Slide 1: Centaurus: Powering towards production
Darren Gordon, Managing Director For personal use only Centaurus: Powering towards production Emerging iron ore producer in Brazil 2Mtpa domestic production by end 2013 July 2012 Equity Raising Presentation 1-2Mtpa export business by end 2014 NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Page
Slide 2: Disclaimer
Disclaimer • This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, For personal use only solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentat
Slide 3: Equity Raising Overview
Equity Raising Overview • Centaurus’ equity raising of approximately $26.2m will comprise a For personal use only placement executed in 2 tranches (Equity Raising). • An unconditional placement of shares at $0.44 per share to institutional investors to raise approximately A$8.4m (19.1m shares); and
Slide 4: Rationale for the Equity Raising
Rationale for the Equity Raising • The funds raised under the Equity Raising will contribute towards the completion of the For personal use only Jambreiro feasibility study, deposits on long lead items and detailed engineering and design studies • In addition to the funds raised under the Placement,
Slide 5: Indicative Equity Raising Timetable
Indicative Equity Raising Timetable For personal use only Trading Halt on ASX 5 July 2012 Launch of Equity Raising 5 July 2012 Outcome of placement announced 9 July 2012 Settlement of Shares issued under the unconditional component 12 July 2012 of the placement Allotment of Shares issued under the u
Slide 6: Company Structure
Company Structure Post Issue Capital Structure Centaurus Metals Board For personal use only Shares on Issue 193.0m Didier Murcia Non-Executive Chairman Options 16.6m Darren Gordon Managing Director Share Price $0.44 Peter Freund Operations Director Market Capitalisation $84.9m Keith McKay Non-Execut
Slide 7: Centaurus Key Personnel
Centaurus Key Personnel For personal use only Geoff James: CFO & Company Secretary Klaus Petersen: Chief Geologist – New Projects Alexandro de Moura: GM – Operations Bruno Scarpelli: GM – Environmental & OH&S Roger Fitzhardinge: GM – Exploration & Evaluation Luiz Carlos Noronha Jr.: Legal Counsel &
Slide 8: Brazil – Latin America's Economic Powerhouse
Brazil – Latin America’s Economic Powerhouse For personal use only • World economic ranking: 6th • Ranking in Latin America: 1st • GDP growth (2011) 2.7% • Revised GDP growth forecast (2012): 2.5% • Population: ~205M • Foreign Direct Investment (2011): US$67B • Iron ore production: >300Mtpa • Steel
Slide 9: Brazilian Iron Ore Market
Brazilian Iron Ore Market • Large domestic market for iron ore consumption – in close proximity For personal use only to iron ore mines (unlike Australia) • Domestic iron ore consumption to rise by 39% by 2021 • Major steel companies, with steel mills within a 150km radius of Centaurus Metals’projec
Slide 10: Project Hubs – The Epicentre of Brazil's Economy
Project Hubs – The Epicentre of Brazil’s Economy For personal use only Page 10
Slide 11: Centaurus Metals' Projects
Centaurus Metals’ Projects For personal use only • 174Mt resource base – three projects • Cornerstone – Jambreiro Project (125.2Mt) • Future growth potential : Guanhaes, Passabem & Itambé Page 11
Slide 12: Itabirite Ore...A Major Source of Iron Production in Brazil
Itabirite Ore...A Major Source of Iron Production in Brazil For personal use only • Metamorphosed iron formation composed of iron oxides with abundant quartz • Iron Quadrangle itabirites typically comprise hematite • Lower mine grade than other sources of hematite (averaging 30-50% Fe) • Extremely w
Slide 13: Jambreiro – Overview
Jambreiro – Overview For personal use only Page 13
Slide 14: Jambreiro – Overview
Jambreiro – Overview • Cornerstone of domestic iron ore business For personal use only • Located 130km from key steel-making region of Ipatinga (Usiminas, Arcelor Mittal) • Feasibility Study underway – due Q3 2012 • Targeting production of 2Mtpa @ 66% Fe by Q4 2013, growing to 3Mtpa • Aiming to be c
Slide 15: Jambreiro – Resource Table
Jambreiro – Resource Table For personal use only JORC Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Friable Measured 37.6 28.8 50.7 4.4 0.04 1.7 Indicated 16.1 27.3 50.2 5.4 0.04 2.4 Measured + Indicated 53.7 28.4 50.6 4.7 0.04 1.9 Inferred 12.1 25.0 54.2 5.1 0.04 2.0 TOTAL 65.7 27.7 51.2 4.8
Slide 16: Jambreiro – Resource Table
Jambreiro – Resource Table For personal use only Prospect/ Deposit Material Type Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Tigre Friable 39.5 28.3 51.7 4.4 0.04 1.7 Compact 41.2 25.6 51.8 3.8 0.06 1.0 TOTAL 81.3 26.9 51.7 4.1 0.05 1.3 Cruzeiro Friable 9.7 28.9 47.3 4.0 0.05 1.9 Compact 12.2 25.8 3
Slide 17: Jambreiro – Resource & Reserve Estimates November 2011
Jambreiro – Resource & Reserve Estimates November 2011 For personal use only Ore Reserve Classification – Nov 2011 Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Proven 12.0 28.6 51.2 4.5 0.03 1.7 Probable 37.0 28.0 51.0 5.2 0.04 2.2 TOTAL 49.0 28.2 51.1 5.0 0.04 2.1 Concentrate Production Mineral Reso
