Slide 1: Premium Iron Ore for a decarbonising iron & steel sector
For personal use only Premium Iron Ore For a decarbonising iron & steel sector IMARC - November 2022
Slide 2: Disclaimer
Disclaimer For personal use only IMPORTANT NOTICE ADDITIONAL INFORMATION The purpose of this presentation is to provide general information about Magnetite This presentation should be read in conjunction with the Annual Report at 30 June Mines Limited ("MGT"). It is not recommended that any person m
Slide 3: Iron & steelmaking is irreversibly changing
Iron & steelmaking is irreversibly changing Increasing global demand for steel in direct conflict with decarbonisation For personal use only Major steel producer carbon reduction targets Direct Reduction (DR) essential to transition ~100 Mtpa TODAY DR-grade pellets Steelmaking technologies Blast fur
Slide 4: New high-grade iron ore supply critical to transition
New high-grade iron ore supply critical to transition Magnetite Mines’ Razorback Project positioned to meet urgent new demand For personal use only Razorback targeting Seaborne Iron Ore by Fe (%) 67.5%+ concentrates 85% of current iron supply feeds carbon-intensive steelmaking Transition DR-grade So
Slide 5: Shift in demand for high-quality ore now evident
Shift in demand for high-quality ore now evident High-grade and low-grade iron ore prices are diverging For personal use only Fastmarkets iron ore index grade spreads (US$/tonne) 60 40 20 0 US$/t -20 -40 -60 -80 58% Fe $/tonne discount to 62% Fe 65% Fe $/tonne premium to 62% Fe 5
Slide 6: Premium quality iron ore is first quartile competitive
Premium quality iron ore is first quartile competitive De-risking exposure to commodity price cycle downturns For personal use only First quartile cash costs (62% Fe equivalent) VIU-adjusted total cash cost curve - CFR north Chinaa,b Source: Wood Mackenzie, Magnetite Mines a) Accounts for product pr
Slide 7: Razorback Project well positioned for development
Razorback Project well positioned for development The Braemar – a globally-significant magnetite province For personal use only The Braemar advantage Outcropping ore: very low strip ratio Siltstone-hosted iron ore, not BIF* Soft relative to WA magnetite ores Concentrates to premium grade iro
Slide 8: Outstanding project location in South Australia
Outstanding project location in South Australia Close to rail, port & renewable energy supply For personal use only Adelaide 240km Open-access rail ~50km Whyalla Port ~315km Grid Power 100% renewable by 20305 ~125km 8
Slide 9: Project Optimisation Studies underway
Project Optimisation Studies underway Results leading to DFS go-forward position For personal use only Commitment to staged development pathway6 Significant expansion benefits evident7 STAGE 1 EXPANSION STAGES Previous Study Outcomes: 5Mtpa+ capacity Pending current optimisation studies 2022 2021 PF
Slide 10: Building on an established ESG platform
Building on an established ESG platform Founded on renewable energy use and global decarbonisation contribution For personal use only Recording regional cultural heritage values with a Ngadjuri heritage team Grid-connected power supply, forecast to be 100% renewable by 2030 Premium-grade iron ore pr
Slide 11: Magnetite Mines is transforming
Magnetite Mines is transforming Reflecting timing and acceleration of downstream industry needs use only Mark Eames appointed as Chair Trevor Thomas appointed Study Jim McKerlie & Director Paul White appointed to Board Rights Issue for $15.8m Ian Kirkham appointed CFO For personalCorporate Gemma Bro
Slide 12: Work in focus to secure best possible project structure
Work in focus to secure best possible project structure Three workstreams progressing in parallel For personal use only 1. TECHNICAL & REGULATORY DE-RISKING Optimisation studies Refocused DFS Permitting & approvals 2. RESETTING CAPITAL STRUCTURE 3. FINANCING & STRATEGIC PARTNER PROCESS 12
Slide 13: Premium Iron Ore for a decarbonising iron & steel sector
Premium Iron Ore For a decarbonising iron & steel sector For personal use only Decarbonisation Outstanding Project Committed to Progressing to Tailwind Credentials Staged Development Development Premium iron ore needed Tier 1 location Refocused DFS with Strengthened Board now to enable low emission
Slide 14: References
For personal use only References 1. ASX Announcement – 24/05/21 – Razorback Iron Project Mineral Resource Upgrade 2. ASX Announcement – 20/11/18 – Ironback Hill Deposit – JORC 2012 Resource Update 3. ASX Announcement – 30/06/21 - Maiden Ore Reserve for the Razorback Iron Project 4. ASX Announcement
Slide 15: Contact
For personal use only Contact gemma.brosnan@magnetitemines.com +61 8 8427 0516 www.magnetitemines.com 15
Slide 16: Appendix
16 For personal use only Appendix
Slide 17: Mineral Resources and Reserves
Mineral Resources and Reserves For personal use only Ore Mineral Mass Rec (Mt, Fe % SiO2 % AI2O3 % P% LOI % Magnetite % Resource (eDTR %) Dry) Razorback Iron Ore Project Indicated 1,500 15.6 18.5 47.9 8.0 0.18 5.4 15.0 Inferred 1,500 16.0 18.0 48.3 8.2 0.18 5.5 15.9 FAVOURABLE REGION • South Austral
Slide 18: High-quality feed necessary to make the change
High-quality feed necessary to make the change Low-emission iron & steelmaking requires high-grade, low-impurity iron ore For personal use only Steel manufacturing technologies Feedstock Iron Iron ore feed Carbon emissions (t CO2/t) Transformation (Extraction) Reduction Current; <65% Fe 1.8 Coal Bla
Slide 19: Corporate overview
Corporate overview For personal use only Market Cap Share Performance and Register $64.5M $0.050 100 (Share price $0.017 26 Oct 2022) $0.045 90 $0.040 80 Cash $0.035 70 Share Price $A $12.65M 60 Volume (M) $0.030 (30 Sep 2022) $0.025 50 $0.020 40 $0.015 30 Shares on Issue: 3,791M $0.010 20 Listed op
Slide 20: Recently strengthened Board
Recently strengthened Board New governance team with deep corporate and resource credentials For personal use only Board of Directors Mark Eames Chair of the Board Jim McKerlie Non-executive Director BA Metallurgy (Hons) MBA MAUSIMM BA Economics (Hons) Dip Fin Mgt Global minerals industry experien
Slide 21: New executive team
New executive team Combining leadership with corporate and international resource project experience For personal use only Executive Team Tim Dobson Chief Executive Officer Ian Kirkham Chief Financial Officer B.AppSc Ext.Metallurgy, GAICD, MAusIMM B.Ec Economics & Accounting 35 years extensive int