Alderon Iron Ore Corp · OTC:AXXDF
Alderon Iron Ore — Investor Presentation (December 2011)
25 slides from Alderon Iron Ore's investor presentation, December 2011
Slide 1: Kami Iron Ore Deposits, Labrador
KAMI IRON ORE DEPOSITS Labrador December 2011 TSX: ADV / OTCQX: ALDFF
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements Information set forth in this presentation may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expe
Slide 3: Solid Fundamentals For Success
Solid Fundamentals For Success Highly desirable product Product Iron ore demand expected to double over next fifteen years Experienced management team Track Record IOC and Consolidated Thompson Ideal location Location Surrounded by four other iron ore mines, stable country Transportation infrastruct
Slide 4: Iron Ore: Highly Desirable Product
Iron Ore: Highly Desirable Product Market fundamentals remain strong in the long term … with the international supply response Iron Ore Price – December 1, 2011: likely to be somewhat protracted and 62.0% Fe Spot CHN Price: US $133.78/tonne coupled with growing Chinese import demand, the ore market
Slide 5: Many Chinese provinces just beginning to climb the steel intensity curve
Many Chinese provinces just beginning to climb the steel intensity curve Chinese regional steel intensity Steel use per capita 2009 (kg) Bubble size reflects population of each of the 31 Chinese provinces Beijing 18m Shanghai 19m Shandong 95m Henan 100m Guangdong 96m Sichuan 89m Guizhou 41m Source:
Slide 6: Backed by Forbes & Manhattan
Backed by Forbes & Manhattan Developed Consolidated Thompson’s Bloom Lake Iron Mine Industry Leading Technical Knowledge & Accomplished Financial Markets Professionals Stan Bharti Advisory Chairman & CEO Board Technical Legal Financial Admin / Team Team Team Accounting • Over 25 engineers • 4 full-t
Slide 7: Recent Success Story - Consolidated Thompson
Recent Success Story - Consolidated Thompson Taken from concept to ~$4B market cap producer Cliffs acquired CLM for $4.9 B ( a 30% premium of closing price { on Jan 10th ) Acquired for $4.9 billion First F&M involvement $1 M market cap 2005 Today F&M attracted and put in place a first class manageme
Slide 8: Management team with proven track record
Management team with proven track record Mark J. Morabito, B.A., J.D. Background in corporate finance and securities law; over 15 years experience in public markets with a strong focus on Executive Chairman junior mining and small business venture capital with extensive experience in capital-raisi
Slide 9: Board of Directors with deep experience
Board of Directors with deep experience Mark J. Morabito, B.A., J.D. Stan Bharti, P.Eng.* Tayfun Eldem, P. Eng. Executive Chairman Vice Chairman Stan Bharti, P.Eng.* Over 25 years of business, management and financing experience; involved in acquiring, restructuring and financing Vice Chairman com
Slide 10: Share Structure
Share Structure As at December 1, 2011 ADV:TSX & ALDFF:OTCQX SHARES OUTSTANDING: 84,717,514 WORKING CAPITAL: CDN $12.5M FULLY DILUTED: 100,102,349 REMAINING 2011 BUDGET: $ 1.4M MARKET CAP: CDN $198.5M AVERAGE DAILY VOLUME 280,335 (LAST 3 MONTHS) : Options/Warrants Options 10,361,300 Finder’s Warrant
Slide 11: Analyst Coverage
Analyst Coverage Date Casimir Capital L.P. April 5, 2011 R. Wayne Atwell, Luke Z. Teng and James Crosby CIBC August 3, 2011 Ian Parkinson and Matthew Gibson Cormark October 26, 2011 Rajiv Chail Desjardins September 8, 2011 John Hughes and Aleem Ladak Dundee November 23, 2011 David Talbot, Rodney Coo
Slide 12: Kami property located in stable country with access to highly skilled labour
Kami property located in stable country with access to highly skilled labour • Canada – strong & politically stable economy • “Canadian Q1 [2010] GDP growth strengthened to an annualized 6.1%” – RBC Economics Research • Memorandum of Understanding with the Innu Nation in place • Consent and support
Slide 13: Kami lies between three iron ore communities
Kami lies between three iron ore communities Wabush Pop (2006): 1739 Labrador City Est (Present): 3000 Pop (2006): 7240 Est (Present): 9000 In 1970’s Labrador City Kami Property and Wabush had a Outline combined population of 22,000 Labrador West Motto: Kamistaitusset Fermont “Land of the Hard Worki
