Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Ord Minnett East Coast Mining Conference 2023
20 slides from Magnetite Mines's conference presentation, Mar 22, 2023
Slide 1: Premium Iron Ore for a decarbonising iron & steel sector
For personal use only Premium Iron Ore For a decarbonising iron & steel sector Ord Minnett East Coast Mining Conference March 2023
Slide 2: Disclaimer
Disclaimer For personal use only IMPORTANT NOTICE ADDITIONAL INFORMATION The purpose of this presentation is to provide general information about This presentation should be read in conjunction with the Annual Report at 30 Magnetite Mines Limited ("MGT"). It is not recommended that any person makes
Slide 3: Steel demand continuously increases
Steel demand continuously increases … and is essential for energy transition For personal use only Steel production has doubled every 20 years Additional demand to 2050 for energy transition Each new MW of solar power = 35 - 45t steel Producing 8% of Each new MW of wind power = 120 - 180t steel glob
Slide 4: Decarbonising steel critical to tackle climate change
Decarbonising steel critical to tackle climate change Global governments and industry now committed For personal use only Direct emissions intensity of steel production Major steel producer carbon reduction targets ‘Steel Breakthrough Agenda’ agreed at COP27 (2022): Consistent international standa
Slide 5: Iron & steelmaking transitioning away from coal
Iron & steelmaking transitioning away from coal High-grade, low-impurity iron ore necessary for low-emission iron & steelmaking For personal use only Blast furnaces to be replaced over coming 5 – 25 years Grade of iron ore required Feedstock Iron Reduction Transformation Carbon emissions (t CO2/t) (
Slide 6: New high-grade iron ore supply critical to transition
New high-grade iron ore supply critical to transition Magnetite Mines’ Razorback Project positioned to meet urgent new demand For personal use only Grade Position of Iron Ore Exporters Direct Reduction (DR) essential to transition 69 DR-grade 67 ~100 Mtpa TODAY DR-grade pellets 65 Iron Content Wt% 6
Slide 7: Shift in demand for high-quality ore now evident
Shift in demand for high-quality ore now evident Rising premiums reflect global demand for DR-grade products For personal use only Iron ore’s product premiums Vs mainstay fines (US$/t) Fastmarkets 67.5% Fe pellet feed index Created Feb 2023 to meet increasing supply/demand Feb-23 average price U
Slide 8: MGT premium-quality iron ore is first quartile competitive
MGT premium-quality iron ore is first quartile competitive De-risking exposure to commodity price cycle downturns For personal use only VIU-adjusted total cash cost curve – 62% equivalenta,b 300 VIU-adjusted Cash Cost CFR - North China 250 200 Razorback Iron Ore Project (US$/dmt) 150 100 50 0 80 160
Slide 9: The SA advantage
The SA advantage South Australia is establishing world-leading “green iron” industry potential For personal use only Razorback Project Logical first mover in Braemar Significant economic benefits $1.2B $2.3B SA GSP Australia GDP Construction $30.3B $34.4B SA GSP Australia GDP Operations Tier 1, geo
Slide 10: Outstanding project location in the undeveloped Braemar
Outstanding project location in the undeveloped Braemar Close to rail, port & renewable energy supply For personal use only Adelaide 240km Open-access rail ~50km Whyalla Port ~315km Grid Power 100% renewable by 20305 ~125km 10
Slide 11: Razorback Project well positioned for development
Razorback Project well positioned for development The Braemar Iron Formation – a globally-significant magnetite province For personal use only The Braemar advantage Iron Peak Outcropping ore: very low strip ratio Siltstone-hosted iron ore, not BIF* Soft relative to WA magnetite ores Concentr
Slide 12: Positive Optimisation Studies Results
Positive Optimisation Studies Results Results leading to larger scale production and staged expansion strategy For personal use only Commitment to staged development pathway Resource upgrades at Razorback and Iron Peak Metallurgy completed to DFS level Stage 1 Stage 2 Process flowsheet optimis
Slide 13: High-grade Iron Peak – prioritised for production
High-grade Iron Peak – prioritised for production Recently upgraded Mineral Resource, now the best deposit in the MGT portfolio 4km from Razorback For personal use only Robust economics Best mass recovery Best concentrate quality Previous Study Outcomes: 2021 PFS 2022 First 10 years plant feed U
Slide 14: Building our ESG platform
Building our ESG platform Founded on renewable energy use and global decarbonisation contribution For personal use only Environmental Enabler for fast-evolving Green Steel production sustainability Low site Scope 2 emissions – SA renewable energy grid Social & community Deep relationship build
Slide 15: Corporate overview
Corporate overview For personal use only Market Cap Share Performance and Register $48M (Share price $0.63 at 20 Mar 2023) $2.50 2,000 1,800 Cash $2.00 1,600 1,400 $9.6M $1.50 1,200 Share price (A$) Volume (000s) (31 Dec 2022) 1,000 $1.00 800 600 Shares on Issue: 75.8M $0.50 400 Listed options MGTOE
Slide 16: Recently strengthened Board
Recently strengthened Board New governance team with deep corporate and resource credentials For personal use only Board of Directors Mark Eames Chair of the Board Jim McKerlie Non-executive Director BA Metallurgy (Hons) MBA MAUSIMM BA Economics (Hons) Dip Fin Mgt Global minerals industry experien
Slide 17: New executive team
New executive team Combining leadership with corporate and international resource project experience For personal use only Executive Team Tim Dobson Chief Executive Officer Ian Kirkham Chief Financial Officer B.AppSc Ext.Metallurgy, GAICD, MAusIMM B.Ec Economics & Accounting 35 years extensive int
Slide 18: Premium Iron Ore for a decarbonising iron & steel sector
Premium Iron Ore For a decarbonising iron & steel sector For personal use only Decarbonisation Outstanding Project Committed to Staged Progressing to Tailwind Credentials Development Development Premium iron ore needed Tier 1 location Refocused DFS with Strengthened Board now to enable low emission
Slide 19: References
For personal use only References 1. ASX Announcement – 09/02/23 – Iron Peak Resource Significantly Improved 2. ASX Announcement – 22/11/22 - Muster Dam Mineral Resource Estimate 3. ASX Announcement – 22/03/23 - Razorback Iron Project Ore Reserves Increase 340% - Update 19
Slide 20: Contact
For personal use only Contact gemma.brosnan@magnetitemines.com +61 8 8427 0516 www.magnetitemines.com 20
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