Image Resources Nl · ASX:IMA
Image Resources Nl — 19th Annual Mineral Sands Conference 2018
44 slides from Image Resources Nl's conference presentation, Mar 21, 2018
Slide 1: Boonanarring Mineral Sands Project: The next cab off the mineral sands rank
1 Boonanarring Mineral Sands Project: The next cab off the mineral sands rank Mineral Sands Conference 19th Annual 21-22 March 2018 Crown Perth Perth WA Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statements
Forward Looking Statements 2 This presentation has been prepared by the management of Image Resources NL ("Image”, “IMA“ or the ‘Company’) in connection with meetings with investors and potential investors and not as specific advice to any particular party or person. The information is based on publ
Slide 3: Forward Looking Statements
Forward Looking Statements 3 All such forward-looking information and statements are based on certain assumptions and analyses made by the Company’s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other fact
Slide 4: Investor Snapshot
Investor Snapshot 4 Opportunity to invest in company transitioning to profitable mining operator Ø Company fully funded to positive cashflow § $50M as debt; $25M as equity Ø Project construction underway (only $52M project capital) Ø Plant and equipment already acquired Ø First production scheduled
Slide 5: Image Resources NL ASX: IMA
Company Forward Description Looking and Focus Statement 5 Image Resources NL ASX: IMA Emerging mineral sands producer Totally focused on fast-tracking the development of its 100%-owned, high-grade, zircon-rich flagship Boonanarring mineral sands project located 80km north of Perth in Western Austral
Slide 6: Project Location
ProjectLooking Forward Location Statement 6 q LOCATION Ø North Perth Basin in Western Australia Ø 80 km north of Perth CBD Ø Proven mineral sands address § Including majors Iluka and Tronox Ø Infrastructure rich § paved roads, power, gas pipeline water, telecommunications etc. Ø Local communities an
Slide 7: Projects Types and Locations
Projects Types and Locations 7 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 Boonanarring Ore Reserves Proved: 9.3 Mt @ 8.6% HM Probable: 10.5Mt @ 5.9% HM
Slide 8: Projects Pyramid – Strand Deposits
Projects Forward Pyramid Looking – Strand Deposits Statement 8 Mineral Resources – Accessible by Dry Open-Cut Mining Projects ranked by combined Zircon plus Rutile Boonanarring Focus 43.8Mt; 5.6%HM; of BFS 20.7% Zr+Ru Atlas 18.1Mt; 6.0%HM; 15.8% Zr+Ru Red Gully 6.0Mt; 7.7% HM; 15.5% Zr+Ru Regans For
Slide 9: Projects Pyramid – Dredge Deposits
Projects Forward Pyramid Looking – Dredge Deposits Statement 9 Mineral Resources – Accessible by Dredge Mining Projects ranked by HM Grade 25-67% Leucoxene; 90+%VHM; Bidaminna <5% slimes; 45Mt; 3.0%HM; 100Mt exploration 6.5% Zr+Ru target Titan-Telesto 140Mt; 1.9%HM; 12.8% Zr+Ru Calypso 51Mt; 1.7% HM
Slide 10: Boonanarring Project Comparison
Boonanarring Project Comparison 10 High HM and Zircon grades relative to peers HM grade Zircon grade VHM HM Grade (%) Zircon (%) 14.0% 25% VHM Grade Zircon % Image Resources (IMA) Boonanarring project 12.0% 21.5Mt @ 8.3% HM and up to 24.5% Zircon 20% 10.0% 15% 8.0% 6.0% 10% 4.0% H 5% 2.0% 0.0% 0% SF
Slide 11: Ore Reserves
Ore Reserves Forward Looking Statement 11 q 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 Ilme
Slide 12: Ore Reserves Comparison
Ore Reserves Forward LookingComparison Statement 12 IMAGE Source: TZMI; May 2017
Slide 13: Products and Prices
Products and Prices 13 Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product.
Slide 14: Bankable Feasibility Study
Bankable Forward Feasibility Looking Study Statement 14 Base Assumptions Ø Start mining at Boonanarring Ø Dry, open-cut mining Ø Production rate - 500 dry tonnes per hour • 3.7M dry tonnes per year Ø Conventional gravity separation using spirals Ø Product: Heavy Mineral Concentrate (HMC) • Productio
Slide 15: Bankable Feasibility Study
Bankable Forward Feasibility Looking Study Statement 15 Key Financial Metrics Original BFS* Updated BFS** Ø Pre-Tax NPV (@ 8%) A$135M A$197M Ø Pre-Tax IRR 64% 104% Ø Payback period (months) 22 16 Ø Mine life 8+ years Ø Project capital cost A$52M • includes ~$8M for land * ASX Announcement 30 May 201
Slide 16: Project Capital Comparison
Project Forward Capital Looking Comparison Statement 16 Source: TZMI; May 2017
Slide 17: Boonanarring – Production Statistics
Boonanarring – Production Statistics 17 Note: 2023 information includes the start of production at Atlas.
Slide 18: Boonanarring – Project EBITDA
Boonanarring – Project EBITDA 18 Note: 2023 information includes the start of production at Atlas.
Slide 19: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 19
Slide 20: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 20
Slide 21: Bankable Feasibility Study – Other Key Project Metrics
Bankable Forward Feasibility Looking Study Statement 21 Other Key Project Metrics Ø Binding offtake contract for heavy mineral concentrate (HMC) • 100% of HMC production for life of project • Market-based pricing model • Full credit for TiO2 products • No minimum product specifications Ø Capital equ
Slide 22: Plant and Equipment (select examples)
Plant and Equipment (select examples) 22 Wet Concentration Plant Mineral Separation Plant (Option) Slurry Booster Stations & pipelines Power poles, wires & transformers HMC Stackers Mine Slurry Unit Plus much, much more.
