Slide 1: Positioned for Growth
For personal use only POSITIONED FOR GROWTH Australian Investor Roadshow – December 2012 R Russell ll Tipper, Ti Chi Chieff E Executive ti Offi Officer, B Brockman k Mi Mining i A Australia t li 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by and issued by Brockman Mining Limited (“Brockman” or “the Company”) to assist it in informing interested parties about the Company. It should not be considered an invitation or offer to subscribe for or purchase any securities i
Slide 3: Corporate Overview
Corporate p Overview For personal use only • Resources company listed on the Hong Kong (Stock Code: 159) and Australian ((Stock Code: BCK)) Stock Exchanges g • Focused on iron ore, copper and coking coal • Supported by a diverse shareholder base of international and Australian investors with BCK dir
Slide 4: Capital Structure
Capital p Structure For personal use only As at 30 September 2012 HK$:A$7.95 Shares on issue 7.2 billion p Market capitalisation A$419 $ million Convertible Bonds (1) A$31 million Cash on hand A$49 million Debt A$2 million Enterprise value A$403 million Options on issue 0.2 billion Converting Bonds
Slide 5: Corporate Strategy
Corporate p Strategy gy For personal use only Short term Expedite development of the Marillana hematite project l located t d iin th the eastern t Pilb Pilbara and d associated i t d railil and d port infrastructure to full commercial production by 2016 Mid term Advance the Australian exploration pi
Slide 6: Australian Iron Ore Portfolio
Australian Iron Ore Portfolio For personal use only 6
Slide 7: Iron Ore Development Pipeline
Iron Ore Development Pipeline For personal use only Pre Project Exploration Development Development West Pilbara Hub Ophthalmia Iron Ore Project Marillana Iron Ore Project (100%): (100%): (100%): • Duck Creek and West • Coondiner: JORC compliant p • JORC compliant p Mineral Hamersley with a combined
Slide 8: Resource Summary
Resource Summary y (1) For personal use only RESOURCE SUMMARY Project Resource Grade Reserve Grade (tonnes) (%) (tonnes) (%) Marillana Detrital 1,528 42.6 1,001 42.4 CID 102 55.6 48 55.5 Ophthalmia (2) C Coondiner di DSO 108 58 3 58.3 - - Kalgan Creek DSO 52 59.1 - - TOTAL 1,790 1,049 (1) See Append
Slide 9: Marillana Iron Ore Project
For personal use only Marillana Iron Ore Project 9
Slide 10: Project Development
Project Development For personal use only KEY STATISTICS Mining 1.05 Bt Reserve (Proven: 133 Mt, (JORC) Probable: 916 Mt) Final i product 60.5–61.5% % Fe grade Mining • Conventional truck Operation and shovel • Free digging • Average Strip Ratio: 0.8 over life of mine Annual Ann al 18 5 Mtpa ((wet)
Slide 11: Final Product and Sinter Performance
Final Product and Sinter Performance For personal use only FINAL PRODUCT GRADES Fe SiO2 AI2O3 S P LOI 1000°C (%) (%) (%) (%) (%) (%) 60.5 – 61.5 6.0 – 6.5 2.5 – 3 .0 <0.02 <0.08 2.0 – 3.0 • Hematite concentrate with a -8 mm +1 mm size specification • Final Fe grades equivalent to major Pilbara iron
Slide 12: Funding Options
Funding Options For personal use only • Engaged g g with interested parties p targeting g g a joint-venture j funding g arrangement to fund project equity and facilitate debt funding • 30–40% joint venture interest available and 30–100% project off- take available • Vendor V d financing fi i conside
Slide 13: Marillana Iron Ore Project – Mine
Marillana Iron Ore Project j – Mine For personal use only MINE STATUS 2010 DFS confirmed Marillana Project is financially robust and long life 2011 FEED completed and including further engineering and optimisation studies 2012 Native Title agreements and key environmental approvals finalised and app
Slide 14: Marillana Iron Ore Project – Metallurgy and Processing
Marillana Iron Ore Project – Metallurgy and Processing For personal use only Simple mining & processing • Shallow, large scale mining • Simple Si l robust b t process flow sheet • Positive sintering g performance • -8 mm +1 mm product size – no ultra fines 14
Slide 15: Marillana Infrastructure Development
For personal use only Marillana Infrastructure Development 15
Slide 16: Independent Rail Infrastructure
Independent Rail Infrastructure For personal use only INDEPENDENT RAIL OPTION STATUS Under way Prefeasibility Study undertaken by Brockman, Atlas and Aurizon (formerly QR National) to evaluate integrated mine, mine rail and port logistics solution for the East Pilbara region, due end 2012 Under way
Slide 17: Port Infrastructure
Port Infrastructure For personal use only PORT INFRASTRUCTURE STATUS 2008 North West Infrastructure (NWI) established joint venture company : Brockman Mining Limited (37%); Atlas Iron Limited (39%); FerrAus Limited* (24%) * FerrAus e us Limited ed iss a wholly-owned o y o ed subsidiary subs d a y o
Slide 18: Investment Scope
For personal use only Investment Scope 18
