Iron Road Ltd · ASX:IRD
Iron Road — Shareholder Meeting (November 2016)
18 slides from Iron Road's shareholder meeting presentation, Nov 18, 2016
Slide 1: Annual General Meeting - Managing Director's presentation
Annual General Meeting Managing Director’s presentation Sydney, 18 November 2016
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statements This announcement contains certain statements with respect to future matters which may constitute "for subject to inherent risks and uncertainties which could cause actual values, results, performance or out Investors are cautioned that such statement
Slide 3: We have had a strong year developing a credible and bankable project
Location map of the Central Eyre Iron Project (CEIP) and its elements. We have had a strong year developing a credible and bankable project • Long life mining and infrastructure business • Declared a national Priority Project by Infrastructure Australia – 1 of 10 nationwide and only ‘opportunity for
Slide 4: Ore Reserve
Ore Reserve • Ore Reserve increases to 3.7Bt @ 15% (concentrate grade of ~66.5%) • Largest magnetite Ore Resource in Australia Optimisation Study • Optimisation study delivered a robust mine plan and reduced operational risk and costs • Life of Mine average FOB OPEX (ex-state royalty, sustaining cap
Slide 5: Long mine life
Long mine life • Large orebody, efficient mining plan, long life • Coarse mineralisation results in lower processing costs Desirable product • Tested in real conditions, improves steel mill productivity, reduces power consumption and atmospheric emissions • China recently announced steel industry re
Slide 6: Marketing Relationships
Ma ring Relationships Tripartite Agreement with CREC and Shansteel MOU with Sumitomo subsidiary Emerald Grain
Slide 7: Iron Road and China Railway Group
Image – Members of the Joint Development Team visiting proposed port site at Cape Hardy Iron Road and China Railway Group • Agreement includes 12 month Project Commercialisation Programme – finalising bankable construction contracts, iron concentrate sales contracts, equity and debt financing procur
Slide 8: Joint Development Team visit local stakeholders and businesses
Image – Members of the Joint Development Team visit local stakeholders and businesses 8
Slide 9: Iron Road has signed MoUs with five steel mills
Image – Iron Road Chairman Dr Peter Cassidy with Shandong Iron & Steel President Mr Tao DengKui in Jinan, China Iron Road has signed MoUs with five steel mills- • Covering technical and commercial evaluations of the CEIP iron concentrate Tripartite agreement- • Between Iron Road, China Railway Group
Slide 10: Iron Road and Emerald Grain at the proposed port location
Image – Iron Road and Sumitomo subsidiary, Emerald Grain at the location of the proposed port location at Cape Hardy, South Australia. Iron Road and Emerald Grain are jointly assessing opportunities to utilise the rail and port infrastructure – it introduces choice for local grain producers 10
Slide 11: We are building a consortium of like minded companies
Image – MOU signing ceremony in Adelaide, South Australia We are building a consortium of like minded companies to develop the CEIP The port facilities will include two Cape capable berths and module offloading facility We have chosen Emerald as our grain partner, and are pursuing further opportunit
Slide 12: Supportive State Government
Image – Iron Road Chairman Dr Peter Cassidy discussing CEIP development in Beijing, China with South Australian Premier Mr Jay Weatherill, Minister for Trade & Investment Mr Martin Hamilton-Smith and head of China Railway Group Limited’s (CREC) international business Mr Cai Zemin Supportive State Go
Slide 13: Supportive Federal Government
Image - Iron Road Chairman Dr Peter Cassidy, Minister for Infrastructure & Transport The Hon Darren Chester, head of China Railway Group Limited’s (CREC) international business Mr Cai Zemin in Canberra, Australia Supportive Federal Government The Federal Government granted the CEIP Major Project Fac
Slide 14: China's Ambassador to Australia visited the joint development team
Image – foreground (l to r) Victor Li of Iron Road, His Excellency Mr Cheng Jingye, China’s Ambassador to Australia and Mr Xiuqing Wang, Chief Economist, China Railway Oriental International Construction Corporation – background (l to r) Brad Hunter, Iron Road Principal Engineer and Fang Jie, CREC E
Slide 15: High renewables penetration without adequate redundancy planning
High renewables penetration, without adequate redundancy planning has undermined energy security in South Australia • Increased reliance on coal generated Victorian imports (650MW) Power market status quo leads to increased volatility, higher pricing peaks, ever shorter contracts • Reduces competive
Slide 16: Major studies complete – de-risked project
Major studies complete – de-risked project • Resource drilling, environmental and social studies, Indigenous Land Use Agreement, Definitive Feasibility Study and Optimisation Study complete Largest magnetite ore reserve in Australia, among the largest globally • Robust and efficient mine plan key to
Slide 17: Appendix - CEIP Ore Reserve Summary
Appendix 1 ble 1 — CEIP Ore Reserve Sumi y Metric Tonnes Fe SiO. Al,0. Resource Classification a a0 (Mt) (%) (%) (%) Proved 2,131 15.55 53.78 12.85 Probable 1,550 14.40 58.58 12.64 Total 3,681 15.07 53.70 12.76 The Ore Reserves estimated for CEIP involving mine planning is based on and fairly repres
Slide 18: Appendix - CEIP Global Mineral Resource
Appendix 2 ble 2 — CEIP Global eral Resource P ieee Tonnes Fe SiO, Al,03 Ip Lol Location Classification (Mt) (%) (%) (%) (%) (%) Measured 2,222 15.69 53.70 12.84 0.08 4.5 Murphy South/Rob Roy Indicated 474 15.6 53.7 12.8 0.08 45 Inferred 667 16 53 12 0.08 43 Boo-Loo/Dolphin Indicated 796 16.0 53.3 1