Slide 1: Expansion Study: Razorback High Grade Iron Ore Project
Expansion Study Razorback High Grade Iron Ore Project March 2022
Slide 2: Disclaimer
Disclaimer 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 certain statements which
Slide 3: Company Strategy
Company Strategy Staged Development of a new iron ore province - the Braemar South Australia Favourable Large Razorback Low-capital, long- Experienced team business setting resource with life development is systematically with growing iron world-class readily fundable assembling the ore demand, infr
Slide 4: Corporate Overview: Capital Structure
Corporate Overview 180 0.10 160 0.09 0.08 140 0.07 120 CAPITAL STRUCTURE Share price (A$) 0.06 Volume (m) 100 0.05 Shares 3,159 M 80 0.04 60 0.03 Unlisted 153.1M 40 0.02 Options (various – avg. 20 0.01 $0.03) - - Share Price* A$0.034 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec
Slide 5: The Braemar and Razorback: Large Resource, Long Life
Large Resource, Long Life The Braemar and Razorback LARGE, ACCESSIBLE MINERAL RESOURCES Company Mineral Resources of 5.7Bt including Muster Dam1,2,3,4 240km to Adelaide from Razorback. ESTABLISHED INFRASTRUCTURE NEARBY Heavy freight open access rail. High voltage powerlines connected to main
Slide 6: Lower-emissions steel from high-grade ore
The Iron Ore Market Fastmarkets iron ore index grade spreads (US$/tonne) Lower-emissions 60 steel from high- 40 grade ore 20 0 US$/t -20 “To succeed in decarbonizing the global steelmaking industry there needs to be a -40 greater recognition of how much the iron -60 ore supply base needs to change.
Slide 7: Unlocking the Braemar: Attractive, Staged Development Pathway
Unlocking the Braemar Attractive, Staged Development Pathway STAGE 1 STAGE 2 STAGE 3 15.5Mtpa plant capacity 31.0Mtpa plant capacity 46.5Mtpa plant capacity = 3Mtpa capacity = 5Mtpa capacity = 7Mtpa capacity A STAGED DEVELOPMENT APPROACH offering outstanding returns with future expansion options D
Slide 8: Expansion Study Overview
Expansion Study Key operational and financial metrics Overview Unit Staged Expansion Single-Step Expansion PFS Plant Optimised1 Iron ore price US$/t 110 110 110 (62% Fe) COMPLEMENTARY to the current DFS AUD:USD : 0.71 0.71 0.71 • DFS based on 3Mtpa of capacity and minimum upfront capital exchange
Slide 9: Leveraging Scale, Enhancing Value
Large Resource, Long Life Leveraging Scale, Enhancing Value Staged Expansion Single-Step Expansion IRR IRR IRR 25% 3,000 2,500 IRR 27% 38% $2,239m 33% $2,455m 2,500 2,000 IRR $684m 28% 2,000 NPV-8 (A$m) NPV-8 (A$m) 1,500 1,500 $1,795m IRR $895m 1,000 19% 1,000 IRR 19% 500 $660m 500 $660m - - Stage 1
Slide 10: Robust Economics
Significant Upside Potential Robust Economics 62% Fe iron ore price – US/t IRR % & all-in 62% breakeven price $250 $200 Stage 11 Stages 1-32 $150 31% 42% US$/t 19% 27% Long-term average = $110/t $100 Stage 1 - all-in 62% breakeven price = $53/t3 $50 Stage 3 - all-in 62% breakeven price = $40/t 20% 4
Slide 11: Geology
Geology RAZORBACK IRON ORE PROJECT 100km Braemar strike untested Simple dipping tabular body, outcropping Very consistent over kilometres of strike STRATIGRAPHY Whitten (1970) – Braemar 7 sedimentary packages. Units A-G Total thickness 480-780m Units A, B, D and G are economic interest
Slide 12: Mining
Mining Expansion mining schedules modelled ROM ore of 1.4 billion tonnes based on indicative and inferred resources 93% from Probable Ore Reserves in the first 10 years 83% from Indicated Mineral Resources over ~30-year mine life Life-of-mine strip ratio of 0.13 vs 0.10 despite triple the re
Slide 13: Processing
Processing [New logo] 15.5Mtpa processing module layout designed by Hatch with 3Mtpa production capacity Capital cost estimated to AACE Class 5 level Economies of scale and scope in capital and operating costs Product specifications unchanged from PFS studies A final product of P80 40 micr
