Image Resources Nl · ASX:IMA
Image Resources Nl — Investor Presentation (March 2018)
61 slides from Image Resources Nl's investor presentation, Mar 12, 2018
Slide 1: Equity Raising Investor Presentation
1 For personal use only EQUITY RAISING INVESTOR PRESENTATION MARCH 2018 ASX: IMA Image Resources NL ABN: 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth, WA 6005 www.imageres.com.au
Slide 2: Disclaimer
Disclaimer 2 For personal use only IMPORTANT INFORMATION 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
Slide 3: Forward Looking Statements (continued)
Disclaimer 3 For personal use only FORWARD LOOKING STATEMENTS (continued) Statements in this investor presentation that constitute forward-looking statements or information include, but are not limited to statements regarding the Boonanarring/Atlas Project: Production, Cashflows, NPV, IRR, construct
Slide 4: Disclaimer
Disclaimer 4 For personal use only This investor presentation also contains references to estimates of mineral resources and ore reserves. The estimation of mineral resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral resources that are not ore res
Slide 5: Disclaimer - Liability
Disclaimer 5 For personal use only LIABILITY Euroz Limited ("Lead Manager”) nor any of its respective related bodies corporate, shareholders or affiliates or any of its respective officers, directors, employees, affiliates, agents and advisers (each, a “Limited Party”) have authorised, permitted or
Slide 6: Executive Summary
Executive Summary 6 For personal use only Image to be fully funded through construction and ramp-up at Boonanarring Ø Overall funding package of A$75 million means Image will be fully funded to complete development of its 100%-owned Boonanarring Mineral Sands Project (“Boonanarring”) Ø Image to comm
Slide 7: Executive Summary - Equity Funding
Executive Summary 7 For personal use only Equity Funding underway Ø Placement of Image shares to sophisticated and professional investors to raise A$25 million (“Placement”); Ø Placement fully underwritten by Vestpro International Limited (“Vestpro”) and Million Up Limited (“Million Up”) through ind
Slide 8: Placement Overview
Placement Overview 8 For personal use only Ø Placement of 250 million new fully paid ordinary shares to institutional and Offer sophisticated investors to raise $25m (before costs) pursuant to shareholder approval provided to Image at the General Meeting held on 13 February 2018. Ø The Offer Price o
Slide 9: Shares on Issue
Shares on Issue 9 For personal use only Post Equity Raising & Issue of Commitment Shares Ø Current shares on issue: 611,289,987 Ø Equity Raising shares to issue: 250,000,000 Shares on issue post Equity Raising: 861,289,987 Ø Commitment Shares1 to issue: 91,453,459 Shares on issue post issue of Commi
Slide 10: Debt Funding – Key terms
Debt Funding – Key terms 10 For personal use only A$50M1 Debt Facility with Pala & Castlelake2 Term: 3 years single tranche drawdown Interest Rate: 13-14% CPs to Drawdown: Customary CPs (includes raising A$25M in equity) Security: Senior Secured Repayments: No repayments for 15 months (interest capi
Slide 11: Debt Funding – Fees and Covenants
Debt Funding – Fees and Covenants 11 For personal use only A$50M1 Debt Facility with Pala & Castlelake2 Fees: Arrangement Fee of 2% and Issuer discount of 7% Other Consideration: 56.255M Image shares and 35M 5-Year Warrants @ 115% premium Covenants: Customary positive, negative & financial covenants
Slide 12: Corporate Snapshot
Corporate ImageSnapshot Corporate Snapshot 12 For personal use only Diverse and experienced Board and Management Share Code: IMA Board of Directors Share Price: A$0.105* Bob Besley – Independent Chairman 12 Month Price Range: A$0.04 – 0.17 Patrick Mutz – Managing Director Shares on Issue: 611.3m Cha
Slide 13: Project Approvals
Forward Looking ProjectStatement Approvals 13 For personal use only q PROJECT APPROVALS ü Mining Lease & General Purpose Lease ü Part IV, Environmental Protection Act (WA) – PER ü EPBC Act (Commonwealth) ü Land acquisition for processing plant siting and start of mining ü Groundwater Abstraction Lic
Slide 14: Next Steps
Corporate Next StepsSnapshot 14 For personal use only Ø Finalise equity raising; Ø Complete satisfaction of conditions precedent and drawdown loan; Ø Board to issue Decision to mine; and Ø Initiate formal construction.
