Iron Road Ltd · ASX:IRD
Iron Road — Investor Presentation (September 2011)
24 slides from Iron Road's investor presentation, Sep 21, 2011
Slide 1: Central Eyre Iron Project: On the Road to Production
For personal use only Central Eyre Iron Project On the Road to Production Stars in Resources 21 September 2011
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements For personal use only This presentation contains forward looking statements concerning the projects owned by Iron Road Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates
Slide 3: Iron Road
Iron Road For personal use only • A mid tier iron ore project developer ($120M market cap) • Focused on Central Eyre Iron Project (CEIP) in South Australia – Prefeasibility Study indicates a robust 12.4 Mtpa project is viable, with base case NPV $1.1 billion – Competitive capital and operating costs
Slide 4: Corporate Overview
Corporate Overview For personal use only Board $1.20 Julian Gosse Non-exec Chair $1.00 Ian Hume Non-exec Jerry Ellis Non-exec $0.80 Matthew Keegan Non-exec $0.60 Andrew Stocks MD $0.40 Major Shareholders The Sentient Group 30.7% $0.20 Management 10.4% $0.00 Columbia University 6.6% Sep 08 Dec 08 Mar
Slide 5: Central Eyre Iron Project Overview
Central Eyre Iron Project Overview For personal use only • Centrally located on Eyre Peninsula, SA • Well serviced by established towns on road and rail networks • Favourable geographical and climatic location • Supportive state and local governments • Good relationships with local communities • Lar
Slide 6: CEIP Prefeasibility Study Outcomes
CEIP Prefeasibility Study Outcomes For personal use only • Substantial 12.4Mtpa iron product operation outlined PFS Result by Numbers • Capital and operating costs compare favourably to similar Australian projects Capex – direct A$1,744M • Significant competitive advantages – Coarse grind size (-106
Slide 7: Future Growth and Development Pathway
Future Growth and Development Pathway Additional Resource • On track to define a mineral resource estimate of considerable size and For personal use only tonnage additional to 1.01 billion tonnes identified at Murphy South so far definition, with Stage VI • Exploration Target for the current program
Slide 8: Project Resources & Geology
Project Resources & Geology For personal use only • Project resource made up of coarse grained magnetite – Low variability, mineralisation is consistent through ore body – Excellent product characteristics offset lower head grade • Allows conventional open cut mining with a low strip ratio – Optimis
Slide 9: Magnetite Iron Ore Primer
Magnetite Iron Ore Primer For personal use only Globally, half of iron ore production comes from magnetite ores Iron Ore Prices – Industry in Australia dominated by Pilbara haematite • Global switch to spot / short term pricing over annual benchmark DSO operations • Prices have remained strong – DSO
Slide 10: Magnetite – Why Iron Road?
Magnetite – Why Iron Road? CEIP magnetite gneiss Typical BIF For personal use only Age Archaean Proterozoic Geological history High grade metamorphism Low grade metamorphism Mineralogy Granular, low impurities Microcrystaline, impurities vary 1.5mm average, crystalline Magnetite grain size Very fine
Slide 11: Simple Processing
Simple Processing 67.6Mtpa For personal use only MURPHY SOUTH DEPOSIT ROM Ore P80~ 30 mm Mass 100% Crushing Fe: 16.8% SiO2: 53.0% Cleaner W-LIMS HPGR Tails Mass 43% DRY WET Rougher W-LIMS P80~106 m P80~8 mm 61% Fe: 24% Concentrate SiO2: 47 % 12.4Mtpa Tails Mass 18% Mass 39% Fe: 67% Ball Mill SiO2:
Slide 12: Premium Concentrate Product
Premium Concentrate Product For personal use only • Beneficiation design by Mineral Engineering Technical Services (METS) • Grind size of -106µm (p80) resulting in 67% Fe concentrate • Potential -125µm option currently being investigated • To be marketed as a high quality sinter feedstock • Blast Fu
