Brockman Mining Ltd. · HKEX:159
Brockman Mining — Investor Presentation (May 2013)
35 slides from Brockman Mining's investor presentation, May 20, 2013
Slide 1: Pilbara Infrastructure – A New Landscape
For personal use only PILBARA INFRASTRUCTURE– A NEW LANDSCAPE Investor Presentation – May 2013 Russell Tipper, Chief Executive Officer, Brockman Mining Australia
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by and issued by Brockman Mining Limited (“Brockman” or “the Company”) to assist it in informing interested parties about the Company. It should not be considered an invitation or offer to subscribe for or purchase any securities i
Slide 3: Corporate Strategy
Corporate Strategy For personal use only Short term Expedite development of the Marillana hematite project located in the eastern Pilbara and associated rail and port infrastructure to full commercial production by 2016 Mid term Advance the Australian exploration pipeline of hematite projects, from
Slide 4: Progress Milestones – Infrastructure
Progress Milestones – Infrastructure Rail For personal use only • Completed first phase of East Pilbara Independent Rail (EPIR) study • Initiating East Pilbara infrastructure rail and port Pre-feasibility Study recognising the synergies of an integrated approach • Submitted Rail Access Application t
Slide 5: Progress Milestones – Exploration
Progress Milestones – Exploration For personal use only • Increased Ophthalmia Iron Ore Project Total Mineral Resources to 290 Mt grading 59.1% Fe including: – Resolved Coondiner tenement boundary survey discrepancy resulting in additional Mineral Resources of 20.9 Mt grading 58.3% Fe – Announced Ma
Slide 6: Australian Iron Ore Portfolio
Australian Iron Ore Portfolio For personal use only 6
Slide 7: Iron Ore Development Pipeline
Iron Ore Development Pipeline For personal use only Pre Project Exploration Development Development East Pilbara Hub (100%) Ophthalmia Iron Ore Project (100%): Marillana Iron Ore Project (100%): • Recently acquired three exploration Total JORC compliant Mineral • JORC compliant Mineral tenements whi
Slide 8: Mineral Resources/Ore Reserves Summary
Mineral Resources/Ore Reserves Summary For personal use only Project Resource Grade Reserve Grade (Mt) (%) (Mt) (%) Marillana Detrital 1,528 42.6 1,001 42.4 CID 102 55.6 48 55.5 Ophthalmia Coondiner DSO 129 58.3 - - Kalgan Creek DSO 52 59.1 - - Sirius DSO 109 60.0 - - West Pilbara Duck Creek 18 56.5
Slide 9: Marillana Infrastructure Options
Marillana Infrastructure Options For personal use only 9
Slide 10: Rail Option – Base Case: Via Independent Rail to South West Creek
Rail Option 1 – Base Case: Via Independent Rail to South West Creek, Port Hedland For personal use only • Completed first stage of East Pilbara Independent Rail Study • Aurizon, NWI, Brockman and Atlas integrated rail and port PFS – completion by end 2013 • Other potential users of the infrastructur
Slide 11: Rail Option – Via TPI Railway to South West Creek, Port Hedland
Rail Option 2 – Via TPI Railway to South West Creek, Port Hedland For personal use only • Brockman submitted an Access Application to the TPI railway on 15 May 2013 under the WA Rail Access Code (2000) • Independent assessment indicates that the TPI railway has available rail capacity within its nam
Slide 12: Rail Access Regime Timeline
Rail Access Regime Timeline For personal use only • Weighted Average Cost of Capital (WACC) assessment for 2013/14 due in July 2013, with the 2012/13 assessment set at approximately 9% (real, pre-tax) • TPI’s 2010 floor and ceiling prices range from A$5.07 – A$5.77* per net tonne for its rail networ
