Image Resources Nl · ASX:IMA
Image Resources Nl — Investor Presentation (February 2019)
28 slides from Image Resources Nl's investor presentation, February 2019
Slide 1: Boonanarring Mineral Sands Project Investor Presentation February 2019
1 Boonanarring Mineral Sands Project 100%-owned; high-grade; zircon-rich 80km north of Perth in Western Australia On-track for positive cashflow end 1st QTR 2019 Investor Presentation February 2019 Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statements
Forward Looking Statements 2 This presentation has been prepared by the management of Image Resources NL ("Image”, “IMA“ or the ‘Company’) in connection with meetings with investors and potential investors and not as specific advice to any particular party or person. The information is based on publ
Slide 3: Investor Snapshot
Investor Snapshot 3 Company transitioning to profitable miner and realisation of full valuation Company fully funded to positive cashflow Project construction and commissioning complete 30 Nov 2018 • ‘on-budget’ and ‘on-schedule’ Production commenced 1 Dec 2018 First bulk shipment HMC produc
Slide 4: Investor Snapshot: Supply Shortage of Zircon
Investor Snapshot 4 Company transitioning to profitable miner at a time of supply shortage of zircon Binding off-take agreements in place for 100% of HMC production for life of mine Project NPV A$235 million1; IRR 125%1; 13 month payback1 metrics have strengthened with 12% zircon price rise on
Slide 5: Products and Applications: Zircon
Products and Applications 5 Key products are zircon and titanium dioxide Zircon sand is processed into zirconium compounds, intermediate products and zirconium metal for a variety of applications; Ceramics (tiles); 55% demand Foundry Sands (castings); 14% Refractories (furnace linings); 10%
Slide 6: Products and Applications: Titanium Dioxide
Products and Applications 6 Key products are zircon and titanium dioxide Titanium dioxide (TiO2) from rutile and ilmenite is processed into titanium based products and titanium metal for a variety of applications; Ultra-white pigments (paint, paper, plastic); ~90% demand Welding rods (flux coa
Slide 7: Project Location
Project Looking Forward LocationStatement 7 LOCATION North Perth Basin in Western Australia 80 km north of Perth CBD Proven mineral sands address Including majors Iluka and Tronox Infrastructure rich paved roads, power, gas pipeline water, telecommunications etc. Local communities an
Slide 8: Project Types and Locations
Project Types and Locations 8 1,000 km2 tenements portfolio Atlas Ore Reserves 100% focus on mineral sands Probable: 9.5Mt @ 8.1% HM Strandline projects (dry mining) Dredge mining prospects Boonanarring Ore Reserves Proved: 9.3 Mt @ 8.6% HM Multiple opportunities for a second Probable: 10.5M
Slide 9: Ore Reserves
Ore Reserves Forward Looking Statement 9 QUALITY ORE RESERVES JORC Code (2012) Compliant High HM, VHM and very high zircon at Boonanarring High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmen
Slide 10: Ore Reserves Comparison
Ore Reserves Forward LookingComparison Statement 10 IMAGE X Source: TZMI; May 2017
Slide 11: Project Capital Comparison
Project ForwardCapital LookingComparison Statement 11 Source: TZMI; May 2017
Slide 12: Products and Prices
Products and Prices 12 Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product.
