Centaurus Metals Limited · ASX:CTM
Centaurus Metals — UBS Iron Ore and Coal Seminar (November 2011)
36 slides from Centaurus Metals's conference presentation, Nov 15, 2011
Slide 1: Developing a Brazilian Iron Ore Business
Developing a Brazilian Iron Ore Business For personal use only Darren Gordon, Managing Director November, 2011
Slide 2: Disclaimer
Disclaimer For personal use only This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentatio
Slide 3: Brazilian Iron Ore Business
Brazilian Iron Ore Business For personal use only Centaurus Metals’ focus is to: Develop & Operate a number of low cost mines. Be known for high grade & consistent quality products. Be one of a limited number of preferred suppliers to the Brazilian domestic steel industry. Have commenced p
Slide 4: Company Structure
Company Structure For personal use only Capital Structure ASX CODE : CTM Shares on Issue 133.5m Options* 17.6m Share Price $0.65 Market Capitalisation $86.8m Cash at bank (30 Sept 2011) $23.4m Debt NIL Enterprise Value $63.4m Shareholding Atlas Iron Ltd ** 19.9% Directors & Management 8% ** Atlas Ir
Slide 5: Centaurus Metals Board & Key Personnel
Centaurus Metals Board & Key Personnel DIDIER MURCIA Non-Executive Chairman For personal use only 25 years corporate and resource industry experience. Specialises in strategic, corporate and commercial advice. Extensive iron ore experience as Director of Gindalbie Metals. Chairman of Rift Valley Res
Slide 6: Centaurus Metals Board & Key Personnel
Centaurus Metals Board & Key Personnel For personal use only GEOFF JAMES - CFO & Company Secretary DIOGENES VIAL Chartered Accountant and Chartered Secretary with over 20 years financial Strategic Project Geologist experience. Previously Chief Financial Accountant for Clough engineering. Retains s
Slide 7: Brazil
Brazil For personal use only Latin America’s largest economy. Rapidly growing population (currently ~200 million). Over ~ 50% of population now considered middle class. ~4th largest car manufacturer. Predicted growth of 4-5% in 2011. US$830b infrastructure spend. Hosting FIFA World Cup
Slide 8: International Investment into Brazil
International Investment into Brazil For personal use only A number of multi national companies have recently announced expansion plans into Brazil. Spanish Telecom giant, Telefonica, to invest in growing telecommunication $14.6 billion demand over next 3 years Foxconn (Apple’s IPad & IPhone man
Slide 9: Brazilian Iron Ore Market
Brazilian Iron Ore Market For personal use only Unlike Australia, a large market for the consumption of iron ore is located alongside iron ore projects. Major steel companies, with steel mills within a 150km radius of Centaurus Metals’ projects have significant domestic production. Brazil Crude
Slide 10: Centaurus Metals' Projects
Centaurus Metals’ Projects For personal use only 10
Slide 11: Domestic Iron Ore Business
Domestic Iron Ore Business For personal use only “Supplying Iron Ore to Brazil’s Steel Mills” 11
Slide 12: Domestic Iron Ore Business
Domestic Iron Ore Business For personal use only Targeting production from a number of low OpEx, low CapEx mines, in close proximity to established infrastructure. Centaurus Metals is working towards: production at a rate of 2mtpa by the end of 2013 growing to 3mtpa, to be sold into Brazil’s d
Slide 13: Itabirite Ore....
Itabirite Ore.... For personal use only A major source of iron ore production in Brazil… Metamorphosed iron formation composed of iron oxides with abundant quartz. Iron Quadrangle itabirites typically comprise hematite. Lower ROM grade than other sources of hematite (averaging 30-50% Fe). Ex
Slide 14: Domestic Production - Jambreiro
Domestic Production - Jambreiro For personal use only 14
Slide 15: Jambreiro
Jambreiro Iron Ore Project For personal use only Pre-Feasibility Study completed. 2Mtpa operation delivering a 66% Fe final product into domestic steel industry in SE Brazil Initial 8.5 year mine life based on friable Ore Reserve Life-of-mine operating cash costs of A$19.9/tonne of final pro
Slide 16: Jambreiro Mineral Resources and Ore Reserves
Jambreiro Iron Ore Project For personal use only Mineral Resources Prospect JORC Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Friable Measured 12.1 28.6 51.2 4.6 0.03 1.7 Indicated 39.9 27.9 51.1 5.3 0.04 2.2 Measured + Indicated 52.1 28.0 51.1 5.1 0.04 2.1 Inferred 15.0 24.9 55.2 5.3 0.04
Slide 17: Jambreiro
Jambreiro Iron Ore Project For personal use only 17
Slide 18: Jambreiro Product Quality
Jambreiro Iron Ore Project For personal use only Product Quality Fe% SiO2% Al2O3% P% Mass Recovery % PROCESS – WET MAGNETIC SEPARATION FRIABLE ORE Head Grade 28.2 51.1 5.0 0.04 Beneficiated Product 66.6 2.8 0.7 0.02 37 COMPACT MINERALISATION Head Grade 25.0 55.9 2.2 0.07 Beneficiated Product 66.2 3.
