Equatorial Resources Limited · ASX:EQX
Equatorial Resources — Mines and Money Hong Kong 2014
24 slides from Equatorial Resources's conference presentation, March 2014
Slide 1: The Iron Future of Africa
THE IRON FUTURE OF AFRICA Mines and Money Hong Kong March 2014
Slide 2: Competent Persons Statements and Cautionary Statements
COMPETENT PERSONS STATEMENTS AND CAUTIONARY STATEMENTS Slide 2
Slide 3: Equatorial's Iron Footprint in Republic of Congo
EQUATORIAL’S IRON FOOTPRINT IN REPUBLIC OF CONGO Exploring and developing 100% owned iron projects Large footprints in key iron clusters in Africa Clear pathway to production from Mayoko‐ Moussondji at very low capital intensity Massive regional potential at Badondo Experienced board and manage
Slide 4: An Iron Future for Africa
AN IRON FUTURE FOR AFRICA Africa has high quality, massive scale projects that can displace seaborne supply in any market Projects with existing pathways to market and potential for staged development are emerging as regional leaders Equatorial is extremely well placed to succeed: 1. Near term pr
Slide 5: It Is "When" Not "If" for Africa
IT IS “WHEN” NOT “IF” FOR AFRICA Slide 5
Slide 6: Bienvenue a Congo-Brazzaville!
BIENVENUE A CONGO‐BRAZZAVILLE! • Rapid development of major infrastructure • Stable “oil country” actively growing its mining sector • Former French colony, 50 years of independence • Oil majors Total, Eni, and Chevron operating for 30+ years, currently investing over US$2.5Bn pa* • Population 4.4 m
Slide 7: Mining in the Republic of Congo
MINING IN THE REPUBLIC OF CONGO • Major miners now invested in Republic of Congo • Mining sector is central to the government’s Economic Diversification Program (Chemin d’Avenir) • Mining code adopted in 2005 • Favourable fiscal terms for miners • 3% Royalty on Revenues • 10% government participatio
Slide 8: Mayoko-Moussondji Iron Project
MAYOKO‐MOUSSONDJI IRON PROJECT NEAR TERM PRODUCTION FROM MAYOKO PREMIUM FINES WITH ACCESS TO EXISTING INFRASTRUCTURE Slide 8
Slide 9: Mayoko-Moussondji Project Advantages
MAYOKO‐MOUSSONDJI PROJECT ADVANTAGES • 917 million tonne Total JORC Resource LARGE IRON ORE 917Mt • Near surface Hematite Resource of 182 million tonnes RESOURCE JORC • 2,680 km2 licence area, largest footprint of land in Mayoko region • Only 21km drilled of 47km of identified iron strike 64.1% Fe •
Slide 10: Mayoko-Moussondji Updated Mineral Resource Estimate
MAYOKO‐MOUSSONDJI UPDATED MINERAL RESOURCE ESTIMATE • Current JORC Mineral Resource Estimate (Hematite and Magnetite) of 917 MILLION TONNES at 31.4% Fe • Includes near surface JORC Hematite Resource of 182 MILLION TONNES at 35.7% Fe Mayoko‐Moussondji Iron Project Indicated and Inferred Mineral Resou
Slide 11: Access to Existing Transport Infrastructure
ACCESS TO EXISTING TRANSPORT INFRASTRUCTURE Commercial frameworks in place for use of the state‐owned transport infrastructure Government has confirmed Equatorial’s access agreements RAIL • Operational railway line intersects the project and leads directly to the port of Pointe‐Noire • Previously
Slide 12: Simple Processing Required for High Grade Product
SIMPLE PROCESSING REQUIRED FOR HIGH GRADE PRODUCT Simple Flow Sheet: Mayoko Premium Fines – 64.1% Fe Slide 12
Slide 13: High Grade Product: Mayoko Premium Fines
HIGH GRADE PRODUCT: MAYOKO PREMIUM FINES • Simple upgrading of near surface hematite produces a premium fines iron product of 64.1% Fe (“Mayoko Premium Fines”) • Standard processing techniques with low technical risk • Mayoko Premium Fines compares favourably with Australian products and is expected
Slide 14: Scoping Study Highlights
SCOPING STUDY HIGHLIGHTS • Expected operating cash costs of US$41.43/t FOB Pointe‐Noire Slide 14
Slide 15: Scoping Study Highlights
SCOPING STUDY HIGHLIGHTS • Total capital required for 2Mtpa of US$231m Slide 15
Slide 16: A Pathway to Production
A PATHWAY TO PRODUCTION ESIA completed and lodged Mining Licence Application completed and lodged Work with government to secure all required permitting for production Secure a strategic partnership and development financing • Project equity available • Leasing opportunity for rail rolling stock
Slide 17: Badondo Iron Project
BADONDO IRON PROJECT STRATEGIC LARGE SCALE ASSET WITH DIRECT SHIPPPING ORE POTENTIAL Slide 17
Slide 18: Congo Craton: The Emerging New Iron Cluster
CONGO CRATON: THE EMERGING NEW IRON CLUSTER • Badondo is strategically located within the emerging cluster of the Congo Craton iron projects: • 90km from Sundance Resources’ Mbalm Project (775Mt @ 57%Fe) • 40km from Core Mining’s Avima Project (580Mt @ 60%Fe) • 45km from Gabonese Belinga Project (56
Slide 19: Badondo: Massive Potential for Exploration Upside
BADONDO: MASSIVE POTENTIAL FOR EXPLORATION UPSIDE • Over 22km of prospective iron strike identified within three distinct target prospects • Initial drilling confirmed high grade hematite cap up to 66% Fe • Thick and extensive enriched hematite blanket identified • Significant near surface downhole
Slide 20: A New Pilbara in Africa
A NEW PILBARA IN AFRICA Hammersley Basin ‐ Pilbara Congo, Cameroon Craton • The development of transport infrastructure in the Congo Craton will unlock the massive value of iron resources in the region similar to Australia’s Pilbara • The Pilbara currently produces >500Mtpa using dedicated iron ore
Slide 21: Capital Structure
CAPITAL STRUCTURE EQUATORIAL RESOURCES LTD (ASX: EQX) As at 24 March 2014 Current Issued Capital 122.2 million shares Fully Diluted 125.3 million shares Market Capitalisation (Undiluted @ A$0.55) A$67.2 million Cash at 31 December 2013 A$45.4 million TOP 20 SHAREHOLDERS 76.5% 16.9% 8.9% 4.9% Directo
Slide 22: Equatorial Team at Mayoko
EQUATORIAL TEAM AT MAYOKO Slide 22
Slide 23: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Highly respected resource executive with extensive finance, commercial and capital markets experience. Founder Ian Middlemas and Chairman of Mantra Resources Limited which was acquired by ARMZ for $1.1Bn in 2012. Current Chairman of Chairman Papillion Resources Limited, B
Slide 24: Contact offices
Perth: London: Pointe‐Noire: Brazzaville: Level 2, BGC Centre, 28 The Esplanade Suite 1C, 38 Jermyn Street 03 Avenue de Loango Rue Loth Perth, WA 6000, Australia London, SW1Y 6DN 2eme Etage, Ndjindji Quartier Télévision GPO Box 2519, Perth, WA 6831 United Kingdom Arrondissement 1 Brazzaville EP Lumu
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