Slide 1: Australia's newest mineral sands miner
For personal use only Australia’s newest mineral sands miner Boonanarring Mineral Sands Project ResourceStocks Sydney 2019 Perth, WA 30 Sep – 1 Oct 2019 Patrick Mutz Managing Director Image Resources NL ASX: IMA 1
Slide 2: Disclaimer and Forward Looking Statements
Disclaimer and Forward Looking Statements For personal use only This presentation/document has been prepared by the management of Image Resources NL ("Image”, “IMA“, or “the Company”). The information presented includes an indicative outlook of the business activities of Image for the calendar year
Slide 3: Boonanarring Mineral Sands Project: Very strong asset fundamentals
Boonanarring Mineral Sands Project For personal use only Very strong asset fundamentals Excellent location; • 80km north of Perth in Western Australia in infrastructure-rich North Perth Basin • home to majors Iluka and Tronox Exceptional deposit; • Very high ore grade 7.2%HM • Zircon-rich 22.7%
Slide 4: Simple, low-risk business model
Boonanarring Mineral Sands Project For personal use only Simple, low-risk business model Straight-forward open-cut dry mining; • Contract mining by one of the best-known, experienced and well-equipped operators in Australia (Piacentini & Son) Simple gravity separation circuit to produce heavy mi
Slide 5: Stellar project delivery
Boonanarring Mineral Sands Project For personal use only Stellar project delivery Project constructed on-time & on-budget Simplified Boonanarring Project Construction Schedule - (high level) • Rapid build; 8 months construction 2018 2019 May Nov Mar Mar Aug Dec Feb Apr Sep Feb Oct Jan Jun Jan Jul
Slide 6: Unexpected positives
Boonanarring Mineral Sands Project For personal use only Unexpected positives Heavy mineral (HM) ore grade 43% higher than forecast in 1H 2019 • High grade core identified in eastern strand not appropriately delineated by 20m drill spacings • Eastern strand redrilled on 5m spacings • Upgraded Ore
Slide 7: Market Guidance and Forecast
Market Guidance and Forecast For personal use only Market Guidance CY 2019 Guidance • Initial, Feb 2019 EBITDA $40-50M • Updated, July 2019 EBITDA $55-65M CY 2020 BFS Forecast, EBITDA $90-100M Financial model to be updated based on new Ore Reserve estimate in Q4 • Ore grade and zircon content
Slide 8: Corporate Snapshot
Corporate Snapshot For personal use only Diverse and Experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.27* Bob Besley – Independent Chairman 12-Month Price Range: A$0.10-0.30 Patrick Mutz – Managing Director Shares on Issue: 964m Chaodian Chen - Non-Executive Directo
Slide 9: Project Types and Locations
Project Types and Locations For personal use only 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 Multiple opportunities for a second Boonanarring Ore Reserves stand-alone mining p
Slide 10: Ore Reserves
Ore Reserves For personal use only HIGH-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 Ilmeni
Slide 11: Product Assemblage and Revenue Contributions
Product Assemblage and Revenue Contributions For personal use only Notes: VHM assemblage and commodity prices are estimates based on actual operational results and 2Q 2019 commodity price assumptions. 11
Slide 12: Target Production Rate
Target Production Rate For personal use only 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) • Production rate: avg
Slide 13: Boonanarring HMC Production Stats
Boonanarring HMC Production Stats For personal use only Average annual production at Boonanarring: 5 Year Base Case Avg. 240k tonnes HMC per annum containing: • 60kt zircon (70kt/year in CY2020) • 130kt ilmenite • 6kt rutile • 4kt leucoxene 5+ years mine life with potential to add 3-4 years addi
Slide 14: Boonanarring HMC Production
Boonanarring HMC Production For personal use only HMC production exceeded target every month YTD basis production is 134% of budget • Excess production equivalent to 2.3 months extra production at avg. 20Kt/month 14
Slide 15: Boonanarring HMC Production
Boonanarring HMC Production For personal use only Actual ore grade exceeded target every month except August YTD basis ore grade is 133% of forecast based on Ore Reserve • Average actual ore grade 9.5%HM vs 7.1% weighted average forecast 15
Slide 16: Boonanarring HMC Production
Boonanarring HMC Production For personal use only Actual zircon content (in HM in ore) exceeded target every month except June & August YTD basis zircon content is 109% of forecast based on Ore Reserve • Average actual zircon content 30.5% in HM vs 27.9% forecast • Combination of higher actual H
Slide 17: Boonanarring – CY2019 Guidance
Boonanarring – CY2019 Guidance For personal use only 2019 Guidance & Units June 2019 2019 2020 2020 Forecast1,2,4 YTD Actual Guidance Forecast HMC3 Produced DMT 000s 138 240-260 280-300 HMC3 Sold DMT 000s 116 230-250 280-300 Revenue A$M 67 130-145 180-200 A$/DMT Revenue/DMT Sold 579 568-592 600-650
Slide 18: Upside Potential
Upside Potential For personal use only High likelihood of additional Ore Reserves at Boonanarring Potential to extend mine life at Boonanarring with confirmed high-grade mineralisation in 5.6km northern extension area (NEA) (ASX announcements 13 March & 26 June 2017); • Outstanding high-grade inte
Slide 19: Upside Potential
Upside Potential For personal use only Potential Ore Reserves at other Image Projects Potential to add to historic Mineral Resources and convert to Ore Reserves at other 100%-owned projects; • Red Gully; • Regans Ford; • Gingin North; • Gingin South; and • Atlas; plus • Bidaminna (dredge prospect)
Slide 20: Projects Pyramid – Strand Deposits
Projects Pyramid – Strand Deposits For personal use only Mineral Resources – Accessible by Dry Open-Cut Mining Projects ranked by combined zircon plus rutile (Z+R) contained in the HM Tonnes and grades are for Mineral Resources; Boonanarring and Atlas per JORC Code (2012); All others historic per JO
Slide 21: Projects Pyramid – Dredge Prospects
Projects Pyramid – Dredge Prospects For personal use only Mineral Resources – Accessible by Dredge Mining Projects ranked by HM Grade and include combined zircon plus rutile (Z+R) contained in the HM Positive attributes Tonnes-grades are for historic Mineral • 90+%VHM; Resources per JORC Code (2004)
Slide 22: Potential Royalty from Tronox
Potential Royalty from Tronox For personal use only Royalty agreement in place as of 2014 Small cash payment in 2014 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 Tro
Slide 23: Solar Farm at Boonanarring
Solar Farm at Boonanarring For personal use only Formal agreements with Sunrise Energy Group Pty Ltd to provide 2.3 MWAC solar farm to be: Constructed and operated by Sunrise Energy; Located on Image owned land adjacent to Boonanarring mine site; and Providing up to 25% of total electricity re
Slide 24: Products and Applications
Products and Applications For personal use only 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 (fu
Slide 25: Products and Applications
Products and Applications For personal use only 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 We
Slide 26: For further information
For further information For personal use only 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 26