Iron Road Ltd · ASX:IRD
Iron Road — SAREIC 2017
22 slides from Iron Road's conference presentation, May 23, 2017
Slide 1: Central Eyre Iron Project – The Final Steps
Good morning Ladies & Gentlemen, it is wonderful be here, to talk at SAREIC again. • We have just 20 minutes for an update on a very large development with many interesting facets, so I will give you a brief overview and highlight a few recent advances that point to us now being very close to the fi
Slide 2: Notice
Notice Forward Looking Statements This announcement contains certain statements with respect to future matters which may constitute "for subject to inherent risks and uncertainties which could cause actual values, results, performance or out Investors are cautioned that such statements are not guara
Slide 3: Overview of the Central Eyre Iron Project
Before I talk about out latest advances, allow me to give a very brief overview of the Central Eyre Iron Project • The Project is located on the Eyre Peninsula and provides for a complete mine to customer solution. It consists of three major components, namely: • The mine and beneficiation plant at
Slide 4: The Mine, Infrastructure Corridor and Port
• The Mine comprises • a large open pit (7.0km long, from here to the other side of the airport, and 4.0km at its widest) • In Pit Crushing and Conveying - primary crushing is moved into the pit and replaces a lot of trucks with conveyors - this means very efficient mining operations • beneficiation
Slide 5: Major Project Facilitation and Approvals
The Central Eyre Iron Project: • Enjoys Major Project Facilitation from the Federal Government and is the only project of any kind in SA to do so • Is listed as a Priority Project for the nation by Infrastructure Australia – the only “Opportunity for growth” Project; and • The infrastructure compone
Slide 6: Construction partner, offtake MoUs and Emerald Grain
• The China Railway Group (CREC) • Our construction partner – a strategic co-operation agreement includes a Project Commercialisation Programme with the aim to finalise a whole-of-project financing solution • Shan Steel • Signed MoUs with five leading Chinese steel mills for offtake including Shando
Slide 7: Studied, understood and addressed the project
• We listed IRD on the ASX in June 2008, • and have methodically and diligently pushed the CEIP towards development. • We have studied, understand and addressed the project’s strengths and weaknesses, and have exploited its natural advantages • DFS – supported by optimisation study • In 2014 Infrast
Slide 8: Partnerships: China Railway Group
Onto partnerships. • While studying the CEIP, we have also looked into who might be good partners to assist in the funding, construction and operating tasks. • The first project partner I will introduce today is China Railway Group Limited (or CREC). 8
Slide 9: CREC built Beijing International Terminal 3
Some of you would have seen CREC’s work first hand • CREC designed and built the Beijing International Terminal 3, with a contract value of around USD$4B 9
Slide 10: CREC built the Qinghai-Tibet Railway Line
CREC recently completed construction of the Qinghai-Tibet Railway Line • Almost 2,000km total length, more than half of which is over 4,000m above mean sea level • Contract value about USD$5B 10
Slide 11: CREC built the Hangzhou Bay Bridge
And CREC designed and constructed the Hangzhou Bay Bridge • At 36km, it is the longest cross-ocean bridge in the world which shortened the the highway travel distance between Ningbo and Shanghai from 400 km to 280 km, reducing travel time from 4 to 2.5 hours. • Opened to traffic in May 2008, the S s
Slide 12: Strategic Cooperation Agreement signing ceremony
The Strategic Cooperation Agreement signing ceremony gave Iron Road chairman Dr Peter Cassidy the opportunity to explain Iron Road’s vision to various dignitaries. 12
Slide 13: Partnership with Shandong Iron & Steel
The second partnership is with Shandong Iron & Steel, or ShanSteel… Four other agreements with steel mills and good relationships and interest from others 13
Slide 14: Partnership with Emerald Grain
The third partnership is with Emerald Grain, one of the largest grain marketing and supply chain businesses in Australia. • Emerald is a wholly owned subsidiary of Sumitomo, one of Japan’s most respected companies; • Emerald and Iron Road are working together to assess opportunities in utilising the
Slide 15: Primary State Project Approvals complete
• Primary State Project Approvals, as I have mentioned, are now complete. • We expect final Commonwealth EPBC approval soon. 15
Slide 16: Bank letters of intent and iron ore market
We are fortunate to have secured letters of intent from three of the world’s largest banks for the project debt financing • ICBC and CCB – the world’s largest and second largest banks respectively; and • CDB – China’s policy bank. • These talks are progressing well and we look forward to closing the
Slide 17: Discounts and premiums for ore quality
• Discounts for lower quality and premiums for higher quality ores, like Iron Road’s high quality concentrate, are increasing. • China, the largest market for iron ore, has made significant steps to improve its environment and strengthen its industrial base. • This has resulted in tightening environ
Slide 18: Third party access to the port
One of Iron Road’s objectives is to bring broad and tangible benefits to the region’s communities and businesses. One way we can achieve this is through third party access to the port. • We have recently completed a “Request for Preliminary Interest”, managed by Regional Development Australia, seeki
Slide 19: Cape Hardy grain draw versus Port Lincoln
Iron Road operates in an established agricultural region. We have no doubt that the proposed port and rail infrastructure is capable of facilitating a modern, efficient and internationally competitive grain distribution and supply chain network – something the EP sorely needs. • More than 80% of gra
Slide 20: Our next steps
Our next steps include: • Selecting local construction partners • Finalising project financing • Acquiring secondary Government approvals • And finalising our operational readiness planning. Put simply, this is a real project, with real momentum, heading into our final steps to production. Thank you
Slide 21: CEIP Ore Reserve Summary
EIP Ore Reserve Sum y Metric Tonnes Fe SiO. Resource Classification a (Mt) (%) (%) Proved 2,131 15.55 53.78 Probable 1,550 14.40 58.58 Total 3,681 15.07 53.70 Al,O; (%) 12.85 12.64 12.76 The Ore Reserves estimated for CEIP involving mine planning is based on and fairly represents information and sup
Slide 22: Appendix: CEIP Global Mineral Resource
Appendix Table CEIP Global Mineral Resource nnes - J cin | cmaten | Trt |g |S |e 0 06) Measured 2,222 15.69 53.70 12.84 0.08 Murphy South/Rob Roy Indicated 474 15.6 53.7 12.8 0.08 4.5 Inferred 667 16 53 12 0.08 43 Boo-Loo/Dolphin Indicated 796 16.0 Gyeks} 12.2 0.07 0.6 Inferred 351 17 53 12 0.09 0.7