Iron Road Ltd · ASX:IRD
Iron Road — Shareholder Meeting (November 2014)
30 slides from Iron Road's shareholder meeting presentation, Nov 28, 2014
Slide 1: Central Eyre Iron Project: Paving the Road
Central Eyre Iron Project Paving the Road www.ironroadlimited.com.au Annual General Meeting, 28 November 2014
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statements This announcement contains certain statements with respect to future matters which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, r
Slide 3: Cautionary Statements
Cautionary Statements Modelling based upon 25 year mine life, consisting of: • Initial 17 years using Proven and Probable Mining Reserve of 2,071Mt @ 15.5% iron (200x100m, 100x50m diamond drill spacing). • Further eight years using 28% Measured, 24% Indicated and 48% Inferred Resources of 1,303Mt @
Slide 4: Introduction – Paving the Road
Introduction – Paving the Road Iron Road is advancing the development of Australia’s next major integrated iron supply business on the Eyre Peninsula in South Australia. The CEIP offers: • Robust financial metrics for both the DFS and optimised case, with debt service and loan life cover ratios supp
Slide 5: www.ironroadlimited.com.au
www.ironroadlimited.com.au 5
Slide 6: Supportive State and Federal Governments
Supportive State and Federal Governments • August 2013 – Major Development status declared by Deputy Premier Mr John Rau – EIS Guidelines issued November 2014 • April 2014 – Major Project Facilitation Status declared by Federal Minister for Infrastructure and Regional Development Mr Warren Truss • I
Slide 7: A Catalyst For New Opportunities
A Catalyst For New Opportunities • Dedicated stakeholder team • Working with communities – Amenity, lifestyle – Social – Air quality – Water and salinity – Rehabilitation and mine closure • Working with all levels of government • Capacity available for other exporters – both minerals and agriculture
Slide 8: Developing the next generation, fully integrated iron supply business
Developing the next generation, fully integrated iron supply business www.ironroadlimited.com.au 8
Slide 9: The Next Generation
The Next Generation Experience with large magnetite operations in Australia indicates inefficient and problematic processing, leading to high capital and operating cost outcomes and unsatisfactory production levels. The CEIP offers a simple process supported by a very large simplified mine. To achie
Slide 10: Transition to Optimised Mining Method
Transition to Optimised Mining Method IPCC IPCC Approach Traditional load & haul Semi-mobile The project cost structure has transitioned from a basecrushers of volatile oilMobile crushers pricing to the potential 350t trucks for long term base load 93 electricity price contracts 32 12 (estimate) Die
Slide 11: Mobile Crusher and Conveyor System
Mobile Crusher and Conveyor System www.ironroadlimited.com.au 11
Slide 12: Supply chain control captures mine to customer efficiencies
Supply chain control captures mine to customer efficiencies www.ironroadlimited.com.au 12
Slide 13: Infrastructure
Infrastructure Corridor • One multi-use corridor minimises impacts • Comprises rail, power line, service road and water pipeline (pipeline for part of route only) Infrastructure features • Scalable design philosophy • Power line to site, possible reinforcement of Eyre Peninsula transmission network
Slide 14: Capesize and Panamax capable, with additional module offloading facility
Capesize and Panamax capable, with additional module offloading facility (MOF). • Berths for two Capesize vessels, 24/7 in most weather conditions. • No dredging or breakwater required. • MOF suitable for unloading heavy lift ships. • Able to receive containerised consumables. • Initial 70Mtpa capac
Slide 15: Building the Plan, Building Credibility, Building a Business
Building the Plan Building Credibility Building a Business www.ironroadlimited.com.au 15
