Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Shareholder Meeting (December 2020)
43 slides from Magnetite Mines's shareholder meeting presentation, Dec 11, 2020
Slide 1: Retraction and Clarification of AGM & Investor Presentation
For personal use only ASX Announcement 11 December 2020 Retraction and Clarification of AGM & Investor Presentation Magnetite Mines Limited (ASX: MGT) ( Company) refers to the announcements on 27 November 2020 in relation to the Presentation to the 2020 AGM (AGM Presentation) and on 1 December 2020
Slide 2: Magnetite Mines 2020 Annual General Meeting
For personal use only MAGNETITE MINES LIMITED High Grade Iron Ore Concentrate 2020 ANNUAL GENERAL MEETING
Slide 3: Disclaimer
DISCLAIMER For personal use only Important Notice The purpose of this presentation is to provide general information about Magnetite Mines Limited ("MGT"). It is not recommended that any person makes any investment decision in relation to MGT based on this presentation. This presentation contains ce
Slide 4: Corporate Overview
CORPORATE OVERVIEW For personal use only SHARE PRICE (1 Year) CAPITAL STRUCTURE Shares M 2,856 Options M 79 Quoted Options M 470 Share price (25 Nov 2020) A$ $0.01 Market Capitalisation (25 Nov 2020) A$ $29m Cash (25 Nov 2020) A$ $5.355m SHAREHOLDER SNAPSHOT BOARD OF DIRECTORS Mr Peter Schubert Exec
Slide 5: 2020 – Delivering the Plan for a Staged, Scaleable Development
2020 – DELIVERING THE PLAN FOR A STAGED, SCALEABLE DEVELOPMENT For personal use only • Successful, shareholder centred capital raises – PFS fully funded1 • Assembling a team of experienced experts to deliver optimum results8 • PFS underway and already delivering technical and economic breakthroughs8
Slide 6: Taking Advantage of Favourable Geography
TAKING ADVANTAGE OF FAVOURABLE GEOGRAPHY For personal use only Location advantages: • 240km NE of Adelaide within the Braemar Iron Formation • Close to grid power, rail, port and groundwater 7 5
Slide 7: Plan to Leverage Scale, Location and Opportunity to Deliver Value
PLAN TO LEVERAGE SCALE, LOCATION AND OPPORTUNITY TO DELIVER VALUE For personal use only • Large resource in favourable geography • JORC resource 3.9 billion tonnes global resource (Inferred and Indicated) 5 • Amenable to simple processing to high grade product – targeting 68.5% Fe, 6.5% Fe higher th
Slide 8: High Grade Fines – Material Premium and Stable Pricing
HIGH GRADE FINES – MATERIAL PREMIUM AND STABLE PRICING For personal use only • A year ago, we highlighted that Chinese steel production at record levels with iron imports lagging • 62% pricing has increased by around 40% since then • Grade premiums in $/% Fe are at ~US$4 per % (have been as high as
Slide 9: Global Steel Production Increasing Over Years
GLOBAL STEEL PRODUCTION INCREASING OVER 20 YEARS For personal use only • Global steel production has been growing Global Steel Production rapidly 2,000,000 COVID-19 • China has added 400Mtpa in 10 years, but 1,800,000 is not alone – India, Iran and Vietnam have 1,600,000 added 60Mtpa 1,400,000 GFC •
Slide 10: China's Steel Production and Iron Ore Imports Are Strong
CHINA’S STEEL PRODUCTION AND IRON ORE IMPORTS ARE STRONG For personal use only • China’s annual crude steel production for China quarterly iron ore imports and crude steel production 2019 was a record, just short of 1 Bt (annualised) • Chinese steel production has continued to 1,400 increase despite
Slide 11: But Iron Ore Supply Is Not Keeping Up With Demand
BUT IRON ORE SUPPLY IS NOT KEEPING UP WITH DEMAND For personal use only • Despite substantial increases in steel Crude Steel And Contained Iron In Exports production and iron ore demand, the 1200 traditional sources of supply have been slow to expand 1000 • Africa is the major potential new source –
Slide 12: Attractive, Staged Development Pathway Focussed on Capital Efficiency
ATTRACTIVE, STAGED DEVELOPMENT PATHWAY FOCUSSED ON CAPITAL EFFICIENCY For personal use only • Strong iron ore demand, premiums for high grade products and limited new supply provide a favourable environment for Razorback • We believe that a relatively low capital, long life development of the large
Slide 13: Pre-Feasibility Study Underway
PRE-FEASIBILITY STUDY UNDERWAY For personal use only • The PFS fully funded and work is well underway1,8 • It builds on and improves prior work completed for the 2019 Scoping Study7 • In house team supported by external technical experts – low overhead approach8 • Focus is on maximising shareholder
Slide 14: Assembling an Experienced Study Team and Developing Delivery Relationships
ASSEMBLING AN EXPERIENCED STUDY TEAM AND DEVELOPING DELIVERY RELATIONSHIPS For personal use only Mark Eames – Technical Director Stephen Weir B.Eng Hons (Mech), Grad Dip. Appl. Fin. SIA – Chief Development Officer Mr Eames has a successful track record in the global minerals industry in exploration,