Slide 19: Jambreiro Process Flowsheet
Jambreiro Iron Ore Project For personal use only Process Flowsheet 19
Slide 20: Jambreiro Key Pre-Feasibility Study Assumptions
Jambreiro Iron Ore Project For personal use only Key Pre-Feasibility Study Assumptions Key Assumptions Ore Reserves 49.0 Mt Grade 28.2% Fe Mass Recovery per dry tonne 37.6% Reserve – Final Product 17.1 Mt Grade 66% Fe Waste Movement 46.0 Mt Total Material Movement 95.0 Mt Waste to Ore Ratio (LOM)
Slide 21: Jambreiro Site Layout
Jambreiro Iron Ore Project For personal use only Site Layout Three pits and waste dump Processing Plant Administration Area Tailings Dam 21
Slide 22: Jambreiro Capital and Operating Costs
Jambreiro Iron Ore Project For personal use only Capital and Operating Costs Capital Equipment Total (A$ M) A$66/t of annual production DIRECT COSTS capacity. Sizing & Screening 20.9 Beneficiation 38.4 Main processing in WHIMS Product Handling 10.0 circuit. Tails Management & Water Recovery 9.
Slide 23: Jambreiro NPV Sensitivity Analysis
Jambreiro Iron Ore Project For personal use only Base Case Pricing Assumption – US$73 per tonne of Product Sensitivity Analysis NPV Sensitivity Price (FOB Mine) Foreign Exchange Discount Rate Operating Expenditure Capital Expenditure 175 200 225 250 275 300 325 350 375 400 NPV (A$M) 23
Slide 24: Resource Summary – Domestic Projects
Resource Summary – Domestic Projects For personal use only Centaurus has assembled a strong project and resource base in Brazil of Itabirite mineralisation that upgrades to a high grade hematite product. Project M&I Component Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Jambreiro* 62% 116.5 26.8 51
Slide 25: Export Business
Export Business “Supplying Carbon Steel Products to the For personal use only World Market” 25
Slide 26: Export Business
For personal use only Export Business 26
Slide 27: Export Business – Ilhéus Export Hub
Export Business – Ilhéus Export Hub For personal use only Most Brazilian focussed iron ore companies have exploration targets of +1bn tonnes. Small projects close to key infrastructure have been overlooked. Centaurus is developing a tenement package around the Serra da Lontra Project that is l
Slide 28: Serra da Lontra
Serra da Lontra Iron Ore Project For personal use only 28
Slide 29: Serra da Lontra
Serra da Lontra Iron Ore Project For personal use only Mapping and sampling has shown a higher grade nature of itabirite mineralisation at Serra da Lontra. Average grade 45% to 47% Fe. 29
Slide 30: Serra da Lontra
Serra da Lontra Iron Ore Project For personal use only Newly acquired Project; cornerstone of the Ilhéus Export Hub. 140 kilometres by sealed road from export port of Ilheus. Provides opportunity to start a relatively low capex export business at 1-2 Mtpa. Exploration Target – 30 to 50 Mt @
Slide 31: Centaurus – 2011/2012 Activities
Centaurus- 2011/2012 Activities For personal use only In 2012 Centaurus Metals main areas of focus will be: Feasibility studies at the Jambreiro Project. LOI’s from domestic iron ore consumers. Exploration drilling at existing Ilhéus Export Hub projects. Exploration drilling on Manganese P
Slide 32: Summary
Summary For personal use only Strong results of Jambreiro Pre-Feasibility Study show excellent value equation for investors. Highly experienced team with strong global experience in the financing, development and operation of iron ore projects. Very supportive major shareholder experienced in
Slide 33: Contacts
For personal use only Developing a Brazilian Iron Ore Business Contacts: Darren Gordon Peter Freund Managing Director Operations Director darren.gordon@centaurus.com.au peter.freund@centaurus.com.au (+618) 9420 4000 (+5531) 3262 2037
Slide 34: Appendices
For personal use only APPENDICES
Slide 35: Jambreiro Reserve Summary by Deposit
Jambreiro Iron Ore Project For personal use only Reserve Summary by Deposit. Prospect JORC Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Tigre Proven 12.0 28.6 51.2 4.5 0.03 1.7 Probable 25.7 27.8 51.7 4.9 0.04 1.9 TOTAL 37.7 28.0 51.6 4.8 0.04 1.9 Cruzeiro Proven Probable 4.5 31.0 49.1 3.9
Slide 36: Jambreiro Resource Summary by Deposit
Jambreiro Iron Ore Project For personal use only Resource Summary by Deposit. Prospect JORC Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Tigre Measured 13.5 28.4 51.0 4.4 0.04 1.7 (Including South Indicated 44.3 27.1 51.3 4.1 0.04 1.6 East Extension) Measured + Indicated 57.8 27.4 51.2 4.2
Centaurus Metals — UBS Iron Ore and Coal Seminar (November 2011) on 6ix