Image Resources Nl · ASX:IMA
Image Resources Nl — Investor Presentation (January 2019)
29 slides from Image Resources Nl's investor presentation, Feb 4, 2019
Slide 1: Boonanarring Mineral Sands Project Investor Presentation
1 For personal use only Boonanarring Mineral Sands Project 100%-owned; high-grade; zircon-rich 80km north of Perth in Western Australia On-track for positive cashflow end 1st QTR 2019 Investor Presentation January 2019 Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statements
Forward Looking Statements 2 For personal use only This presentation has been prepared by the management of Image Resources NL ("Image”, “IMA“ or the ‘Company’) in connection with meetings with investors and potential investors and not as specific advice to any particular party or person. The inform
Slide 3: Investor Snapshot
Investor Snapshot 3 For personal use only Company transitioning to profitable miner and realisation of full valuation Ø Company fully funded to positive cashflow Ø Project construction and commissioning complete 30 Nov 2018 • ‘on-budget’ and ‘on-schedule’ Ø Production commenced 1 Dec 2018 Ø First bu
Slide 4: Investor Snapshot
Investor Snapshot 4 For personal use only Company transitioning to profitable miner and realisation of full valuation Ø Company fully funded to positive cashflow Ø Project construction and commissioning complete 30 Nov • ‘on-budget’ and ‘on-schedule’ Ø Production commenced 1 Dec 2018 Ø First bulk sh
Slide 5: Investor Snapshot
Investor Snapshot 5 For personal use only Company transitioning to profitable miner at a time of supply shortage of zircon Ø Binding off-take agreements in place for 100% of HMC production for life of mine Ø Project NPV A$235 million1; IRR 125%1; 13 month payback1 § metrics have strengthened with 12
Slide 6: Products and Applications
Products and Applications 6 For personal use only Key products are zircon and titanium dioxide Ø Zircon sand is processed into zirconium compounds, intermediate products and zirconium metal for a variety of applications; s Qualitie r § Ceramics (tiles); 55% demand whitene r opacifie istant s heat re
Slide 7: Products and Applications
Products and Applications 7 For personal use only Key products are zircon and titanium dioxide Ø Titanium dioxide (TiO2) from rutile and ilmenite is processed into titanium based products and titanium metal for a variety of applications; § Ultra-white pigments (paint, paper, plastic); ~90% demand §
Slide 8: Project Location
Forward Project Looking LocationStatement 8 For personal use only q LOCATION Ø North Perth Basin in Western Australia Ø 80 km north of Perth CBD Ø Proven mineral sands address § Including majors Iluka and Tronox Ø Infrastructure rich § paved roads, power, gas pipeline water, telecommunications etc.
Slide 9: Project Types and Locations
Project Types and Locations 9 For personal use only Ø 1,000 km2 tenements portfolio Atlas Ore Reserves Ø 100% focus on mineral sands Probable: 9.5Mt @ 8.1% HM Ø Strandline projects (dry mining) Ø Dredge mining prospects Boonanarring Ore Reserves Multiple opportunities for a second Proved: 9.3 Mt @ 8
Slide 10: Ore Reserves
Forward Ore Reserves Looking Statement 10 For personal use only q QUALITY ORE RESERVES Ø JORC Code (2012) Compliant Ø High HM, VHM and very high zircon at Boonanarring High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) Project/Deposit Category Volume Tonnes % HM % Sli
Slide 11: Ore Reserves Comparison
Forward Ore Reserves LookingComparison Statement 11 For personal use only IMAGE X Source: TZMI; May 2017
Slide 12: Project Capital Comparison
Project ForwardCapital LookingComparison Statement 12 For personal use only Source: TZMI; May 2017
Slide 13: Products and Prices
Products and Prices 13 For personal use only Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product.