Slide 15: NextOre – Year Exclusivity Australia Wide
NEXTORE – 4 YEAR EXCLUSIVITY AUSTRALIA WIDE For personal use only • Agreement with NextOre for supply of a full-scale mobile ore sorting plant for the Razorback Project for sorting magnetite ore using MR technology, with equipment despatch from the CSIRO Lucas Heights facility in 2021 9 • Exclusive
Slide 16: New Geological Interpretation
NEW GEOLOGICAL INTERPRETATION For personal use only • Extensive drilling has resulted in a comprehensive database, core library and geophysical logs3 • We have used this extensive information to build a new orebody model that allows a new interpretation of the grade distribution and enables detailed
Slide 17: Selective Mining
SELECTIVE MINING For personal use only • Selective mining identified as potential optimisation during 2019 Scoping Study7 • Razorback iron deposit well suited to selective mining given layered stratigraphy and mineralisation • MBGS completed qualitative study, followed by geological modelling of the
Slide 18: Metallurgical Investigations
METALLURGICAL INVESTIGATIONS For personal use only • High resolution testwork has confirmed the stratabound nature of mineralisation i.e. mineralisation is contained within discrete, traceable layers – not disseminated mineralisation3 • Hatch is currently undertaking a metallurgical review of the Ra
Slide 19: Water Studies
WATER STUDIES For personal use only • ELA investigating potential prospective groundwater supply areas in close proximity to the mine site, with the aim to source a water supply that is feasible4 • Five preliminary target areas have been selected as potential prospective groundwater supply areas bas
Slide 20: Advancing Infrastructure Access
ADVANCING INFRASTRUCTURE ACCESS For personal use only • Logistics and power options developed under the 2019 Scoping Study to be refined utilising existing infrastructure providers7 • Location of Razorback deposit well placed with respect to existing infrastructure • Commercial engagement with power
Slide 21: Environment and Permitting
ENVIRONMENT AND PERMITTING For personal use only • Ecological Australia have been engaged to initiate baseline environmental studies and have provided an approval pathway4 Key activities • Baseline studies (incl, heritage, flora, fauna, water etc.) • Environmental impact assessment study (incl. wate
Slide 22: Indicative Development Schedule
INDICATIVE DEVELOPMENT SCHEDULE For personal use only 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PFS (excl drilling/met testing) Bulk Ore Sorting Trial DFS Funding DFS Study Decision to Mine Project Funding Permitting, Enviro. and Native Title Design Procure
Slide 23: 2021 – Shaping Up for Production
2021 – SHAPING UP FOR PRODUCTION For personal use only • Refine geological model including weathering profile and potential drill targets, firm up JORC selective mining resource • Complete selective mining design/optimisation and prepare for ore sorting trial • Undertake metallurgical investigations
Slide 24: The MGT Value Proposition
THE MGT VALUE PROPOSITION For personal use only Five Key Advantages of the Razorback Iron Project 1. Globally significant iron ore resource in low sovereign-risk jurisdiction 2. Open-access to existing port, road, rail and power infrastructure7 3. Conventional processing/beneficiation flowsheet with
Slide 25: References – ASX Releases
References – ASX Releases For personal use only 1. 2/10/2020 – Results Of Renounceable Rights Issue 2. 7/10/2020 – Ore Sorting Technology Agreement Update 3. 19/08/2020 – Selective Mining 4. 14/09/2020 – Permitting And Environmental Studies Initiated 5. 12/11/2020 – Razorback Iron Project – JORC 201
Slide 26: Questions?
For personal use only Questions? Mr Mark Eames Technical Director Magnetite Mines Limited www.magnetitemines.com
Slide 27: Magnetite Mines – Global Iron Ore and Steel Forecast Conference
For personal use only MAGNETITE MINES LIMITED High Grade Iron Ore Concentrate Global Iron Ore and Steel Forecast Conference
Slide 28: Disclaimer
DISCLAIMER For personal use only Important Notice The purpose of this presentation is to provide general information about Magnetite Mines Limited ("MGT"). It is not recommended that any person makes any investment decision in relation to MGT based on this presentation. This presentation contains ce
Slide 29: Forecasting Demand with Steel Intensity Models
FORECASTING DEMAND WITH STEEL INTENSITY MODELS For personal use only Steel usage versus per capita GDP • Conventional analysis suggests steel intensity increases as countries develop, peaking then plateauing (‘peak steel’) • Other factors raised, such as technology, ‘de- intensification’, recycling,
Slide 30: A Riddle, Wrapped in a Mystery, Inside an Enigma?
