Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Global Iron Ore & Steel Forecast Conference (March 2020)
15 slides from Magnetite Mines's conference presentation, Mar 18, 2020
Slide 1: Globally Significant Orebody, Existing Infrastructure, Innovative Technology
For personal use only Globally Significant Orebody Existing Infrastructure Innovative Technology 18 March 2020 Global Iron OrePresentation Investor & Steel Forecast Conference November 2019
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice The purpose of this presentation is to provide general information about Magnetite Mines Limited ("MGT"). It is not recommended that any person makes any investment decision in relation to MGT based on this presentation. This presentation contains ce
Slide 3: Forecasting demand with steel intensity models
Forecasting demand with steel intensity models For personal use only Steel usage versus per capita GDP …and premature “peak steel” estimates • Conventional analysis suggests steel intensity increases as countries develop, peaking then plateauing (‘peak steel’) • Other factors raised, such as technol
Slide 4: Is China a riddle, wrapped in a mystery, inside an enigma?
Is China a riddle, wrapped in a mystery, inside an enigma? For personal use only Underestimates during the rise of China… …and premature “peak steel” estimates • "Humans make mistakes, Chinese demand is going south.“ (Kirill Chuyko, BCS, AFR Nov 24 2014) • “China’s steel sector has already entered a
Slide 5: 58% of people make up 17% of global steel demand – but that is changing
58% of people make up 17% of global steel demand – but that is changing For personal use only Long Term Crude Steel Production History (LHS except China RHS) • In UK and US, peak steel was almost a 200,000 1200000 century after industrialisation 180,000 1000000 • Japan flattened after 1974, 14 years
Slide 6: Crude steel production increasing, as well as iron ore trade
Crude steel production increasing, as well as iron ore trade… For personal use only Regional Crude Steel Production China quarterly iron ore imports and crude steel production 2,000 (annualised) 1,200 1,800 1,600 1,100 1,400 1,000 1,200 1,000 900 800 800 600 400 700 200 600 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 7: …but supply response muted
…but supply response muted For personal use only • China is confounding predictions with strong growth • Rapid growth in developing regions • Limited supply response • Expect long term price trends to continue • Grade spreads generally increased – an opportunity for high grade products 7
Slide 8: Razorback is a 3.9Bt resource close to existing infrastructure
Razorback is a 3.9Bt resource close to existing infrastructure For personal use only Location • ~ 240km NE of Adelaide within the Braemar Iron Formation • ~ 99km to NEM transmission lines and substation • ~ 40km from mine site to rail • ~ 375km rail haul from siding to port Scoping Study focused on
Slide 9: Razorback Iron Project Key Advantages
Razorback Iron Project Key Advantages For personal use only Key advantages Providing ✓ Existing Rail, Port and Power Infrastructure Low capital cost Premium product (68.5% Fe with ~3.3% SiO2) ✓ Soft magnetite ore with simple flowsheet potential for high and competitive margins ✓ Located in a mining-
Slide 10: Simple, shallow and low strip ratio pit shell
Simple, shallow and low strip ratio pit shell For personal use only Razorback Ridge is the largest outcropping of magnetite Proposed pit shells for the Razorback Iron Project mineralisation in the Braemar Iron Formation 10
Slide 11: Focussed on high-grade low impurity products
Focussed on high-grade low impurity products For personal use only Indicative Razorback Iron Project – Fe Concentrate Specs1 Typical Brand Quality Comparison 55.0% 57.0% 59.0% 61.0% 63.0% 65.0% 67.0% 69.0% Fe % 68.5 RAZORBACK Carajas Fines (Vale) Silica % 3.3 Newman Fines (BHP) Vale SSF Vale BBF Alu
Slide 12: Ore sorting - technology advantage
Ore sorting - technology advantage For personal use only MR Ore Sensor Diverter • Executed an exclusivity agreement with NextOre • Opportunity to apply Magnetic Resonance sensing and ore sorting technology developed by CSIRO to increase plant feed grade and yields MRA output controls the • Sensor co
Slide 13: Market value per resource tonne indicates rerating potential
Market value per resource tonne indicates rerating potentiaI For personal use only AU$ Value per In-Situ Resource Tonne $100.000 $17.00 /tonne $10.000 $1.000 Magnetite Mines Razorback Iron Project $0.003/tonne $0.100 $0.010 $0.001 13 Reference – Open source data. Indicative only. Calculation of AUD
Slide 14: The Magnetite Mines Value Proposition
The Magnetite Mines Value Proposition ✓ For personal use only Globally significant iron ore resource in low sovereign-risk jurisdiction ✓ Open-access to existing port, road, rail and power infrastructure ✓ Conventional processing/beneficiation flowsheet with technology upside ✓ Low enterprise value/
Slide 15: For personal use only
For personal use only Mr Mark Eames Director Magnetite Mines Limited www.magnetitemines.com
Magnetite Mines — Global Iron Ore & Steel Forecast Conference (March 2020) on 6ix