Slide 19: Strategic Advantages
Strategic g Advantages g For personal use only • Large scale, financially robust, long life project with a high quality final product • Foundation shareholder in NWI, securing port capacity allocation • Board and management team with strong depth of mining and iron ore experience • Future highly pro
Slide 20: Significant Margin Potential
SIGNIFICANT MARGIN POTENTIAL Cost of production vs. J.P. Morgan long term iron ore price forecast For personal use only 90 75 $A/tonne (F.O.B) 60 45 30 15 0 BHP RIO Brockman FMG Atlas Atlas Hancock (Horizon 1) (Horizon 2) JPM long term iron ore price – Production costs ($A/t) F.O.B ($A/t) Source: JP
Slide 21: 2013 Milestones
2013 Milestones For personal use only Secure infrastructure • Complete Feasibility Study for development of the East Pilbara Independent Rail • Secure Port Lease subject to agreed milestones Secure funding partners • Execute MOU with preferred Joint Venture partner • Commence Debt Funding process Ad
Slide 22: Appendix: Resource and Reserve Summaries
For personal use only Appendix 1 Resource and Reserve Summaries 22
Slide 23: Marillana Mineral Resource Summary
Marillana Iron Ore Project Mineral Resource Summary For personal use only BENEFICIATION FEED (Cut-off grade: 38% Fe) Mineralisation Resource Tonnes Grade type classification (Mt) (% Fe) Detrital Measured 173 41.6 Indicated 1 036 1,036 42 5 42.5 Inferred 201 40.7 Pisolite Indicated 117 47.4 Total Mea
Slide 24: Marillana Ore Resource Summary
Marillana Iron Ore Project Ore Resource Summary For personal use only MARILLANA CID (Cut-off grade: 52% Fe) Resource Tonnes Fe CaFe AI2O3 SiO2 P LOI classification (Mt) (%) (%) (%) (%) (%) (%) Indicated 84.2 55.8 61.9 3.6 5.0 0.097 9.8 Inferred 17.7 54.4 60.0 4.3 6.6 0.080 9.3 TOTAL 101.9 55.6 61.5
Slide 25: Marillana Reserve Summary
Marillana Iron Ore Project Reserve Summary For personal use only MARILLANA DETRITAL ORE RESERVES Reserve classification Mt Fe (%) Proven 133 41.6 Probable 868 42.5 TOTAL 1,001 42.4 MARILLANA CID ORE RESERVES* Reserve Mt Fe CaFe* Sio2 AI2O3 P LOI classification (%) (%) (%) (%) (%) (%) Probable 48 5 4
Slide 26: Ophthalmia Mineral Resource Summary
Ophthalmia Iron Ore Project Mineral Resource Summary For personal use only OPHTHALMIA DSO (Cut-off grade: 54% Fe) Tonnes Fe CaFe* SiO2 Al2O3 S P LOI Deposit Class (Mt) (%) (%) (%) (%) (%) (%) (%) Coondiner Indicated 64.3 58.00 61.55 5.79 4.40 0.009 0.17 5.77 (Pallas Inferred 43.7 58.79 62.15 5.33 4.
Slide 27: Competent Person's Statement
Competent p Person’s Statement For personal use only The information in this presentation that relates to Mineral Resources and Ore Reserves is based on information compiled by Mr I Cooper, Mr J Farrell and Mr A Zhang. The Ore Reserves statement has been compiled in accordance with the guidelines de
Slide 28: Appendix: Background Slides
For personal use only Appendix 2 Background Slides 28
Slide 29: Exploration – West Pilbara (100%)
EXPLORATION – West Pilbara (100%) ( ) For personal use only • Significant upside to be realised in the West Pilbara tenements providing ga potential third near term operation • Initial drilling at Duck Creek and West Hamersley confirms near-surface DSO grade mineralisation in both Project areas with
Slide 30: Pre Development – Ophthalmia (100%)
PRE DEVELOPMENT – Ophthalmia p ((100%)) For personal use only • Potentially as significant as Marillana Project j with bedded hematite mineralisation (DSO) discovered 15–30 km north of Newman • Deposits at Coondiner (Pallas and Castor) and Kalgan Creek • Mineralisation identified at the Sirius prosp
Slide 31: Damajianshan Copper Mine
Damajianshan j Copper pp Mine Brockman holds a 90% interest in Luchun For personal use only Xintai, which owns 100% of the Damajianshan Copper Mine, approximately i t l 700 kkm ffrom K Kunming i Mining rights cover 3.67 km2 Contains JORC Mineral Reserve of over 7 5 Mt of ore 7.5 ore, grading 1
Slide 32: Damajianshan Resources
Damajianshan j Resources For personal use only Reserve Classification Ore Tonnage (tonnes) Cu Grading (%) Cu Metal (tonnes) Proved 4,404,000 1.49 65,600 Probable 3,150,000 1.42 44,700 Total 7,554,000 1.46 110,300 Resource Classification Ore Tonnage (tonnes) Cu Grading (%) Cu Metal (tonnes) Measured
Slide 33: Competent Person's Statement
Competent p Person’s Statement For personal use only The information in the Report that relates to Exploration Results, Mineral Resources or Ore Reserves in relation to the Damajianshan Mine has been reviewed by Mr. Christopher Arndt who is a self employed consultant to the Company. Mr Arndt is a Fe
Slide 34: Contact
CONTACT For personal use only Michelle Manook General Manager Manager, External Affairs michellemanook@brockman.com.au Mobile: +61 417 954 474 117 Stirling Highway NEDLANDS WA 6009 Australia www.brockmanmining.com 34