Equatorial Resources Limited · ASX:EQX
Equatorial Resources — WA Mining Club Luncheon July 2013
33 slides from Equatorial Resources's conference presentation, Jul 25, 2013
Slide 1: ASX Release: Company Presentation
For personal use only ASX: EQ QX | 25 JU ULY 2013 | ASX RE ELEASE CO OMPANY Y PRESE ENTATIO ON Equattorial Resourrces Limited (ASX:EQX) is pleased too release the e attached Coompany Pressentation to be delivered by Mr John Welborn, W Maanaging Direcctor and CEO W Mining Cllub July lunc O, as part o
Slide 2: The Iron Future of Africa
For personal use only THE IRON FUTURE OF AFRICA WA Mining Club Luncheon: Company Presentation July 2013, Perth
Slide 3: Disclaimer
For personal use only DISCLAIMER • This document should be read in conjunction with any public announcements and • This document has been prepared in compliance with the current JORC Code 2004 reports (including financial reports and disclosure documents) released by Equatorial Edition and the curre
Slide 4: Equatorial's Iron Footprint in Republic of Congo
For personal use only EQUATORIAL’S IRON FOOTPRINT IN REPUBLIC OF CONGO Exploring and developing two 100% owned iron projects Large footprints in key iron clusters in Africa Clear pathway to 2mtpa production from Mayoko‐Moussondji at very low capital intensity Massive regional potential at Badond
Slide 5: The Republic of Congo
For personal use only THE REPUBLIC OF CONGO BIENVENUE A BRAZZAVILLE! • Stable “oil country” actively growing its mining sector • Former French colony recently celebrated 50 years of independence • Oil majors including Total, Eni and Chevron operating uninterrupted for over 30 years and currently inv
Slide 6: Mining in the Republic of Congo
For personal use only MINING IN THE REPUBLIC OF CONGO • Major miners now invested in Republic of Congo • Mining sector is central to the government’s Economic Diversification Program (Chemin d’Avenir) • New mining code adopted in 2005 • Favourable fiscal terms for miners • 3% Royalty on Revenues • 1
Slide 7: Mayoko-Moussondji Iron Project
For personal use only MAYOKO‐MOUSSONDJI IRON PROJECT 6
Slide 8: Mayoko-Moussondji: Summary
For personal use only MAYOKO‐MOUSSONDJI: SUMMARY • JORC Resource of 767 million tonnes at 32% Fe • Hematite Resource of 102 million tonnes at 41% Fe • Premium Product potential – 64% Fe fines • Access to existing bulk commodity railway • Existing deep water port of Pointe‐Noire • 3 stage Development
Slide 9: Mayoko-Moussondji: Scoping Study Highlights
MAYOKO‐MOUSSONDJI: For personal use only SCOPING STUDY HIGHLIGHTS * The Company has concluded it has a reasonable basis for providing the forward looking statements included in this document, including Key Scoping Study results* for Stages 1 and 2 with respect to any production targets. The detailed
Slide 10: Mayoko-Moussondji: Project Geology
MAYOKO‐MOUSSONDJI: For personal use only PROJECT GEOLOGY • 2,680km² tenement area • More than 46km of magnetic strike identified across 5 target prospects • Over 55,000m of diamond and RC drilling completed to date • Recent gravity and ground IP surveys have revealed new, untested hematite targets •
Slide 11: Makengui Hill from the Air – Iron Mountain
For personal use only MAKENGUI HILL FROM THE AIR – IRON MOUNTAIN 10
Slide 12: Mayoko-Moussondji: Geological Model Confirmed
MAYOKO‐MOUSSONDJI: For personal use only GEOLOGICAL MODEL CONFIRMED 11 Slide
Slide 13: Maiden Mineral Resource Estimate
For personal use only MAIDEN MINERAL RESOURCE ESTIMATE • Total initial JORC Mineral Resource Estimate (Hematite and Magnetite) of 767 MILLION TONNES at 31.9% Fe • Contains JORC Hematite Resource of 102 MILLION TONNES at 40.6% Fe • Updated resource expected H2 2013 to reflect drilling since maiden re
Slide 14: Mayoko Premium Fines
For personal use only MAYOKO PREMIUM FINES • Metallurgical testing on near surface hematite delivered a premium fines iron product of 64.1% Fe (“Mayoko Premium Fines”) • Standard processing techniques with low technical risk • Samples crushed, screened and wet processed using a typical Pilbara de‐sa
Slide 15: Product Comparison Mayoko Premium Fines
For personal use only PRODUCT COMPARISON MAYOKO PREMIUM FINES 14
Slide 16: Mayoko-Moussondji: Low Mining Cost
For personal use only MAYOKO‐MOUSSONDJI: LOW MINING COST • Scoping Study assumes contract mining Proposed Site Layout • Shallow open pits with very low strip ratios ‐ first 4 years 0.1:1 ‐ average LOM 0.36:1 ‐ >44% Fe feed grade. • Mining costs average US$5/t • Mine production based on fleets of 40
