Iron Road Ltd · ASX:IRD
Iron Road — Investor Presentation (June 2013)
25 slides from Iron Road's investor presentation, Jun 13, 2013
Slide 1: Entitlement Offer: Securing the Pathways to Production
For personal use only Entitlement Offer Securing the Pathways to Production Investor Road Show June 2013
Slide 2: Disclaimer
For personal use only Disclaimer Forward-Looking Statements This presentation contains forward looking statements concerning the projects owned by Iron Road Ltd. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates bas
Slide 3: Entitlement Offer Overview
For personal use only Entitlement Offer Overview Iron Road is undertaking a 1:1 non-renounceable entitlement offer to raise approximately $50.7 million (after expenses), at $0.18 per share (“Entitlement Offer”) • Entitlement Offer positions Iron Road to successfully transition to project financing a
Slide 4: Details of the Offer
For personal use only Details of the Offer • 1 for 1 non-renounceable Entitlement Offer to eligible shareholders raising approximately $50.7 million after expenses Structure • Issue of approximately 291 million shares • Offer price of $0.18 per New Share represents: Price • 21.1% discount to 60 day
Slide 5: Use of Funds (after expenses)
For personal use only Use of Funds (after expenses) Entitlement Offer total $50.7 million Central Eyre Iron Project DFS mining and processing studies $8.0 million Infrastructure studies, including rail, port, water and power requirements $13.0 million Marketing, other minor studies and study managem
Slide 6: Timeline
For personal use only Timeline Announcement of the Entitlement Offer Thursday, 13 June 2013 Ex-date Monday, 17 June 2013 Record Date (7pm AEST) Friday, 21 June 2013 Despatch of Offer booklet and Entitlement and Acceptance Forms Tuesday, 25 June 2013 Entitlement Offer opens Tuesday, 25 June 2013 Enti
Slide 7: Investment Highlights
For personal use only Investment Highlights CEIP Globally • Within top 20 magnetite projects worldwide significant project • Largest (Measured+Indicated) magnetite resource in Australia Robust resource • CEIP Resource stands at 3.7 billion tonnes at 16% iron* • Exploration target at CEIP of 2.8-5.7B
Slide 8: Iron Ore Market
For personal use only Iron Ore Market 8
Slide 9: The World Needs More Iron Ore
For personal use only The World Needs More Iron Ore Demand to 2020 China is expected to produce around • China continues to grow – rate slowing but 1 billion tonnes of steel per year by 2025, expected to be positive for the rest of the up from 735 million tonnes currently decade • Consumption off hi
Slide 10: Magnetite Operations
For personal use only Magnetite Operations • Have become the ‘black sheep’ of the Australian iron ore industry • Reputation impugned by DSO incumbents and failures of project management, not necessarily quality or size of deposit • Not all ores are created equal – WA’s difficult to process banded ir
Slide 11: Operations
For personal use only Operations 11
Slide 12: Central Eyre Iron Project
For personal use only Central Eyre Iron Project • Definitive Feasibility Study examining long life, 20Mtpa low technical risk operation • Very large Mineral Resources likely sufficient to support +25 years operation, plant and infrastructure funding requirements • Premium product for a growing marke
Slide 13: Large scale long life project
For personal use only Large scale long life project 3,000 Largest Measured+Indicated magnetite Mineral Resource in 2,500 Australia, underpins long life M+I Resources - tonnes (millions) operation: 2,000 • Mineral Resource 3.7 billion tonnes @ 16% Fe* Resource Category 1,500 Measured (tonnes) • Explo
Slide 14: Premium Grades, Lower Processing Costs
For personal use only Premium Grades, Lower Processing Costs 72 Comparison of Australian magnetite deposits VMC-Yalgoo CEIP high grade (higher revenue) 70 ARH-Balmoral coarse grind (higher margin) Concentrate Grade - % iron AGO-Ridley GRR-Southdown 68 GBG-Karara CXM-Bungalow CXM-Fusion ACS-Magnetite
Slide 15: CISRI Test Work Shows Excellent Results
For personal use only CISRI Test Work Shows Excellent Results • Bulk test programme at the prestigious China Iron & Steel Research Institute Group (CISRI), Beijing • Concentrate performs well in both sintering and pelletising • Product readily substituted for Brazilian Fines, Pilbara Fines or Chines
Slide 16: Economic and Competitive Advantages
For personal use only Economic and Competitive Advantages Mining Processing Rail Port Low strip ratio of 0.8:1 Common and proven Significantly shorter than Sheltered, deep location mechanical process Pilbara and Brazilian routes with short jetty = reduced Off-the-shelf technology capital cost Off-th
Slide 17: Deep Water Port
For personal use only Deep Water Port • Cape Hardy offers sheltered, deep water with no dredging or breakwater required • 1.6km modular jetty/wharf structure • 30Mtpa capacity at commissioning • Handymax, Panamax and Capesize capable • 1100ha land secured, potential third party access • Easy and cos
Slide 18: Gawler Iron Project
For personal use only Gawler Iron Project Potential for small 1-2Mtpa development that may provide early sustaining cash flows • Iron Road 90% • Average in situ grades ~25% iron, with higher grade zones of ~36% iron • Initial metallurgical study of several composite samples indicates excellent benef
Slide 19: Gawler Conceptual Plant Layout
For personal use only Gawler Conceptual Plant Layout • Modular plant layout, designed for rail transport • ~25km from Trans- Australian rail with connection to bulk ports • Dry process flow sheet, reducing costs • Tests indicate high quality iron concentrate with similar characteristics to CEIP 19
Slide 20: Timeline and CEIP Mineral Resource
For personal use only Tonnes - millions 0 1,000 2,000 3,000 4,000 Iron Road lists on the ASX Gawler farm-in in established CEIP drilling commences Studies Milestones CEIP maiden resource CEIP exploration target 2.8 2.8-5.8Bt Mineral Resources 51% ownership of Gawler Prefeasibility Timeline and CEIP
Slide 21: The Future for Iron Road
For personal use only The Future for Iron Road • Feasibility studies for both projects funded Feasibility Study funding secured • Provides Iron Road robust platform from which to engage with potential project partners and finance providers • Largest Measured+Indicated magnetite Mineral Resource in A
Slide 22: On the Road to Production
For personal use only On the Road to Production Subscribe to alerts online www.ironroadlimited.com.au 22
Slide 23: Appendices
For personal use only Appendices 23
Slide 24: CEIP Resource Statement
For personal use only CEIP Resource Statement CEIP Global Mineral Resource Tonnes Fe SiO2 Al2O3 P Location Classification (Mt) (%) (%) (%) (%) 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 Inferred 667 16 53 12 0.08 Boo-Loo Inferred 328 17 52 12 0.09 To
Slide 25: Risk Factors
For personal use only Risk Factors You should be aware that there are risks associated with an investment in Iron Road. These can be categorised as specific risks (that is, matters that relate directly to Iron Road’s business) and general risks (those that relate to the business in general). Some of