Slide 1: Australia's newest mineral sands miner
For personal use only Australia’s newest mineral sands miner Rapidly growing mid-tier prospect Boonanarring Mineral Sands Project IMARC 2019 Melbourne, VIC 29-31 Oct 2019 Patrick Mutz Managing Director Image Resources NL ASX: IMA 1
Slide 2: Disclaimer and Forward Looking Statements
Disclaimer and Forward Looking Statements For personal use only This presentation/document has been prepared by the management of Image Resources NL ("Image”, “IMA“, or “the Company”). The information presented includes an indicative outlook of the business activities of Image for the calendar year
Slide 3: Very strong asset fundamentals
Boonanarring Mineral Sands Project For personal use only Very strong asset fundamentals Ø Excellent location; • 80km north of Perth in Western Australia in infrastructure-rich North Perth Basin • home to majors Iluka and Tronox Ø Exceptional deposit; • Very high ore grade 7.2%HM • Zircon-rich 22.7%
Slide 4: Simple, low-risk business model
Boonanarring Mineral Sands Project For personal use only Simple, low-risk business model Ø Straight-forward open-cut dry mining; • Contract mining by one of the best-known, experienced and well-equipped operators in Australia (Piacentini & Son) Ø Simple gravity separation circuit to produce heavy mi
Slide 5: Stellar project delivery
Boonanarring Mineral Sands Project For personal use only Stellar project delivery Ø Project constructed on-time & on-budget Simplified Boonanarring Project Construction Schedule - (high level) • Rapid build; 8 months construction 2018 2019 May Nov Mar Mar Aug Dec Feb Sep Feb Apr Oct Jan Jun Jan Jul
Slide 6: Unexpected positives
Boonanarring Mineral Sands Project For personal use only Unexpected positives Ø Heavy mineral (HM) ore grade 43% higher than forecast in 1H 2019 • High grade core identified in eastern strand not appropriately delineated by 20m drill spacings • Eastern strand redrilled on 5m spacings • Upgraded Ore
Slide 7: Corporate Snapshot
Corporate Snapshot For personal use only Diverse and Experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.27* Bob Besley – Independent Chairman 12-Month Price Range: A$0.10-0.30 Patrick Mutz – Managing Director Shares on Issue: 964m Chaodian Chen - Non-Executive Directo
Slide 8: Ore Reserves
Ore Reserves For personal use only q HIGH-QUALITY ORE RESERVES Ø JORC Code (2012) Compliant Ø High HM, VHM and very high zircon at Boonanarring High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmeni
Slide 9: Product Assemblage and Revenue Contributions
Product Assemblage and Revenue Contributions For personal use only Notes: VHM assemblage and commodity prices are estimates based on actual operational results and 2Q 2019 commodity price assumptions. 9
Slide 10: Market Guidance and Forecast
Market Guidance and Forecast For personal use only Market Guidance Ø CY 2019 Guidance • Initial, Feb 2019 EBITDA $40-50M • Updated, July 2019 EBITDA $55-65M Ø CY 2020 BFS Forecast, EBITDA $90-100M Ø Financial model to be updated based on new Ore Reserve estimate in Q4 • Ore grade and zircon content
Slide 11: Boonanarring – CY2019 Guidance
Boonanarring – CY2019 Guidance For personal use only 2019 Guidance & Units June 2019 2019 2020 2020 Forecast1,2,4 YTD Actual Guidance Forecast HMC3 Produced DMT 000s 138 240-260 280-300 HMC3 Sold DMT 000s 116 230-250 280-300 Revenue A$M 67 130-145 180-200 A$/DMT Revenue/DMT Sold 579 568-592 600-650
Slide 12: Target Production Rate
Target Production Rate For personal use only Base Assumptions s weight*! s above it Ø Start mining at Boonanarring es4t ime n ue to Punch r ev e Ø Dry, open-cut mining Eq u iv alent in r hour at *- es pe 2,00 0 t on n gr ad es of Ø Production rate - 500 dry tonnes per hour r e t y p ical ore and mo
Slide 13: Boonanarring HMC Production Stats
Boonanarring HMC Production Stats For personal use only Average annual production at Boonanarring: 5 Year Base Case Ø Avg. 240k tonnes HMC per annum containing: • 60kt zircon (70kt/year in CY2020) • 130kt ilmenite • 6kt rutile • 4kt leucoxene Ø 5+ years mine life with potential to add 3-4 years addi
Slide 14: Upside Potential
