Centaurus Metals Limited · ASX:CTM
Centaurus Metals — Investor Presentation (February 2012)
34 slides from Centaurus Metals's investor presentation, February 2012
Slide 1: Developing a Brazilian Iron Ore Business
Developing a Brazilian Iron Ore Business Darren Gordon, Managing Director February, 2012
Slide 2: Disclaimer
Disclaimer This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation does not take into a
Slide 3: Brazilian Iron Ore Business
Brazilian Iron Ore Business Centaurus Metals’ focus is to: Develop & Operate a number of low cost mines. Be known for high grade & consistent quality products. Be one of a limited number of preferred suppliers to the Brazilian domestic steel industry. Have commenced production at Jambreiro
Slide 4: Company Structure
Company Structure Capital Structure ASX CODE : CTM Shares on Issue 133.5m Options* 15.7m Share Price $0.50 Market Capitalisation $66.7m Cash at bank (31 Dec 2011) $20.0m Debt NIL Enterprise Value $46.7m Shareholding Atlas Iron Ltd ** 19.9% Directors & Management 8% ** Atlas Iron Ltd is an Australian
Slide 5: Centaurus Metals Board & Key Personnel
Centaurus Metals Board & Key Personnel DIDIER MURCIA Non-Executive Chairman 25 years corporate and resource industry experience. RICHARD HILL Non-Executive Director Specialises in strategic, corporate and commercial 20 years resource industry experience as both a advice. Extensive iron ore experienc
Slide 6: Centaurus Metals Board & Key Personnel
Centaurus Metals Board & Key Personnel GEOFF JAMES CFO & Company Secretary Chartered Accountant and Chartered Secretary with over 20 years financial experience. Previously Chief Financial Accountant for Clough engineering. Retains strong knowledge of Australian listing rules and International Acco
Slide 7: Brazil
Brazil Latin America’s largest economy. Rapidly growing population (currently ~200 million). Over ~ 50% of population now considered middle class. ~4th largest car manufacturer. Predicted growth of 4-5% in 2012. Top 10 global steel producer (~ 39Mt). Brazil exports > 300Mt per annum of
Slide 8: Brazilian Iron Ore Market
Brazilian Iron Ore Market Unlike Australia, a large market for the consumption of iron ore is located alongside iron ore projects. Major steel companies, with steel mills within a 150km radius of Centaurus Metals’ projects have significant domestic production. Brazil Crude Steel Production (Mt)
Slide 9: Centaurus Metals' Projects
Centaurus Metals’ Projects 9
Slide 10: Domestic Iron Ore Business
Domestic Iron Ore Business “Supplying Iron Ore to Brazil’s Steel Mills” 10
Slide 11: Domestic Iron Ore Business
Domestic Iron Ore Business Targeting production from a number of low OpEx, low CapEx mines, in close proximity to established infrastructure. Centaurus Metals is working towards: production at a rate of 2mtpa by the end of 2013 growing to 3mtpa, to be sold into Brazil’s domestic steel mills fo
Slide 12: Itabirite Ore....
Itabirite Ore.... A major source of iron ore production in Brazil… Metamorphosed iron formation composed of iron oxides with abundant quartz. Iron Quadrangle itabirites typically comprise hematite. Lower ROM grade than other sources of hematite (averaging 30-50% Fe). Extremely well suited to
Slide 13: Domestic Production - Jambreiro
Domestic Production - Jambreiro 13
Slide 14: Jambreiro Iron Ore Project
Jambreiro Iron Ore Project Pre-Feasibility Study completed. Bankable Study Underway. 2Mtpa operation delivering a 66% Fe final product into domestic steel industry in SE Brazil Initial 8.5 year mine life based on friable Ore Reserve Life-of-mine operating cash costs of A$19.9/tonne of final
Slide 15: Jambreiro Iron Ore Project
Jambreiro Iron Ore Project Ore Reserves Prospect JORC Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Jambreiro Friable Proven 12.0 28.6 51.2 4.5 0.03 1.7 Probable 37.0 28.0 51.0 5.2 0.04 2.2 TOTAL 49.0 28.2 51.1 5.0 0.04 2.1 Cut-off 20% Fe Mineral Resources Prospect JORC Category Million T
Slide 16: Jambreiro Iron Ore Project
Jambreiro Iron Ore Project Product Quality Fe% SiO2% Al2O3% P% Mass Recovery % PROCESS – WET MAGNETIC SEPARATION FRIABLE ORE Head Grade 28.2 51.1 5.0 0.04 Beneficiated Product 66.6 2.8 0.7 0.02 37 COMPACT MINERALISATION Head Grade 25.0 55.9 2.2 0.07 Beneficiated Product 66.2 3.7 0.9 0.01 35 Semi p
Slide 17: Jambreiro - Pre-Feasibility Study Process Flowsheet
Jambreiro Iron Ore Project Pre-Feasibility Study Process Flowsheet 17
