Image Resources Nl · ASX:IMA
Image Resources Nl — Investor Presentation (November 2013)
39 slides from Image Resources Nl's investor presentation, Nov 19, 2013
Slide 1: Mineral Sands Project Checklist
For personal use only ASX IMA Mineral Sands Project Checklist INVESTOR PRESENTATION ‐ NOVEMBER 2013 1
Slide 2: Competent Person Statement
For personal use only COMPETENT PERSON STATEMENT COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS The information in this presentation that relates to exploration results is based on information compiled by Paul Leandri BAppSc who is a member of the Australasian Institute of Mining and Metallurgy.
Slide 3: Forward Looking Statement
For personal use only FORWARD LOOKING STATEMENT FORWARD LOOKING STATEMENTS Certain statements made during or in connection with this communication, including, without limitation, those concerning the economic outlook for the mining industry, expectations regarding prices, exploration or development
Slide 4: Contents
For personal use only CONTENTS 1. Investment Case 2. Company Overview 3. Location 4. Resources 5. Plant Concepts 6. Funding Requirement 7. Project Economics 8. Next Steps 9. Development Team 10. Exploration Potential 11. Conclusion Appendices: Resources, Maps, CVs. 4
Slide 5: The Mineral Sands Business
For personal use only THE MINERAL SANDS BUSINESS Four Constants Change - markets, economic drivers, investment climate Quality of resources is the key driver Marketing is critical – bulk commodity marketing = bulk commodity pricing Counter-cyclic investment is essential Mineral Sands Project
Slide 6: Investment Case: An >80% IRR project
For personal use only 1a. INVESTMENT CASE... An >80% IRR project Project - Low funding requirement (target <A$60M) for 3Mtpa plant producing 180ktpa of finished product in the early years Economics - 16 month pay back, Pre tax IRR between 80% and 100% Timetable - Quick into development. Less than
Slide 7: Investment Case: High grade resources and ideal location
For personal use only 1b. INVESTMENT CASE... High grade resources and ideal location Reserves - One of the highest in ground value per tonne currently being evaluated globally (8% HM, 6.5% VHM and over 19% Zircon) Location - 90km from Perth, near existing major road, power lines and gas pipelines
Slide 8: Company Overview
For personal use only 2. COMPANY OVERVIEW Focus of Operations: Mineral Sands in Western Australia Liquid Assets : >A$3.0M (at 30 September 2013) Market Cap: A$20M (at A$0.145 per share) Shares: 140.2M Options: 8.8M (held by directors, all well above current share price) Top 20 Shareholders: Holding
Slide 9: Location
For personal use only 3. LOCATION Home - Centre of WA’s Mineral Sands “province” for over 35 years Industry - Company making deposits nearby for Iluka and Tronox (Tiwest) In Place - Excellent road, rail, power, gas and ports Team - Locally available experienced technical staff and plant operators Mi
Slide 10: Boonanarring Resources
4a. BOONANARRING RESOURCES For personal use only “Boonanarring is a world class combination of HM, VHM and Zircon” Strike Length - 12km Resource - 21.5Mt @ 8.3% HM containing 1.4Mt VHM (79% of HM) Contains 370kt Zircon Sweet Spot – East Strand 8.4Mt @11.7% HM with 25% of HM as Zircon (includes highe
Slide 11: Atlas Resources – Shallow and high grade
For personal use only 4b. ATLAS RESOURCES – Shallow and high grade Location - 90 km from Boonanarring – mined in years 6 to 10 Resource - 10.7Mt @ 7.8%HM containing 0.64Mt VHM (all Measured and Indicated) Assemblage - 53.4% Ilmenite, 5.3% Leucoxene, 7.8% Rutile, 10.6% Zircon Strip ratio - 1:1 Extens
Slide 12: Plant Concepts
For personal use only 5a. PLANT CONCEPTS “Mine to finished products on one site” NPB DEVELOPMENT PROJECT SCHEMATIC FLOWSHEET 12
