Zanaga Iron Ore Co. Ltd. · LSE:ZIOC
Zanaga Iron Ore — Investor Presentation (September 2013)
16 slides from Zanaga Iron Ore's investor presentation, September 2013
Slide 1: Zanaga Project – Staged Development Presentation
Zanaga Project – Staged Development Presentation September 2013
Slide 2: Disclaimer
Disclaimer This document, which is personal to the recipient, has been issued by Zanaga Iron Ore Neither this document nor any copy of it may be taken or transmitted into the United States of Company Limited (the “Company”). This document does not constitute or form part of any America, its territor
Slide 3: Introduction
Introduction • World class iron ore project in the Republic of Congo • Resource – 6.8Bt (32% Fe) • Reserves – 2.5Bt (34% Fe) • Joint Venture with Glencore Xstrata (Glencore) • Review process post-PFS identified attractive opportunity for Staged Development of the Zanaga Project • Feasibility Study n
Slide 4: Work Programmes and Project History
Project history Work Programmes 30Mtpa Q2: Mining Lease Order of Completion of Rail Staged Application Initial Magnitude Rail PFS in PFS and Value 30Mtpa Development (supported by FS Exploration Study progress Engineering Pipeline PFS scope and SEIA) Exercise 2007 2008 2009 2010 2011 2012 2013 2014
Slide 5: Feasibility Study advancing on Staged Development basis
Feasibility Study advancing on Staged Development basis • Review process post-PFS identified attractive opportunity for Staged Development of the Zanaga Project • Stage One: 12Mtpa + additional 1-2Mtpa DSO operation • Stage Two : Expansion to 30Mtpa • Substantial improvement in deliverability and fi
Slide 6: Staged Development Approach Overview
Staged Development Approach Overview Indicative 12+2Mtpa Stage 1 (US$m) Previous 30Mtpa PFS (US$m) Initial capital cost reduced to 1/3rd c.$2.5-3.0bn $7.4bn Improved capital cost intensity c.$200/annual tonne $245/annual tonne Attractive LOM operating costs c.$37-40/t $23/t 60-62% Fe (DSO) Premium p
Slide 7: DSO opportunity: Flexible capacity & near term cash flow potential
DSO opportunity: Flexible capacity & near term cash flow potential • Stage One DSO potential of up to 2Mtpa Sampling of high grade DSO ore (60% Fe) • Low capital cost • Operational flexibility based on prevailing market conditions • Initial indications suggest attractive 60-62% Fe product • Explorin
Slide 8: Stage One - Mining and Processing
Stage One - Mining and Processing Mining Processing (pellet feed plant) • Targeting the upper part of the orebody which • Plant location optimised based on reduced mining consists of >500Mt friable ~42% Fe material (circa footprint (truck and conveyor hauls cut) 20 year life) • Plant capital and ope
Slide 9: Stage One – 12Mtpa capacity pipeline
Stage One – 12Mtpa capacity pipeline • 370km pipeline to transport pellet feed from mine site to port at Pointe-Noire • Two pumping stations (intermediate station required due to scale reduction) • Very low opex • Maximum pipeline gradient 12% • Well defined process for securing required land - Appr
Slide 10: Stage One - Port and Power
Stage One - Port and Power Port Example of self unloading vessel • Stage One based on owner-built service harbour and offshore trans-shipper • Optionality: • Third party built similar or deep water port • Early low tonnages via existing Pointe-Noire port facilities • Stage Two expansion expected thr
Slide 11: High Quality Product characteristics maintained
High Quality Product characteristics maintained • Attractive Stage One products Indicative product specification – Pellet Feed • Initial indications suggest a 60-62% DSO Stage One Stage Two product Fe 66% 68% • 66% Fe pellet feed with low impurities SiO2 3.0% 3.0% • Price premium expected compared w
Slide 12: Joint Venture with Glencore
Joint Venture with Glencore • Supplemental Agreement signed in Sept 2013 to reflect move to a staged development project • ZIOC contributing $17m to work programme (to December 2014) • Glencore maintains management control • Glencore Call option & ZIOC Texas auction right removed 50% +1 50% - 1 • Gl
Slide 13: Progress and Next Steps
Progress and Next Steps Staged Development Scope Feasibility Study in progress Regulatory approvals in progress • Application for Mining Licences exploitation in Q2 2014, supported by FS & SEIA • Glencore and ZIOC to work together on Joint Project Funding Round • Objective to raise debt and equi
Slide 14: Summary
Summary • World class resource • Resource – 6.8Bt (32% Fe) • Reserves – 2.5Bt (34% Fe) • Staged Development scope reduces risk profile and enhances project financeability & deliverability • Potential to deliver early cashflows • Lower capital intensity and quantum • Significant optionality with resp
Slide 15: Appendix: Reserves and Resources
Appendix : Reserves and Resources • 6.8 billion tonne Mineral Resource (32% Fe) Magnetic signature • 69% in Measured & Indicated category • Potential for higher production levels & longer mine life Drilled area • Resource underpinned by >176,000m of drilling • Feasibility Study drilling now complete
Slide 16: Shallow rippable enriched hæmatitic itabirite resource
Shallow rippable enriched hæmatitic itabirite resource Lithology Lithology Photo Graphic Log Regolith Classification Classification Lith Code Definition Clayey soil, few if any clasts. This Soil Soil SOL portion can be purely alluvial in nature Cemented bedrock Canga CAN Hematite clasts cemented by
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