Centaurus Metals Limited · ASX:CTM
Centaurus Metals — Mines and Money Conference Hong Kong 2012
29 slides from Centaurus Metals's conference presentation, Mar 20, 2012
Slide 1: ASX cover letter - Corporate Presentation
20 March 2012 For personal use only Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam CENTAURUS METALS LIMITED (ASX CODE: CTM) CORPORATE PRESENTATION Please find attached the latest investor presentation which will be delivered at the Mines and Money Conference
Slide 2: Centaurus: Powering towards production
Darren Gordon, Managing Director For personal use only Centaurus: Powering towards production Emerging iron ore producer in Brazil 2Mtpa domestic production by end 2013 1-2Mtpa export business by end 2014 March 2012 Investor Presentation Page 1
Slide 3: Disclaimer
Disclaimer • This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, For personal use only solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentat
Slide 4: Overview
Overview • Building a long-term iron ore business in SE Brazil For personal use only • Developing low capital/operating cost mines • Leveraging off existing Road & Port infrastructure • Phase 1 production – domestic supply to Brazilian steel mills: • Jambreiro Project (Minas Gerais) = 2Mtpa by end 2
Slide 5: The Low Capex Path to Iron Ore Production
The Low Capex Path to Iron Ore Production For personal use only ? Page 4
Slide 6: Brazil – Latin America's Economic Powerhouse
Brazil – Latin America’s Economic Powerhouse For personal use only • World economic ranking: 8th • Ranking in Latin America: 1st • GDP growth (2011) 2.7% • GDP growth forecast (2012): 4.5% • Population: ~205M • Foreign Direct Investment (2011): US$67B • Iron ore production: >300Mtpa • Steel producti
Slide 7: Brazilian Iron Ore Market
Brazilian Iron Ore Market • Large domestic market for iron ore consumption – in close proximity For personal use only to iron ore mines (unlike Australia) • Domestic iron ore consumption to rise by 32% by 2021 • Major steel companies, with steel mills within a 150km radius of Centaurus Metals’ proje
Slide 8: Project Hubs – The Epicentre of Brazil's Economy
Project Hubs – The Epicentre of Brazil’s Economy For personal use only Page 7
Slide 9: Centaurus Metals' Projects
Centaurus Metals’ Projects For personal use only • 165Mt resource base – three projects • Cornerstone – Jambreiro Project (116.5Mt) • Future growth potential – Passabem, Itambé Page 8
Slide 10: Itabirite Ore...A Major Source of Iron Production in Brazil
Itabirite Ore...A Major Source of Iron Production in Brazil For personal use only • Metamorphosed iron formation composed of iron oxides with abundant quartz • Iron Quadrangle itabirites typically comprise hematite • Lower mine grade than other sources of hematite (averaging 30-50% Fe) • Extremely w
Slide 11: Jambreiro – Overview
Jambreiro – Overview For personal use only Page 10
Slide 12: Jambreiro – Overview
Jambreiro – Overview • Cornerstone of domestic iron ore business For personal use only • Located 130km from key steel-making region of Ipatinga (Usiminas, Arcelor Mittal) • Feasibility Study underway – due Q3 2012 • Targeting production of 2Mtpa @ 66% Fe by Q4 2013, growing to 3Mtpa • Aiming to be c
Slide 13: Jambreiro – Key Project Economics (November 2011 PFS)
Jambreiro – Key Project Economics (November 2011 PFS) For personal use only • Operating costs: A$19.9/tonne • EBITDA: A$858 million • Annual operating cash flows A$101 million • Post-tax NPV: A$289 million • IRR: 53% • Pre-production capital: A$132 million • Assumed sales price: US$73/tonne Page 12
Slide 14: Jambreiro – Plant Layout and Process Design
Jambreiro – Plant Layout and Process Design For personal use only • Initial mine life: 8.5 years • Strip ratio: 0.94:1 • Production rate: 2Mtpa Process Flowsheet Page 13
Slide 15: Jambreiro – Capital and Operating Costs
