Slide 1: Developing a Brazilian Iron Ore Business
Developing a Brazilian Iron Ore Business For personal use only Mark Papendieck, Chief Commercial Officer February, 2011
Slide 2: Disclaimer
Disclaimer For personal use only This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentatio
Slide 3: Brazilian Iron Ore Business
Brazilian Iron Ore Business For personal use only Centaurus Metals’ focus is to: Develop & Operate a number of Low Capex mines Be known for high grade & consistent quality products Be a long term supply partner to domestic steel mills in Brazil Secure projects for an export capacity By 2
Slide 4: Company Structure
Company Structure For personal use only Capital Structure Shares on Issue 848m ASX CODE : CTM Options* 118m Share Price $0.125 Market Capitalisation $105m Cash at bank (31/12/10) $16m Debt NIL Enterprise Value $89m Shareholding Directors & Management 11% Top 20 36% * Ex prices from 3.125 cents to 28
Slide 5: Centaurus Metals Board & Key Personnel
Centaurus Metals Board & Key Personnel For personal use only DIDIER MURCIA Chairman 25 years corporate and resource industry experience. Specialises in strategic, corporate and commercial advice. Extensive iron ore experience as Director of Gindalbie Metals DARREN GORDON Managing Director Over 15
Slide 6: Brazil
Brazil For personal use only Latin America’s largest economy Rapidly growing population (currently ~200 million) Predicted growth of +7% in 2011 US$830b committed to infrastructure spend Hosting FIFA World Cup in 2014 and the Olympic Games in 2016 Top 10 global steel producer (~ 35Mt)
Slide 7: Brazilian Iron Ore Market
Brazilian Iron Ore Market For personal use only Unlike Australia, a large market for the consumption of iron ore is located alongside iron ore projects Major steel companies, with steel mills within a 150km radius of Centaurus Metals’ projects have significant domestic production Company Brazili
Slide 8: Centaurus Metals' Projects
Centaurus Metals’ Projects For personal use only 8
Slide 9: Domestic Iron Ore Business
Domestic Iron Ore Business For personal use only “Supplying Iron Ore to Brazil’s Steel Mills” 9
Slide 10: Domestic Iron Ore Business
Domestic Iron Ore Business For personal use only Targeting production from a number of low OpEx, low CapEx mines, in close proximity to established infrastructure Centaurus Metals is working towards: production at a rate of 3mtpa by the end of 2013, to be sold into Brazil’s domestic steel mill
Slide 11: Itabirite Ore
Itabirite Ore.... A major source of iron ore production in Brazil… For personal use only Metamorphosed iron formation composed of iron oxides with abundant quartz Iron Quadrangle itabirites typically comprise hematite Lower ROM grade than other sources of hematite (averaging 30-50% Fe) Extre
Slide 12: Itabirite Ore
For personal use only Itabirite Ore 12
Slide 13: Domestic Production - Jambreiro
Domestic Production - Jambreiro For personal use only 13
Slide 14: Jambreiro Iron Ore Project
Jambreiro Iron Ore Project For personal use only Initial Inferred resource of 77mt @ 29.5% Fe Resource remains open to the South Projected to be a 2Mtpa producer of high grade iron ore Early stage beneficiation tests show friable mineralisation cost effectively upgrades to a high grade produ
Slide 15: Jambreiro Iron Ore Project
Jambreiro Iron Ore Project For personal use only Current Resource Summary: Million Mineralisation Type Fe % SiO2 % Al2O3 % P% LOI % Tonnes Friable Itabirite 17.6 31.4 48.4 3.6 0.04 1.57 Compact Itabirite 59.5 28.9 52.1 2.9 0.04 0.86 TOTAL 77.1 29.5 51.3 3.1 0.04 1.02 Early stage gravity benefici
Slide 16: Jambreiro – Work Program
Jambreiro – Work Program For personal use only 5,000 metre drill program underway 3 drill rigs currently on site. One more to arrive Resource upgrade & exploration drilling 1,500 metre trenching program completed, assays due end Feb. Ongoing beneficiation test work Pre Feasibility study
Slide 17: Jambreiro – Potential Resource Upside
Jambreiro – Potential Resource Upside For personal use only Area currently included in JORC Resource estimate Area prospective for iron mineralisation 17
Slide 18: Domestic Production - Passabem
Domestic Production - Passabem For personal use only 18
Slide 19: Passabem Iron Ore Project
Passabem Iron Ore Project For personal use only Projected to be a 1Mtpa producer of high grade iron ore. 39 Mt JORC Resource. Ore body extends over a strike length of 5 kilometres. Future work programs: Commencement of pre-feasibility activities and associated studies; Infill Drilling.
Slide 20: Domestic Production - Itambé
Domestic Production - Itambé For personal use only 20
Slide 21: Itambé Iron Ore Project
Itambé Iron Ore Project For personal use only Projected to be a minimum 500kpta producer of high grade iron ore. New indicated and Inferred Resource of 10Mt @ 36.6% Fe beneficiates cost effectively to high- grade product. Resource Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI% Indicated 4.6
Slide 22: Resource Summary – Domestic Projects
Resource Summary – Domestic Projects For personal use only Centaurus has assembled a strong Project and resource base in Brazil of Itabirite mineralisation that upgrades to a high grade hematite product. Project Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Jambreiro* 77.1 29.5 51.3 3.10 0.04 1.02 P
Slide 23: Iron Ore Export Business
Iron Ore Export Business For personal use only “Supplying Iron Ore to the World Market” 23
Slide 24: Iron Ore Export Business - 2011
Iron Ore Export Business - 2011 For personal use only Centaurus Metals aims to acquire or identify a project capable of producing 12-15mtpa of 64-69% Fe product for a minimum project life of 10 years, to export to world markets Commencing exploration on recently granted 100% Centaurus Metals ten
Slide 25: Export Projects
Export Projects For personal use only Minas Gerais 25
Slide 26: Centaurus - 2011 Activities
Centaurus- 2011 Activities For personal use only In 2011 Centaurus Metals main areas of focus will be: Resource infill drilling at Jambreiro – converting resources to reserves Feasibility studies at the Jambreiro Project LOI’s from domestic iron ore consumers Progressing Environmental & De
Slide 27: Summary
Summary For personal use only Highly experienced, well funded team with extensive global experience in the financing, development and operation of iron ore projects. Strong domestic project resource base with low Cap Ex requirements. Building a business to supply domestic steel mills, and in t
Slide 28: Developing a Brazilian Iron Ore Business – Contacts
For personal use only Developing a Brazilian Iron Ore Business Contacts: Darren Gordon Mark Papendieck Managing Director Chief Commercial Officer (+618) 9420 4001 (+618) 9420 4003 darren.gordon@centaurus.com.au mark@centaurus.com.au