Slide 1: Centaurus: Powering towards production
Centaurus: Powering towards production For personal use only • Low costs • Strong margins • Outstanding growth potential Darren Gordon Managing Director Annual General Meeting 23 November 2012
Slide 2: Disclaimer
Disclaimer • This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, For personal use only solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentat
Slide 3: Overview
Overview • Building a long-term iron ore business in SE Brazil For personal use only • Developing low capital and operating cost mines near existing infrastructure and customers • 2Mtpa domestic production on track to commence at Jambreiro by Q4 of 2013: • BFS confirms life-of-mine revenue of A$847M
Slide 4: Brazil – Latin America's Economic Powerhouse
Brazil – Latin America’s Economic Powerhouse For personal use only • World economic ranking: 6th • Ranking in Latin America: 1st • GDP growth (2012) 1.5% • Revised GDP growth forecast (2013): 4.0% • Population: ~205M • Iron ore exports: >320Mtpa • Steel production: ~35Mtpa By 2050, the Brazilian pop
Slide 5: Brazilian Iron Ore Market
Brazilian Iron Ore Market • Large domestic market for iron ore consumption For personal use only • Brazilian economy expected to rebound in the medium term with infrastructure investment for 2014 Soccer World Cup and 2016 Olympics • Significant market opportunity with major steel mills located withi
Slide 6: 2014 Soccer World Cup
2014 Soccer World Cup For personal use only
Slide 7: Corporate Overview
Corporate Overview Capital Structure (post capital raising) For personal use only Shares on Issue 196.0m Options 13.6m Share Price A$0.30 Market Capitalisation A$58.8m Cash at bank (30 September 2012) A$28.7m Enterprise Value A$30.1m Major Shareholders Broker Research Atlas Iron Ltd (19.6%) – An ASX
Slide 8: Centaurus Key Personnel – Board and Management
Centaurus Key Personnel – Board and Management Centaurus Metals Board Centaurus Metals Senior Management For personal use only Didier Murcia – Independent Non-Executive Chairman Geoff James: CFO & Company Secretary Lawyer, 25 years experience, Non-executive Director – Gryphon Minerals and Rift Chart
Slide 9: Brazilian Domestic Project Hub
Brazilian Domestic Project Hub For personal use only Page 9
Slide 10: Domestic Project Hub
Domestic Project Hub For personal use only • 174Mt resource base – three projects • Cornerstone = Jambreiro Project (125.2Mt) – 180km from Ipatinga steel- making region • Future growth potential: G100, Guanhaes tenements, Passabem, Itambé Page 10
Slide 11: Overview
Jambreiro – Overview For personal use only Page 11
Slide 12: A Low-Cost, High-Margin Iron Ore Project
Jambreiro – A Low-Cost, High-Margin Iron Ore Project • Bankable Feasibility Study – November 2012: For personal use only • Production: 2Mtpa @ 64.5% Fe • Life-of-Mine Revenue: A$847M • Operating costs: A$16.20/tonne • EBITDA: A$556M, annual cash flows: A$62M • Post-tax NPV: A$140M, IRR: 33% • Pre-pr
Slide 13: Financial Evaluation
Jambreiro – Financial Evaluation Key Financial Outcome For personal use only Total Revenue A$847M EBITDA A$556M Capital Costs A$136M Annual Average Operating Cash Flow A$62M Operating Cash Cost (per tonne of product – LoM) A$16.2/dmt NPV8% Pre-tax A$242M NPV8% Post-tax A$140M Pre-tax IRR 47% Post-ta
Slide 14: Capital and Operating Costs
Jambreiro – Capital and Operating Costs Capital Cost Breakdown A$ million A$ million For personal use only Direct Costs Mining & Mine Fleet 8.0 Processing Plant 69.1 Water Supply & Management 9.0 Power Supply 17.3 Administration & Support Facilities 7.1 110.5 Detailed Engineering & EPCM 8.3 Other In
Slide 15: Process Flowsheet
Jambreiro – Process Flowsheet For personal use only Page 15
Slide 16: Site Layout