Slide 23: Image Wet Concentration Plant
Image Wet Forward Concentration Looking Statement Plant 23
Slide 24: Early Works Wet Concentrator Plant 3D Modelling
Early Works Wet Concentrator Plant 3D Modelling Looking North
Slide 25: Early Works Wet Concentrator Plant 3D Modelling
Early Works Wet Concentrator Plant 3D Modelling Looking South
Slide 26: Project Approvals
ProjectStatement Forward Looking Approvals 26 q PROJECT APPROVALS ü Mining Lease & General Purpose Lease ü Part IV, Environmental Protection Act (WA) – PER ü EPBC Act (Commonwealth) ü Land acquisition for processing plant siting and start of mining ü Groundwater Abstraction Licence (DWER) ü Interim
Slide 27: Project Funding
Project Funding 27 Boonanarring is now fully funded to positive cashflow and construction has begun Ø Overall capital requirement: A$75 million § Includes project capital, corporate, exploration, working capital and fund raising fees Ø Debt Facility: A$50 million § A$501 million Loan Note Subscripti
Slide 28: Capital Spend
Capital Spend 28 Capital funds to be applied to: Ø Construction, commissioning of the Boonanarring Project (A$52M) Ø Working capital to positive cashflow (A$15M), and Ø Corporate, exploration and financing costs to positive cashflow (A$8M)
Slide 29: Project Capital Breakdown
ForwardCapital Project Looking Statement Breakdown 29 Process Plant & Ancillary Costs BFS Capital A$M Ø Indirects (A$0.7M) includes sundry Indirects 0.7 mob./demob., insurance, capital spares, Directs 22.4 survey/geotech. Ø Direct capital costs (A$22.4M): EPCM 3.3 • Plant transport, refurb and insta
Slide 30: Upside Potential
Upside Looking Forward Potential Statement 30 Upside potential at and near Boonanarring Ø Confirmed potential to extend mine life with high grade mineralisation (ASX announcement 13 March & 26 June 2017); • Assuming mineralisation in extension area is identical to known Ore Reserves in all aspects a
Slide 31: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 31 ASX - 13 March & 26 June 2017 New Drilling Results (Feb 2017) Ø Confirm 5.6km northern extension of Boonanarring mineralisation Ø Outstanding high grade intersections: § 8m @ 23.8% HM in IX00245 § 8m @ 21.1% HM in IX00244 and § 8m @ 16.3% HM in IX00250 Importantly
Slide 32: Potential Royalty from Tronox
Potential Royalty from Tronox 32 Royalty agreement in place as of Ø A$50,000 cash received 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 Potential for future arrangements with Tronox or others based on large area of potential dredge mining
Slide 33: Project Development Schedule
Project Development Schedule 33 Targeting first production October 2018
Slide 34: Next Steps
Corporate Next StepsSnapshot 34 Ø Finalise equity raising; Ø Complete satisfaction of conditions precedent and drawdown loan; Ø Board to issue Decision to mine; and Ø Initiate formal construction.
Slide 35: Corporate Snapshot
Corporate Image Snapshot Corporate Snapshot 35 Diverse and experienced Board and Management Share Code: IMA Board of Directors Share Price: A$0.10* Bob Besley – Independent Chairman 12 Month Price Range: A$0.04 – 0.17 Patrick Mutz – Managing Director Shares on Issue: 611.3m Chaodian Chen - Non-Execu
Slide 36: Euroz Securities Limited Research
Corporate Snapshot Euroz Securities Limited Research 36
Slide 37: Patersons Securities Limited Research
Corporate PatersonsSnapshot Securities Limited 37 Research
Slide 38: Contact
Contact For further information 38 Patrick Mutz Managing Director Image Resources NL [email protected] 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
Slide 39: Appendix
Forward Looking Statement 39 APPENDIX
Slide 40: Compliance Statements
Compliance Statements Forward Looking Statement 40 COMPLIANCE STATEMENT FOR EXPLORATION Information in this presentation that relates to Exploration Results is based on information compiled by George Sakalidis BSc (Hons) who is a member of the Australasian Institute of Mining and Metallurgy. At the
Slide 41: Mineral Resources – Strand Deposits
Mineral Forward Resources – Strand Deposits Looking Statement 41 Strand Deposits 1 of 2 High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxene Rutile Zircon (%) (%
Slide 42: Mineral Resources – Strand Deposits
Mineral Forward Resources – Strand Deposits Looking Statement 42 Strand Deposits 2 of 2 Previously Reported Mineral Resources - Strand Deposits; in accordance with JORC Code (2004) @ 2.5% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxene Rutile Zircon (
Slide 43: Mineral Resources – Dredge Deposits
Mineral ForwardResources – Dredge Deposits Looking Statement 43 Dredge Deposits 1 of 1 Previously Reported Mineral Resources - Dredge deposits; in accordance with JORC Code (2004) @ 1.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxene Rutile Zircon (%
Slide 44: Compliance Statements
Forward Looking Compliance Statement Statements 44 COMPLIANCE STATEMENT FOR MINERAL RESOURCES 1. COMPLIANCE STATEMENT Boonanarring/Atlas Mineral Resources The information in this presentation that relates to the estimation of Mineral Resources is based on information compiled by Mrs Christine Standi
Image Resources NL — 19th Annual Mineral Sands Conference 2018 on 6ix