Grange Resources Limited · ASX:GRR
Grange Resources — Investor Presentation (February 2012)
22 slides from Grange Resources's investor presentation, Feb 10, 2012
Slide 1: Australia's leading magnetite producer – Southdown Magnetite Project
For personal use only Australia’s leading magnetite producer Southdown Magnetite Project Russell Clark Managing Director & CEO February 2012
Slide 2: Disclaimer
Disclaimer For personal use only The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase, any security in Grange Resources Limited (“GRR”) nor does it form the basis of any contract or commitment. GRR makes no
Slide 3: Company Snapshot
Company Snapshot For personal use only Grange Resources is Australia’s leading magnetite producer and the only commercial producer of magnetite pellets in Australia, combining both mining and pellet production expertise. • ASX 300 Company, Market Capitalisation ~$700 million • A producer of premium
Slide 4: Grange's position is supported by quality assets in Tasmania and Western Australia
Grange’s position is supported by quality assets in Tasmania and Western Australia. For personal use only Southdown Project (70%) Savage River (100%) Northwest Tasmania Annualised production rate of 2.4Mtpa pellets Mine life to 2030 Owner-operated open pit mine, 83km slurry pipeline, coastal pellet
Slide 5: The Southdown Project
The Southdown Project For personal use only A Joint Venture between Grange Resources (70%), an ASX 300 Australian Public Company, and Sojitz (30%), a global trading company based in Japan. Note that Grange has 66% Chinese ownership, with the largest shareholder (47%) being Shagang, China’s largest p
Slide 6: An Opportunity for WA
An Opportunity for WA For personal use only The Southdown Magnetite Project will deliver a new long-term industry for Western Australia and the Great Southern Region. It will improve local infrastructure, create regional employment and further develop the City of Albany as a regional economic centre
Slide 7: The Southdown Project
The Southdown Project For personal use only 90km northeast of Albany 698 million tonnes of premium quality magnetite resource (1 b tonne potential) Targeting 10Mtpa concentrate for 40 years Infrastructure solutions in place (power, ports, water) Advanced permitting February 2012 Slide 7
Slide 8: Southdown….like Savage, only bigger!
Southdown….like Savage, only bigger! For personal use only Savage River (100%) Northwest Tasmania’s largest private employer Local workforce of 600 Comprehensive training provider $200m local expenditure $50m of wages per annum $13m annual royalties $3.5m payroll tax Extensive operating experience –
Slide 9: Positive Outcomes for WA and the Great Southern
Positive Outcomes for WA and the Great Southern For personal use only • A new industry in southern Western Australia • State Royalties of ~$50M per annum • State taxes ~ $5M per annum • Port enhancements secure Albany as a commercial port • Better infrastructure for water & power • Partnerships that
Slide 10: Location Plan
Location Plan For personal use only February 2012 Slide 10
Slide 11: Pre-Feasibility Study Highlights
Pre-Feasibility Study Highlights For personal use only • Mine Capex, including infrastructure , A$2.57 billion; • Positive NPV with favourable IRR; • Mine life of 19-40 years @10mtpa of concentrate; • Definitive Feasibility Study (“DFS”) completion forecast for 1st quarter of 2012; • Initial product
Slide 12: The Project
The Project Power For personal use only Mine Concentrator Pipelines Desalination plant Albany Port February 2012 Slide 12
Slide 13: Orebody
Orebody For personal use only 698 Mt at 35.75% magnetite February 2012 Slide 13
Slide 14: Orebody Potential
Orebody Potential For personal use only PFS Case Long Term Potential Details Western Resource Western/Eastern Resource Mine Life 19 years 40 years Ore (million tonnes) 430 ~1,200 Concentrate (million 158 ~375 tonnes) February 2012 Slide 14
Slide 15: Mining
Mining For personal use only Open pit mining Conventional bulk mining methods utilising Mining Method hydraulic face shovels, dump trucks and drill and blast coupled to a Run of Mine (ROM) stockpile Material ~110 Mtpa for first six years Movement Shovel size – 650 tonnes Equipment Truck size – 220 t
Slide 16: Power and Pipelines
Power and Pipelines For personal use only Key Facts - Power: Estimated Length 288km Capital Cost ~A$320 million 330kV transmission line Ongoing discussions with Capacity Status Western Power Key Facts – Pipeline: Estimated Length 100km (1.5 metres deep) Capacity Line Volume – 18,000m3 Transport Time
Slide 17: Water Supply
Water Supply For personal use only Seawater reverse Source osmosis desalination plant Capacity 12GL/a Capital cost ~A$200 million Coastal location 25km from mine and pumped Location to the mine site after treatment February 2012 Slide 17
Slide 18: Albany Port Infrastructure
Albany Port Infrastructure For personal use only Vessels Cape size (18m draft) Deepen; widen and extend existing shipping channel Activities New wharf Filtration plant and storage shed 9ha Increases port Area Reclaimed capacity from 4.0Mt to 14Mt New Berth Location New Berth Location Capital cost ~A
Slide 19: Environmental Permits
Environmental Permits For personal use only P Mine Environmental permit Granted November 2009, amendment required in 2011 for 10mtpa P Port permits Granted November 2010 Water permit Desalination permit expected Q2 2012 February 2012 Slide 19
Slide 20: Timetable
Timetable For personal use only 2011 2012 2013 2014 2015 Pre- feasibility Definitive Feasibility Financing Construction Production February 2012 Slide 20
Slide 21: Summary – Southdown Project
Summary – Southdown Project For personal use only • A new industry for the Southwest and Albany. • Significant employment and training opportunities. • Significant public infrastructure upgrades (Port, Power) • Significant State and Regional economic benefit. • Approximately $100m spent to date. • +
Slide 22: We need your support!
For personal use only Grange and Sojitz look forward to continue working with the Great Southern community to progress the project expeditiously. We need your support! February 2012 Slide 22
Grange Resources — Investor Presentation (February 2012) on 6ix