Red Hill Minerals Ltd · ASX:RHI
Red Hill Minerals — Red Hill Iron — Shareholder Meeting (November 2010)
32 slides from Red Hill Minerals's shareholder meeting presentation, Nov 18, 2010
Slide 1: Cover letter to ASX: Presentation to Annual General Meeting
Exploration Office: Ground Floor, 43 Ventnor Ave, West Perth WA 6005 Registered Office: Level 2, 9 Havelock Street, West Perth WA 6005 ABN: 44 114 553 392 Postal Address: PO Box 1160, West Perth WA 6872 Telephone: (61 8) 9481 8628 Facsimile: (61 8) 9481 8445 E-mail: redhillinfo@redhilliron.com.au We
Slide 2: AGM Presentation Nov 2010
RED HILL IRON LIMITED ABN: 44 114 553 392 AGM PRESENTATION Nov 2010 RED HILL IRON LIMITED 1
Slide 3: Disclaimer and Warning
RED HILL DISCLAIMER IRON LIMITED Disclaimer and Warning No representation or liability: No representation or warranty is made as to the fairness, currency, accuracy, completeness, reliability or reasonableness of this presentation, or any opinions, conclusions and forward‐looking statements it conta
Slide 4: The Presentation
RED HILL THE PRESENTATION IRON LIMITED ☼ THE COMPANY Structure, Performance, Project Location ☼ THE JOINT VENTURES Structure ☼ MINERAL RESOURCES ☼ FEASIBILITY STUDY RESULTS Summary, Project Costs ☼ ASSETS Inside the JV, Outside the JV ☼ REGIONAL PLAY ☼ THE IRON ORE MARKET Supply and demand ☼ THE WAY
Slide 5: The Company: Structure
THE COMPANY Structure ASX: RHI Red Hill Iron Listed Ordinary shares on issue: 43,915,686 ASX Code: RHI Substantial Shareholders AQA 8,532,731 Options: Nil AMCI 8,082,422 Share Price 15-Nov-10 3.10 Pitt & Assoc 8,375,464 Cash on hand $4m Mkt Cap $136m Directors / Senior Management Substantial Shareho
Slide 6: The Company: Performance
THE COMPANY Performance ASX: RHI $8.00 9000 High $7.00 May ‘08 $7.00 8000 $6.00 7000 $5.00 6000 Australian All Ords Red Hill Iron $4.00 5000 $3.00 4000 $3.10 15 Nov ‘10 $2.00 3000 $1.00 2000 $0.00 1000 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 RED HILL IRON LIMITED 5
Slide 7: The Company: Location
THE COMPANY Location RED HILL IRON LIMITED 6
Slide 8: The Joint Ventures: Structure
RHIOJV and THE JOINT VENTURES WPIOP STAGE ONE Structure AMCI & ASSOCIATES 51% AQUILA AMCI PITT RESOURCES PUBLIC (WA) PTY LTD & ASSOCIATES POSCO LTD ~$185M 49% 50% 50% 19.8% 18.4% 42.7% 19.1% CULLEN API RED HILL IRON LTD RESOURCES MANAGEMENT 43.9 M SHARES LTD PTY LTD 30% 70% 60%* 40%* 100% MT STUART
Slide 9: The Joint Ventures: Resources
On 1 November 2010 Aquila Resources Limited announced a significant THE JOINT VENTURES increase in the JORC Mineral Resource estimate for the West Pilbara Iron Ore Project (WPIOP) Stage 1 which is managed by API Management Pty Ltd (API). Resources The two major components of the increase are 117 mil
Slide 10: Feasibility Study: Summary
FEASIBILITY STUDY Summary WPIOP FS Presented 5th July 2010 Summary of the study highlights announced by Aquila ☼ The 30Mtpa Project is technically and financially viable ☼ NPV of $2.2 billion and IRR of 16.4% ☼ Capital expenditure $5.77 billion including EPCM and contingency ☼ Operating costs of $19
Slide 11: Feasibility Study: Project Costs
FEASIBILITY STUDY Project Costs WPIOP Capital Expenditure WPIOP Operating Costs Capital Area Opex ($/t)* Area Cost Mining 10.32 ($millions) Processing 2.25 Mine, Processing and Infrastructure 1,863 Rail Operations 3.34 Railway and Rolling Stock 1,695 Port Operations 3.57 Port Materials Handling, Jet
Slide 12: Assets: Inside the JV
ASSETS Inside the JV 35Mt RHIOJV Mineral Resources1 24Mt 20kms Deposit Mt Cardo Bore East 49 Cardo Bore North 8 117Mt* Catho Well North 6 Cochrane 45 Jewel 24 153Mt Ken's Bore 153 Ken's Bore East * 117 Trinity Bore 105 Upper Cane 82 8Mt Total 589 49Mt 1 Measured + Indicated + Inferred * In Dispute 8
Slide 13: Assets: Outside the JV
ASSETS Outside the JV RED HILL IRON LIMITED PANNAWONICA CID PROJECT RHI OWNING 100% OF CID RIGHTS RED HILL IRON LIMITED 12
Slide 14: Pannawonica Project Assets
PANNAWONICA PROJECT ASSETS Planned Drill Hole Locations Outside the JV Phase 1 : RC drilling To outline the CID mesas and surrounding aprons. COMPLETE – 137Mt at 52% Fe Phase 2: Metallurgy Test beneficiation by dry screening. UNDERWAY – CORE COLLECTED Phase 3 : RC drilling 100 x 200 metre infill RC
Slide 15: Pannawonica Project Inferred Mineral Resources
ASSETS Outside the JV PANNAWONICA PROJECT INFERRED MINERAL RESOURCES WHITEGATE REDGATE WHITEGATE Cut-off Fe% MTonnes Fe% Al2O3% P% SiO2% 48 23 52.3 4.6 0.06 10.2 50 21 52.8 4.6 0.06 9.6 52 13 53.8 4.3 0.07 9.0 REDGATE Cut-off Fe% Tonnes Fe% Al2O3% P% SiO2% 48 114 51.6 5.7 0.04 10.2 50 85 53.2 5.2 0.