Jambreiro – Site Layout For personal use only Mass PRODUCT QUALITY Fe% SiO2% Al2O3% P% Recovery % FRIABLE ORE – PILOT PLANT (30T) – Wet Magnetic Separation Head Grade 30.4 52.3 2.7 0.02 Beneficiated Product 66.0 4.1 0.8 0.01 39.4 BFS Assumptions Initial mine life: 9.0 years Strip ratio: 0.97:1 Produ
Slide 17: Site Layout
Jambreiro – Site Layout For personal use only Page 17
Slide 18: Land Access & Approval Process
Jambreiro – Land Access & Approval Process Environmental Approvals For personal use only • EIA/RIMA – Approved • Three stage approval process • LP October 2012 – Issued • LI April 2013 – Application Lodged • LO December Quarter 2013 • Strong community support for Project • Job creation • Share of ro
Slide 19: Development Timeline
Jambreiro – Development Timeline 2012 2013 2014 On Site Construction For personal use only BFS Completed Commences Production Commences Commence Off-Site Pre-Fabrication Mining Lease Application Lodged Debt Financing Drawdown Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar An
Slide 20: Project and Mine Life Upside
Jambreiro – Project and Mine Life Upside Compact Ore For personal use only • Comprises 65.8Mt @ 27.7% Fe within overall Mass PRODUCT QUALITY Fe% SiO2% Al2O3% P% resource of 125.2Mt @ 26.7% Fe Recovery % • Successful test work has delivered COMPACT MINERALISATION – BENCH SCALE (Wet Magnetic Separatio
Slide 21: Exploration Upside
Jambreiro – Exploration Upside For personal use only • Initial mapping and detailed ground magnetic survey completed • Large magnetic anomaly, with 30km strike only 15km from Jambreiro G100 Project • Similar geological setting to the friable ore identified at Jambreiro • To date magnetic signature h
Slide 22: Serra da Lontra Iron Ore Project – Bahia
Serra da Lontra Iron Ore Project – Bahia • 140km via sealed For personal use only road from export port of Ilheus • Opportunity for relatively low CAPEX export business • Supportive State Government in Bahia • Resource nearing completion • Scoping Study underway Page 22
Slide 23: Curral Velho Iron Ore Project – Paraiba
Curral Velho Iron Ore Project – Paraiba For personal use only • 20km strike of prospective iron formation • 65km from major rail line under construction • 350km from major export port of Suapé • Tenement extensions being applied for with DNPM Page 23
Slide 24: Summary
Summary For personal use only • Brazil-focused iron ore developer • Proven business model: Mine, Beneficiate, Deliver • Low capital intensity, low operating costs • Strong forecast cash flows • 15 months to production • Well-funded: $28m cash • Supportive strategic shareholders: Atlas & Liberty Page
Slide 25: Centaurus: Powering towards production
Centaurus: Powering towards production For personal use only • Low costs • Strong margins • Outstanding growth potential Darren Gordon Managing Director November 2012 Investor Update
Slide 26: Project – October 2012 Resources and Reserves
Jambreiro Project – October 2012 Resources and Reserves For personal use only Ore Reserve Classification Mt Fe% SiO2% Al2O3% P% LOI % Proven 35.4 28.5 49.6 4.3 0.04 1.7 Probable 13.1 27.2 49.0 5.3 0.04 2.4 Total 48.5 28.1 49.4 4.6 0.04 1.9 Mineral Resource Classification Measured 46.7 28.3 51.0 4.2
Slide 27: Project – Key BFS Assumptions
Jambreiro Project – Key BFS Assumptions Key Assumption For personal use only Ore Reserves 48.5Mt Grade 28.1% Fe Metal recovery per dry tonne 90% Reserve – Final Product 18Mt Grade +64.5% Fe Waste Movement 46.8Mt Total Material Movement (including pre-strip) 95.3Mt Waste to Ore Ratio (LOM) 0.97 to 1
Slide 28: Project – Sensitivity Analysis
Jambreiro Project – Sensitivity Analysis 2 Mtpa Case Post Tax – NPV (A$M) For personal use only Variable -20% -10% Base +10% +20% -20% -10% Base +10% +20% Average LoM Price (FOB Mine) A$/dmt 38 42 47 52 56 73.9 106.8 139.6 172.4 205.2 Capital Expenditure (A$M) 163 150 136 122 109 119.6 129.6 139.6 1