Slide 1: Closing in on first production and cash-flow in Brazil
Closing in on first production and cash‐flow in Brazil For personal use only 300,000tpa Candonga DSO Project poised for production Feasibility Study shows CAPEX of A$3.6M Cash operating costs of just A$12.5/tonne Resources Rising Stars – 1 October 2014 Darren Gordon – Managing Director
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: Centaurus – The Snapshot
Centaurus – The Snapshot For personal use only Capital Structure Developing low capital and operating cost mines Shares on Issue 240.0m near existing infrastructure + customers in SE Brazil Options & Performance Rights 5.2m Candonga DSO Project – low‐risk entry to production: Share Price A$0.09 • Po
Slide 4: Breaking News….
4 For personal use only Breaking News….
Slide 5: Brazilian Domestic Project Hub
Brazilian Domestic Project Hub For personal use only Major Ports Existing Rail Lines MRS EVFM FCA/Other Rail Line Under Construction Ferrovia Oeste‐Leste City Centaurus Project 5
Slide 6: Brazilian Domestic Project Hub – Candonga Project
Brazilian Domestic Project Hub For personal use only Candonga Project 6
Slide 7: Domestic Project Hub – Candonga Project
Domestic Project Hub – Candonga Project For personal use only • 214Mt JORC Resource base – five projects • Start‐up project with near‐term cash flow = Candonga (1.2Mt DSO Ore Reserve) • Cornerstone = Jambreiro Project Major Ports (128Mt) – 110km Existing Rail Lines from Ipatinga MRS steel‐making EVF
Slide 8: Candonga – Overview
Candonga – Overview For personal use only Feasibility Study completed – September 2014: • Production: 300,000tpa • Mine Life: 3 years • C1 cash costs: A$12.5/tonne product sold • EBITDA: A$23.1M, annual free cash flows: A$7.7M • Pre‐production CAPEX: A$3.6M Flat‐lying lens of high‐grade itabirite mi
Slide 9: Candonga – Local Magnetic Signature
Candonga – Local Magnetic Signature For personal use only 9
Slide 10: Candonga – Simple Flat-Lying Deposit, Easy Mining, Low Costs
Candonga – Simple Flat‐Lying Deposit, Easy Mining, Low Costs For personal use only Environmental and Mines Department (DNPM) approval applications lodged for 300,000tpa operation Flat‐lying, high grade mineralisation close to surface Average strip ratio of 0.25:1 for first two years of operations. L
Slide 11: Candonga Project – Emerging Near-Term Cash Flow
Candonga Project – Emerging Near‐Term Cash Flow For personal use only Maiden JORC 2012 Proved and Probable Ore Reserve of 1.2Mt grading 60.5% Fe Ore Reserve to produce 0.9Mt of lump and sinter feed products at average grade of 63.5% Work completed to date: • Trenching and 800m of diamond drilling on
Slide 12: Candonga – Ore Reserves
Candonga – Ore Reserves For personal use only Candonga Project JORC 2012 Ore Reserve Estimate ‐ September 2014 *DSO (“Direct Shipping Ore”) – Ore Category JORC Category Tonnes ('000) Fe (%) SiO2 (%) Al2O3 (%) P (%) LOI (%) ore that requires no Proved 446 64.8 4.5 1.3 0.03 0.2 beneficiation to produc
Slide 13: Candonga – Capital and Operating Costs
Candonga – Capital and Operating Costs For personal use only Candonga Project – Capital Cost Schedule Capital Equipment Total (A$ m) DIRECT COSTS Pre Strip & Mine Preparation 0.4 Infrastructure 1.2 Candonga capital cost Crushing & Screening 1.6 estimates based on TOTAL DIRECT CAPEX 3.2 acquisition o
Slide 14: Candonga – Financial Evaluation from Feasibility Study
Candonga – Financial Evaluation from Feasibility Study For personal use only Key Financial Outcomes Life‐of‐Mine Revenue A$36.5M EBITDA A$23.1M Capital Costs A$3.6M Annual Average Operating Cash Flow (Pre‐Tax) A$7.7M Operating Cash Cost (including royalties) A$14.9/t* The Candonga Project can be bro
Slide 15: Brazilian Domestic Project Hub – Jambreiro Project
Brazilian Domestic Project Hub For personal use only Jambreiro Project 15
Slide 16: Domestic Project Hub
Domestic Project Hub For personal use only • Cornerstone = Jambreiro 350km Project (128Mt) – 110km from 110km Ipatinga steel‐ making region • Initial JORC 140km Ore Reserve at Jambreiro of 48.5Mt 16
Slide 17: Jambreiro – Fully Permitted and Ready-to-Go
Jambreiro – Fully Permitted and Ready‐to‐Go For personal use only Positive Bankable Feasibility Study completed in November 2012 Initial production rate revised to 1Mtpa to reduce start‐up CAPEX to A$53M Forecast C1 cash operating costs of A$20/tonne Ideally positioned to be a consistent and reliabl
Slide 18: Jambreiro – Engineering Well Advanced
Jambreiro – Engineering Well Advanced For personal use only Engineering Activities Modularised plant designed and costed for 1Mtpa Cofferdam constructed but stored water has now been released Significant basic engineering completed Detailed mine plan and schedule to be reworked in Q4 2014 for 1Mtpa
Slide 19: Jambreiro – Product and Off-take
Jambreiro – Product and Off‐take For personal use only Off‐take General acceptance of the high‐quality Jambreiro product specification by potential domestic customers Negotiations for long‐term off‐take continue to advance to underpin project finance Off‐take pricing = international market‐based pri
Slide 20: Jambreiro – Export Potential
Jambreiro – Export Potential For personal use only Jambreiro located within 150km of bulk cargo EFVM rail line EFVM rail line provides opportunity to access port capacity in and around Vitόria Various ports also exist within close proximity to Vitόria 50Mt of new port capacity is Major Ports being b
Slide 21: Centaurus – Reasons to Invest
Centaurus – Reasons to Invest For personal use only Candonga: production and cash flow commencing within six months Very low capital intensity – A$3.6M to first ore Very low cash operating costs – just A$12.5 a tonne Low risk, strong margin business Simple open pit, contract mining operation Deliver
Slide 22: Centaurus Metals – Mineral Resource Inventory Schedule
Centaurus Metals – Mineral Resource Inventory Schedule For personal use only Project JORC Category Million Tonnes Fe (%) SiO2 (%) Al2O3 (%) P (%) LOI (%) Measured 45.3 29.2 50.3 3.9 0.04 1.6 Indicated 37.7 27.5 51.0 3.7 0.04 1.7 Jambreiro* (1) Measured + Indicated 83.0 28.4 50.6 3.8 0.04 1.3 Inferre