Slide 13: Plant Concepts: Site Layout
For personal use only 5b. PLANT CONCEPTS “State of the art plants. Easy to build and relocate” NPB DEVELOPMENT PROJECT SITE LAYOUT 13
Slide 14: Funding Requirement
For personal use only 6. FUNDING REQUIREMENT Item Conservative Capex A$M Wet Plant Cost 13.6 Dry Mill Cost 15.0 Modular plant costs ~ $34M Zircon Plant Cost 5.0 Infrastructure 2.1 Indirects, EPCM and Contingency 7.9 Sub‐total (incl. Contingency) 43.6 Other Pre‐production Costs 12.9 Mining Contractor
Slide 15: Project Economics
For personal use only 7a. PROJECT ECONOMICS FUNDING Pre‐Tax Pre ‐Tax Pre‐Tax CASE A$M NVP@8% IRR PAYBACK BCFS = TOLL TREATMENT 64.1 $145 M 57.4% 22 months STAND‐ALONE 71.0 $239 M 82% 16 months STAND‐ALONE TARGET <62.2 $247 M 97% 14 months Capital: Includes pre‐production costs and working capital As
Slide 16: Sensitivities
For personal use only 7b. SENSITIVITIES 16
Slide 17: Zircon Price – Past, Present and Future
For personal use only 7c. ZIRCON PRICE - PAST, PRESENT AND FUTURE US$/t 2500 JP Morgans Weighted Average 2080 Zircon Inducement 2000 1880 Price $1807 March 2013 1450 1500 1500 At Long Term 1500 1275 $1500/t the NPV would be 1000 900 880 A$240M and IRR 750 >80% IMA Zircon 500 Inducement Price $600 0
Slide 18: Zircon Inducement Price – The Stress Test
For personal use only 7d. ZIRCON INDUCEMENT PRICE - THE STRESS TEST “Zircon prices would have to fall to 50% of current levels for project to only generate 15% IRR” Zircon Inducement Price ‐ is defined as the price at which the project has an IRR of 15% and is cash positive in each year of operation
Slide 19: Next Steps
For personal use only 8a.NEXT STEPS Final submissions lodged mid Nov 2013 Studies in progress Off-take and debt progressing 6 month build From mining to product in 2-3 months 19
Slide 20: Next Steps – Delivery Drives Value
For personal use only 8b. NEXT STEPS – DELIVERY DRIVES VALUE Base Case Feasibility Study Updated Economic Case Environment Submissions Lodged • Boonanarring JORC Resource Upgrade • Sales Off-take Agreements progressing • Detailed Design (Q1 2014) • Conclude Debt and Finance Negotiations (Q2 20
Slide 21: Next Steps – Potential for Re-rating
For personal use only 8c. NEXT STEPS – POTENTIAL FOR RE-RATING RE‐RATING OVERDUE 21
Slide 22: Development Team
For personal use only 9. DEVELOPMENT TEAM • Key members of the project development team have all worked for many years in other local mineral sands operations • The combined list of recent mineral sands experience amongst the team includes Tiwest/Tronox, Iluka, Gunson, Tormin, Base and Bemax • MD wi
Slide 23: Exploration
For personal use only 10. EXPLORATION • Extensive new finds and extensions within the known NPB mineral sands province achieved over the last 13 years • Large resource base of both high grade and large scale resources, in addition to Boonanarring and Atlas • Potential northern resource extension bet
Slide 24: Investment Case
For personal use only 11. INVESTMENT CASE Low funding required - A$60M to A$70M Product Mix - high proportion of high value Zircon/Rutile Good Margins - A$350 per tonne product Fast Pay back - 16 months from first production Timetable - Quick into development. 12 month build Economics -
Slide 25: Appendices
For personal use only APPENDICES 25
Slide 26: Heavy Minerals Resources
For personal use only HEAVY MINERALS RESOURCES Note #1 HM CONTAINED CUT‐OFF JORC RESOURCES GRADE HM GRADE Area Mt %HM kt %HM Boonanarring Note #2 21.5 8.3% 1,770 2.5 Total North Perth Basin (Dry Mining) 64.0 7.1% 4,530 2.5 Cyclone Extended 86.3 1.9% 1,640 1.0 Bidaminna (Dredge) 44.6 3.0% 1,300 1.0 C
Slide 27: Heavy Minerals Reserves
