Slide 1: Image Resources Updated Investor Presentation
3 March 2020 For personal use only IMAGE RESOURCES UPDATED INVESTOR PRESENTATION Image Resources NL (ASX: IMA) (“Image” or “the Company”) is pleased to provide the attached updated investor presentation focused on CY2019 Annual Report results. This document is authorised for release to the market by
Slide 2: CY2019 Performance Presentation
For personal use only Australia’s newest mineral sands miner Emerging mid-tier prospect Boonanarring Mineral Sands Project CY2019 Performance Presentation March 2020 Patrick Mutz Managing Director Image Resources NL ASX: IMA 1
Slide 3: Disclaimer and Forward Looking Statements
Disclaimer and Forward Looking Statements For personal use only This presentation/document has been prepared by the management of Image Resources NL ("Image”, “IMA“, or “the Company”). The information presented includes an indicative outlook of the business activities of Image for the calendar year
Slide 4: Company Focus
Company Focus For personal use only ➢ Focused exclusively on mineral sands ➢ Currently exclusively in North Perth Basin in Western Australia • 1,000 km2; 7 dry mining projects/prospects and 3 dredge mining prospects ➢ Transitioned from exploration to active mining company through development of init
Slide 5: CY2019 Inaugural Full Year Performance
CY2019 Inaugural Full Year Performance For personal use only CY2019 key production highlights: ➢ 2nd month of operation (Jan 2019) ramped up to exceed name-plate production of HMC ➢ Heavy mineral ore grade substantially higher than forecast • 76% positive variance in Q1; 21% variance EOY • Re-assess
Slide 6: CY2019 Inaugural Full Year Performance
CY2019 Inaugural Full Year Performance For personal use only CY2019 key financial highlights: ➢ Profitability achieved in March quarter ➢ Positive cashflow achieved in June quarter ➢ Total revenue of A$146m ➢ Project EBITDA of A$73m ➢ Net Profit after Tax of A$21m ➢ EOY cash A$50m and debt balance A
Slide 7: CY2019 Inaugural Full Year Performance
CY2019 Inaugural Full Year Performance For personal use only CY2019 Ore Reserves and mine life: ➢ Updated Ore Reserve published December 2019 • 24% higher heavy mineral (HM) ore grade • 50% higher in-situ zircon grade in ore • Loss of 6.5m tonnes ore due largely to iron-rich laterite which assayed a
Slide 8: Corporate Snapshot
Corporate Snapshot For personal use only Diverse and Experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.24* Bob Besley – Independent Chairman 12-Month Price Range: A$0.16-0.30 Patrick Mutz – Managing Director Shares on Issue: 981m Chaodian Chen - Non-Executive Directo
Slide 9: CY2019 Performance
CY2019 Performance For personal use only TRANSFORMATIONAL INAUGURAL YEAR OF PRODUCTION • HMC sales of 238kt, production of 270kt • C1 Cash Cost of A$327/t, AISC of A$390/t HMC Sold • Cash flow positive in second quarter • Full year operating cash flow of A$60m • Closing cash balance of A$50m • Closi
Slide 10: CY2019 Performance: HMC Sales and Margins
CY2019 Performance For personal use only HMC Sales and Margins 80 700 • Strong and expanding 70 600 margins 60 • Revenue per tonne 500 increased throughout HMC Sales (kt) 50 2019 as zircon content A$/t HMC 400 40 and HMC quality 300 improved. 30 20 200 • Steady All-In Sustaining 10 100 Costs (AISC)
Slide 11: CY2019 Performance: Income Statement
CY2019 Performance For personal use only INCOME STATEMENT A$m 2019 IMA financial performance summary Revenue 146.2 2019: Mine Operating Costs (66.4) • Project EBITDA pre selling/royalties Inventory Movements 7.1 $87M Project EBITDA (pre selling/royalties) 86.9 • Post Selling & Royalties $73M Depreci
Slide 12: Project EBITDA Reconciliation
CY2019 Performance For personal use only PROJECT EBITDA RECONCILIATION 100 Reconciling items for Project 90 6.9 (0.4) 86.9 7.5 EBITDA per audited financials to 80 72.9 Project EBITDA per Quarterly are: 70 • Addback shipping costs – shown 60 A$000's separately in financials: +$7.5m 50 40 • Addback Go
Slide 13: Cash Utilisation
For personal use only A$m 100 120 140 160 180 0 20 40 60 80 Opening Cash 11.9 1 Jan 2019 Receipts from customers 145.4 Payments to suppliers and (79.5) CY2019 Performance contractors CASH UTILISATION Net Interest (3.0) Property Plant (9.7) and Equipment Exploration (3.2) and Evaluation Issue of Shar
Slide 14: Balance Sheet
CY2019 Performance For personal use only BALANCE SHEET Balance Sheet Commentary: A$m Note Dec 18 Dec 19 • Detailed balance sheet movements Assets shown in financials (refer relevant note). Cash 7 11.9 49.9 • Assets: Up $33.3m • Cash up $38m Receivables 1.5 0.6 • Inventories up $7.6m (sales value Inv
