Iron Road Ltd · ASX:IRD
Iron Road — Shareholder Meeting (November 2018)
15 slides from Iron Road's shareholder meeting presentation, Nov 23, 2018
Slide 1: 2018 Annual General Meeting
2018 Annual General Meeting Managing Director’s presentation Andrew Stocks 23 November 2018
Slide 2: Notice
Notice Forward Looking Statements This announcement contains certain statements with respect to future matters which may constitute "for subject to inherent risks and uncertainties which could cause actual values, results, performance or out Investors are cautioned that such statements are not guara
Slide 3: Update on the seaborne iron ore trade
Before moving onto current activities, an update on the seaborne iron ore trade • Steel industry has restructured • Efforts continue to be made to reduce pollution • Iron ore market has stabilised • Reduction of steel manufacturing capacity, while maintaining or increasing steel production levels •
Slide 4: Recent market pricing showing clear preference for high quality product
Recent market pricing showing clear preference for high quality product • Higher to lower grade price range around 62% iron index • Relative discount for both lower grade and premium for high grade fines ores widening 8
Slide 5: Premium and discount to the 62% iron index
Premium and discount to the 62% iron index • Relative discount for lower grade fines and premium for high grade ores both diverging as mills value production 9
Slide 6: The Central Eyre Iron Project is located on the Eyre Peninsula, South Australia
The Central Eyre Iron Project (CEIP) is located on the Eyre Peninsula, South Australia • The Mine comprises a large open pit, beneficiation plant, integrated waste landform and rail loadout facility • The Infrastructure Corridor comprises ~148km of standard gauge heavy rail and associated services s
Slide 7: Iron Road Response
Iron Road Response • Seeking to encourage project participation by credible parties • New investor strategy underway • Necessitates a less capital intensive start-up approach • Staging both infrastructure and mining where practicable • ‘Grain First’ port development option • Smaller mine results in
Slide 8: Strategically located deep water port
Strategically located deep water port • Only naturally protected deep water port in the State • Not hampered by population centres • Within established agriculture region and close to mining The staged infrastructure option consists of building the port ahead of mining operations • Based on the expo
Slide 9: Port facilities will be extended to the original design once the mine is operational
Port facilities will be extended to the original design once the mine is operational • Two Capesize berths, single ship loader • Roll-on, roll-off capabilities allow for the unloading of large modules and consumables 13
Slide 10: Existing mine plan designed for efficient movement of large volumes of ore and waste
Existing mine plan was designed to achieve highly efficient movement of large volumes of ore and waste to deliver high concentrate production rate • Significantly reducing the immense scale of annual material movements is now the focus of IRD in partnership with Thiess-RWE • This allows for the use
Slide 11: The original high concentrate production rate objective requires
The original high concentrate production rate objective requires: • A large scale mine • High volume of ore and waste movement • Significant pre-strip With respect to attracting a development partner, the challenge of that plan is funding the ticket price required in a sector that is still cautious
Slide 12: Currently examining a smaller initial 'starter' mine
Currently examining a smaller initial ‘starter’ mine, with anticipated • Lower set-up capital • Dramatically reduced up front pre-strip requirement • Early lower waste:ore ratio • Reduction in strip ratio results in greater proportional reduction in material handled versus reduction in concentrate •
Slide 13: Conclusion and strategy
Conclusion and strategy • Structural shift in demand towards higher quality products resulting in strong and sustained premiums to benchmark prices • Scaled down production objective and less capital intensive start-up required to stimulate project partner participation • Selective mining with reduc
Slide 14: Appendix: CEIP Ore Reserve Summary
Appendix able 1 — CEIP Ore Reserve Summary Metric Tonnes Fe SiO, Al,O; Resource Classification (Mt) (%) ~~ (%) Proved 2,131 15.55 53.78 12.85 Probable 1,550 14.40 12.64 Total 3,681 15.07 12.76 The Ore Reserves estimated for CEIP involving mine planning is based on and fairly represents information a
Slide 15: Appendix: CEIP Global Mineral Resource
Appendix Table 2 — CEIP Global Mineral Resource . ey Tonnes Fe siO, Al,O3 Pp tors Location Classification (Mt) (%) (%) (%) (%) (%) Measured 2,222 15.69 53.70 12.84 0.08 45 Murphy South/Rob Roy Indicated 474 15.6 53.70 12.8 0.08 45 Inferred 667 16 53 12 0.08 43 Boo-Loo/Dolphin Indicated 796 16.0 53.3