Slide 15: Company Description and Focus
Forward Company Looking Description Statement and Focus 15 For personal use only Image Resources NL ASX: IMA Emerging mineral sands producer Actively focused on fast-tracking the development of its 100%-owned, high-grade and high-zircon flagship Boonanarring mineral sands project in the North Perth
Slide 16: Project Location
Forward Looking ProjectStatement Location 16 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 17: Projects Types and Locations
Projects Types and Locations 17 For personal use only Ø 1,000 km2 tenements portfolio Ø 100% focus on mineral sands Ø Strandline (dry open cut mining) projects Ø Dredge mining projects
Slide 18: Boonanarring Project Comparison
Boonanarring Project Comparison 18 For personal use only High HM, VHM and Zircon grades relative to peers HM grade Zircon grade VHM HM Grade (%) Zircon (%) 14.0% 25% VHM Grade Zircon % Image Resources (IMA) Boonanarring project 12.0% is 21.5Mt @ 8.3% HM r and up to 24.5% Zircon 20% h e g Hi tter! 10
Slide 19: Quality Ore Reserves
Forward Ore Reserves Looking Statement 19 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 20: Ore Reserves Comparison
Forward Ore Reserves LookingComparison Statement 20 For personal use only IMAGE Source: TZMI; May 2017
Slide 21: Bankable Feasibility Study Base Assumptions
Forward Bankable Looking Feasibility Statement Study 21 For personal use only Base Assumptions Ø Start mining at Boonanarring Ø Dry, open-cut mining Ø Production rate - 500 dry tonnes per hour • 3.7M dry tonnes per year Ø Conventional gravity separation using spirals Ø Product: Heavy Mineral Concent
Slide 22: Bankable Feasibility Study Key Financial Metrics
Forward Bankable Looking Feasibility Statement Study 22 For personal use only Key Financial Metrics Original BFS* Updated BFS** Ø Pre-Tax NPV (@ 8%) A$135M A$197M Ø Pre-Tax IRR 64% 104% Ø Payback period (months) 22 16 Ø Mine life 8+ years Ø Project capital cost A$52M • includes ~$8M for land * ASX A
Slide 23: Project Capital Comparison
Forward Project Looking Capital Statement Comparison 23 For personal use only r is w e Lo tter! Be Source: TZMI; May 2017
Slide 24: Start-up Capital / Revenue Ratio
Forward Start-up Looking Capital Statement / Revenue Ratio 24 For personal use only r is w e Lo tter! Be Source: TZMI; May 2017
Slide 25: Boonanarring – Production Statistics
Boonanarring – Production Statistics 25 For personal use only Note: 2023 information includes the start of production at Atlas.
Slide 26: Boonanarring – Project EBITDA
Boonanarring – Project EBITDA 26 For personal use only Note: 2023 information includes the start of production at Atlas.
Slide 27: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 27 For personal use only
Slide 28: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 28 For personal use only
Slide 29: Other Key Project Metrics
Forward Bankable Looking Feasibility Statement Study 29 For personal use only Other Key Project Metrics Ø Binding offtake contract for heavy mineral concentrate (HMC) • 100% of HMC production for life of project • Market-based pricing model • Full credit for TiO2 products • No minimum product specif
Slide 30: Plant and Equipment (select examples)
Plant and Equipment (select examples) 30 For personal use only Wet Concentration Plant Mineral Separation Plant (Option) Slurry Booster Stations & pipelines Power poles, wires & transformers HMC Stackers Mine Slurry Unit Plus much, much more.
Slide 31: Image Wet Concentration Plant
Forward Image Wet Looking Concentration Statement Plant 31 For personal use only
Slide 32: Early Works – Wet Concentrator Plant 3D Modelling
Early Works Wet Concentrator Plant 3D Modelling For personal use only Looking North
Slide 33: Early Works – Wet Concentrator Plant 3D Modelling
Early Works Wet Concentrator Plant 3D Modelling For personal use only Looking South
Slide 34: Upside Potential
Forward Upside Looking Potential Statement 34 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 Res
Slide 35: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 35 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 i
Slide 36: Potential Royalty from Tronox
Potential Royalty from Tronox 36 For personal use only Royalty agreement in place as of Ø A$50,000 cash 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 Potential for future arrangements with Tronox or others based on large area of po
Slide 37: Project Development Schedule
Project Development Schedule 37 For personal use only Targeting first production October 2018
Slide 38: Euroz Securities Limited Research
Corporate Snapshot Euroz Securities Limited Research 38 For personal use only
Slide 39: Patersons Securities Limited Research
Corporate PatersonsSnapshot Securities Limited 39 Research For personal use only
Slide 40: Contact
Contact For further information 40 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
Slide 41: Appendix
Forward Looking Statement 41 For personal use only APPENDIX
Slide 42: Compliance Statement
Compliance Forward Looking Statements Statement 42 For personal use only COMPLIANCE STATEMENT FOR EXPLORATION Information in this presentation that relates to Exploration Results is based on information compiled by George Sakalidis BSc (Hons) who is a member of the Australasian Institute of Mining a
Slide 43: Mineral Resources – Strand Deposits 1 of 2