Slide 14: Bankable Feasibility Study Base Assumptions
Forward Bankable Looking Feasibility Statement Study 14 For personal use only Base Assumptions s w eight*! Ø Start mining at Boonanarring 4 t imes above it Punches Ø Dry, open-cut mining i n r e v enue to lent * -Equiva es per hour at n Ø Production rate - 500 dry tonnes per hour 2,000 ton ades of O
Slide 15: Boonanarring – Production Statistics
Boonanarring – Production Statistics 15 For personal use only Average annual production at Boonanarring (5 yrs) Ø 240k tonnes HMC; containing; • 60kt zircon (70kt/year in 2019-20) • 130kt ilmenite • 6kt rutile • 4kt leucoxene Ø 5.5 years mine life with ability to add 3-4 years additional ore reserve
Slide 16: Boonanarring – BFS Production Statistics
Boonanarring – BFS Production Statistics 16 For personal use only Boonanarring Project Production Forecast - updated July 2018 2018 2019 2020 2021 2022 2023 Total Ore processed (Kt) 700 350 3,600 3,800 3,700 3,800 3,500 19,100 Ore grade (%HM) 6% 7% 8% 11% 6% 8% 11% 8% Assemblage (% of HM) 42.7 270.0
Slide 17: Boonanarring – BFS Project EBITDA
Boonanarring – BFS Project EBITDA 17 For personal use only Boonanarring Project EBITDA Summary - updated July 2018 (AU$million) 2018 2019 2020 2021 2022 2023 Total Revenue 5 0 127 181 100 139 101 653 Revenue/tonne HMC 455 0 580 566 526 604 439 544 Operating Costs Mining 18 46 43 42 42 35 226 Process
Slide 18: Boonanarring – Ramp-up Production
Boonanarring – Ramp-up Production 18 For personal use only December 2018 Operating Statistics Jan. Jan. Prelim. Prelim. (TBC) (TBC)
Slide 19: Zircon Prices – Actual and Forecast
Forward Zircon Prices Looking– Statement Actual and Forecast 19 For personal use only Current price for Tronox premium grade zircon
Slide 20: BFS Financial Metrics
Forward BFS Financial LookingMetrics Statement 20 For personal use only Key Financial Metrics Original BFS1 Updated BFS2 Updated BFS3 Ø Pre-Tax NPV (@ 8%) A$135M A$197M A$235M Ø Pre-Tax IRR 64% 104% 125% Ø Payback period (months) 22 16 13 Ø Mine life 8+ years Ø Project capital cost A$52M • includes
Slide 21: Project Development Schedule
Project Development Schedule 21 For personal use only Constructed to schedule/budget with first production in 4th QTR 2018 Simplified Boonanarring Project Construction Schedule - (high level) 2018 2019 May Mar Mar Aug Nov Dec Apr Feb Oct Feb Sep Jun Jan Jan Jul WCP & Equipment Relocation Project Con
Slide 22: Upside Potential
Forward UpsideLooking Potential Statement 22 For personal use only Upside potential at and near Boonanarring Ø Confirmed potential to extend mine life with high grade mineralisation (ASX announcement 13 March & 26 June 2017); § Assuming mineralisation in extension area is identical to known Ore Rese
Slide 23: Boonanarring High-Grade Extension
Boonanarring High-Grade Extension 23 For personal use only ASX - 13 March & 26 June 2017 New Drilling Results (Feb 2017) Ø Confirm 5.6km northern extension of Boonanarring mineralisation Ø Outstanding high grade intersections: § 8m @ 23.8% HM in IX00245 § 8m @ 21.1% HM in IX00244 and § 8m @ 16.3% HM
Slide 24: Projects Pyramid – Strand Deposits
Projects PyramidStatement Forward Looking – Strand Deposits 24 Mineral Resources – Accessible by Dry Open-Cut Mining For personal use only Projects ranked by combined Zircon (Zr) plus Rutile (Ru) BFS assumes mining at Boonanarring Tonnes-grades are for Mineral Resources; Boonanarring and Atlas per J
Slide 25: Projects Pyramid – Dredge Prospects
Projects Forward Looking PyramidStatement – Dredge Prospects 25 Mineral Resources – Accessible by Dredge Mining For personal use only Projects ranked by HM Grade Positive attributes • 90+%VHM; • <5% slimes; Tonnes-grades are for historic Mineral Bidaminna • 25-67% Leucoxene; Resources per JORC Code
Slide 26: Potential Royalty from Tronox
Potential Royalty from Tronox 26 For personal use only Royalty agreement in place as of 2014 Ø Small cash payment (already received) Ø Sliding-scale royalty on production Avg. HM Grade Royalty 2.5% 1.25% 3.0% 2.50% 3.5% 3.75% 4.0% 5.00% Ø Indefinite production schedule Ø Potential for future arrange
Slide 27: Image Corporate Snapshot
Image Corporate Snapshot 27 For personal use only Diverse and experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.15* Bob Besley – Independent Chairman 12-Month Price Range: A$0.07– 0.17 Patrick Mutz – Managing Director Shares on Issue: 957m Chaodian Chen - Non-Executi
Slide 28: Use of Solar Energy
Use of Solar Energy 28 For personal use only Heads of Agreement with Sunrise Energy Group Pty Ltd to provide 3-4 MWAC solar farm to be: Ø Constructed and operated by Sunrise Energy; Ø Located on Image owned land adjacent to Boonanarring mine site; and Ø Providing 25% of total electricity requirement
Slide 29: Contact
Contact For further information 29 For personal use only Patrick Mutz Managing Director Image Resources NL info@imageres.com.au Office: +61 8 9485 2410 Ground Floor, 23 Ventnor Avenue West Perth, WA 6005 PO Box 469, West Perth, WA 6872 www.imageres.com.au
Image Resources NL — Investor Presentation (January 2019) on 6ix