Iron Road Ltd · ASX:IRD
Iron Road — Shareholder Meeting (July 2011)
22 slides from Iron Road's shareholder meeting presentation, Jul 25, 2011
Slide 1: Central Eyre Iron Project: On the Road to Production
For personal use only Central Eyre Iron Project On the Road to Production General Meeting Sydney, 25 July 2011
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements For personal use only This presentation contains forward looking statements concerning the projects owned by Iron Road Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates
Slide 3: Overview: On the Road to Production
Overview For personal use only On the Road to Production • Focused on Central Eyre Iron Project (CEIP) – PFS indicates a robust project is viable – Competitive capital and operating costs – Favourable export infrastructure options – Positive government and local communities • Now moving ahead with e
Slide 4: Corporate Overview
Corporate Overview For personal use only Board $1.20 Julian Gosse Non-exec Chair $1.00 Ian Hume Non-exec Jerry Ellis Non-exec $0.80 Matthew Keegan Non-exec $0.60 Andrew Stocks MD Major Shareholders $0.40 The Sentient Group 30.7% $0.20 Management 10.4% $0.00 Columbia University 6.6% Dec 08 Dec 09 Dec
Slide 5: Central Eyre Iron Project
Central Eyre Iron Project For personal use only • Centrally located on Eyre Peninsula, South Australia • Well serviced by established towns on road and rail networks • Favourable geographical and climatic location • Supportive state and local governments • Good relationships with local communities •
Slide 6: What Differentiates the CEIP?
What Differentiates the CEIP? CEIP magnetite gneiss Typical BIF For personal use only Age Archaean Proterozoic Geological history High grade metamorphism Low grade metamorphism Mineralogy Granular, low impurities Microcrystaline, impurities vary 1.5mm average, crystalline Magnetite grain size Very f
Slide 7: PFS Summary
PFS Summary For personal use only • Substantial 12.4Mtpa iron product operation outlined • Capital and operating costs compare favourably to similar Australian projects • Significant competitive advantages – Coarse grind size (-106 micron) → reduced power use, lower operating costs, no need for pell
Slide 8: PFS Key Findings
PFS Key Findings For personal use only • Commercial viability for a 12.4 million tonne per annum standalone iron concentrate operation Capex – direct A$1,744M • Coarse grained magnetite, low variability – excellent product characteristics offset lower head grade Capex – indirect A$517M • Conventiona
Slide 9: Benchmarking Concentrate Grade
Benchmarking Concentrate Grade For personal use only 72 GIR-Yerecoin EMG-Beyondie VMC-Yalgoo Concentrate Grade - % iron 70 ARH-Balmoral IRD-CEIP (40 micron) AGO-Ridley IRD-CEIP (53 micron) GRR-Southdown 68 GBG-Karara CXM-Bungalow IRD-CEIP (106 micron) ACS-Magnetite Range IRD-CEIP (75 micron) 66 CFE-
Slide 10: Simple Processing
Simple Processing 67.6Mtpa For personal use only MURPHY SOUTH DEPOSIT ROM Ore P80~ 30 mm Mass 100% Crushing Fe: 16.8% SiO2: 53.0% Cleaner W-LIMS HPGR Tails Mass 43% DRY WET Rougher W-LIMS P80~106 m P80~8 mm 61% Fe: 24% Concentrate SiO2: 47 % 12.4Mtpa Tails Mass 18% Mass 39% Fe: 67% Ball Mill SiO2:
Slide 11: Processing Comparisons – Significant Advantage
Processing Comparisons – Significant Advantage For personal use only 11
Slide 12: Large Resource with Great Upside
Large Resource with Great Upside For personal use only • Large scale conventional mining • Open cut operation, with low strip ratio of 0.8 to 1 • Optimised pit depth of 550m, may increase with latest drilling • Excellent geotech properties (15m benches, 70º batters) • Operating cash flow versus pit
Slide 13: Export Solution
Export Solution For personal use only Base case PFS includes slurry pipeline to port PFS includes costs and charges to use a third-party port Potential upside, including rail options, have been considered at scoping level with encouraging results More detailed rail review is now underway Project sca
Slide 14: Value Through Resource Growth
Value Through Resource Growth 3,000 2,756 2,811 For personal use only Near Term Target 2,597 2,687 • Base case incorporates current 2,478 Murphy South Mineral Resource. 2,304 • Murphy South Mineral Resource is 2,090 now 1.0Bt NPV - $ millions 2,000 1,808 • Current drill programme on Murphy South (we
Slide 15: Future Growth and Development Pathway
Future Growth and Development Pathway For personal use only Additional Resource • On track to define a mineral resource estimate of considerable size and tonnage additional to the current 1.0Bt identified at Murphy South so far definition, with Stage VI • Exploration Target for the current programme
Slide 16: Contact Details
For personal use only Contact Details www.ironroadlimited.com.au Andrew Stocks +61 8 9200 6020 admin@ironroadlimited.com.au Managing Director +61 403 226 748
Slide 17: Appendices
For personal use only Appendices
Slide 18: Appendix – Board & Management
Appendix 1 – Board & Management For personal use only Chairman Non-Exec Director Non-Exec Director Julian Gosse Ian Hume Jerry Ellis Non-Exec Director Managing Director Company Secretary Matthew Keegan Andrew Stocks Graham Anderson General Land Geology Project Manager Manager Manager Manager Larry I
Slide 19: Appendix 2a – CEIP Resource Statement
Appendix 2a – CEIP Resource Statement For personal use only Murphy South Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Resource Classification Oxidation Material Type (Mt) (%) (%) (%) (%) (%) Disseminated 272 17.7 52.5 12.0 0.09 0.3 Fresh Banded 79 13.3 54.7 14.1 0.07 0.5 Inferred Transitiona
Slide 20: Appendix 2b – CEIP Resource Statement
Appendix 2b – CEIP Resource Statement For personal use only Boo-Loo Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Resource Classification Oxidation (Mt) (%) (%) (%) (%) (%) Fresh 277 17.3 52.5 11.5 0.095 0.5 Inferred Transitional 13 17.0 52.4 11.6 0.094 10.7 Oxide 38 17.2 52.1 11.6 0.094 10.8
Slide 21: Appendix 2c – CEIP Resource Statement
Appendix 2c – CEIP Resource Statement For personal use only Central Eyre Iron Project Global Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Location Classification (Mt) (%) (%) (%) (%) (%) Murphy South Indicated 585 16.7 52.9 12.6 0.09 0.3 Inferred 421 16.6 52.6 12.7 0.08 1.2 Boo-Loo Inferred
Slide 22: Appendix – PFS Capital Cost Estimate
Appendix 3 – PFS Capital Cost Estimate For personal use only Estimated Estimated Estimated Direct Costs Indirect Costs Contingency A$ Millions A$ Millions A$ Millions Crushing circuit 244.1 Field indirect – 12.0% 209.3 Direct and indirect – 15% 337.8 Fine grind & mag sep 152.4 EPCM – 8.0% 139.5 Mill