Slide 13: Rail Access Regime Timeline
Rail Regime Timeline i f f | i Access draft TPl gives Brockman Access proposal Is : gives Agreement \cCeSS notice re q lodged By Agreement negotiation noire re Brockman 9 ul negotiation arbitration 30 days < 7 days 30-44 days (after receipt of s14/15 ec ee (or as extended by agreement) information)
Slide 14: Other Infrastructure Options
Other Infrastructure Options For personal use only Brockman continues to pursue other options including: • TPI Railway to Anderson Point, Port Hedland − Brockman has submitted a Request for Information under the TPI Port Access Regime • Roy Hill Railway to South West Creek, Port Hedland − Roy Hill t
Slide 15: Marillana Project Funding Summary
Marillana Project Funding Summary DEVELOPMENT FUNDING For personal use only Definition Status Source Status MINE Marillana Definitive Engineering Joint venture Awaiting rail Study (DES) partner definition (up to 40 %) New Entering Pre-Feasibility Aurizon Awaiting feasibility independent Study studie
Slide 16: Strategic Outlook
For personal use only Strategic Outlook 16
Slide 17: Strategic Outlook
Strategic Outlook • Growing acceptance that the Marillana Project is part of ANY new Pilbara For personal use only infrastructure initiative with: – significant tonnes and long mine life (‘20/20’) – Yield improvement studies looking at -1 mm Marillana waste fines underway, with early results showing
Slide 18: Next Phase: Ophthalmia Iron Ore Project (100%)
Next Phase: Ophthalmia Iron Ore Project (100%) For personal use only • Potentially as significant as the Marillana Project with bedded hematite mineralisation (DSO) discovered 15 – 30 km north of Newman • Deposits at Coondiner (Pallas and Castor), Kalgan Creek and Sirius • Mineralisation is hosted b
Slide 19: Ophthalmia Exploration Upside
Ophthalmia Exploration Upside For personal use only • Further exploration will focus on expanding the Mineral Resource inventory at Ophthalmia through converting the Exploration Targets • ‘Three Pools’ area (including the Top Forge and Crucible prospects) represents one of the main exploration targe
Slide 20: Appendix – Background Slides
For personal use only Appendix 1 Background Slides 20
Slide 21: Capital Structure
Capital Structure For personal use only As at 31 March 2013 HK$:A$8.09 Shares on issue 7.89 billion Market capitalisation A$458 million 1 Cash on hand A$39 million 2 Enterprise value A$419 million Options on issue 0.36 billion 1. Share price HK $0.47 2. As at 31 March 2013 21
Slide 22: Marillana Iron Ore Project Summary
Marillana Iron Ore Project Summary For personal use only KEY STATISTICS Mining 1.05 Bt Reserve (Proven: 133 Mt, (JORC) Probable: 916 Mt) Final product 60.5–61.5% Fe grade Mining - Conventional truck Operation and shovel - Free digging - Average Strip Ratio: 0.8 over life of mine Annual Up to 20 Mtpa
Slide 23: Marillana Iron Ore Project – Mine
Marillana Iron Ore Project – Mine MINE STATUS For personal use only 2010 DES confirmed Marillana Project is financially robust and long life 2011 FEED completed, including further engineering and optimisation studies 2012 Native Title agreements and key environmental approvals finalised and approved
Slide 24: Marillana Iron Ore Project – Metallurgy and Processing
Marillana Iron Ore Project – Metallurgy and Processing For personal use only Simple mining & processing • Shallow, large scale mining • Simple robust process flow sheet • Positive sintering performance • -8 mm +1 mm product size – no ultra fines 24
