Equatorial Resources Limited · ASX:EQX
Equatorial Resources — Mines and Money Hong Kong 2014
25 slides from Equatorial Resources's conference presentation, Mar 25, 2014
Slide 1: Company Presentation - ASX Release
For personal use only ASX: EQX | 25 MARCH 2014 | ASX RELEASE COMPANY PRESENTATION Attached is a Company Presentation to be delivered by John Welborn, Managing Director and CEO as part of his address today at Mines and Money Hong Kong 2014. For further information contact: John Welborn Managing Direc
Slide 2: The Iron Future of Africa
For personal use only THE IRON FUTURE OF AFRICA Mines and Money Hong Kong March 2014
Slide 3: Competent Persons Statements and Cautionary Statements
COMPETENT PERSONS STATEMENTS AND CAUTIONARY STATEMENTS For personal use only Slide 2
Slide 4: Equatorial's Iron Footprint in Republic of Congo
EQUATORIAL’S IRON FOOTPRINT IN REPUBLIC OF CONGO For personal use only Exploring and developing 100% owned iron projects Large footprints in key iron clusters in Africa Clear pathway to production from Mayoko‐ Moussondji at very low capital intensity Massive regional potential at Badondo Experi
Slide 5: An Iron Future for Africa
AN IRON FUTURE FOR AFRICA For personal use only Africa has high quality, massive scale projects that can displace seaborne supply in any market Projects with existing pathways to market and potential for staged development are emerging as regional leaders Equatorial is extremely well placed to su
Slide 6: It Is "When" Not "If" for Africa
IT IS “WHEN” NOT “IF” FOR AFRICA For personal use only Slide 5
Slide 7: Bienvenue a Congo-Brazzaville!
BIENVENUE A CONGO‐BRAZZAVILLE! For personal use only • Rapid development of major infrastructure • Stable “oil country” actively growing its mining sector • Former French colony, 50 years of independence • Oil majors Total, Eni, and Chevron operating for 30+ years, currently investing over US$2.5Bn
Slide 8: Mining in the Republic of Congo
MINING IN THE REPUBLIC OF CONGO • Major miners now invested For personal use only in Republic of Congo • Mining sector is central to the government’s Economic Diversification Program (Chemin d’Avenir) • Mining code adopted in 2005 • Favourable fiscal terms for miners • 3% Royalty on Revenues • 10% g
Slide 9: Mayoko-Moussondji Iron Project
MAYOKO‐MOUSSONDJI IRON PROJECT For personal use only NEAR TERM PRODUCTION FROM MAYOKO PREMIUM FINES WITH ACCESS TO EXISTING INFRASTRUCTURE Slide 8
Slide 10: Mayoko-Moussondji Project Advantages
MAYOKO‐MOUSSONDJI PROJECT ADVANTAGES For personal use only • 917 million tonne Total JORC Resource LARGE IRON ORE 917Mt • Near surface Hematite Resource of 182 million tonnes RESOURCE JORC • 2,680 km2 licence area, largest footprint of land in Mayoko region • Only 21km drilled of 47km of identified
Slide 11: Mayoko-Moussondji Updated Mineral Resource Estimate
MAYOKO‐MOUSSONDJI UPDATED MINERAL RESOURCE ESTIMATE For personal use only • Current JORC Mineral Resource Estimate (Hematite and Magnetite) of 917 MILLION TONNES at 31.4% Fe • Includes near surface JORC Hematite Resource of 182 MILLION TONNES at 35.7% Fe Mayoko‐Moussondji Iron Project Indicated and
Slide 12: Access to Existing Transport Infrastructure
ACCESS TO EXISTING TRANSPORT INFRASTRUCTURE For personal use only Commercial frameworks in place for use of the state‐owned transport infrastructure Government has confirmed Equatorial’s access agreements RAIL • Operational railway line intersects the project and leads directly to the port of Poin
Slide 13: Simple Processing Required for High Grade Product
SIMPLE PROCESSING REQUIRED FOR HIGH GRADE PRODUCT For personal use only Simple Flow Sheet: Mayoko Premium Fines – 64.1% Fe Slide 12
Slide 14: High Grade Product: Mayoko Premium Fines
HIGH GRADE PRODUCT: MAYOKO PREMIUM FINES For personal use only • Simple upgrading of near surface hematite produces a premium fines iron product of 64.1% Fe (“Mayoko Premium Fines”) • Standard processing techniques with low technical risk • Mayoko Premium Fines compares favourably with Australian pr
Slide 15: Scoping Study Highlights
SCOPING STUDY HIGHLIGHTS For personal use only • Expected operating cash costs of US$41.43/t FOB Pointe‐Noire Slide 14
Slide 16: Scoping Study Highlights
SCOPING STUDY HIGHLIGHTS For personal use only • Total capital required for 2Mtpa of US$231m Slide 15
Slide 17: A Pathway to Production
A PATHWAY TO PRODUCTION ESIA completed and lodged For personal use only Mining Licence Application completed and lodged Work with government to secure all required permitting for production Secure a strategic partnership and development financing • Project equity available • Leasing opportunity
Slide 18: Badondo Iron Project
BADONDO IRON PROJECT For personal use only STRATEGIC LARGE SCALE ASSET WITH DIRECT SHIPPPING ORE POTENTIAL Slide 17
Slide 19: Congo Craton: The Emerging New Iron Cluster
CONGO CRATON: THE EMERGING NEW IRON CLUSTER For personal use only • Badondo is strategically located within the emerging cluster of the Congo Craton iron projects: • 90km from Sundance Resources’ Mbalm Project (775Mt @ 57%Fe) • 40km from Core Mining’s Avima Project (580Mt @ 60%Fe) • 45km from Gabone
Slide 20: Badondo: Massive Potential for Exploration Upside
BADONDO: MASSIVE POTENTIAL FOR EXPLORATION UPSIDE For personal use only • Over 22km of prospective iron strike identified within three distinct target prospects • Initial drilling confirmed high grade hematite cap up to 66% Fe • Thick and extensive enriched hematite blanket identified • Significant
Slide 21: A New Pilbara in Africa
A NEW PILBARA IN AFRICA For personal use only Hammersley Basin ‐ Pilbara Congo, Cameroon Craton • The development of transport infrastructure in the Congo Craton will unlock the massive value of iron resources in the region similar to Australia’s Pilbara • The Pilbara currently produces >500Mtpa usi
Slide 22: Capital Structure
CAPITAL STRUCTURE For personal use only EQUATORIAL RESOURCES LTD (ASX: EQX) As at 24 March 2014 Current Issued Capital 122.2 million shares Fully Diluted 125.3 million shares Market Capitalisation (Undiluted @ A$0.55) A$67.2 million Cash at 31 December 2013 A$45.4 million TOP 20 SHAREHOLDERS 76.5% 1
Slide 23: Equatorial Team at Mayoko
EQUATORIAL TEAM AT MAYOKO For personal use only Slide 22
Slide 24: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM For personal use only Highly respected resource executive with extensive finance, commercial and capital markets experience. Founder Ian Middlemas and Chairman of Mantra Resources Limited which was acquired by ARMZ for $1.1Bn in 2012. Current Chairman of Chairman Papillio
Slide 25: For personal use only
For personal use only Perth: London: Pointe‐Noire: Brazzaville: Level 2, BGC Centre, 28 The Esplanade Suite 1C, 38 Jermyn Street 03 Avenue de Loango Rue Loth Perth, WA 6000, Australia London, SW1Y 6DN 2eme Etage, Ndjindji Quartier Télévision GPO Box 2519, Perth, WA 6831 United Kingdom Arrondissement
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