Exxaro Resources Limited · JSE:EXX
Exxaro Resources — Africa Iron Ore Conference 2013
27 slides from Exxaro Resources's conference presentation, Jun 4, 2013
Slide 1: West Africa - Expanding the African Iron Footprint
West Africa - Expanding the African Iron Footprint Africa Iron Ore Conference Brian van Rooyen General Manager, Ferrous 4 June 2013
Slide 2: Disclaimer
Disclaimer Opinions expressed herein are by nature subjective to known and unknown risks and uncertainties. Changing information or circumstances may cause the actual results, plans and objectives of Exxaro Resources Limited (the “Company”) to differ materially from those expressed or implied in the
Slide 3: What will drive Iron Ore Developments in West Africa? Macro Considerations
… what will drive Iron Ore Developments in West Africa? Macro Considerations • World trends & themes • Climate change...a low carbon future.. • More from less..water..energy...food..waste...zero • Urbanization.... • Economic power shift ....beyond the BRICS... • Connectivity • Increased life expecta
Slide 4: Urbanization - China and Africa
Urbanization - China and Africa 4
Slide 5: Beyond BRICS - The next game changers 2025
Beyond BRICS - The next game changers 2025 5
Slide 6: Future world - Envisaged commodity life cycles
Future world - Envisaged commodity life cycles 6
Slide 7: Dealing with Risk!!
Prerequisites for Success in an Uncertain Environment Dealing with Risk!! 1. STRATEGY Clear execution of strategy 2. COMMODITIES Choosing the right commodities to be exposed to 3. MANAGEMENT Deep management track record & experience 4. QUALITY GROWTH PIPELINE Rigorous review & opportunity ranking 5.
Slide 8: Project Capital Intensity
Project Capital Intensity No “Easy” projects Future 100-250$/t Post GFC Sub-100$/t 5. RISK MANAGEMENT Understanding & mitigating risks Rising equipment/labour costs Declining ore grades Permitting challenges Infrastructure requirements 8
Slide 9: Operational Cost — Survival of the fittest...
e@@ XX Operational Cost — Survival of the fittest... 50 percentile 90 percentile The domain of the Major’s Long Term Price Forecast ? $00 More than 70% of producers fall above the 75th percentile
Slide 10: Africa's Iron Ore Development Areas
Africa’s Iron Ore Development Areas 10
Slide 11: A bit about Exxaro's Mayoko Opportunity...
e@ @ XX A bit about Exxaro’s Mayoko Opportunity...
Slide 12: Mayoko Iron Ore opportunity
XX Mayoko Iron Ore opportunity Mayoko represents a strategic platform for Exxaro to move aggressively towards its objective of producing 10Mtpa of iron ore by 2017 High grade resource of sufficient size Significant upside potential and synergies * Long life of mine at high production volumes ° Unexp
Slide 13: Project Location and Overview
e@ a XX Project Location and Overview exxaro POWERING POSSIBILITY Tree Operational Centers Pointe Noire Mayoko Brazzaville The Mayoko project has a JORC compliant resource of 734Mt, with a total exploration target of 1.2Bt Fist production from Mayoko is expected to commence from 2013. Exxaro owns 10
Slide 14: Multi Disciplinary Approach
Exploration Multi Disciplinary Approach DMC Iron Congo Operations Projects & Construction Technology Mining Logistics Services & Support 14
Slide 15: Phased Project Development
Phased Project Development The Phase 1 objective is to establish mining, processing and infrastructure for the export of 2 Mtpa iron ore, ramping up from late 2013. 2 Stage Development • Phase 1A: Limited production rate of 360 ktpa from 2013 • Phase 1B: Production of approximately 2 Mtpa ramping up
Slide 16: Exploration Areas
Exploration Areas Mayoko Lekoumou Ngoubou Ngoubou Exploration Permit Exploration Permit ~1000Km2 100% Interest ~944Km2 85% Interest Ngoubou-Ngoubou 944km2 Mayoko-Lekoumou ~1000km2 16
Slide 17: JORC Resource 734 Mt Exploration target >1.2Bt
JORC Resource 734 Mt Exploration target >1.2Bt MIPOUNDI NORTH LEKOUMOU MIPOUNDI LEKOUMOU SOUTH 17
Slide 18: Mayoko Geological Profile
e@°@ XX Mayoko Geological Profile *Supergene hematite (DSO): ~ 60 to 63% Fe product (washed) ¢ Hard cap and in-situ material * Transported (detrital) material ¢ Enriched BIF (bDSO): ~ 60 to 66% Fe product ¢ Weathered, soft BIF with coarse hematite * Magnetite BIF: ~64 to 70% Fe product * Coarse grai
Slide 19: Logistics – Rail and Port
e°@ XX _ Logistics - Rail and Port T |_ Baie de Loango Pointe indienne | Equatorial juinea +9470 000mN 4 Atlantic d Ocean d % AFRICAN IRON LTD. le if S1000nE Oe 820 000nE
Slide 20: Rail Location and Capacity
The Project is 439 km by rail from Pointe-Noire along an Rail Location established heavy haulage railway. The railway runs within 2km of the Mt Lekoumou prospect By operating at an axle load of 17 tonnes (48 tonnes per wagon) and reopening 7 of 10 closed stations, capacity of 10 Mtpa can be ac
Slide 21: In-Country and ready to go...
In-Country and ready to go... • 5 Locomotives • 90 Rail Wagons • 1450 Iron Ore Containers • 1 Port Crane • 2 Rotating Spreaders • Ready to commence with rail upgrade 21
Slide 22: Pointe Indienne – Conceptual Layout
Pointe Indienne – Conceptual Layout Phased development and capacity expansion to suit multiple users Development Considerations • High volume – low value • Investment Security - Stability and certainty • Flexibility to cater for different types of iron ore products • Flexibility on volumes to allow
Slide 23: People Logistics – Road, Rail and Air Transportation
People Logistics – Road, Rail and Air Transportation Key Challenges • Cost • Safety • Travel time • Frequency • Connectivity 23
Slide 24: People make it happen
People make it happen 24
Slide 25: Progress since acquisition
Progress since acquisition …12 months into the project… Delisted African Iron Limited from the ASX Acquired 100% DMC Iron Congo and Mayoko Exploration Licence Accelerated drilling increased JORC resource from 121Mt to 734Mt Exploitation Licence application lodged, awaiting approval Applica
Slide 26: Fantastic Opportunity!
Fantastic Opportunity! • Exceptional Quality Resource • Near term DSO production • Access to infrastructure • Experienced operational management team • Strong stakeholder support • Upside potential • Mayoko and Ngoubou under-explored • Magnetite • Downstream integration 26
Slide 27: Questions
XxX Questions 27