A RIDDLE, WRAPPED IN A MYSTERY, INSIDE AN ENIGMA? For personal use only Underestimates during the rise of China… …and premature “peak steel” estimates • "Humans make mistakes, Chinese demand is going south.“ (Kirill Chuyko, BCS, AFR Nov 24 2014) • “China’s steel sector has already entered a period o
Slide 31: 58% of People Make Up 17% of Global Steel Demand – But This Is Changing
58% OF PEOPLE MAKE UP 17% OF GLOBAL STEEL DEMAND – BUT THIS IS CHANGING For personal use only Long Term Crude Steel Production History • In UK and US, peak steel was almost a century after (LHS except China RHS) industrialisation 200,000 1200000 • Japan flattened after 1974, 14 years after 180,000 i
Slide 32: Global Steel Production Increasing Over Years
GLOBAL STEEL PRODUCTION INCREASING OVER 20 YEARS For personal use only • Global steel production has been growing Global Steel Production rapidly 2,000,000 COVID-19 • China has added 400Mtpa in 10 years, but is 1,800,000 not alone – India, Iran and Vietnam have added 1,600,000 60Mtpa 1,400,000 GFC •
Slide 33: China's Steel Production and Iron Ore Imports Are Strong
CHINA’S STEEL PRODUCTION AND IRON ORE IMPORTS ARE STRONG For personal use only • China’s annual crude steel production for 2019 China quarterly iron ore imports and crude steel production was a record, just short of 1 Bt (annualised) • Chinese steel production has continued to 1,400 increase despite
Slide 34: But Iron Ore Supply Is Not Keeping Up With Demand
BUT IRON ORE SUPPLY IS NOT KEEPING UP WITH DEMAND For personal use only • Despite substantial increases in steel Crude Steel And Contained Iron In Exports production and iron ore demand, the 1200 traditional sources of supply have been slow to expand 1000 • Africa is the major potential new source –
Slide 35: Corporate Overview
CORPORATE OVERVIEW For personal use only SHARE PRICE (1 Year) CAPITAL STRUCTURE Shares M 2,856 Options M 79 Quoted Options M 470 Share price (25 Nov 2020) A$ $0.01 Market Capitalisation (25 Nov 2020) A$ $29m Cash (25 Nov 2020) A$ $5.355m SHAREHOLDER SNAPSHOT BOARD OF DIRECTORS Mr Peter Schubert Exec
Slide 36: Razorback Iron Ore Project - Taking Advantage of Favourable Geography
RAZORBACK IRON ORE PROJECT - TAKING ADVANTAGE OF FAVOURABLE GEOGRAPHY For personal use only Location advantages: • 240km NE of Adelaide within the Braemar Iron Formation • Close to grid power, rail, port and groundwater 7 10
Slide 37: Attractive, Staged Development Pathway Focussed on Capital Efficiency
ATTRACTIVE, STAGED DEVELOPMENT PATHWAY FOCUSSED ON CAPITAL EFFICIENCY For personal use only • Strong iron ore demand, premiums for high grade products and limited new supply provide a favourable environment for Razorback • We believe that a relatively low capital, long life development of the large
Slide 38: New Geological Interpretation
NEW GEOLOGICAL INTERPRETATION For personal use only • Extensive drilling has resulted in a comprehensive database, core library and geophysical logs3 • We have used this extensive information to build a new orebody model that allows a new interpretation of the grade distribution and enables detailed
Slide 39: Selective Mining
SELECTIVE MINING For personal use only • Selective mining identified as potential optimisation during 2019 Scoping Study7 • Razorback iron deposit well suited to selective mining given layered stratigraphy and mineralisation • MBGS completed qualitative study, followed by geological modelling of the
Slide 40: NextOre – Year Exclusivity Australia Wide
NEXTORE – 4 YEAR EXCLUSIVITY AUSTRALIA WIDE For personal use only • Agreement with NextOre for supply of a full-scale mobile ore sorting plant for the Razorback Project for sorting magnetite ore using MR technology, with equipment despatch from the CSIRO Lucas Heights facility in 2021 9 • Exclusive
Slide 41: Plan to Leverage Scale, Location and Opportunity to Deliver Value
PLAN TO LEVERAGE SCALE, LOCATION AND OPPORTUNITY TO DELIVER VALUE For personal use only • Large resource in favourable geography • JORC resource 3.9 billion tonnes global resource (Inferred and Indicated) 5 • Amenable to simple processing to high grade product – targeting 68.5% Fe, 6.5% Fe higher th
Slide 42: Questions?
For personal use only Questions? Mr Mark Eames Director Magnetite Mines Limited www.magnetitemines.com
Slide 43: References – ASX Releases
References – ASX Releases For personal use only 1. 2/10/2020 – Results Of Renounceable Rights Issue 2. 7/10/2020 – Ore Sorting Technology Agreement Update 3. 19/08/2020 – Selective Mining 4. 14/09/2020 – Permitting And Environmental Studies Initiated 5. 12/11/2020 – Razorback Iron Project – JORC 201
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