Iron Road Ltd · ASX:IRD
Iron Road — Investor Presentation (February 2021)
22 slides from Iron Road's investor presentation, February 2021
Slide 1: Investor Update
Investor Update Developing Infrastructure Partnerships and Growth Opportunities February 2021
Slide 2: Notice
Notice Forward Looking Statements • This announcement contains certain statements with respect to future matters which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, perfo
Slide 3: Business development strategy: Key focus 2021
Business development strategy Key focus 2021 • Reach Financial Close for the Cape Hardy Stage I port development – Eyre Peninsula (EP) grain exports and non-grain trade business opportunities (import/export) • Attract investment in the well- advanced Central Eyre Iron Project (CEIP) and monetise ear
Slide 4: Corporate overview
Corporate overview Capital Structure - February 2021 Board of Directors and Management Share Price $0.30 Non-Executive Chairman Peter Cassidy Chief Executive Officer Larry Ingle Shares on Issue 768.1M Executive Director General Manager Glen Chipman Noel Second Commercial Projects Market Capitalisati
Slide 5: The Stage I port project
The Stage I port project • Primary build – Modern, efficient Panamax-capable grain export facility targeting 1.3-2.0Mt grain export to accommodate average and above average harvests • Secondary build – Cater for other bulk commodities capable of being loaded / unloaded by mobile and ship-based crane
Slide 6: The Portalis partnership
The Portalis partnership • Iron Road – 100% owner CEIP including the 1100 hectare Cape Hardy port site; de-risked world-class coarse-grained magnetite orebody – Offers approvals, land, preliminary engineering & designs, costings, strong support through extensive engagement, upside opportunities • Ey
Slide 7: Strategic Cape Hardy location
• Cape Hardy recognised by farmers from the early 1930’s as an optimal port locality, now true for other primary producers • Naturally protected deep water with no dredging, no urban encroachment and an established road network • Freight advantaged for approximately 60% of all grain produced on the
Slide 8: Positive outlook for seaborne iron ore market
Source- Bloomberg, Mysteel Positive outlook for seaborne iron ore market Price forecasts in upgrade cycle
Slide 9: The CEIP opportunity
The CEIP opportunity Preferred Lower Capital, Lower Risk 12Mtpa CEIP Delivery Model – Key Metrics Operating Parameters Financial Metrics ($2018 terms) Concentrate production (dry) 12Mtpa Capital Cost US$1.74 billion Concentrate grade 66.7% Fe Capital intensity US$134/wmt Life of Mine 22 years FOB op
Slide 10: CEIP - comparative advantages
CEIP - comparative advantages CEIP Indicative Concentrate Specification – 106 micron (p80)1 Iron (Fe) Silica (SiO2) Alumina (Al2O3) Phosphorous (P) 66.7% 3.36% 1.90% 0.009% CEIP Typical WA BIF Parameters Magnetite Gneiss (eg. Karara, Sino Iron) Coarse crystalline (1½mm average), sharp Microcrystalli
Slide 11: Mining
Mining • Single open pit, conventional truck and shovel, incorporating ex-pit (and later in-pit) crushing • 12Mtpa iron concentrate strategy substantially reduces pre-strip requirements, life-of-mine strip ratio, energy requirements and overall project footprint • Competent coarse-grained magnetite
Slide 12: Ore processing facility
Ore processing facility • Well understood conventional grinding and magnetic separation • High density modules, with two parallel processing lines • Early commissioning conducted offsite reduces schedule risk • Coarse grinding and tailings dewatering eliminates requirement for a conventional tailing
Slide 13: Concentrate delivery to Stage II port
Concentrate delivery to Stage II port • 12Mtpa iron concentrate strategy frees mine to port operational constraints, enabling a capital light product haulage methodology • Saleable product to be transported along a private haul road (within the infrastructure corridor) by means of large capacity, du
Slide 14: CEIP iron concentrate – market testing
CEIP iron concentrate – market testing Two bulk test programmes have been conducted at the China Iron and Steel Research Institute, Beijing (CISRI) Sintering – best performance when replacing ‘earthy’ Pilbara fines CISRI and several Chinese steel mills have endorsed CEIP concentrate as an effective
Slide 15: CEIP iron concentrate – market testing
CEIP iron concentrate – market testing Pelletising – Chinese domestic 68.4% Fe concentrate substituted by CEIP concentrate at 10%, 20%, 30% blend • Produced acceptable quality pellets • Slight decrease in fired pellet compression strength, tumble and abrasion index, reducibility and swelling index w
Slide 16: Cape Hardy: Green manufacturing, energy export & strategic linkages
Green manufacturing, energy export & strategic linkages Cape Hardy
Slide 17: Value proposition
Value proposition • The multi-commodity, multi-user Cape Hardy Stage I port will be transformative for the Eyre Peninsula with EPCBH and Macquarie Capital as Joint Development Partners • Underpinned by a $25m Federal Government grant commitment, its construction will unlock several near-term regiona
Slide 18: For further information, please contact:
Authorised for release by the board of Iron Road Ltd 18 February 2021 For further information, please contact: Larry Ingle, Chief Executive Officer Iron Road Ltd Tel: +61 8 8214 4400 Or visit www.ironroadlimited.com.au ASX: IRD admin@ironroadlimited.com.au
Slide 19: Appendix: CEIP Ore Reserve Summary
Appendix Table 1 – CEIP Ore Reserve Summary Metric Resource Fe SiO2 Al2O3 Tonnes Classification (%) (%) (%) (Mt) Proved 2,131 15.55 53.78 12.85 Probable 1,550 14.40 53.58 12.64 Total 3,681 15.07 53.70 12.76 The Ore Reserves estimated for CEIP involving mine planning is based on and fairly represents
Slide 20: Appendix: CEIP Global Mineral Resource
Appendix Table 2 – CEIP Global Mineral Resource Tonnes Fe SiO2 Al2O3 P LOI Location Classification (Mt) (%) (%) (%) (%) (%) Measured 2,222 15.69 53.70 12.84 0.08 4.5 Murphy South/Rob Roy Indicated 474 15.6 53.7 12.8 0.08 4.5 Inferred 667 16 53 12 0.08 4.3 Boo-Loo/Dolphin Indicated 796 16.0 53.3 12.2
Slide 21: Appendix: CEIP Capital Cost Estimate
Appendix Table 4 – CEIP Capital Cost Estimate Area US$ M Comment Mining 644.8 Includes contractor pre-strip, heavy and continuous mining equipment Ore processing facility 551.8 Design and delivery mode unchanged, two process trains (reduced from three) Mine site facilities 179.5 Includes reduced Hig
Slide 22: Appendix: CEIP Operating Cost Estimate
Appendix Table 5 – CEIP Operating Cost Estimate Area US$/wmt Mining operations – includes contractor margin, waste and tailings management and water supply 23.80 Ore processing and loadout 11.22 Concentrate transport to port 5.44 Port charges 4.04 Total FOB operating cost 44.50 Sustaining capital 3.