For personal use only HEAVY MINERALS RESERVES PROBABLE RESERVES RESERVE HM GRADE ZIRCON IN HM CONTAINED HM Area Mt %HM % Zircon kt Boonanarring 14.4 8.3% 24.5% 1,200 Atlas 9.7 8.1% 11.0% 800 TOTAL JORC RESERVES 24.1 8.2% 19.1% 2,000 Excluded Resources Boonanarring Inferred* 2.8 5.8% 17.3% 160 * Infi
Slide 28: NPB Detailed Resource Statement
For personal use only NPB DETAILED RESOURCE STATEMENT High Grade Resources @ 2.5% HM Cut‐off Resource Resource BCM TONNES % HM % SLIMES HM TONNES VHM Ilmenite Leucoxene Rutile Zircon Category (%) (%) (%) (%) (%) Atlas Indicated 520,000 1,080,000 3.2 19.2 34,000 74 53 8 7 6 Atlas Measured 4,810,000 9
Slide 29: NPB Detailed Resource Statement (Cont)
For personal use only NPB DETAILED RESOURCE STATEMENT (CONT) High Grade Resources Helene Indicated 5,600,000 11,500,000 4.6 18.6 520,000 84 70 1 3 11 Hyperion Indicated 1,800,000 3,700,000 7.8 19.3 290,000 71 56 0 6 9 Red Gully Indicated 1,930,000 3,410,000 7.8 11.5 270,000 90 66 8 3 12 Red Gully In
Slide 30: Mine Planning
For personal use only MINE PLANNING Potential for Grade Scheduling and High Grading 30
Slide 31: Mining Approach
For personal use only 31 MINING APPROACH
Slide 32: High Quality Products Commanding Premium Pricing
For personal use only HIGH QUALITY PRODUCTS COMMANDING PREMIUM PRICING Boonanarring Ilmenite is a sought after premium product: •54.5% and 60% TiO2 (range of world deposits is between 40% and 63% TiO2) •Coarse Grained (D50 150 – 200 micron) •Low U+Th (80 – 130 ppm) •Suitable as feed to SR plants, pi
Slide 33: Production - Valuable Heavy Minerals
For personal use only PRODUCTION -VALUABLE HEAVY MINERALS AREA ZIRCON ILMENITE LEUCOXENE RUTILE kt kt kt kt Boonanarring 268 525 49 44 Atlas 75 368 5 46 TOTAL 343 893 54 89 Average Annual Production 34* 89** 5 9 * Up to 55 ktpa ZIRCON ** up to130 ktpa ILMENITE 33
Slide 34: Proven Exploration
For personal use only PROVEN EXPLORATION Historical exploration costs of 15 cents per tonne of Resources Dry Mining Resources • Boonanarring (existing ML – most) • Atlas and Atlas South (part MLA) • Red Gully (existing ML) • Gingin North (existing ML) • Gingin South (existing ML - part) • Hyperion •
Slide 35: The Team
For personal use only THE TEAM Peter Davies – Image Managing Director/Project Manager Peter Davies, appointed as Managing Director in May 2012, is a mining engineer with 39 years of global experience in project evaluation and management of mining, chemicals and mineral sands operations. From 1995 to
Slide 36: The Team
For personal use only THE TEAM Paul Leandri – Image Exploration Manager Over 25 years experience in mining and exploration geology, including 8 years working for RGC Mineral Sands consisting of 5 years mine planning at Capel operations and 3 years exploration around Eneabba and the Murray Basin. Pas
Slide 37: The Team
For personal use only THE TEAM Eugene Dardengo – Processing Manager Eugene is an accomplished Metallurgist and Operations Manager with over 27 years’ experience in the Australian mining and mineral industry. Eugene has held a number of other diverse roles and was held accountable for Logistics Servi
Slide 38: The Team
For personal use only THE TEAM Peter McSweeney - MSP Engineering Peter has over 25 years experience in delivering industrial minerals projects throughout Australia and overseas. He has been the Managing Director of MSP Engineering for the past 16 years and during this period the company has delivere
Slide 39: Contact Us
For personal use only Contact Us PRINCIPAL OFFICE Suite 4a 5 Mumford Place BALCATTA WA 6021 POSTAL ADDRESS P.O. Box 644 West Perth, W.A. 6872 TELEPHONE (08) 9485 2410 FACSIMILE (08) 9240 7845 X 39 x
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