Slide 16: Seaborne Quality Gap Widening
Seaborne Quality Gap Widening • Competitive cost, high grade, complementary blending feedstock • CEIP positioned in second cost quartile for ALL 2020 suppliers to China • Circa 1.5Bt China market including expansion growth from the majors www.ironroadlimited.com.au 16
Slide 17: High Grade Project Appeal
High Grade Project Appeal • Capital destructive competitors provide both challenges and opportunities • CEIP positioned in the lowest cost quartile for high quality concentrate producers receiving 10-20% price premiums (>62% Fe, low impurities) • Project partners and offtake equation to drive fundin
Slide 18: Equity Investment Thesis
Equity Investment Thesis Premium •High quality Fe concentrate with low impurities to drive sinter plant operating and environmental efficiencies Product •Consistent, premium product expected to displace lower quality domestic and imported feedstocks •Large magnetite resource (and growing) to underwr
Slide 19: Project Bankability and Risk Mitigation
Project Bankability and Risk Mitigation Project •~USD125M invested over 6+ years, comprehensive feasibility study confirms project design and economics •Major Development and Major Project Facilitation status granted by State and Federal governments recognises Definition CEIP credentials •Premium ir
Slide 20: Project Funding Programme
Project Funding Programme Development Internal, Technical Consultant, Financial Advisor and Legal Team Team Appointments Project Due Our Technical Journey Feasibility Study Data Room Diligence Presentation Steel Mills, Resource Strategic Evaluation of Investment Funds, Finalisation of Equity Investm
Slide 21: www.ironroadlimited.com.au
www.ironroadlimited.com.au 21
Slide 22: www.ironroadlimited.com.au
www.ironroadlimited.com.au 22
Slide 23: Brand Iron Road
Brand Iron Road To be a trusted and reliable supplier of premium iron concentrates www.ironroadlimited.com.au 23
Slide 24: www.ironroadlimited.com.au
www.ironroadlimited.com.au 24
Slide 25: Thank you
Thank you www.ironroadlimited.com.au 25
Slide 26: Appendix – CEIP Resource Statement & Indicative Concentrate Specifications
Appendix 1 – CEIP Resource Statement & Indicative Concentrate Specifications CEIP Global Mineral Resource Tonnes Fe SiO2 Al2O3 P Location Classification (Mt) (%) (%) (%) (%) Measured 2,222 15.69 53.70 12.84 0.08 Murphy South/Rob Roy Indicated 474 15.6 53.7 12.8 0.08 Inferred 667 16 53 12 0.08 Boo Lo
Slide 27: Appendix – CEIP Reserve Statement
Appendix 2 – CEIP Reserve Statement CEIP Global Mineral Reserve Tonnes Fe Location Classification (Mt) (%) Proved 1,871 15.6 Murphy South/Rob Roy Probable 200 15.1 Total 2,071 15.5 The information in this report that relates to Reserves estimated for Murphy South / Rob Roy (MSRR) is based on and fai
Slide 28: Appendix – CEIP Exploration Target
Appendix 3 – CEIP Exploration Target The Exploration Target for EL4849 was released by Iron Road Limited (IRD) during late 2013 (ASX Release dated 11 September 2013). This target potential was determined to be 8 to 17Bt in the range 14% to 20% iron* and included Priority 1, 2 and 3 ranked targets. T
Slide 29: Appendix – CEIP Exploration Target (continued)
Appendix 3 – CEIP Exploration Target (continued) The potential of the Hambidge Project Area has been further enhanced by the recent completion of inversion modelling of the detailed geophysical survey over Hambidge and immediate surrounds (Hawke, 2014). A reassessment of the Exploration Target for t
Slide 30: Appendix – CEIP Exploration Target (continued)
Appendix 3 – CEIP Exploration Target (continued) Target Rank Target ID Strike (km) Depth (m) 1 Boo Loo East 3.0 400 1 Gap 1.5 400 1 Hambidge 13.0 600 1 Boo Loo West 1.5 400 1 South Deeps 4.0 600 1 Collins 2.0 300 1 Bobtail 1.5 300 1 Ben’s Hill 5.0 300 1 Joshua 2.5 300 1 Fairview 3.0 250 1 Fairview E