Irc Limited · HKEX:1029
Irc — Q4 2011 Earnings Presentation
22 slides from Irc's earnings presentation, January 2012
Slide 1: Fourth Quarter 2011 Trading Update
1029.HK Fourth Quarter 2011 Trading Update
Slide 2: Highlights
Highlights KURANAKH • Q4 Production increases • FY2011 production targets exceeded Iron ore concentrate: 800,291 tonnes vs 750,000 target Ilmenite concentrate: 63,490 tonnes vs 52,000 target K&S • Fourth quarter ended with all construction activities completed to schedule. • First tranche of project
Slide 3: Presentation Overview
PRESENTATION OVERVIEW 1. Introduction to IRC 2. Kuranakh 3. K&S 4. Outlook 3
Slide 4: Russia – Kuranakh map
RUSSIA KURANAKH — g ART 4 (Scale 1: 10000000) Heilongjiang RAL Birobidjan Heine Eh RELS, ( ia Khabarovsk Manzhouli BEB AMT. mien Shuanyashan Sei MONGOLIA Sestunh a Harbin ry Cah) CHINA : Vladivostok Pee weEy ee Beijing ple8 Tianjin NORTH KOREA FE SOUTH KOREA me beeen BAM Railway Aton - HSER pew Tran
Slide 5: Competitive Advantages
Competitive Advantages Location on Chinese border: preferred supplier status World class infrastructure and skills Proven operator with a respected heritage Diverse portfolio with exploration, development and producing assets Strong growth profile being delivered across multiple assets F
Slide 6: Production Profile
Production Profile Production volume (million tonnes) 14.0 12.0 10.0 4.6 8.0 6.0 3.1 4.0 CAGR +63% 3.2 1.6 2.0 0.9 1.0 1.1 1.1 1.1 0.2 0.0 2010 2011 2012 2013 2014 2015 Kuranakh Kimkan Sutara Garinskoye By-product Ilmenite tonnes converted as iron equivalent
Slide 7: Presentation Overview
PRESENTATION OVERVIEW 1. Introduction to IRC 2. Kuranakh 3. K&S 4. Outlook 7
Slide 8: Kuranakh Exceeded production targets
Kuranakh Exceeded production targets Iron Ore: Actual 800,291 tonnes – Target 750,000 tonnes Ilmenite: Actual 63,490 tonnes – Target 52,000 tonnes Mining activities continue to plan iron ore concentrate +7.7% to 233,908 tonnes Quarterly production increased Ilmenite concentrate +30.2% to 23,37
Slide 9: Winter Wagon Loading at Kuranakh
Winter Wagon Loading at Kuranakh
Slide 10: Kuranakh Production Statistics
Kuranakh Production Statistics IRON ORE Q1 Q2 Q3 Q4 Full Year Concentrate Produced t 177,645 171,591 217,147 233,908 800,291 Concentrate Sold t 167,099 199,886 210,293 192,810 770,088 Average Price (Fe 62.5%) $/t 143 149 150 131 143 ILMENITE Concentrate Produced t 7,464 14,707 17,948 23,371 63,490 C
Slide 11: Presentation Overview
PRESENTATION OVERVIEW 1. Introduction to IRC 2. Kuranakh 3. K&S 4. Outlook 11
Slide 12: Construction of Transformer System
Construction of Transformer System
Slide 13: K&S: Bridge over Transiberian Railway
K&S: Bridge over Transiberian Railway Q3 2011 Q4 2011
Slide 14: K&S Update
K&S Update Progress on track and fully funded ICBC project debt facility MILESTONE draw downs commenced Mining of overburden continued: 698,800 m3 material removed Ore stockpile total 40,400 tonnes Initial infrastructure works within EPC site on schedule Contractor camps complete Processin
Slide 15: Presentation Overview
PRESENTATION OVERVIEW 1. Introduction to IRC 2. Kuranakh 3. K&S 4. Outlook 15
Slide 16: Iron Ore Market
Iron Ore Market “Stronger for longer” DEMAND Chinese iron ore offtake remains strong for IRC Demand growth continues to be driven by construction Inventories reduced over 2012; need for restocking Chinese 2012 Fe demand growth estimated at 5%, (10% in Heilongjiang) SUPPLY Deteriorating ass
Slide 17: Robust Pricing
Robust Pricing $/tonne 200.0 180.0 160.0 $138/t 140.0 120.0 100.0 +6% 80.0 +9% 60.0 40.0 20.0 0.0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Source: Bloomberg 17
Slide 18: Dollar Ruble
Dollar Ruble USD : RUB 35 30 25 20 15 10 5 0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
Slide 19: Outlook
Outlook • Strong demand and firm prices for our commodities • Ongoing ramp-up of production at Kuranakh Mine • Continued and fully funded development of K&S Project • Continued exploration and optimisation at Garinskoye Wednesday 22 February 2012: IRC 2011 FY Results 19
Slide 20: Conference Call Q & A
Conference Call Q & A
Slide 21: Disclaimer
Disclaimer 本简报或当中所述文件所载的部分陈述属于或可能属于前瞻性陈述。该等陈述反映本公司现时对未来事件的看法，或会涉及风险、假设、不明朗因 素及其他并非本公司所能控制的因素，可能导致实际结果有别于该等陈述所列者。尽管本公司相信该等前瞻性陈述（仅截至本简报日期）均属合 理，惟无法保证有关内容正确。因此，阁下不应过份依赖该等陈述。 无法保证本简报所载前瞻性陈述涉及的结果及事件将会实现。本公司并无责 任刊发有关该等前瞻性陈述的任何修订以反映本简报日期后发生的事件、情况或不可预见事项，惟法律或任何相关监管机关规定者除外。本简报或 当中所述文件所载的资料不得视为溢利预测。 本公司及其股份过往
Slide 22: IR contact
1029.HK IR contact: Nick Bias ir@ircgroup.com.hk +852 9088 1029 www.ircgroup.com.hk