Slide 25: Marillana - Final Product and Sinter Performance
Marillana - Final Product and Sinter Performance For personal use only FINAL PRODUCT GRADES Fe SiO2 AI2O3 S P LOI 1000°C (%) (%) (%) (%) (%) (%) 60.5 – 61.5 6.0 – 6.5 2.5 – 3 .0 <0.02 <0.08 2.0 – 3.0 • Hematite concentrate with a -8 mm +1 mm size specification • Final Fe grades equivalent to major P
Slide 26: Port Infrastructure
Port Infrastructure PORT INFRASTRUCTURE STATUS For personal use only 2008 North West Infrastructure (NWI) established joint venture company : Brockman Mining Limited (37%); Atlas Iron Limited (39%); FerrAus Limited* (24%) * FerrAus Limited is a wholly-owned subsidiary of Atlas Iron 2009 NWI granted
Slide 27: Appendix – Resource and Reserve Summaries
For personal use only Appendix 2 Resource and Reserve Summaries 27
Slide 28: Marillana Iron Ore Project Mineral Resource Summary
Marillana Iron Ore Project Mineral Resource Summary For personal use only BENEFICIATION FEED (Cut-off grade: 38% Fe) Mineralisation Resource Tonnes Grade type classification (Mt) (% Fe) Detrital Measured 173 41.6 Indicated 1,036 42.5 Inferred 201 40.7 Pisolite Indicated 117 47.4 Subtotal Measured 17
Slide 29: Marillana Iron Ore Project Mineral Resource Summary
Marillana Iron Ore Project Mineral Resource Summary For personal use only MARILLANA CID (Cut-off grade: 52% Fe) Resource Tonnes Fe CaFe AI2O3 SiO2 P LOI classification (Mt) (%) (%) (%) (%) (%) (%) Indicated 84.2 55.8 61.9 3.6 5.0 0.097 9.8 Inferred 17.7 54.4 60.0 4.3 6.6 0.080 9.3 TOTAL 101.9 55.6 6
Slide 30: Marillana Iron Ore Project Ore Reserve Summary
Marillana Iron Ore Project Ore Reserve Summary For personal use only MARILLANA DETRITAL ORE RESERVES Reserve classification Mt Fe (%) Proven 133 41.6 Probable 868 42.5 TOTAL 1,001 42.4 MARILLANA CID ORE RESERVES* Reserve Mt Fe CaFe* Sio2 AI2O3 P LOI classification (%) (%) (%) (%) (%) (%) Probable 48
Slide 31: Ophthalmia Iron Ore Project Mineral Resource Summary
Ophthalmia Iron Ore Project Mineral Resource Summary For personal use only OPHTHALMIA DSO Mineral Resources (Cut-off grade: 54% Fe) Tonnes Fe CaFe* SiO2 Al2O3 S P LOI Deposit Class (Mt) (%) (%) (%) (%) (%) (%) (%) Indicated 12.5 59.3 62.6 4.02 4.79 0.007 0.20 5.41 Kalgan Creek Inferred 39.7 59.1 62.
Slide 32: Exploration Targets Summary East Pilbara
Exploration Targets1 Summary East Pilbara For personal use only Tonnes To Fe From Fe To Deposit/Area Tonnes From (Mt) (Mt) (%) (%) Kalgan Creek 8 14 56 61 Sirius 14 19 56 61 Three Pools* 20 60 56 60 Total 42 93 56 61 * Within the recently acquired Exploration Licence E47/2280 1 Exploration Targets:
Slide 33: West Pilbara Iron Ore Project Mineral Resource Summary
West Pilbara Iron Ore Project Mineral Resource Summary For personal use only WEST PILBARA DSO Mineral Resources (Cut-off grade: 54% Fe) Deposit Class Tonnes Fe CaFe* SiO2 Al2O3 S P LOI (Mt) (%) (%) (%) (%) (%) (%) (%) Duck Inferred 18.3 56.5 62.8 4.91 3.22 0.037 0.06 9.96 Creek Total 18.3 56.5 62.8
Slide 34: Competent Person's Statement
Competent Person’s Statement For personal use only The information in this presentation that relates to Mineral Resources and Ore Reserves is based on information compiled by Mr I Cooper, Mr J Farrell and Mr A Zhang. The Ore Reserves statement has been compiled in accordance with the guidelines defi
Slide 35: Contact
CONTACT For personal use only Michelle Manook General Manager External Affairs michellemanook@brockman.com.au Mobile: +61 417 954 474 117 Stirling Highway NEDLANDS WA 6009 Australia www.brockmanmining.com 35