Jambreiro – Capital and Operating Costs Capital Equipment Total (A$ M) For personal use only DIRECT COSTS Sizing & Screening 20.9 Beneficiation 38.4 • A$66/t of annual Product Handling 10.0 production capacity Tails Management & Water Recovery 9.4 Water Supply 6.8 • Main processing is WHIMS Power Su
Slide 16: Jambreiro – Product Quality
Jambreiro – Product Quality For personal use only Mass PRODUCT QUALITY Fe% SiO2% Al2O3% P% 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
Slide 17: Timeline – Jambreiro Development
Timeline – Jambreiro Development 2012 2013 2014 For personal use only BFS Complete Commence Off Site On Site Construction Production Pre-Fabrication Commences Commences Lodge Mining Project Financing Lease Application In Place Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar L
Slide 18: Project Hubs
For personal use only Page 17 Project Hubs
Slide 19: Serra da Lontra Iron Ore Project
Serra da Lontra Iron Ore Project For personal use only 140km Page 18
Slide 20: Serra da Lontra Iron Ore Project
Serra da Lontra Iron Ore Project For personal use only • 140km by sealed road from export port of Ilheus and proposed development of Porto Sul • Provides opportunity to start a relatively low capex export business at 1-2 Mtpa • Exploration Target = 30-50 Mt @ 35 to 45% Fe • Potential to produce 15-2
Slide 21: Serra da Lontra Iron Ore Project
Serra da Lontra Iron Ore Project For personal use only • Mapping and sampling has shown a higher grade nature of itabirite mineralisation at Serra da Lontra • Average surface grade 45-47% Fe Page 20
Slide 22: Company Structure
Company Structure Capital Structure Centaurus Metals Board For personal use only Shares on Issue 133.5m Didier Murcia Non-Executive Chairman Options 16.6m Darren Gordon Managing Director Share Price $0.55 Peter Freund Operations Director Market Capitalisation $73.4m Keith McKay Non-Executive Directo
Slide 23: Centaurus Key Personnel
Centaurus Key Personnel Geoff James – CFO & Company Secretary For personal use only Klaus Petersen – Chief Geologist – New Projects Alexandro de Moura – GM – Operations Bruno Scarpelli – GM – Environmental & OH&S Roger Fitzhardinge – GM – Exploration & Evaluation Luiz Carlos Noronha Jr. – Legal Coun
Slide 24: Summary
Summary • Domestic production strategy on track – BFS underway on Jambreiro Project For personal use only • Targeting maiden production by Q4 of 2013 • Export strategy gathering momentum – maiden drilling program underway at Serra da Lontra • Ability to leverage off existing common-user port infrast
Slide 25: Contact Details
Centaurus: Powering towards production Darren Gordon, Managing Director For personal use only CONTACT DETAILS: Registered Office: Level 1, 16 Ord Street, West Perth, Western Australia 6005 Telephone: +61 8 9420 4000 Email: office@centaurus.com.au Page 24
Slide 26: Jambreiro – Price Sensitivities
Jambreiro – Price Sensitivities • NPV Sensitivity Analysis For personal use only 2 Mtpa Case Post Tax – NPV (A$M) Variable -20% -10% Base +10% +20% -20% -10% Base +10% +20% Price (FOB Mine) USD/dmt 58 66 73 80 88 185.6 237.1 288.7 340.2 391.7 Capital Expenditure ($M) 158 145 132 118 105 270.1 279.4
Slide 27: Jambreiro – Resources
Jambreiro – Resources • Mineral Resources For personal use only Prospect JORC Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Friable Measured 12.1 28.6 51.2 4.6 0.03 1.7 Indicated 39.9 27.9 51.1 5.3 0.04 2.2 Measured + Indicated 52.1 28.0 51.1 5.1 0.04 2.1 Inferred 15.0 24.9 55.2 5.3 0.04 2.1
Slide 28: Jambreiro Iron Ore Project – Reserve Summary by Deposit
Jambreiro Iron Ore Project • Reserve Summary by Deposit For personal use only 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
Slide 29: Jambreiro Iron Ore Project – Resource Summary by Deposit
Jambreiro Iron Ore Project • Resource Summary by Deposit For personal use only 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
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