Slide 17: Transport Infrastructure
For personal use only TRANSPORT INFRASTRUCTURE • Low capital intensity of project related to availability of existing rail and port infrastructure • Government‐owned and operated infrastructure • Major refurbishment programs on‐going ‐ Port: funded by EU and Bollore Group; and ‐ Railway Line: funded
Slide 18: Rail
For personal use only RAIL • Operational railway line runs 500m from main prospect directly to the port of Pointe‐ Noire • Previously used to transport up to 3.1mtpa of manganese ore until 1991 • Equatorial has 2 agreements (MOU’s) with state owned rail authority: ‐ Access Agreement: granted access
Slide 19: Port of Pointe-Noire
For personal use only PORT OF POINTE‐NOIRE • Port of Pointe‐Noire is one of Africa’s largest deep water ports and a major transport hub for Central and West Africa • Port strategy matches staged Development Plan ‐ Use existing Port of Pointe‐Noire for Stage 1 and 2 operations; ‐ Potentially join oth
Slide 20: Equatorial and Exxaro
For personal use only EQUATORIAL AND EXXARO Republic of Congo Current Resource: Current Resource: 767Mt approx. 650Mt Distance from rail: Distance from rail: 500m 2km Production Profile: Production Profile: ramp up to 2mpta commence 2mpta Acquisition cost of Exxaro’s Mayoko project: c. $350 MILLION
Slide 21: Mayoko-Moussondji: Scoping Study Highlights
MAYOKO‐MOUSSONDJI: For personal use only SCOPING STUDY HIGHLIGHTS $41.43/t $16.11/t $6.39/t $13.70/t $3.82/t $1.41/t 20
Slide 22: Mayoko-Moussondji: Scoping Study Highlights
MAYOKO‐MOUSSONDJI: For personal use only SCOPING STUDY HIGHLIGHTS • Low Capex with scope to reduce through leasing rolling stock, improvements in tailings management and partnership opportunities with Exxaro HS Updating tomorrow. Will also show total of $231m somewhere 21
Slide 23: Environmental & Social Impact Assessment
For personal use only ENVIRONMENTAL & SOCIAL IMPACT ASSESSMENT • Approval of ESIA is required prior to granting of a mining licence • Equatorial working in partnership with local consultancy Eco Durable to complete its studies • Baseline studies complete and Terms of Reference approved by government
Slide 24: A Pathway to Final Investment Decision
For personal use only A PATHWAY TO FINAL INVESTMENT DECISION • Updated resource H2 2013 • Prepare and Lodge Mining Licence Application • Approval of ESIA • Secure a strategic partnership and development financing • Fast track project to production 23
Slide 25: Badondo Iron Project
For personal use only BADONDO IRON PROJECT 24
Slide 26: Iron Mountains of the Congo Craton
For personal use only IRON MOUNTAINS OF THE CONGO CRATON 25
Slide 27: The Emerging New Cluster
For personal use only THE EMERGING NEW CLUSTER 26
Slide 28: Regional Project Potential
For personal use only REGIONAL PROJECT POTENTIAL INFERRED & INDICATED PROJECT COMPANY OTHER INFORMATION RESOURCE Failed takeover by Hanlong Mining for A$1.4 Mbalam 775Mt @ 57% Fe Billion. Company actively looking for new bidder. Strategic investment by Glencore and Avima 580Mt @ 60% Fe Severstal Exp
Slide 29: Massive Potential for Exploration Upside
For personal use only MASSIVE POTENTIAL FOR EXPLORATION UPSIDE • Over 22km of prospective iron strike identified within three distinct target prospects • Mapping program revealed a thick and extensive enriched hematite blanket • Initial drilling confirmed presence of high grade hematite cap 28
Slide 30: A New Pilbara in Africa
For personal use only A NEW PILBARA IN AFRICA Hammersley Basin ‐ Pilbara Congo, Cameroon Craton 29
Slide 31: Capital Structure
For personal use only CAPITAL STRUCTURE EQUATORIAL RESOURCES LTD (ASX: EQX) As at 24 July 2013 Current Issued Capital 121.9 million shares Fully Diluted 128.9 million shares Market Capitalisation (Undiluted @ A$0.70) A$85.3 million Cash at 30 June 2013 A$51.9 million Top 20 Shareholders: 78.9% 16.4%
Slide 32: An Iron Future for Africa
For personal use only AN IRON FUTURE FOR AFRICA Demand for new supply will create opportunity for African projects Africa has high quality, massive scale projects that can displace seaborne supply in any market Companies and governments need to work together to meet challenges Equatorial extrem
Slide 33: For personal use only
For personal use only Perth: London: Pointe‐Noire: Brazzaville: Level 2, BGC Centre, 28 The Esplanade Suite C, 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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