Iron Road Ltd · ASX:IRD
Iron Road — Australia Business Week in India 2015
35 slides from Iron Road's conference presentation, Jan 12, 2015
Slide 1: Central Eyre Iron Project: Paving the Road
Central Eyre Iron Project Paving the Road www.ironroadlimited.com.au Australia Business Week in India, January 2015
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statements This announcement contains certain statements with respect to future matters which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, r
Slide 3: Cautionary Statements
Cautionary Statements Modelling based upon 25 year mine life, consisting of: • Initial 17 years using Proven and Probable Mining Reserve of 2,071Mt @ 15.5% iron (200x100m, 100x50m diamond drill spacing). • Further eight years using 28% Measured, 24% Indicated and 48% Inferred Resources of 1,303Mt @
Slide 4: Introduction – Paving the Road
Introduction – Paving the Road Iron Road is advancing the development of Australia’s next major integrated iron ore supply business on the Eyre Peninsula in South Australia. The CEIP offers: • Robust financial metrics for both the DFS and optimised case, with debt service and loan life cover ratios
Slide 5: www.ironroadlimited.com.au
www.ironroadlimited.com.au 5
Slide 6: Supportive State and Federal Governments
Supportive State and Federal Governments • April 2014 – Major Project Facilitation Status declared by Federal Minister for Infrastructure and Regional Development Mr Warren Truss • August 2013 – Major Development status declared by Deputy Premier Mr John Rau – EIS Guidelines issued November 2014 • C
Slide 7: A Catalyst For New Opportunities
A Catalyst For New Opportunities • Dedicated stakeholder team • Working with communities – Amenity, lifestyle – Social – Air quality, water and salinity – Rehabilitation and mine closure – Infrastructure • Working with all levels of government • Capacity available for other exporters – both minerals
Slide 8: Developing the next generation, fully integrated iron ore supply business
Developing the next generation, fully integrated iron ore supply business www.ironroadlimited.com.au 8
Slide 9: The Next Generation
The Next Generation Experience with large magnetite operations in Australia indicates inefficient and problematic processing, leading to high capital and operating cost outcomes and unsatisfactory production levels. In contrast, the CEIP offers an uncomplicated process supported by a very large simp
Slide 10: Iron Road's Natural Advantage
Iron Road’s Natural Advantage Iron Road’s mineralisation has a natural advantage… the earth’s forces have done much of the hard work already Does not require pelletising Coarse brittle rock Less impurities Iron Gneiss Easily processed www.ironroadlimited.com.au 10
Slide 11: Transition to Optimised Mining Method
Transition to Optimised Mining Method The project cost structure Approach has transitioned from a base Traditional load & haul IPCC of volatile oil pricing IPCC to the Semi-mobile potential for long term base load electricity price crushers contracts Mobile crushers 350t trucks 93 32 12 (estimate) G
Slide 12: Mobile Crushing and Conveyor System
Mobile Crushing and Conveyor System www.ironroadlimited.com.au 12
Slide 13: Supply chain control captures mine to customer efficiencies
Supply chain control captures mine to customer efficiencies www.ironroadlimited.com.au 13
Slide 14: Infrastructure
Infrastructure Corridor • One multi-use corridor minimises impacts • Comprises rail, power line, service road and water pipeline (pipeline for part of route only) Infrastructure features • Scalable design philosophy • Power line to site, possible reinforcement of Eyre Peninsula transmission network
Slide 15: Infrastructure
Infrastructure Capesize and Panamax capable, with additional module offloading facility (MOF). • Berths for two Capesize vessels, 24/7 in most weather conditions. • No dredging or breakwater required. • MOF suitable for unloading heavy lift ships. • Able to receive containerised consumables. • Initi
Slide 16: Building the Plan, Building Credibility, Building a Business
Building the Plan Building Credibility Building a Business www.ironroadlimited.com.au 16
Slide 17: Seaborne Quality Gap Widening
Seaborne Quality Gap Widening • Competitive cost, high grade, complementary blending feedstock • CEIP positioned mid-range for ALL 2020 suppliers to China • Circa 1.5Bt China market including expansion growth from the majors www.ironroadlimited.com.au 17
Slide 18: High Grade Project Appeal
High Grade Project Appeal • Capital destructive competitors provide both challenges and opportunities • CEIP positioned in the lowest cost quartile for high quality concentrate producers receiving 10-20% price premiums (>62% Fe, low impurities) • Project partners and offtake equation to drive fundin
