & RHIOJV 30 WPIOP Production Source: FMG ‘s presentatio
Slide 21: Regional Play
REGIONAL PLAY Port Hedland Cape Lambert RESOURCE Anketell Dampier Tonnes are Cape Preston Millions Proposed BHP Mesa A Mesa J 200 270 RIO Bungaroo 1,500 Solomon FMG Buckland B kl d Mt Elvire, Yaleen 5 900 5,900 50 600 Chichester 6,000 West Hub 4,800 Yandi Tom Price Red Hill 1,260 , Area C Other 116
Slide 22: The Market: Demand
THE MARKET Steel Intensity Per Capita Grows Strongly As A Nation Becomes Wealthier D m nd Demand RED HILL IRON LIMITED 21
Slide 23: The Market: Supply
China and other emerging nations THE MARKET will drive steel consumption growth Suppl Supply 1000 China 900 1,800 800 Western W t Europe E 1,700 1 700 700 200 1,600 150 600 100 1,500 50 500 CHINA 0 1,400 2000 2008 2020 400 1,300 300 North America 1,200 ME and Africa 200 200 120 150 1,100 80 100 100
Slide 24: The Way Forward
THE WAY FORWARD West Pilbara Iron Ore Project – Stage 1 ☼ Stage 1 of the WPIOP is based on CID Deposits SW of Pannawonica ☼ AF Feasibility ibilit Study St d for f mine, i rail il and d Anketell A k t ll Port P t completed l t d June J 2010 ☼ Public Environmental Review submitted early 2010 ☼ Develop
Slide 25: Competent Person Statement
RED HILL Competent Person Statement IRON LIMITED Competent Person Statement The information in this announcement is based on information compiled by Mr Doug Stewart, who is a Fellow of The Australasian Institute of Mining and Metallurgy and is an employee of Red Hill Iron Limited. Mr Stewart has suf
Slide 26: August 2010 Update
RED HILL IRON LIMITED ABN: 44 114 553 392 AUGUST 2010 UPDATE RED HILL IRON LIMITED 25