Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Investor Presentation (September 2021)
21 slides from Magnetite Mines's investor presentation, Sep 24, 2021
Slide 1: Razorback High Grade Iron Ore
Razorback High Grade Iron Ore Premium Iron Ore September 2021
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: Company Strategy
Company Strategy Opening up the Braemar in stages SOUTH AUSTRALIA Low capital, long Favourable life development business setting is fundable with with growing iron high returns5 ore demand, premiums for high grade products and Large Razorback Experienced team limited new supply resource with systema
Slide 4: Corporate Overview
Corporate Overview Peter Schubert EXECUTIVE CHAIRMAN & CEO Peter was appointed Executive Chairman of Magnetite Mines on 3 Sep 2018. Peter has a track record of identifying, growing and CAPITAL STRUCTURE developing businesses with a focus on the resources sector, with over 30 years of direct experien
Slide 5: Premium Grade is a Major Advantage
Premium Grade is a Major Advantage The Iron Ore Market “ CRU: “Steelmakers need to adopt best practices that prioritise decarbonisation with existing assets. Some of these best practices include installation of energy efficient technology, optimisation of the blast furnace (BF) burden (e.g. with hig
Slide 6: Favourable Location
Favourable Location LARGE, ACCESSIBLE MINERAL RESOURCES Company Mineral Resources of 5.7Bt including Muster Dam1,2,3* 240km to Adelaide from Razorback ESTABLISHED INFRASTRUCTURE NEARBY Heavy freight open access rail High voltage powerlines connected to main Australian grid FAVOURABLE REGION
Slide 7: 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 0.16:1 Grade uplift potential from selective mining and/or ore sorting Lateral stratigraphic continuity New geophysics regre
Slide 8: Existing Transport Infrastructure
Existing Transport Infrastructure Minimal Capital • 50km purpose built private all weather haul road and rail siding – vicinity Yunta5 • Existing open access heavy freight network – 25t axle loads • Existing iron ore ports (ie Whyalla) with capacity 8 8
Slide 9: Existing Power Infrastructure
Existing Power Infrastructure Minimal Capital • 132kV Transmission Line connecting to grid at Robertstown5 • Access to competitive energy with high renewables content • Built under long term Transmission Service Tariff – no upfront capex 9 9
Slide 10: Successful Razorback PFS
Successful Razorback PFS Focused on Development Key Financial and Production Metrics Unit Head Grade Improvement Case* Razorback PFS confirmed long life Iron ore price (62% Fe) US$/t 110 150 initial development leveraging LOM Ore mined (100% reserves) Mt 472.7 472.7 resource scale, low stripping rat
Slide 11: Unlocking the Braemar
Unlocking the Braemar Large Resource, Long Life AREA (KM2) STRIKE (KM) TONNES (MT) TENURE1,2,3 1700 13 5700 PFS RELIES ON ONLY RAZORBACK REGION1,2 1500 20 4200 8% 4% 0.3% RAZORBACK 20 12 3000 of resource of Braemar of tenure RESOURCE1 strike area PFS RESERVE4 5 5 473 11
Slide 12: Robust Economics
Robust Economics Iron Ore prices, 62%, CFR Price versus Razerback PFS IRR $250 $200 $150 At long run average prices, 20% IRR $100 $50 Breakeven 62% price post construction $54/t $- Jul-05 Jul-12 Jul-19 Jun-08 Jun-15 Nov-07 Nov-14 Apr-07 May-11 Apr-14 May-18 Apr-21 Aug-09 Feb-06 Sep-06 Jan-09 Mar-10
Slide 13: Financing
Financing Attractive Risk Profile for Lenders CONVENTIONAL EQUITY PROJECT A$670M CAPEX ENGAGE WITH FUNDING FINANCE (incl. $120m DEBT SENIOR DEBT TO FOLLOW based capital structure contingency) – within FINANCIERS market capacity5 PROJECT envisaged for mine Q4 2021 construction funding FINANCING 25+ y
Slide 14: Building strong ESG platform
Building strong ESG platform Environmental Social & Accountable People Sustainability Community Inclusion Governance & Culture • GHG accountability • Free, prior and informed • Planned ESG framework • Teamwork • Maximising renewable consent model – informed and reporting system • Individual capacity
Slide 15: Advancing Project Approvals and Access
Advancing Project Approvals and Access Area Status Upcoming Activities SA Government approvals pathway confirmed, Preparation of approvals documentation Approvals with supportive regulator (low jurisdictional risk). Targeted approval award – 2023 SA Government consultation underway Broad and targete
Slide 16: Indicative Development Schedule
Indicative Development Schedule 1 1. Schedule subject to review as part of DFS currently underway 16
Slide 17: Next Steps
Next Steps Delivering Premium Iron Ore to high demand markets Delivering the Complete scoping study for FINANCE Razorback definitive Advance feasibility study, Razorback drilling expansion options work programmes programs for Razorback / underway Muster Dam Planning and engagement of Hydrology – con
Slide 18: Delivering Premium Iron Ore to high demand markets
Delivering Premium Iron Ore to high demand markets Long Life Low Initial High Grade with Optionality Project Capital Product Delivering Large 5.7Bt Staged Razorback 68% Fe product5 First ore on ship resources development with • Higher than any of the planned for late routinely quoted iron ore with e
Slide 19: Magnetite Mines
MAGNETITE MINES High Grade Iron Ore Concentrate
Slide 20: 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 21: Mineral Resources & Ore Reserves
Mineral Resources & Ore Reserves • May Razorback resource upgrade5 (JORC 2012) delivered 50% of total resource in the Indicated category JORC Million Mass Re Fe% SiO2% Al2O3% P% LOI% Magnetite % Resources Tonnes (eDTR%) Classification (dry) Indicated 1,494 15.6 18.5 47.9 8.0 0.18 5.4 15.0 Inferred 1
Magnetite Mines — Investor Presentation (September 2021) on 6ix