Slide 16: Assets: Redgate Drilling
ASSETS Redgate Drilling RED HILL IRON LIMITED 15
Slide 17: Metallurgical Drilling: First Hole Redgate
METALLURGICAL DRILLING First Hole Redgate RED HILL IRON LIMITED 16
Slide 18: Metallurgical Drilling: Second Hole
METALLURGICAL DRILLING Second hole – Extent of Mesa shown RED HILL IRON LIMITED 17
Slide 19: Metallurgical Drilling: South Mesa Access
METALLURGICAL DRILLING South Mesa access RED HILL IRON LIMITED 18
Slide 20: Metallurgical Drilling: PQ Core
METALLURGICAL DRILLING PQ Core – Hematitic CID RED HILL IRON LIMITED 19
Slide 21: Metallurgical Drilling: Core Trays
METALLURGICAL DRILLING Core Trays RED HILL IRON LIMITED 20
Slide 22: Regional Play: Annual Production
Port Hedland REGIONAL PLAY Anketell Point Cape Lambert 360 Dampier Annual Production Cape Preston 280 320 RED HILL IRON LTD PANNAWONICA PROJECT Proposed Pannawonnica WHITEGATE CID ROBE Mesa A ROBE Mesa J REDGATE CID COCHRANE JEWEL 40 KENS BORE EAST RED HILL IRON ORE JOINT VENTURE PROJECT KENS BORE A
Slide 23: Regional Play: FMG Pilbara Concept
REGIONAL PLAY On the 10th August Fortescue Metals Group Ltd (FMG) gave a presentation of it‟s conceptual view of the future for its Pilbara iron ore assets including the development of Anketell port. The following two slides overlay the infrastructure relevant to the RHIOJV. Pilbara Iron Ore Region
Slide 24: Regional Play: Major Australian Iron Ore Province
REGIONAL PLAY If both the FMG and WPIOP present development concepts come to fruition then Anketell Point and the West Pilbara will be established as a major Australian Iron Ore Province. Pilbara Iron Ore Region FMG Cape Lambert WPIOP 240 240 & RHIOJV 30 WPIOP Production Source: FMG „s presentation
Slide 25: Regional Play: Pilbara Resources
REGIONAL PLAY Port Hedland Cape Lambert RESOURCE Anketell Dampier Tonnes are Cape Preston Millions Proposed BHP Mesa A Mesa J 200 270 RIO Bungaroo 1,500 Solomon FMG Buckland Mt Elvire, Yaleen 5,900 Chichester 240 600 6,000 West Hub 4,800 Yandi Tom Price Red Hill 1,260 Area C Other 116 700 Brockman 1
Slide 26: The Market: Demand
THE MARKET Steel Intensity Per Capita Grows Strongly As A Nation Becomes Wealthier Demand RED HILL IRON LIMITED 25
Slide 27: The Market: Forecast
THE MARKET Prices Forecast to rebound strongly in 2010/2011. Forecast Average Annual Percentage Change (forecast) September 2010 Mark Pervan RED HILL IRON LIMITED 26
Slide 28: The Market: Performance
THE MARKET Iron Ore has been the strongest performer so far this year Performance RED HILL IRON LIMITED 27
Slide 29: The Market: Supply
China and other emerging nations THE MARKET will drive steel consumption growth Supply 1000 China 900 1,800 800 Western Europe 1,700 700 200 1,600 150 600 100 1,500 50 500 CHINA 0 1,400 2000 2008 2020 400 1,300 300 North America 1,200 ME and Africa 200 200 120 150 1,100 80 100 100 40 East Asia 50 1,
Slide 30: The Way Forward
THE WAY FORWARD West Pilbara Iron Ore Project – Stage 1 ☼ Stage 1 of the WPIOP is based on CID Deposits SW of Pannawonica ☼ A Feasibility Study for mine, rail and Anketell Port completed June 2010 ☼ Public Environmental Review submitted early 2010 ☼ Development Decision expected 2010* ☼ Government a
Slide 31: Competent Person Statement
RED HILL Competent Person Statement IRON LIMITED Competent Person Statement The information in this presentation is based on information compiled by Mr Doug Stewart, who is a Fellow of The Australasian Institute of Mining and Metallurgy and is an employee of Red Hill Iron Limited. Mr Stewart has suf
Slide 32: Red Hill Iron Limited
RED HILL IRON LIMITED ABN: 44 114 553 392 AGM PRESENTATION Nov 2010 RED HILL IRON LIMITED 31