Slide 15: Finance
CY2019 Performance For personal use only FINANCE • Strong operational performance has delivered a stronger balance sheet • IMA expected to be net cash March or April 2020 • Currently discussing early payout of loan notes either through lower cost debt or out of cash • Even stronger cash generation f
Slide 16: CY2020 Guidance and CY2021 Forecast
CY2020 Guidance and CY2021 Forecast For personal use only Item Units 2020 2021 Guidance Forecast HMC Produced DMT 000s 300-330 300-330 HMC Sold DMT 000s 300-330 300-330 Project Operating Costs A$m 100-110 90-100 C1 Cash Costs per tonne HMC sold A$/DMT 290-320 260-290 AISC Cash Costs per tonne HMC so
Slide 17: Ore Reserves
Ore Reserves For personal use only ❑ HIGH-QUALITY ORE RESERVES (Updated Dec 2019) ➢ JORC Code (2012) Compliant ➢ 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 Tonnes % HM % Slimes HM Tonne
Slide 18: Target Production Rate
Target Production Rate For personal use only Operating Basis ➢ Mining at Boonanarring, initially ➢ Dry, open-cut mining ➢ Production rate - 500 dry tonnes per hour • 3.7M dry tonnes per year ➢ Conventional gravity separation using spirals ➢ Product: Heavy Mineral Concentrate (HMC) • Production rate:
Slide 19: Project 'MORE' – Goal to add new Ore Reserves
Project ‘MORE’ – Goal to add new Ore Reserves For personal use only Northern MORE Ore Reserves – internal high profile, Extension interdisciplinary program to add new Ore Northwest Area Reserves at Boonanarring as rapidly as Extension Area practicable ➢ Rigorous target identification • Systematic re
Slide 20: Project MORE – Northern and Northwest Extension Area
Project MORE – Northern and Northwest Extension Area ] For personal use only ‘ Northwest Extension Area drilling results announced on 30 January 2020. ➢ 4m @ 14.5% HM from 15m ➢ 3m @ 14.3% HM from 17m ➢ 5m @ 12.2% HM from 13m ➢ 4m @ 10.9% HM from 11m Northern Extension Area drilling results announce
Slide 21: Upside Potential
Upside Potential For personal use only High likelihood of additional Ore Reserves at Boonanarring ➢ Potential to extend mine life at Boonanarring with confirmed high-grade mineralisation in 5.6km northern extension area (NEA) (ASX announcements 13 March & 26 June 2017); • Outstanding high-grade inte
Slide 22: Project Types and Locations
Project Types and Locations For personal use only ➢ 1,000 km2 tenements portfolio Atlas Ore Reserves ➢ 100% focus on mineral sands Probable: 9.5Mt @ 8.1% HM ➢ Strandline projects (dry mining) ➢ Dredge mining prospects Multiple opportunities for a second Boonanarring Ore Reserves stand-alone mining p
Slide 23: Projects Pyramid – Strand Deposits
Projects Pyramid – Strand Deposits For personal use only Mineral Resources – Accessible by Dry Open-Cut Mining Projects ranked by combined zircon plus rutile (Z+R) contained in the HM Tonnes and grades are for Mineral Resources; Boonanarring and Atlas per JORC Code (2012); All others historic per JO
Slide 24: Projects Pyramid – Dredge Prospects
Projects Pyramid – Dredge Prospects For personal use only Mineral Resources – Accessible by Dredge Mining Projects ranked by HM Grade and include combined zircon plus rutile (Z+R) contained in the HM Positive attributes Tonnes-grades are for historic Mineral • 90+%VHM; Resources per JORC Code (2004)
Slide 25: Potential Royalty from Tronox
Potential Royalty from Tronox For personal use only Royalty agreement in place as of 2014 ➢ Small cash payment in 2014 ➢ 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% ➢ Indefinite production schedule ➢ Potential for future arrangements with Tro
Slide 26: Solar Farm at Boonanarring
Solar Farm at Boonanarring For personal use only Formal agreements with Sunrise Energy Group Pty Ltd to provide 2.3 MWAC solar farm to be: ➢ Constructed and operated by Sunrise Energy; ➢ Located on Image owned land adjacent to Boonanarring mine site; and ➢ Providing up to 25% of total electricity re
Slide 27: Community Engagement Program
Community Engagement Program For personal use only Image is proud of its active and varied community support and engagement program including through local employment. Image proudly contributes to the local community including through local employment. At 31 December 59% of its workforce lived local
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Slide 29: For further information
For further information 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 28