Slide 1: Australia's leading magnetite producer
For personal use only Australia s leading Australia’s magnetite producer Russell Clark Managing Director & CEO 16 May 2012
Slide 2: Disclaimer
Disclaimer For personal use only The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation d ti tto subscribe b ib ffor, or purchase, h any security it iin G Grange R Resources Li Limited it d (“GRR”) nor does it form the basis of any contra
Slide 3: Company Overview
Company Overview For personal use only Grange remains Australia’s leading magnetite producer An ASX 300 company, producer. company with a large well managed long term cash producing mining operation, a strong balance sheet, no net debt, and paying dividends - and a larger magnetite project at DFS of
Slide 4: Grange 2011 Highlights
Grange g 2011 Highlights g g For personal use only • Record R d safety f t achievement hi t – zero LTI • Record cashflow - $210.4m • Record profit - $216.6m $216 6m • Record dividends – 5c/share (8% yield) • East wall recovery • Southdown project DFS completed • Southdown Mineral Resources increased
Slide 5: Grange Assets
Grange g Assets For personal use only Australia’ss Leading Magnetite Producer Australia Savage River (100%) Southdown Project (70%) Quality assets in Tasmania and Western Australia. 16 May 2012 Slide 5
Slide 6: The Southdown Project DFS Highlights
The Southdown Project j DFS Highlights g g For personal use only • $150 million spent to date - an advanced project!! • JORC mineral resources >1.2 billion tonnes at 34.1% DTR • Ore reserves of 397 million tonnes at 35.69% DTR. • DFS mine life of 14 years within the current permitted area and total
Slide 7: The Southdown Project The Resource
The Southdown Project The Resource For personal use only DFS: 14 year: 397 million tonne reserve @ 35.7% DTR LOM: 30+ years: 1.22 billion tonnes resource @ 34.1%DTR 16 May 2012 Slide 7
Slide 8: The Southdown Project Mineral Resources & Reserves
The Southdown Project j Mineral Resources & Reserves For personal use only Southdown mineral resource estimate as at February 2012 Tonnes (Mt) Grade (% DTR) Measured 423.0 37.6 I di t d Indicated 87 4 87.4 38 4 38.4 Inferred 710.6 31.5 Total 1 221 1,221 34 1 34.1 Southdown ore reserves as at Februar
Slide 9: For personal use only
For personal use only 16 May 2012 Slide 9
Slide 10: Magnetite Project Concentrator Flow Sheet
Southdown Magnetite Project Concentrator Flow Sheet For personal use only 16 May 2012 Slide 10
Slide 11: Magnetite Project Product Quality
Southdown Magnetite Project Product Quality (Process Design Criteria) For personal use only Southdown Magnetite % Concentrate Total Fe 69 5 69.5 SiO2 1.50 Al2O3 1 48 1.48 TiO2 0.38 P 0.04 S 0.08 LOI (Loss of ignition) -3.15 16 May 2012 Slide 11
Slide 12: Magnetite Project Power and Pipelines
Southdown Magnetite Project Power and Pipelines For personal use only Key Facts - Power: Estimated Length 288km Capacity 330kV transmission line Key Facts – Pipelines E ti t d Length Estimated L th 100k 100km 16 May 2012 Slide 12
Slide 13: Magnetite Project Water Supply
Southdown Magnetite g Project j Water Supply pp y For personal use only Source Seawater reverse osmosis desalination plant Capacity 11 GL/a L ti Location C t l location Coastal l ti 25km 25k from f mine i 16 May 2012 Slide 13
Slide 14: Magnetite Project Port Infrastructure
Southdown Magnetite g Project j Port Infrastructure For personal use only Vessels Cape size (18m draft) Activities Deepen, widen and extend existing shipping channel New wharf Dewatering plant and storage shed Area Reclaimed 9ha Increases port capacity from 2.5Mt 2 5Mt to 14Mt 16 May 2012
Slide 15: Magnetite Project Permitting
Southdown Magnetite Project Permitting For personal use only Mi environmental Mine i t l permit it Granted November 2009,, amendment required in 2011 for 10mtpa Port p permits Granted November 2010 Water permit Desalination permit targeted Q2 2012 16 May 2012 Slide 15
Slide 16: Project DFS Capital Expenditure
Southdown Project DFS Capital Expenditure For personal use only Total Cost Description (A$ M) Mine & Concentrator 1,330 Desalination Plant, Pipelines and Transmission Line 640 Albany Port Works, Berth, Storage Facilities 380 Sub-total 2 350 2,350 Owners Costs, EPCM and Contingency 535 Total Estimate
Slide 17: Project DFS Operating Cost Summary
Southdown Project DFS Operating Cost Summary For personal use only A$/t Operating Costs Concentrate Mining 24.4 Concentrator 24.6 p Pipeline, Filtration and Port 5.7 Overheads 3.8 T t l Operating Total O ti C Costs t 58 5 58.5 16 May 2012 Slide 17
Slide 18: Project Extended mine life case
Southdown Project Extended mine life case For personal use only • Mining eastern extent of the orebody, orebody in addition to western side • Total resource of 1.2 billion tonnes @ 34.1% DTR. • Potential life > 30 years • NPV ~$1.8 billion, IRR ~20% • Will use existing infrastructure associated - on
Slide 19: Magnetite Project Target Time Line
Southdown Magnetite g Project j Target g Time Line For personal use only 2011 2012 2013 2014 2015 Pre- feasibility Definitive Feasibility Financing Construction Production 16 May 2012 Slide 19
Slide 20: Key Contacts
Keyy Contacts For personal use only Primary contacts: Russell Clark Managing Director & Chief Executive Officer +61 8 9327 7901 managingdirector@grangeresources.com.au Media: Tarryn Truscott “LastSay.” Communications +61 8 6102 7295 or +61 (0) 438 906 643 t tarryn@lastsay.net.au @l t t 16 May 2012 S
Slide 21: Competent Person Statement
Competent p Person Statement For personal use only Southdown Project j The information in this report which relates to the Mineral Resources of the Southdown Project is based on information compiled by Mr Michael Everitt who is a full-time employee of Grange Resources Limited and a Member of the A