Slide 18: Jambreiro – Cross Sections
Jambreiro – Cross Sections For personal use only Page 18
Slide 19: Jambreiro – Key Project Economics (November 2011 PFS)
Jambreiro – Key Project Economics (November 2011 PFS) For personal use only • Operating costs: A$19.9/tonne • EBITDA: A$858 million • Annual operating cash flows A$101 million • Post-tax NPV: A$289 million • IRR: 53% • Pre-production capital: A$132 million • Assumed sales price: US$73/tonne Page 19
Slide 20: Jambreiro – Plant Layout and Process Design
Jambreiro – Plant Layout and Process Design For personal use only • Initial mine life: 8.5 years • Strip ratio: 0.94:1 • Production rate: 2Mtpa Process Flowsheet Page 20
Slide 21: Jambreiro – Capital and Operating Costs (Nov '11 PFS)
Jambreiro – Capital and Operating Costs (Nov ‘11 PFS) Capital Equipment Total (A$ M) For personal use only DIRECT COSTS Sizing & Screening 20.9 Beneficiation 38.4 • A$66/t of annual Product Handling 10.0 production capacity Tails Management & Water Recovery 9.4 Water Supply 6.8 • Main processing is
Slide 22: Jambreiro – Product Quality
Jambreiro – Product Quality Mass PRODUCT QUALITY Fe% SiO2% Al2O3% P% For personal use only Recovery % PROCESS – WET MAGNETIC SEPARATION FRIABLE ORE – BENCH SCALE Head Grade 28.2 51.1 5.0 0.04 Beneficiated Product 66.6 2.8 0.7 0.02 37 FRIABLE ORE – SEMI PILOT PLANT (2.5T) Head Grade 29.8 50.7 3.7 0.0
Slide 23: Jambreiro – Land Access & Approval Process
Jambreiro – Land Access & Approval Process Environmental Approvals For personal use only • EIA/RIMA lodged with SUPRAM • Three stage approval process • LP October 2012 (On track at this time) • LI April 2013 • LO December Quarter 2013 • Strong community support for Project • Job creation • Share of
Slide 24: Timeline – Jambreiro Development
Timeline – Jambreiro Development 2012 2013 2014 For personal use only BFS Complete Commence Off Site On Site Construction Production Pre-Fabrication Commences Commences Lodge Mining Project Financing Lease Application In Place Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar E
Slide 25: Project Hubs
For personal use only Page 25 Project Hubs
Slide 26: Serra da Lontra Iron Ore Project
Serra da Lontra Iron Ore Project For personal use only 140km Page 26
Slide 27: Serra da Lontra Iron Ore Project
Serra da Lontra Iron Ore Project For personal use only • 140km by sealed road from export port of Ilheus and proposed development of Porto Sul • Provides opportunity to start a relatively low capex export business at 1-2 Mtpa • Exploration Target = 30-50 Mt @ 35 to 45% Fe • Potential to produce 15-2
Slide 28: Serra da Lontra Iron Ore Project
Serra da Lontra Iron Ore Project For personal use only • Average grade of mineralisation at Fittipaldi Prospect: 30 - 40% Fe • Senna drilling underway • Access difficult due to heavy seasonal rainfall Page 28
Slide 29: Curral Velho Iron Ore Project - Paraiba
Curral Velho Iron Ore Project - Paraiba • Acquired via For personal use only tenement swap • 20km strike of prospective iron formation • 65km from major rail line under construction • 350km from major export port of Suapé • Tenement extensions being applied for with DNPM Page Page 2929
Slide 30: Summary
Summary • Domestic production strategy on track – BFS underway on Jambreiro Project For personal use only • Targeting maiden production by Q4 of 2013 • Export strategy gathering momentum – maiden drilling program underway at Serra da Lontra with strong early results • Ability to leverage off existin
Slide 31: Centaurus: Powering towards production
Centaurus: Powering towards production Darren Gordon, Managing Director For personal use only CONTACT DETAILS: Registered Office: Level 1, 16 Ord Street, West Perth, Western Australia 6005 Telephone: +61 8 9420 4000 Email: office@centaurus.com.au Page 31
Slide 32: Selling Jurisdictions
Selling Jurisdictions This document does not constitute an offer of new ordinary shares in CTM (New Shares) to subscribe for New Shares in any jurisdiction in which it would be unlawful to do so. New Shares may not be offered or sold in any country outside For personal use only Australia except to t
Slide 33: Selling Jurisdictions
Selling Jurisdictions Hong Kong For personal use only • This document has not been, and will not be, registered as a prospectus under the Companies Ordinance (Cap. 32) of Hong Kong (the "Companies Ordinance"), nor has it been authorised by the Securities and Futures Commission in Hong Kong pursuant
Slide 34: Selling Jurisdictions
Selling Jurisdictions Japan • The New Shares have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948), as amended (the "FIEL") pursuant to an exemption from the For personal use only registration requirements ap
Slide 35: Selling Jurisdictions
Selling Jurisdictions Sweden For personal use only • This document has not been, and will not be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this document may not be made available, nor may the New Shares be offered for sale in Swede