Slide 13: Bankable Feasibility Study
Bankable Forward Feasibility Looking Study Statement 13 Base Assumptions Start mining at Boonanarring Dry, open-cut mining Production rate - 500 dry tonnes per hour • 3.7M dry tonnes per year Conventional gravity separation using spirals Product: Heavy Mineral Concentrate (HMC) • Productio
Slide 14: Boonanarring – Production Statistics
Boonanarring – Production Statistics 14 Average annual production at Boonanarring (5 yrs) 240k tonnes HMC; containing; • 60kt zircon (70kt/year in 2019-20) • 130kt ilmenite • 6kt rutile • 4kt leucoxene 5.5 years mine life with ability to add 3-4 years additional ore reserves
Slide 15: Boonanarring – BFS Production Statistics
Boonanarring – BFS Production Statistics 15 Boonanarring Project Production Forecast - updated July 2018 2018 2019 2020 2021 2022 2023 Total Ore processed (Kt) 700 350 3,600 3,800 3,700 3,800 3,500 19,100 Ore grade (%HM) 6% 7% 8% 11% 6% 8% 11% 8% Assemblage (% of HM) 42.7 270.0 429.4 207.2 285.0 378
Slide 16: Boonanarring – BFS Project EBITDA
Boonanarring – BFS Project EBITDA 16 Boonanarring Project EBITDA Summary - updated July 2018 (AU$million) 2018 2019 2020 2021 2022 2023 Total Revenue 5 0 127 181 100 139 101 653 Revenue/tonne HMC 455 0 580 566 526 604 439 544 Operating Costs Mining 18 46 43 42 42 35 226 Processing 1.2 7 7 7 7 8 37 S
Slide 17: Boonanarring – Ramp-up Production
Boonanarring – Ramp-up Production 17 December 2018 Operating Statistics Jan. Jan. Prelim. Prelim. (TBC) (TBC)
Slide 18: Zircon Prices Actual and Forecast
Forward Looking– Statement Zircon Prices Actual and Forecast 18 Current price for Tronox premium grade zircon
Slide 19: BFS Financial Metrics
BFS Financial Forward LookingMetrics Statement 19 Key Financial Metrics Original BFS1 Updated BFS2 Updated BFS3 Pre-Tax NPV (@ 8%) A$135M A$197M A$235M Pre-Tax IRR 64% 104% 125% Payback period (months) 22 16 13 Mine life 8+ years Project capital cost A$52M includes ~$8M for land 1 - ASX
Slide 20: Project Development Schedule
Project Development Schedule 20 Constructed to schedule/budget with first production in 4th QTR 2018 Simplified Boonanarring Project Construction Schedule - (high level) 2018 2019 May Mar Mar Aug Nov Dec Apr Feb Feb Sep Oct Jun Jan Jan Jul WCP & Equipment Relocation Project Construction Pre-Strippin
Slide 21: Upside Potential
UpsideLooking Forward Potential Statement 21 Upside potential at and near Boonanarring Confirmed potential to extend mine life with high grade mineralisation (ASX announcement 13 March & 26 June 2017); Assuming mineralisation in extension area is identical to known Ore Reserves in all aspects an
Slide 22: Boonanarring High-Grade Extension
Boonanarring High-Grade Extension 22 ASX - 13 March & 26 June 2017 New Drilling Results (Feb 2017) Confirm 5.6km northern extension of Boonanarring mineralisation Outstanding high grade intersections: 8m @ 23.8% HM in IX00245 8m @ 21.1% HM in IX00244 and 8m @ 16.3% HM in IX00250 Importantl
Slide 23: Projects – Strand Deposits
Projects – Strand Deposits PyramidStatement Forward Looking 23 Mineral Resources – Accessible by Dry Open-Cut Mining Projects ranked by combined Zircon (Zr) plus Rutile (Ru) BFS assumes mining at Boonanarring Tonnes-grades are for Mineral Resources; Boonanarring and Atlas per JORC Code (2012); follo
Slide 24: Projects – Dredge Prospects
Projects – Dredge Prospects PyramidStatement Forward Looking 24 Mineral Resources – Accessible by Dredge Mining Projects ranked by HM Grade Positive attributes • 90+%VHM; • <5% slimes; Tonnes-grades are for historic Mineral Bidaminna • 25-67% Leucoxene; Resources per JORC Code (2004). 45Mt; 3.0%HM;
Slide 25: Potential Royalty from Tronox
Potential Royalty from Tronox 25 Royalty agreement in place as of 2014 Small cash payment (already received) Sliding-scale royalty on production Avg. HM Grade Royalty 2.5% 1.25% 3.0% 2.50% 3.5% 3.75% 4.0% 5.00% Indefinite production schedule Potential for future arrangements with Tronox or o
Slide 26: Image Corporate Snapshot
Image Corporate Snapshot 26 Diverse and experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.15* Bob Besley – Independent Chairman 12-Month Price Range: A$0.07– 0.17 Patrick Mutz – Managing Director Shares on Issue: 957m Chaodian Chen - Non-Executive Director Market Cap
Slide 27: Use of Solar Energy
Use of Solar Energy 27 Heads of Agreement with Sunrise Energy Group Pty Ltd to provide 3-4 MWAC solar farm to be: Constructed and operated by Sunrise Energy; Located on Image owned land adjacent to Boonanarring mine site; and Providing 25% of total electricity requirements for mine and process
Slide 28: Contact
Contact For further information 28 Patrick Mutz Managing Director Image Resources NL info@imageres.com.au Office: +61 8 9485 2410 Ground Floor, 23 Ventnor Avenue West Perth, WA 6005 PO Box 469, West Perth, WA 6872 www.imageres.com.au
Image Resources NL — Investor Presentation (February 2019) on 6ix