Slide 18: Key Pre-Feasibility Study Assumptions
Jambreiro Iron Ore Project Key Pre-Feasibility Study Assumptions Key Assumptions Ore Reserves 49.0 Mt Grade 28.2% Fe Mass Recovery per dry tonne 37.6% Reserve – Final Product 17.1 Mt Grade 66% Fe Waste Movement 46.0 Mt Total Material Movement 95.0 Mt Waste to Ore Ratio (LOM) 0.94 to 1 Production R
Slide 19: Jambreiro Site Layout
Jambreiro Iron Ore Project Site Layout Three pits and waste dump Processing Plant Administration Area Tailings Dam 19
Slide 20: Capital and Operating Costs
Jambreiro Iron Ore Project Capital and Operating Costs Capital Equipment Total (A$ M) A$66/t of annual production DIRECT COSTS capacity. Sizing & Screening 20.9 Beneficiation 38.4 Main processing in WHIMS Product Handling 10.0 circuit. Tails Management & Water Recovery 9.4 Water Supply 6.8 A
Slide 21: NPV Sensitivity Analysis
Jambreiro Iron Ore Project NPV Sensitivity Analysis Price (FOB Mine) 185.6 391.7 Foreign Exchange 241.3 359.8 Discount Rate 252.9 330.0 Operating Expenditure 261.0 316.4 Cap ital Expenditure 270.1 307.2 175 200 225 250 275 300 325 350 375 400 NPV (A$M) 2 Mtpa Case Post Tax – NPV (A$M) Variable -20
Slide 22: Resource Summary – Domestic Projects
Resource Summary – Domestic Projects Centaurus has assembled a strong project and resource base in Brazil of Itabirite mineralisation that upgrades to a high grade hematite product. Project M&I Component Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Jambreiro* 62% 116.5 26.8 51.6 4.50 0.04 1.70 Pass
Slide 23: Export Business
Export Business “Supplying Carbon Steel Products to the World Market” 23
Slide 24: Export Business
Export Business en CW serra do Lontra Fe | CV Rio Pardo F Minas Gerais i CN sambreiro Fe i CWittampe Fe Belo Horizonte CV) Passabem Fe
Slide 25: Export Business – Ilhéus Export Hub
Export Business – Ilhéus Export Hub Most Brazilian focussed iron ore companies have exploration targets of +1bn tonnes. Small projects close to key infrastructure have been overlooked. Centaurus is developing a tenement package around the Serra da Lontra Project that is less than 150 kilometre
Slide 26: Serra da Lontra Iron Ore Project
Serra da Lontra Iron Ore Project 26
Slide 27: Serra da Lontra Iron Ore Project
Serra da Lontra Iron Ore Project Mapping and sampling has shown a higher grade nature of itabirite mineralisation at Serra da Lontra. Average surface grade 45% to 47% Fe. 27
Slide 28: Serra da Lontra Iron Ore Project
Serra da Lontra Iron Ore Project Cornerstone of the Ilhéus Export Hub. 140 kilometres by sealed road from export port of Ilheus. Provides opportunity to start a relatively low capex export business at 1-2 Mtpa. Exploration Target – 30 to 50 Mt @ 35 to 45% Fe. Potential to produce 15 to 25
Slide 29: Centaurus - 2012 Activities
Centaurus- 2012 Activities In 2012 Centaurus Metals main areas of focus will be: Feasibility studies at the Jambreiro Project. LOI’s from domestic iron ore consumers. Progressing Environmental & Department of Mines approvals. Exploration drilling on other tenements around Jambreiro. Expl
Slide 30: Summary
Summary Strong results of Jambreiro Pre-Feasibility Study show excellent value equation for investors. Highly experienced team with strong global experience in the financing, development and operation of iron ore projects. Very supportive major shareholder experienced in delivery of low capex
Slide 31: Developing a Brazilian Iron Ore Business
Developing a Brazilian Iron Ore Business Contacts: Darren Gordon Peter Freund Managing Director Operations Director darren.gordon@centaurus.com.au peter.freund@centaurus.com.au (+618) 9420 4000 (+5531) 3262 2037
Slide 32: Appendices
APPENDICES ey CentaurusMetals
Slide 33: Jambreiro Reserve Summary by Deposit
Jambreiro Iron Ore Project Reserve Summary by Deposit. Prospect JORC Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Tigre Proven 12.0 28.6 51.2 4.5 0.03 1.7 Probable 25.7 27.8 51.7 4.9 0.04 1.9 TOTAL 37.7 28.0 51.6 4.8 0.04 1.9 Cruzeiro Proven Probable 4.5 31.0 49.1 3.9 0.04 1.8 TOTAL 4.5 31
Slide 34: Jambreiro Resource Summary by Deposit
Jambreiro Iron Ore Project Resource Summary by Deposit. Prospect JORC Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Tigre Measured 13.5 28.4 51.0 4.4 0.04 1.7 (Including South Indicated 44.3 27.1 51.3 4.1 0.04 1.6 East Extension) Measured + Indicated 57.8 27.4 51.2 4.2 0.04 1.7 Inferred 27.
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