Upside Potential For personal use only High likelihood of additional Ore Reserves at Boonanarring Ø Potential to extend mine life at Boonanarring with confirmed high-grade mineralisation in 5.6km northern extension area (NEA) (ASX announcements 13 March & 26 June 2017); • Outstanding high-grade inte
Slide 15: Boonanarring HMC Production
Boonanarring HMC Production For personal use only Ø HMC production exceeded target each Quarter Ø YTD basis production is 137% of budget • Excess production equivalent to 2.8 months extra production at avg. 20Kt/month 15
Slide 16: Boonanarring Ore Grade
Boonanarring Ore Grade For personal use only Ø Actual ore grade exceeded target every quarter Ø YTD basis ore grade is 130% of forecast based on Ore Reserve • Average actual ore grade 9.3%HM vs 7.1% weighted average forecast 16
Slide 17: Boonanarring Ore Source and Grade Variance
Boonanarring Ore Source and Grade Variance For personal use only Ø Percentage of ore mined from Eastern strand has been decreasing as mine progresses to the south as Eastern strand pinches out Ø Ore grade variance indicates Eastern strand Ore Reserve has been understated and Western strand Ore Reser
Slide 18: Project Types and Locations
Project Types and Locations For personal use only Ø 1,000 km2 tenements portfolio Atlas Ore Reserves Ø 100% focus on mineral sands Probable: 9.5Mt @ 8.1% HM Ø Strandline projects (dry mining) Ø Dredge mining prospects Multiple opportunities for a second Boonanarring Ore Reserves stand-alone mining p
Slide 19: Projects Pyramid – Strand Deposits
Projects Pyramid – Strand Deposits For personal use only Mineral Resources – Accessible by Dry Open-Cut Mining Projects ranked by combined zircon plus rutile (Z+R) contained in the HM Tonnes and grades are for Mineral Resources; Boonanarring and Atlas per JORC Code (2012); All others historic per JO
Slide 20: Projects Pyramid – Dredge Prospects
Projects Pyramid – Dredge Prospects Mineral Resources – Accessible by Dredge Mining For personal use only Projects ranked by HM Grade and include combined zircon plus rutile (Z+R) contained in the HM Positive attributes Tonnes-grades are for historic Mineral • 90+%VHM; Resources per JORC Code (2004)
Slide 21: Potential Ore Reserves at other Image Projects
Upside Potential For personal use only Potential Ore Reserves at other Image Projects Ø Potential to add to historic Mineral Resources and convert to Ore Reserves at other 100%-owned projects; • Red Gully; • Regans Ford; • Gingin North; • Gingin South; and • Atlas; plus • Bidaminna (dredge prospect)
Slide 22: Potential Royalty from Tronox
Potential Royalty from Tronox For personal use only Royalty agreement in place as of 2014 Ø Small cash payment in 2014 Ø Sliding-scale royalty on production Avg. HM Grade Royalty 2.5% 1.25% 3.0% 2.50% 3.5% 3.75% 4.0% 5.00% Ø Indefinite production schedule Ø Potential for future arrangements with Tro
Slide 23: Solar Farm at Boonanarring
Solar Farm at Boonanarring For personal use only Formal agreements with Sunrise Energy Group Pty Ltd to provide 2.3 MWAC solar farm to be: Ø Constructed and operated by Sunrise Energy; Ø Located on Image owned land adjacent to Boonanarring mine site; and Ø Providing up to 25% of total electricity re
Slide 24: For further information
For further information For personal use only Patrick Mutz Managing Director Image Resources NL info@imageres.com.au Office: +61 8 9485 2410 Ground Floor, 23 Ventnor Avenue West Perth, WA 6005 PO Box 469, West Perth, WA 6872 www.imageres.com.au 24
Slide 25: Products and Applications – Zircon
Products and Applications For personal use only Key products are zircon and titanium dioxide Ø Zircon sand is processed into zirconium compounds, intermediate products and zirconium metal for a variety of applications; s Qualitie § Ceramics (tiles); 55% demand whitene r r opacifie istant s § Foundry
Slide 26: Products and Applications – Titanium dioxide
Products and Applications For personal use only Key products are zircon and titanium dioxide Ø Titanium dioxide (TiO2) from rutile and ilmenite is processed into titanium based products and titanium metal for a variety of applications; § Ultra-white pigments (paint, paper, plastic); ~90% demand § We