Zanaga Iron Ore Co. Ltd. · LSE:ZIOC

Zanaga Iron Ore — Indaba 2013

24 slides from Zanaga Iron Ore's conference presentation, 2013

  1. Slide 1: Investor Presentation Indaba 2013

    Investor Presentation Indaba 2013

  2. Slide 2: Disclaimer

    Disclaimer This document, which is personal to the recipient, has been issued by Zanaga Iron Ore Company Neither this document nor any copy of it may be taken or transmi�ed into the United States of Limited (the “Company”). This document does not cons�tute or form part of any offer or invita�on Ameri

  3. Slide 3: Corporate information

    Corporate informa�on 3 Listed on AIM in November 2010 Highly Experienced Management & Board 3 Ticker: ZIOC Clifford Elphick Non-­‐Execu�ve Chairman Founder & CEO of Gem Diamonds 3 Market cap: £71m ($111m) Former Director of Anglo American 3 Share price: £0.26 Mike Haworth Non-­‐Execu�ve Director 3 Sh

  4. Slide 4: Zanaga Project has world class potential

    Zanaga Project has world class poten�al Large Resource Large opera�on Long life 6.8Bt 30 Mt 30 yrs High Quality Product Low Cost Suppor�ve Government 68% Fe $23/t ü 4

  5. Slide 5: Republic of Congo is open for business

    Republic of Congo is open for business Central African 3 Successful & established oil and gas industry Cameroon Republic 3 In opera�on for over 40 years Equatorial Guinea Republic of Congo 3 Suppor�ve government with strategy to diversify Gabon into mining Zanaga Project Exploration Licenses 3 Popul

  6. Slide 6: Large deposit identified

    Large deposit iden�fied 3 Only 25km of the 47km orebody drilled 3 >176,000 metres drilled 3 Feasibility Study drilling now complete 9703850mN 9703050mN 9694250mN Camp Itabirite/BIF Mafic amphibolites Basement 6

  7. Slide 7: Large, well defined, long life mineral resource

    Large, well defined, long life mineral resource 3 6.8 billion tonne Mineral Resource grading 32% Fe 3 Poten�al for higher produc�on levels & longer mine life 3 69% in Measured & Indicated category 3 Resource underpinned by >176,000m of drilling 3 Supports >30 year mine life 3 Feasibility Study drilli

  8. Slide 8: Product and scale places Zanaga amongst the best in the world

    Product and scale places Zanaga amongst the best in the world Fe grade vs. Impurity content 0% Highest Iron 2% Minas-­‐Rio Phase 1 Brazil 2 Zanaga 30Mtpa ini�al phase 4% Alumina + Silica Content 1 China North America Australia – Medium Quality Lowest 6% impurity Other Africa CIS 8% Australia – High

  9. Slide 9: Mining and Pipeline transportation

    Mining and Pipeline transporta�on Mining Pit shell (North) 3 Open pit, low drill and blast opera�on 3 Low strip ra�o a key driver of low opex 3 Targe�ng high quality product with very low impuri�es 1,200 Indica�ve topographical profile comparison of Zanaga/Samarco Pipeline transporta�on 1,000 Samarco

  10. Slide 10: Water, port site & power infrastructure

    Water, port site & power infrastructure Port site design 3 A�rac�ve port site – 1.6km trestle with minimal dredging to accommodate cape size vessels 3 Land area presents scope for future expansion (to 60Mtpa) 3 Good exis�ng onshore support facili�es in nearby Pointe Noire Power supply 3 Ini�al proje

  11. Slide 11: Attractive project economics

    A�rac�ve project economics Capex Opex Pipeline PFS Area Mining 7.4 (2012 US$) Mine & processing plant 2,348 Processing 11.0 Pipeline 1,194 Port 603 Admin/Overheads 2.5 Power 717 Total Direct 4,862 Pipeline 0.5 Indirects 1,595 Total incl. Indirects 6,457 Port 1.5 Con�ngency 897 FOB Cost (incl. con�ng

  12. Slide 12: Expected to be positioned at the bottom of the cost curve

    Expected to be posi�oned at the bo�om of the cost curve… FOB Cash Costs for 2010 -­‐ Saleable Mine Produc�on1 US$/t 120 RoW Brazil Australia China 100 80 60 Expected Cash Cost US$21.09/dmt + Estimated Royalties 40 Zanaga 20 0 0 163 325 488 651 813 976 1139 1301 1464 1627 2010A Cumulative Production

  13. Slide 13: Remaining at the bottom of the cost curve once shipped to China

    …remaining at the bo�om of the cost curve once shipped to China Global Iron Ore Cash Cost by Company, CFR China High Cost Chinese/Indian Mines 140 Cliffs 120 LKAB Mittal Metinvest Vedanta 100 CSN 80 $/dmt 60 40 Zanaga Project 20 0 0 500 1,000 Source: FMG, Rio Tinto, BHP, Vale, Company Reports, AME,

  14. Slide 14: Leveraging the expertise of a leading diversified major

    Leveraging the exper�se of a leading diversified major JV Agreement 50% +1 share Zanaga Project 50% -1 share 3 Xstrata obliged to fund FS costs 3 $42m cash and no current funding obliga�ons 14

  15. Slide 15: JV Agreement provides optionality to ZIOC

    JV Agreement provides op�onality to ZIOC 3 Xstrata obliged to fund Feasibility Study to internal standards and interna�onal best prac�ce 3 At end of the Feasibility Study Xstrata has a one off right to acquire ZIOC stake in the Project for cash at 100% NPV 3 Alterna�vely ZIOC has the right to fund it

  16. Slide 16: EBITDA breakdown by commodity for majors

    EBITDA breakdown by commodity for majors Iron ore remains the highest margin business for the majors, even in H1 2012 with iron ore around c.$105/t Iron Ore division % contribution to net profit Iron Ore 64% Aluminium 11% Copper 26% Iron Energy 27% Ore Diamonds and Minerals 27% 75% Other Operations

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  20. Slide 20: ALT

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  23. Slide 23: Zanaga Project continues to show world class potential

    Zanaga Project con�nues to show world class poten�al Large Resource Large opera�on Long life 6.8Bt 30 Mt 30 yrs High Quality Product Low Cost Suppor�ve 68% Fe $23/t Government ü ü Strategic partnership ü High standards ü Funding FS 23

  24. Slide 24: Investor Presentation Indaba 2013

    Investor Presentation Indaba 2013

Zanaga Iron Ore Company — Indaba 2013 on 6ix