Iron Road Ltd · ASX:IRD
Iron Road — RIU Sydney Resources Round Up 2013
23 slides from Iron Road's conference presentation, May 14, 2013
Slide 1: One Billion Tonnes of Opportunity
One Billion Tonnes of Opportunity For personal use only RIU Sydney Resources Round Up 14-16 May 2013 1
Slide 2: Disclaimer
Disclaimer For personal use only Forward-Looking Statements This presentation contains forward looking statements concerning the projects owned by Iron Road Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates
Slide 3: Iron Road's Vision
Iron Road’s Vision For personal use only Iron Road’s vision is to become a trusted and reliable supplier of premium iron concentrates to the Asian marketplace. 3
Slide 4: Iron Road's Strategy
Iron Road’s Strategy For personal use only Key to achieving this vision is IRD’s pathway to a staged development that utilises the common product specification of its two South Australian resource districts to enable a flexible development strategy. Gawler Iron Project • Potential for small 1-2Mtpa
Slide 5: Gawler Iron Project
Gawler Iron Project For personal use only Potential for small 1-2Mtpa development that may provide early sustaining cash flows • Iron Road 90% • Average in situ grades ~25% iron, with higher grade zones of ~36% iron • Metallurgical study of several composite samples indicates excellent beneficiation
Slide 6: Gawler Conceptual Plant Layout
Gawler Conceptual Plant Layout For personal use only • Modular plant layout, designed for rail transport. • ~25km from Trans- Australian rail with connection to bulk ports • Dry process flow sheet, reducing costs • High quality iron concentrate with similar characteristics to CEIP 6
Slide 7: Central Eyre Iron Project
Central Eyre Iron Project For personal use only • Mineral Resources sufficient to support long life operation, plant and infrastructure funding requirements • Premium product for a growing market – Typical sinter feed quality is reducing over the long term – Iron Road will provide consistent high qu
Slide 8: One Billion Tonnes of Concentrate
One Billion Tonnes of Concentrate For personal use only Significant growing resource base – underpins long life operation Exploration targets 3,000 • Current Mineral Resource- Mineral Resource Tonnage - millions 2.6 billion tonnes @ 16% Fe* • Mineral Resource upgrade 2,000 expected Q2 2013 Project •
Slide 9: 2012 Iron Ore Cost Curve – CFR China
2012 Iron Ore Cost Curve – CFR China For personal use only • Current indications suggest CEIP position slightly to the right of the 50 percentile – lower 3rd quartile of CEIP today’s seaborne iron ore cost curve • To be marketed as a high quality sinter blend, with a larger potential market compared
Slide 10: Natural Advantage Leads to Financial Advantage
Natural Advantage Leads to Financial Advantage For personal use only 10
Slide 11: CISRI Test Work Shows Marvellous Results
CISRI Test Work Shows Marvellous Results For personal use only • Bulk test programme at the prestigious China Iron & Steel Research Institute Group (CISRI), Beijing • Concentrate performs well in both sintering and pelletising • Product readily substituted for Brazilian Fines, Pilbara Fines or Chine
Slide 12: Economic and Competitive Advantages
Economic and Competitive Advantages For personal use only Mining Processing Rail Port Low strip ratio of 0.8:1 Common and proven Significantly shorter Sheltered, deep location mechanical process than Pilbara and with short jetty = reduced Brazilian routes capital cost 12
Slide 13: Deep Water Port
Deep Water Port For personal use only • Cape Hardy offers sheltered, deep water with no dredging or breakwater required • 1.6km modular jetty/wharf structure • 30Mtpa capacity at commissioning • Handymax, Panamax and Capesize capable • 1100ha land secured, potential third party access • Easy and cos
Slide 14: Resource Growth vs Share Price
Resource Growth vs Share Price For personal use only $1.40 3,000 Resources (million tonnes) IRD Share Price $1.20 2,597 2,500 $1.00 2,104 2,000 $0.80 1,500 $0.60 1,334 1,235 1,000 $0.40 500 $0.20 328 $0.00 0 14
Slide 15: Does the World Need More Iron Ore?
Does the World Need More Iron Ore? For personal use only Demand Growth Continues New Mines Required to Service • China's average daily crude steel output hit a Existing Demand record high late April 2013 • Majors “smoothing” additional production • China expected to produce over 1 billion • Room for
Slide 16: Magnetite
Magnetite For personal use only • The “dirty word” of the Australian iron ore industry Pilbara Grades Magnetite Concentrate • Reputation impugned by DSO incumbents and 68% failures of project management, not necessarily 66% geology 64% • Not all ores are created equal – difficult to process 62% WA’s
Slide 17: Community and Stakeholder Engagement
Community and Stakeholder Engagement For personal use only • Iron Road is committed to earning its place in communities in which we operate • Investing in local social infrastructure – major sponsor and supporter of local community events • Extensive community programmes in place – now expanding to
Slide 18: The Future for Iron Road
The Future for Iron Road For personal use only Gawler Resource CEIP scoping upgrade definitive Strong Port site of study in imminent – feasibility government national progress, extra study due support at significance potential for tonnes, December all levels secured early cash increased 2013 flow co
Slide 19: On the Road to Production
For personal use only On the Road to Production Subscribe to alerts online www.ironroadlimited.com.au 19
Slide 20: Appendices
For personal use only Appendices 20
Slide 21: CEIP Competitive Advantages
CEIP Competitive Advantages For personal use only Resource Quality Infrastructure Political Risk Proximity to Markets Long life and easily Very low. Government CEIP upgradable, producing Viable solution to fill support to stimulate Favourable (South Australia) consistent high quality infrastructure
Slide 22: Board & Management
Board & Management For personal use only Larry Ingle General Manager Management 2012 was a year of transformation in Alan Millet Infrastructure Manager preparation for execution of our strategy. Aaron Deans Project Manager Fop Vanderhor Project Manager, Gawler Peter Cassidy Non-executive Chairman Bo
Slide 23: CEIP Resource Statement
CEIP Resource Statement For personal use only Central Eyre Iron Project Global Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Location Classification (Mt) (%) (%) (%) (%) (%) Indicated 1,108 16.0 53.2 12.9 0.08 0.4 Murphy South Inferred 668 16 53 13 0.08 1.3 Boo-Loo Inferred 328 17 52 12 0.09