Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Global Iron Ore and Steel Forecast Conference (December 2020)
18 slides from Magnetite Mines's conference presentation, Dec 1, 2020
Slide 1: Magnetite Mines Limited – High Grade Iron Ore Concentrate
For personal use only MAGNETITE MINES LIMITED High Grade Iron Ore Concentrate Global Iron Ore and Steel Forecast Conference
Slide 2: Disclaimer
DISCLAIMER For personal use only 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 ce
Slide 3: Forecasting Demand with Steel Intensity Models
FORECASTING DEMAND WITH STEEL INTENSITY MODELS For personal use only Steel usage versus per capita GDP • Conventional analysis suggests steel intensity increases as countries develop, peaking then plateauing (‘peak steel’) • Other factors raised, such as technology, ‘de- intensification’, recycling,
Slide 4: A Riddle, Wrapped in a Mystery, Inside an Enigma?
A RIDDLE, WRAPPED IN A MYSTERY, INSIDE AN ENIGMA? For personal use only Underestimates during the rise of China… …and premature “peak steel” estimates • "Humans make mistakes, Chinese demand is going south.“ (Kirill Chuyko, BCS, AFR Nov 24 2014) • “China’s steel sector has already entered a period o
Slide 5: 58% of People Make Up 17% of Global Steel Demand – But This Is Changing
58% OF PEOPLE MAKE UP 17% OF GLOBAL STEEL DEMAND – BUT THIS IS CHANGING For personal use only Long Term Crude Steel Production History • In UK and US, peak steel was almost a century after (LHS except China RHS) industrialisation 200,000 1200000 • Japan flattened after 1974, 14 years after 180,000 i
Slide 6: Global Steel Production Increasing Over Years
GLOBAL STEEL PRODUCTION INCREASING OVER 20 YEARS For personal use only • Global steel production has been growing Global Steel Production rapidly 2,000,000 COVID-19 • China has added 400Mtpa in 10 years, but is 1,800,000 not alone – India, Iran and Vietnam have added 1,600,000 60Mtpa 1,400,000 GFC •
Slide 7: China's Steel Production and Iron Ore Imports Are Strong
CHINA’S STEEL PRODUCTION AND IRON ORE IMPORTS ARE STRONG For personal use only • China’s annual crude steel production for 2019 China quarterly iron ore imports and crude steel production was a record, just short of 1 Bt (annualised) • Chinese steel production has continued to 1,400 increase despite
Slide 8: But Iron Ore Supply Is Not Keeping Up with Demand
BUT IRON ORE SUPPLY IS NOT KEEPING UP WITH DEMAND For personal use only • Despite substantial increases in steel Crude Steel And Contained Iron In Exports production and iron ore demand, the 1200 traditional sources of supply have been slow to expand 1000 • Africa is the major potential new source –
Slide 9: Corporate Overview
CORPORATE OVERVIEW For personal use only SHARE PRICE (1 Year) CAPITAL STRUCTURE Shares M 2,856 Options M 79 Quoted Options M 470 Share price (25 Nov 2020) A$ $0.01 Market Capitalisation (25 Nov 2020) A$ $29m Cash (25 Nov 2020) A$ $5.355m SHAREHOLDER SNAPSHOT BOARD OF DIRECTORS Mr Peter Schubert Exec
Slide 10: Razorback Iron Ore Project - Taking Advantage of Favourable Geography
RAZORBACK IRON ORE PROJECT - TAKING ADVANTAGE OF FAVOURABLE GEOGRAPHY For personal use only Location advantages: • 240km NE of Adelaide within the Braemar Iron Formation • Close to grid power, rail, port and groundwater 7 10
Slide 11: Focussed on High-Grade Low Alumina Products
FOCUSSED ON HIGH-GRADE LOW ALUMINA PRODUCTS For personal use only Indicative Razorback Iron Project – Fe Concentrate Specs6 Typical Brand Quality Comparison 55.0% 60.0% 65.0% 70.0% Fe % 68.5 RAZORBACK Carajas Fines (Vale) Silica % 3.3 Newman Fines (BHP) Vale SSF Alumina % 0.4 Vale BBF PB Fines (RioT
Slide 12: Attractive, Staged Development Pathway Focussed on Capital Efficiency
ATTRACTIVE, STAGED DEVELOPMENT PATHWAY FOCUSSED ON CAPITAL EFFICIENCY For personal use only • Strong iron ore demand, premiums for high grade products and limited new supply provide a favourable environment for Razorback • We believe that a relatively low capital, long life development of the large
Slide 13: New Geological Interpretation
NEW GEOLOGICAL INTERPRETATION For personal use only • Extensive drilling has resulted in a comprehensive database, core library and geophysical logs3 • We have used this extensive information to build a new orebody model that allows a new interpretation of the grade distribution and enables detailed
Slide 14: Selective Mining
SELECTIVE MINING For personal use only • Selective mining identified as potential optimisation during 2019 Scoping Study7 • Razorback iron deposit well suited to selective mining given layered stratigraphy and mineralisation • MBGS completed qualitative study, followed by geological modelling of the
Slide 15: NextOre – Year Exclusivity Australia Wide
NEXTORE – 4 YEAR EXCLUSIVITY AUSTRALIA WIDE For personal use only • Agreement with NextOre for supply of a full-scale mobile ore sorting plant for the Razorback Project for sorting magnetite ore using MR technology, with equipment despatch from the CSIRO Lucas Heights facility in 2021 9 • Exclusive
Slide 16: Plan to Leverage Scale, Location and Opportunity to Deliver Value
PLAN TO LEVERAGE SCALE, LOCATION AND OPPORTUNITY TO DELIVER VALUE For personal use only • Large resource in favourable geography • JORC resource 3.9 billion tonnes global resource (Inferred and Indicated) 5 • Amenable to simple processing to high grade product – targeting 68.5% Fe, 6.5% Fe higher th
Slide 17: Questions?
For personal use only Questions? Mr Mark Eames Director Magnetite Mines Limited www.magnetitemines.com
Slide 18: References – ASX Releases
References – ASX Releases For personal use only 1. 2/10/2020 – Results Of Renounceable Rights Issue 2. 7/10/2020 – Ore Sorting Technology Agreement Update 3. 19/08/2020 – Selective Mining 4. 14/09/2020 – Permitting And Environmental Studies Initiated 5. 12/11/2020 – Razorback Iron Project – JORC 201
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