Slide 14: Kami property ideally located for quick production to market
Kami property ideally located for quick production to market Cliffs Railway Rio Tinto Churchill Falls (Common Carrier) 17 Mt con/yr Cliffs • Local population of ~15,000 people: 3 - 6 Mt con/yr Cliffs 8 Mt con/yr Labrador City – highly skilled workforce Alderon – multiple equipment vendors Ind: 490 M
Slide 15: Point Noire Port – New Facility
Point Noire Port – New Facility Consolidated Thompson Cliffs Stockyard Stockyard Current view Existing Platform New multi-user Platform Multi-user platform in deep water – up to 23 meters Suitable for Large Capesize vessels (300,000 View at completion tonnes) Source: Port de Sept-Îles - Directio
Slide 16: Robust Project Economics | US$3.07B NPV
Robust Project Economics | US$3.07B NPV Rose Central PEA results (excluding Mills and North Rose): • 8.0Mtpa of concentrate production at 65.5% Fe • Commercial production expected in 2015 • Capital cost of US$989 million • Avg. operating cost (excluding royalties) of US$44.87/tonne concentrate IRR*
Slide 17: Environmental Assessment Process Underway
Environmental Assessment Process Underway • Alderon has submitted the required project registration documents to the Canadian Environmental Assessment Agency and the Department of Environment and Conservation, Government of Newfoundland and Labrador • Government agencies have confirmed acceptance of
Slide 18: Conventional Flowsheet; High Quality Product
Conventional Flowsheet; High Quality Product Gyratory Crusher Primary Grinding %Fe 30% % SiO2 44.7% Fe Rec % 100% Wt % 100% Gravity Separation Magnetic Separation Spiral Tails %Fe 14.4% % SiO2 62.2% Final tails Fe Rec % 33.9% Regrind Wt % 70.6% Spiral Concentrate Mag Concentrate Final Concentrate %F
Slide 19: Good Size and High Quality Ore Body
Ore Body Good Size and High Quality 2010 program consisted of 25,749m of 1 km K-11-99 129.5 at 33.0% Fe drilling, metallurgical testing, and ground geophysical surveys. K-10-46 690.5m at 28.2% Fe 2011 winter program consisted of 6,372m K-11-102 185.7m at 30.3% Fe of drilling at North Rose. K-11-104
Slide 20: Resource Model
Resource Model 3D Rose Central N Resource Outline 300 m 100 m 3D North Rose 3D Mills Lake Resource Outline Resource Outline Rose Central Mills Lake Indicated: 376.1 M tonnes at 29.8% Indicated: 114.1 M tonnes at 30.5% Inferred: 46.0 M tonnes at 29.8% Inferred: 71.9 M tonnes at 30.7% North Rose TOTAL
Slide 21: Strong Returns to the Region
Strong Returns to the Region Figures below are preliminary & will be refined as project develops Project anticipated to create +1,500 full time jobs Employment for >20yrs • 268 jobs directly at mine & concentrator • 1,254 jobs indirectly for local service & support groups • 768 temporary jobs during
Slide 22: Kami Project Timeline & Key Milestones
Kami Project Timeline & Key Milestones 2011 2012 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Exploration Drilling & Resource 1 3 Preliminary Economic Assessment 2 Metallurgical Studies Definition Drilling Environmental Studies Feasibility & Detailed Engineering 4 Permitting & IBA 5 Con
Slide 23: Solid engineering experience helping to advance the project
Partnered with BBA & Stantec Solid engineering experience helping to advance the project BBA brings extensive international Stantec has strong track record in experience in the mining and environmental assessment and metals sector permitting • Consolidated Thompson: Bloom Lake • Consolidated Thompso
Slide 24: Underpinned by Critical Success Factors
Underpinned by Critical Success Factors Strong Market Prices highest in industry history Demand expected to double in 15 years World Class Resource 490 million tonnes indicated at 30% Fe 598 million tonnes inferred at 30% Fe Proven Management team Strong exploration and development exp
Slide 25: Contact Investor Relations
For more information, please TSX-V:ADV MARCH 2010 contact Investor Relations at : Email: [email protected] Phone: 1-866-683-8030 - Mailing Address: 1240-1140 W Pender St. Vancouver, BC, V6E 4G1 Vancouver Office Montreal Office Attn: Mark Morabito Attn: Tayfun Eldem P: 604-681-8030 P: 438-820-6
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