Slide 19: Strategic Investment Highlights
Strategic Investment Highlights Premium •High quality Fe concentrate with low impurities to drive sinter plant operating and environmental efficiencies Product •Consistent, premium product expected to displace lower quality domestic and imported feedstocks •Large magnetite resource (and growing) to
Slide 20: Project Bankability and Risk Mitigation
Project Bankability and Risk Mitigation Project •~USD125M invested over 6+ years, comprehensive feasibility study confirms project design and economics •Major Development and Major Project Facilitation status granted by State and Federal governments recognises Definition CEIP credentials •Premium ir
Slide 21: Project Funding Programme
Project Funding Programme Development Internal, Technical Consultant, Financial Advisor and Legal Team Team Appointments Project Due Our Technical Journey Feasibility Study Data Room Diligence Presentation Steel Mills, Resource Strategic Evaluation of Investment Funds, Finalisation of Equity Investm
Slide 22: www.ironroadlimited.com.au
www.ironroadlimited.com.au 22
Slide 23: www.ironroadlimited.com.au
www.ironroadlimited.com.au 23
Slide 24: Brand Iron Road
Brand Iron Road To be a trusted and reliable supplier of premium iron concentrates www.ironroadlimited.com.au 24
Slide 25: www.ironroadlimited.com.au
www.ironroadlimited.com.au 25
Slide 26: Thank you
Thank you www.ironroadlimited.com.au 26
Slide 27: Appendix – CEIP Resource Statement & Indicative Concentrate Specifications
Appendix 1 – CEIP Resource Statement & Indicative Concentrate Specifications CEIP Global Mineral Resource Tonnes Fe SiO2 Al2O3 P Location Classification (Mt) (%) (%) (%) (%) Measured 2,222 15.69 53.70 12.84 0.08 Murphy South/Rob Roy Indicated 474 15.6 53.7 12.8 0.08 Inferred 667 16 53 12 0.08 Boo Lo
Slide 28: Appendix – CEIP Reserve Statement
Appendix 2 – CEIP Reserve Statement CEIP Global Mineral Reserve Tonnes Fe Location Classification (Mt) (%) Proved 1,871 15.6 Murphy South/Rob Roy Probable 200 15.1 Total 2,071 15.5 The information in this report that relates to Reserves estimated for Murphy South / Rob Roy (MSRR) is based on and fai
Slide 29: Appendix – CEIP Exploration Target
Appendix 3 – CEIP Exploration Target The Exploration Target for EL4849 was released by Iron Road Limited (IRD) during late 2013 (ASX Release dated 11 September 2013). This target potential was determined to be 8 to 17Bt in the range 14% to 20% iron* and included Priority 1, 2 and 3 ranked targets. T
Slide 30: Appendix – CEIP Exploration Target (continued)
Appendix 3 – CEIP Exploration Target (continued) The potential of the Hambidge Project Area has been further enhanced by the recent completion of inversion modelling of the detailed geophysical survey over Hambidge and immediate surrounds (Hawke, 2014). A reassessment of the Exploration Target for t
Slide 31: Appendix – CEIP Exploration Target (continued)
Appendix 3 – CEIP Exploration Target (continued) Target Rank Target ID Strike (km) Depth (m) 1 Boo Loo East 3.0 400 1 Gap 1.5 400 1 Hambidge 13.0 600 1 Boo Loo West 1.5 400 1 South Deeps 4.0 600 1 Collins 2.0 300 1 Bobtail 1.5 300 1 Ben’s Hill 5.0 300 1 Joshua 2.5 300 1 Fairview 3.0 250 1 Fairview E
Slide 32: DFS Guiding Principles And Outcomes
DFS Guiding Principles And Outcomes • Consistent high quality • Bulk testing has • Coarse product easier to Premium product is competitive and clean confirmed value in handle and transport solution for steel mills benefits for steel mills than finer concentrates • Meets requirements for • Readily su
Slide 33: Innovative paths realised through DFS
Innovative paths realised through DFS Reduced mine footprint Efficient operations Deep water port Export opportunities • Mine footprint reduced • Modularisation • Selected site does not • Encouraging potential by 2610 hectares reduces project risk on require dredging third parties multiple fronts •
Slide 34: Process Design Highlights
Process Design Highlights Smart Modular In Pit Crushing and Processing Plant > Tailings Handling > Rail and Port Design > Conveying (IPCC) > Design > Processing plant Mine designed for Three discrete Filtered tailings Standard gauge, utilises high IPCC from day recovery trains and waste he
Slide 35: Board and Management
Appendix 5 Board and Management Peter Cassidy Non Executive Chairman Board Key Investors Julian Gosse Non Executive Director The Sentient Ian Hume Non Executive Director Group 73% Jerry Ellis AO Non Executive Director Leigh Hall AM Non Executive Director Andrew Stocks Managing Director Larry Ingle G