Slide 13: Benchmarking Concentrate Grade
Benchmarking Concentrate Grade For personal use only 72 GIR-Yerecoin Concentrate Grade - % iron EMG-Beyondie VMC-Yalgoo 70 ARH-Balmoral IRD-CEIP (40 micron) AGO-Ridley IRD-CEIP (53 micron) GRR-Southdown 68 GBG-Karara CXM-Bungalow IRD-CEIP (106 micron) ACS-Magnetite Range IRD-CEIP (75 micron) 66 CFE-
Slide 14: Export Solution
Export Solution For personal use only Base case PFS includes slurry pipeline to port PFS includes costs and charges to use a third-party port Potential upside, including rail options, have been considered at scoping level with encouraging results More detailed rail review underway Project scale suff
Slide 15: Adding Value Through Resource Growth
Adding Value Through Resource Growth 3,000 2,811 For personal use only Near Term 2,687 2,756 • Base case incorporates current Target 2,597 2,478 Murphy South Mineral Resource. 2,304 • Murphy South Mineral Resource is 2,090 NPV - $ millions now 1.0Bt 2,000 1,808 • Current drill programme on Murphy So
Slide 16: Community Engagement
Community Engagement For personal use only • Iron Road believes that being part of a community is an important part of doing business • Major Sponsor of a number of local community events since 2009 • Toll free contact number and extensive community program in place • Just completed community stakeh
Slide 17: Iron Road Offers
Iron Road Offers For personal use only • Early stage entry to new, large, credible iron ore project "In the case of iron ore, • Near term value enhancing events: we expect that over the – Resource upgrade underway, drilling complete next eight years, global – Establishing a 30 year mine life has pot
Slide 18: On the Road to Production
For personal use only On the Road to Production www.ironroadlimited.com.au Andrew Stocks GPO Box 1164 admin@ironroadlimited.com.au Managing Director Adelaide SA 5001
Slide 19: Appendices
For personal use only Appendices
Slide 20: Appendix – Board & Management
Appendix 1 – Board & Management For personal use only Chairman Non-Exec Non-Exec Julian Gosse Director Director Ian Hume Jerry Ellis Non-Exec Managing Company Director Director Secretary Matthew Keegan Andrew Stocks Graham Anderson General Land Geology Project Manager Manager Manager Manager Larry L
Slide 21: Appendix 2a – CEIP Resource Statement
Appendix 2a – CEIP Resource Statement For personal use only Murphy South Mineral Resource Estimate Resource Tonnes Fe SiO2 Al2O3 P LOI Oxidation Material Type Classification (Mt) (%) (%) (%) (%) (%) Disseminated 272 17.7 52.5 12.0 0.09 0.3 Fresh Banded 79 13.3 54.7 14.1 0.07 0.5 Inferred Transitiona
Slide 22: Appendix 2b – CEIP Resource Statement
Appendix 2b – CEIP Resource Statement For personal use only Boo-Loo Mineral Resource Estimate Resource Tonnes Fe SiO2 Al2O3 P LOI Oxidation Classification (Mt) (%) (%) (%) (%) (%) Fresh 277 17.3 52.5 11.5 0.095 0.5 Inferred Transitional 13 17.0 52.4 11.6 0.094 10.7 Oxide 38 17.2 52.1 11.6 0.094 10.8
Slide 23: Appendix 2c – CEIP Resource Statement
Appendix 2c – CEIP Resource Statement For personal use only Central Eyre Iron Project Global Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Location Classification (Mt) (%) (%) (%) (%) (%) Murphy South Indicated 585 16.7 52.9 12.6 0.09 0.3 Inferred 421 16.6 52.6 12.7 0.08 1.2 Boo-Loo Inferred
Slide 24: Appendix – Capital Cost Estimate
Appendix 3 – Capital Cost Estimate For personal use only Estimated Estimated Estimated A$ Direct Costs Indirect Costs Contingency A$ Millions A$ Millions Millions Crushing circuit 244.1 Field indirect – 12.0% 209.3 Direct and indirect – 15% 337.8 Fine grind & mag sep 152.4 EPCM – 8.0% 139.5 Milling