Slide 1: Centaurus: Powering towards production
Centaurus: Powering towards production For personal use only • Low costs • Strong margins • Outstanding growth potential Darren Gordon Managing Director Annual General Meeting 31 May 2013
Slide 2: Disclaimer
Disclaimer • This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, For personal use only solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentat
Slide 3: Overview
Overview • Building a long-term iron ore business in SE Brazil For personal use only • Developing low capital and operating cost mines near existing infrastructure and customers • Initial 2Mtpa operation on track to commence at Jambreiro: • November 2012 BFS delivered life-of-mine revenue of A$847M,
Slide 4: Brazil – Latin America's Economic Powerhouse
Brazil – Latin America’s Economic Powerhouse For personal use only • World economic ranking: 6th • Ranking in Latin America: 1st • GDP growth (2012) 1.5% • Revised GDP growth forecast (2013): 3.0% • Population: ~195M • Iron ore exports: >320Mtpa • Steel production: ~35Mtpa By 2050, the Brazilian pop
Slide 5: Brazilian Iron Ore Market
Brazilian Iron Ore Market • Large domestic market for iron ore consumption For personal use only • Brazilian economy expected to rebound in the medium term with infrastructure investment for 2014 Soccer World Cup and 2016 Olympics • Significant market opportunity with major steel mills located withi
Slide 6: Corporate Overview
Corporate Overview Capital Structure For personal use only Shares on Issue 196.0m Options & Performance Rights 14.5m Share Price A$0.14 Market Capitalisation A$27.4m Cash at bank (31 March 2012) A$17.9m Enterprise Value A$9.5m Major Shareholders Broker Research 12-Month Atlas Iron Ltd (19.6%) – An A
Slide 7: Centaurus Key Personnel – Board and Management
Centaurus Key Personnel – Board and Management Centaurus Metals Board Centaurus Metals Senior Management John Westdorp: Chief Financial Officer For personal use only Didier Murcia – Independent Non-Executive Chairman Chartered Accountant, 20 years resource experience, former CFO of Iron Lawyer, 25 y
Slide 8: Brazilian Domestic Project Hub
Brazilian Domestic Project Hub For personal use only Page 8
Slide 9: Domestic Project Hub
Domestic Project Hub For personal use only • 201Mt resource base – four projects • Cornerstone = Jambreiro Project (125.2Mt) – 180km from Ipatinga steel- making region • Future growth potential: Guanhaes tenements, Passabem, Itambé Page 9
Slide 10: Overview
Jambreiro – Overview For personal use only Page 10
Slide 11: A Low-Cost, High-Margin Iron Ore Project
Jambreiro – A Low-Cost, High-Margin Iron Ore Project • Bankable Feasibility Study – November 2012: For personal use only • Production: 2Mtpa @ 64.5% Fe • Life-of-Mine Revenue: A$847M • Operating costs: A$16.20/tonne • EBITDA: A$556M, annual cash flows: A$62M • Post-tax NPV: A$140M, IRR: 33% • Pre-pr
Slide 12: Process Flowsheet
Jambreiro Process Flowsheet For personal use only Page 12
Slide 13: Site Layout
Jambreiro – Site Layout For personal use only Mass PRODUCT QUALITY Fe% SiO2% Al2O3% P% Recovery % FRIABLE ORE – PILOT PLANT (30T) – Wet Magnetic Separation Head Grade 30.4 52.3 2.7 0.02 Beneficiated Product 66.0 4.1 0.8 0.01 39.4 BFS Assumptions Initial mine life: 9.0 years Strip ratio: 0.97:1 Produ
Slide 14: Land Access & Approval Process
Jambreiro – Land Access & Approval Process Environmental Approvals For personal use only • Environmental Impact Assessment (EIA/RIMA) Approved • Three stage approval process • LP – Issued October 2012 • LI – Issued April 2013 • LO – Due June Quarter 2014 • Strong community support for Project • Proj
Slide 15: Offtake & Financing