Mineral Forward Resources Looking Statement – Strand Deposits 43 For personal use only Strand Deposits 1 of 2 High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxen
Slide 44: Mineral Resources – Strand Deposits 2 of 2
Mineral Forward Resources Looking Statement – Strand Deposits 44 For personal use only Strand Deposits 2 of 2 Previously Reported Mineral Resources - Strand Deposits; in accordance with JORC Code (2004) @ 2.5% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leu
Slide 45: Mineral Resources – Dredge Deposits
Mineral ForwardResources Looking Statement – Dredge Deposits 45 For personal use only Dredge Deposits 1 of 1 Previously Reported Mineral Resources - Dredge deposits; in accordance with JORC Code (2004) @ 1.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leuc
Slide 46: Compliance Statement for Mineral Resources
Forward Looking Compliance Statement Statements 46 For personal use only COMPLIANCE STATEMENT FOR MINERAL RESOURCES 1. COMPLIANCE STATEMENT Boonanarring/Atlas Mineral Resources The information in this presentation that relates to the estimation of Mineral Resources is based on information compiled b
Slide 47: Key Risks
Key Risks 47 For personal use only An investment in Image Resources NL (IMA) should be considered speculative due to the nature of the business and its early stage of development. Investments in mineral exploration and development issuers, such as IMA, involve a significant degree of risk. The devel
Slide 48: Key Risks (continued)
Key Risks (continued) 48 For personal use only 2. Uncertainty in the Estimation of Mineral Resources and Ore Reserves Estimating the quantity and quality of Mineral Resources and Ore Reserves is an inherently uncertain process and the Minerals Resources and Ore Reserves stated are estimates, and may
Slide 49: Key Risks (continued)
Key Risks (continued) 49 For personal use only 6. Licenses and Permits IMA will require certain licenses, permits and approvals to develop the Boonanarring Project, and subsequently other projects. IMA has obtained the key permits and approvals required for the Boonanarring Project, however has not
Slide 50: Key Risks (continued)
Key Risks (continued) 50 For personal use only IMA is also currently in advanced negotiations to secure access to land required for the development of the Boonanarring Project. There is no guarantee that IMA will be able to successfully conclude these negotiations in a timely manner, within the time
Slide 51: Key Risks (continued)
Key Risks (continued) 51 For personal use only These risks, conditions and events could result in: (i) damage to, or destruction of, the value of, the Boonanarring Project or the facilities; (ii) personal injury or death; (iii) environmental damage to the Boonanarring Project or the properties of ot
Slide 52: Key Risks (continued)
Key Risks (continued) 52 For personal use only 13. Regulatory Risks The Company’s operations and exploration activities are subject to laws and regulations governing various matters. These include laws and regulations relating to repatriation of capital and exchange controls, taxation, labour standa
Slide 53: International Offer Restrictions
International Offer Restrictions 53 For personal use only
Slide 54: Boonanarring/Atlas – Production Statistics
Boonanarring/Atlas – Production Statistics 54 For personal use only Project Production Statistics 2018 2019 2020 2021 2022 2023 2024 2025 2026 Mined Ore Tonnes (HG) 621,252 3,682,767 3,696,124 3,724,085 3,765,642 2,659,650 3,359,563 3,358,792 1,601,766 HM Grades 8.6% 7.8% 11.2% 5.6% 7.8% 10.9% 9.4%
Slide 55: Boonanarring/Atlas – Project EBITDA
Boonanarring/Atlas – Project EBITDA 55 For personal use only 2018 2019 2020 2021 2022 2023 2024 2025 2026 Project EBITDA $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Revenue 8,881 132,631 186,878 97,152 127,191 77,435 79,816 64,395 58,131 Operational Expenditure Mining (22,419) (43,831) (40
Slide 56: Bankable Feasibility Study Updated – Sensitivity Analysis
Bankable Feasibility Forward Looking Study - Updated Statement 56 For personal use only Sensitivity Analysis
Slide 57: Project Capital Breakdown
Project ForwardCapital LookingBreakdown Statement 57 For personal use only Process Plant & Ancillary Costs Ø Indirects (A$0.7M) include sundry mob./demob.; BFS Capital A$M insurance, capital spares, survey/geotech. Indirects 0.7 Ø Direct capital costs (A$22.4M): • Plant transport, refurb and install
Slide 58: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 58 For personal use only
Slide 59: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 59 For personal use only
Slide 60: Projects Pyramid – Strand Deposits
Projects Forward Pyramid Looking – Strand Deposits Statement 60 Mineral Resources – Accessible by Dry Open-Cut Mining For personal use only Projects ranked by combined Zircon plus Rutile Boonanarring Focus 43.8Mt; 5.6%HM; of BFS 20.7% Zr+Ru Atlas 18.1Mt; 6.0%HM; 15.8% Zr+Ru Red Gully 6.0Mt; 7.7% HM;
Slide 61: Projects Pyramid – Dredgeable
Projects Forward Pyramid Looking - Dredgeable Statement 61 Mineral Resources – Accessible by Dredge Mining For personal use only Projects ranked by HM Grade 25-67% Leucoxene; 90+%VHM; Bidaminna <5% slimes; 45Mt; 3.0%HM; 100Mt exploration 6.5% Zr+Ru target Titan-Telesto 140Mt; 1.9%HM; 12.8% Zr+Ru Cal
Image Resources NL — Investor Presentation (March 2018) on 6ix