Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Mines and Money Conference London 2022
21 slides from Magnetite Mines's conference presentation, May 4, 2022
Slide 1: Mines and Money Conference - London
Mines and Money Conference - London May 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE The purpose of this presentation is to provide general information about Magnetite Mines Limited ("MGT"). It is not recommended that any person makes any investment decision in relation to MGT based on this presentation. This presentation contains certain statements which
Slide 3: Question reliability of iron ore forecasts
Question reliability of iron ore forecasts Peak steel in 2015? Iron ore oversupply? “BHP Billiton is expecting at least another ten “China’s steel production has already hit a peak, years of iron ore oversupply before the market or to put it another way, it has hit a turning balances out.” point.” Z
Slide 4: Strong fundamentals, especially for high-grade
Strong fundamentals, especially for high-grade Source: World Steel Association Source: Fastmarkets MB Slide 4. 4.
Slide 5: Premium Grade is a Major Advantage
Fastmarkets iron ore index grade spreads (US$/tonne) Premium Grade in Demand 60 Premium Grade is 40 a Major Advantage 20 0 US$/t -20 “To succeed in decarbonizing the global steelmaking industry there needs to be a -40 greater recognition of how much the iron ore supply base needs to change. Vast -60
Slide 6: The Braemar and Razorback: Large Resource, Long Life
Large Resource, Long Life The Braemar and Razorback LARGE, ACCESSIBLE MINERAL RESOURCES Company Mineral Resources of 5.7Bt including Muster Dam1,2,3,4 Soft ore amenable to crushing & grinding (8-10 kwh/tonne) 240km to Adelaide from Razorback. ESTABLISHED INFRASTRUCTURE NEARBY Heavy freight o
Slide 7: Corporate Overview: Capital Structure
Corporate Overview CAPITAL STRUCTURE Shares 3,159 M 180 0.10 160 0.09 Unlisted 153.1M 0.08 Options (various – avg. 140 0.07 $0.03) 120 Share Price* A$0.034 Share price (A$) 0.06 Volume (m) 100 0.05 80 0.04 Market Cap* A$107M 60 0.03 40 0.02 *As at 25 Mar 2022 20 0.01 - - Mar 21 Apr 21 May 21 Jun 21
Slide 8: Delivering Premium Iron Ore to High Demand Markets
Delivering Premium Iron Ore to High Demand Markets Long Life Low Initial High Grade Delivering with Optionality Project Capital Product 5.7bn tonne resource Staged development First ore on ship with expansion approach with ESG 68% Fe product 5 planned for late potential 1,2,3 advantages Higher grade
Slide 9: Existing Infrastructure, Minimal Capital
Minimal Capital Existing Infrastructure 50km purpose built private all weather haul road and rail siding Existing open access heavy freight network – 25t axle loads Whyalla Port expected to have capacity for increased throughput Benefit of existing rail access infrastructure and trans-shipme
Slide 10: Simple Mining with Head Grade Upside
Simple Mining with Head Grade Upside Ore mined from surface – minimal pre-strip5 Ore haul for initial box cut all downhill, flat waste dumps Low PFS strip ratio of 0.10:1 Grade uplift potential from selective mining and/or ore sorting Lateral stratigraphic continuity New geophysics regre
Slide 11: Processing to 68% product grade
Processing to 68% product grade [New logo] 15.5Mtpa processing module layout designed by Hatch with 3Mtpa production capacity Capital cost estimated to AACE Class 5 level Economies of scale and scope in capital and operating costs A final product of P80 40 microns is estimated - DFS metallur
Slide 12: Environment, Social and Governance (ESG)
Environment, Social and Governance (ESG) During March we hosted a Ngadjuri heritage team as they began the process to record the regional cultural heritage values. Over 1,100ha of Country walked and surveyed, with follow up surveys planned. Higher-grade ores produce lower-emission steel Invest
Slide 13: Attractive, Staged Development Pathway
Expansion Potential Attractive, Staged Development Pathway STAGE 1 STAGE 2 STAGE 3 15.5Mtpa plant capacity 31.0Mtpa plant capacity 46.5Mtpa plant capacity = 3Mtpa capacity = 5Mtpa capacity = 7Mtpa capacity A STAGED DEVELOPMENT APPROACH offering outstanding returns with future expansion options DFS
Slide 14: Highlights: Compelling Economics
Compelling Economics Key operational and financial metrics Highlights PFS Plant Staged Single- Unit Step Optimised1 Expansion Expansion STAGED DEVELOPMENT PATHWAY Stage 1 Stage 1,2, 3 Stage 1, 3 DFS based on 3Mtpa of capacity and minimum upfront capital Model duration Years 30 33 32 Expansion
Slide 15: Unlocking the Braemar
Magnetite Resource and Reserves (JORC Code 2012)* Large Resource, Long Life Unlocking the Braemar Stage 1 Relies On Only 8% 4% 0.3% of resource. of Braemar of tenure strike. area. *In addition to Magnetite Resource and Reserves (JORC Code 2012), the Muster Dam Iron Project holds a historical (JORC 2
Slide 16: Indicative Development Schedule
Indicative Development Schedule* 2021 2022 2023 2024 2025 Pre-Feasibility Study DFS – Funding DFS – Study Decision to Mine Project Financing Permitting, Enviro & Native Title Detailed Design Procurement Construction & Commissioning Production *Schedule subject to review as part of DFS currently unde
Slide 17: First Quartile competitor on a value/margin basis
Competiting The on cost curve Iron Ore Market First Quartile competitor on a value/margin basis VIU-adjusted total cash cost curve - CFR North China Total cash cost curve - CFR North China Source: Wood Mackenzie, Magnetite Mines Source: Wood Mackenzie, Magnetite Mines Wood MacKenzie’s Value-In-Use (
Slide 18: Delivering Premium Iron Ore: Next Steps
Next Steps Delivering Premium Iron Ore to High Demand Markets DELIVERING ADVANCE THE DFS – RAZORBACK EXPANSION FINANCE OPTIONALITY work programs DRILLING underway programs DEMONSTRATED Planning and Future infrastructure Meeting key lender engagement of requirements for Hydrology – requirements key e
Slide 19: References
References 1. ASX Announcement – 24/05/21 – Razorback Iron Project Mineral Resource Upgrade 2. ASX Announcement – 20/11/18 – Ironback Hill Deposit – JORC 2012 Resource Update 3. ASX Announcement – 01/03/21 – Muster Dam Iron Project Tenements awarded to Magnetite Mines 4. ASX Announcement – 30/06/21
Slide 20: Appendix
Appendix MAGNETITE 20. MoioN c€ §
Slide 21: Magnetite
MAGNETITE
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