Iron Road Ltd · ASX:IRD
Iron Road — Shareholder Meeting (November 2011)
22 slides from Iron Road's shareholder meeting presentation, Nov 14, 2011
Slide 1: Annual General Meeting 2011
For personal use only Annual General Meeting 2011 14 November 2011
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements For personal use only 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: Where is Iron Road now?
Where is Iron Road now? For personal use only • Now a mid-tier iron ore project developer (~$100M market cap) • Focused on Central Eyre Iron Project (CEIP) in South Australia – Prefeasibility Study indicates a robust 12.4 Mtpa project is viable, with base case NPV $1.1 billion – Competitive capital
Slide 4: Year in Review and Looking Ahead
Year in Review and Looking Ahead For personal use only 2011 Achievements 2012 Program • Completion of Prefeasibility Study • PFS enhancements and Definitive Feasibility • Resource upgrade at Murphy South • Additional Resources • Initiated wider community engagement • Enhancements to community engage
Slide 5: Central Eyre Iron Project Overview
Central Eyre Iron Project Overview For personal use only • Centrally located on Eyre Peninsula, SA • Favourable geographic, climatic location • Supportive state and local governments • Good relationships with local communities • Large scalable magnetite project, with low variability • Growing resour
Slide 6: CEIP Prefeasibility Study Outcomes
CEIP Prefeasibility Study Outcomes For personal use only Substantial 12.4Mtpa iron product operation outlined PFS Result by Numbers Significant competitive advantages Capex – direct A$1,744M • Coarse grind size (-106 micron) Capex – indirect A$517M o reduced power use, lower operating costs Capex –
Slide 7: Simple Processing
Simple Processing 67.6Mtpa For personal use only MURPHY SOUTH DEPOSIT ROM Ore P80~ 30 mm Mass 100% Crushing Fe: 16.8% SiO2: 53.0% Cleaner W-LIMS HPGR Tails Mass 43% DRY WET Rougher W-LIMS P80~106 m P80~8 mm 61% Fe: 24% Concentrate SiO2: 47 % 12.4Mtpa Iron content increased Tails Mass 18% Mass 39% F
Slide 8: Benchmarking Concentrate Grade
Benchmarking Concentrate Grade For personal use only 72 GIR-Yerecoin Concentrate Grade - % iron EMG-Beyondie VMC-Yalgoo 70 ARH-Balmoral IRD-CEIP (40 micron) AGO-Ridley IRD-CEIP (53 micron) GRR-Southdown 68 GBG-Karara CXM-Bungalow IRD-CEIP (106 micron) ACS-Magnetite Range IRD-CEIP (75 micron) 66 CFE-
Slide 9: Adding Value Through Resource Growth
Adding Value Through Resource Growth 3,000 2,811 For personal use only Near Term 2,687 2,756 • Base case incorporates current Target 2,597 2,478 Murphy South Mineral Resource. 2,304 • Murphy South Mineral Resource is 2,090 NPV - $ millions now 1.0Bt. 2,000 1,808 • Current drill programme on Murphy B
Slide 10: Community Engagement
Community Engagement For personal use only • We believe that being part of a community is an important part of business • Major Sponsor and supporter of local community events since 2009 • Toll free contact number and extensive community programme in place • Fulltime presence on the Eyre Peninsula.
Slide 11: Hambidge
Hambidge For personal use only • Completed four widely spaced traverses –12 diamond holes and 5,388m of drilling. • The magnetic anomaly targeted at Hambidge is over 3km in length and over 1km wide across its southern extent. • Several drill holes intersected continuous magnetite gneiss of up to 200
Slide 12: Gawler Iron Project
Gawler Iron Project For personal use only • Stage I RC drilling completed 2010 • Current Stage II diamond drilling programme tests five known iron ore prospects and one new target (at George Hill Extended). • Comprises 26 diamond drill holes for 3,000m with individual holes up to 200m depth. • A pil
Slide 13: Gawler Iron Project
Gawler Iron Project For personal use only 13
Slide 14: Magnetite Iron Ore
Magnetite Iron Ore For personal use only Globally, half of iron ore production comes from magnetite ores Iron Ore Prices • Global switch to spot / short term – Industry in Australia dominated by Pilbara haematite pricing over annual benchmark DSO operations • Prices have remained strong since 2010,
Slide 15: Summary
Summary For personal use only • Near term value enhancing events: "In the case of iron ore, – Murphy South western resource upgrade underway - we expect that over the drilling complete. next eight years, global – Establishing a 30 year mine life has potential to more supply additions need to than do
Slide 16: On the Road to Production
For personal use only On the Road to Production Subscribe to alerts online www.ironroadlimited.com.au
Slide 17: Appendices
For personal use only Appendices
Slide 18: Appendix – Board & Management
Appendix 1 – Board & Management For personal use only Chairman Non-Exec Director Non-Exec Director Julian Gosse Ian Hume Jerry Ellis Non-Exec Director Managing Director Company Secretary Matthew Keegan Andrew Stocks Graham Anderson General Approvals Geology Project Manager Manager Manager Manager La
Slide 19: Appendix 2a – CEIP Resource Statement
Appendix 2a – CEIP Resource Statement For personal use only Murphy South Mineral Resource Estimate Resource Tonnes Fe SiO2 Al2O3 P LOI Oxidation Material Type Classification (Mt) (%) (%) (%) (%) (%) Disseminated 272 17.7 52.5 12.0 0.09 0.3 Fresh Banded 79 13.3 54.7 14.1 0.07 0.5 Inferred Transitiona
Slide 20: Appendix 2b – CEIP Resource Statement
Appendix 2b – CEIP Resource Statement For personal use only Boo-Loo Mineral Resource Estimate Resource Tonnes Fe SiO2 Al2O3 P LOI Oxidation Classification (Mt) (%) (%) (%) (%) (%) Fresh 277 17.3 52.5 11.5 0.095 0.5 Inferred Transitional 13 17.0 52.4 11.6 0.094 10.7 Oxide 38 17.2 52.1 11.6 0.094 10.8
Slide 21: Appendix 2c – CEIP Resource Statement
Appendix 2c – CEIP Resource Statement For personal use only Central Eyre Iron Project Global Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Location Classification (Mt) (%) (%) (%) (%) (%) Murphy South Indicated 585 16.7 52.9 12.6 0.09 0.3 Inferred 421 16.6 52.6 12.7 0.08 1.2 Boo-Loo Inferred
Slide 22: Appendix – Capital Cost Estimate
Appendix 3 – Capital Cost Estimate For personal use only Estimated Estimated Estimated A$ Direct Costs Indirect Costs Contingency A$ Millions A$ Millions Millions Crushing circuit 244.1 Field indirect – 12.0% 209.3 Direct and indirect – 15% 337.8 Fine grind & mag sep 152.4 EPCM – 8.0% 139.5 Milling