Slide 14: Existing Infrastructure
Minimal Capital Crystal Brook-Broken Existing Infrastructure Hill railway connects to Whyalla Port Strong investment case for constructing a rail loop once in production Proposed rail loop to mine site Whyalla Port expected to have capacity for increased throughput ~40MVA Strong needed inves
Slide 15: Existing Infrastructure
Expansion Potential Existing Infrastructure GHD designed a rail loop and spur line tying into the ARTC-owned railway at Hillgrange enabling concentrate to be delivered directly from the plant to the Port of Whyalla. Rail capital costs estimated to AACE Class 5 level. Material savings in opex f
Slide 16: Power & Water
Expansion Potential POWER Power & Water Robertstown unable to support expansion without significant investment 275kV transmission line from Belalie High voltage supports Stages 2 & 3 and produces minimal line losses Access to competitive energy with high renewables content Several nascent
Slide 17: Environment, Social and Governance (ESG)
Expansion Potential Environment, Social and Governance (ESG) Power is anticipated to be sourced from the South Australian grid, forecast to be 97% renewables-powered by 20257, delivering an expected low scope 2 emissions profile. Premium high-grade product supports the steelmaking subsector targ
Slide 18: Next Steps
Next Steps Delivering Premium Iron Ore to High Demand Markets DELIVERING THE DFS - ADVANCE RAZORBACK FINANCE EXPANSION OPTIONALITY work programs underway DRILLING programs demonstrated Planning and Meeting key Future engagement of lender infrastructure key engineers Hydrology – requirements
Slide 19: Indicative Development Schedule
Indicative Development Schedule* 2021 2022 2023 2024 2025 Pre-Feasibility Study DFS – Funding DFS – Study Decision to Mine Project Financing Permitting, Enviro & Native Title Detailed Design Procurement Construction & Commissioning Production *Schedule subject to review as part of DFS currently unde
Slide 20: Delivering Premium Iron Ore to High Demand Markets
Delivering Premium Iron Ore to High Demand Markets LONG LIFE LOW INITIAL HIGH-GRADE DELIVERING with OPTIONALITY PROJECT CAPITAL PRODUCT Large 5.7bn tonne Staged Razorback First ore on ship 68% Fe product5 resource development with planned for late with expansion ESG advantages Higher than any 2024/e
Slide 21: Contact Details
Contact Details investor.relations@magnetitemines.com +61 8 8427 0516 1st floor, 22 Greenhill Road, Wayville SA 5034 Australia www.magnetitemines.com 21.
Slide 22: References
References 1. ASX Announcement – 24/05/21 – Razorback Iron Project Mineral Resource Upgrade 2. ASX Announcement – 20/11/18 – Ironback Hill Deposit – JORC 2012 Resource Update 3. ASX Announcement – 01/03/21 – Muster Dam Iron Project Tenements awarded to Magnetite Mines 4. ASX Announcement – 30/06/21
Slide 23: Appendix
Appendix MAGNETITE 23. MoioN c€ §
Slide 24: Board Members & Management
Board Members & Management Peter Schubert Mark Eames Malcolm Randall Jim McKerlie EXECUTIVE CHAIRMAN & CEO BA Metallurgy (Hons) MBA MAUSIMM Dip Applied Chem, FAICD BA Economics (Hons), Dip Fin Mgt TECHNICAL DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Peter was appointed Executive Mark has
Slide 25: Board Members & Management
Board Members & Management Paul White Stephen Weir Trevor Thomas Master of Business Administration B.Eng Hons (Mech), Grad Dip. Appl. Fin. SIA MEarthSci (Hons) MAIG, MAUSIMM NON-EXECUTIVE DIRECTOR CHIEF DEVELOPMENT OFFICER GENERAL MANAGER (GEOLOGY) Paul has a track record of driving Most recently St
Slide 26: Lid
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