Jambreiro – Offtake & Financing For personal use only Offtake • General acceptance of the Jambreiro product specification by domestic steel mills • Negotiations progressing well • Targeting Life-of-Mine offtake contract • Offtake directed towards international market based price with net back to min
Slide 16: Development Timeline
Jambreiro – Development Timeline 2012 2013 2014 For personal use only BFS Completed On Site Construction Production Commences PAE Approved Debt Financing Drawdown Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun LI Approved Operating Licence EIA/RIMA Approval (LP) Installation Licence
Slide 17: Project and Mine Life Upside
Jambreiro – Project and Mine Life Upside Compact Ore For personal use only • Comprises 65.8Mt @ 27.7% Fe within overall Mass PRODUCT QUALITY Fe% SiO2% Al2O3% P% resource of 125.2Mt @ 26.7% Fe Recovery % • Successful test work has delivered COMPACT MINERALISATION – BENCH SCALE (Wet Magnetic Separatio
Slide 18: Exploration Upside – Canavial Iron Ore Project
Jambreiro – Exploration Upside Canavial Iron Ore Project For personal use only • Maiden JORC resource of 27.6Mt @ 30.5% Fe • Beneficiation testwork using Jambreiro flowsheet design is underway • Simple environmental approval process for future development JORC Million Material Fe % SiO2 % Al2O3 % P%
Slide 19: Exploration Upside – Candonga Iron Ore Project
Jambreiro – Exploration Upside Candonga Iron Ore Project For personal use only • High grade drill results including some DSO grades • Next batch of drilling and maiden resource due June 2013 • Potential for coarse grained product to support the Jambreiro operations • Land generally clear of native v
Slide 20: Achievements
Achievements November 2012 Expansion of Management Team – new CFO appointed For personal use only January 2013 MOU signed with Minas Gerais State Government Award of Management Support Contract for Jambreiro February 2013 Positive drilling results at Canavial Project Award of Detailed Engi
Slide 21: Summary
Summary For personal use only • Brazil-focused iron ore developer • Proven business model: Mine, Beneficiate, Deliver • Low capital intensity, low operating costs • Strong forecast cash flows • 12 months to production • Well-funded: $18m cash • Supportive strategic shareholders: Atlas & Liberty Page
Slide 22: Centaurus: Powering towards production
Centaurus: Powering towards production For personal use only • Low costs • Strong margins • Outstanding growth potential Darren Gordon Managing Director Annual General Meeting 31 May 2013
Slide 23: Project – October 2012 Ore Reserves
Jambreiro Project – October 2012 Ore Reserves For personal use only Ore Reserve Classification Mt Fe% SiO2% Al2O3% P% LOI % Proven 35.4 28.5 49.6 4.3 0.04 1.7 Probable 13.1 27.2 49.0 5.3 0.04 2.4 Total 48.5 28.1 49.4 4.6 0.04 1.9 Page 23
Slide 24: Project – Key BFS Assumptions
Jambreiro Project – Key BFS Assumptions Key Assumption For personal use only Ore Reserves 48.5Mt Grade 28.1% Fe Metal recovery per dry tonne 90% Reserve – Final Product 18Mt Grade +64.5% Fe Waste Movement 46.8Mt Total Material Movement (including pre-strip) 95.3Mt Waste to Ore Ratio (LOM) 0.97 to 1
Slide 25: Project – Sensitivity Analysis
Jambreiro Project – Sensitivity Analysis 2 Mtpa Case Post Tax – NPV (A$M) For personal use only Variable -20% -10% Base +10% +20% -20% -10% Base +10% +20% Average LoM Price (FOB Mine) A$/dmt 38 42 47 52 56 73.9 106.8 139.6 172.4 205.2 Capital Expenditure (A$M) 163 150 136 122 109 119.6 129.6 139.6 1
Slide 26: Mineral Resource Inventory – May 2013
Mineral Resource Inventory – May 2013 Project JORC Category Million Tonnes Fe % SiO2 % Al2O3 % P% LOI % Jambreiro Measured 46.7 28.3 51.0 4.2 0.04 1.6 For personal use only Indicated 35.5 26.5 49.9 4.3 0.05 1.7 Measured + Indicated 82.3 27.5 50.5 4.3 0.05 1.7 Inferred 42.9 25.3 49.5 4.5 0.06 1.3 TOT