Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Investor Presentation (September 2022)
21 slides from Magnetite Mines's investor presentation, Sep 13, 2022
Slide 1: Premium Iron Ore for a decarbonising iron & steel sector
Premium Iron Ore For a decarbonising iron & steel sector September 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE ADDITIONAL INFORMATION The purpose of this presentation is to provide general information about This presentation should be read in conjunction with the Annual Report at 30 Magnetite Mines Limited ("MGT"). It is not recommended that any person makes June 2021 together wit
Slide 3: Iron & steelmaking is evolving
Iron & steelmaking is evolving Continuously rising demand in direct conflict with global decarbonisation Steel production has doubled every 20 years1 However, decarbonisation is now mandated Paris Agreement 1.5°C scenario requires systemic change Producing 8% of 140 countries have committed to n
Slide 4: Decarbonisation in iron & steelmaking commenced
Decarbonisation in iron & steelmaking commenced Direct Reduced Iron (DRI) essential to transition Major steel producer carbon reduction targets ~100 Mtpa TODAY DR-grade pellets Steelmaking technologies Blast furnace Electric Arc Furnace – scrap Electric Arc Furnace – Direct Reduced Iron Other (e.g.
Slide 5: High-quality feed necessary to make the change
High-quality feed necessary to make the change Low-emission iron & steelmaking requires high-grade, low-impurity iron ore Steel manufacturing technologies3 Feedstock Iron Iron ore feed Carbon emissions (t CO2/t) Transformation (Extraction) Reduction Current; <65% Fe 1.8 Coal Blast Furnace – Basic Ox
Slide 6: Demand for high-quality ore is gaining pace
Demand for high-quality ore is gaining pace High-grade and low-grade iron ore prices are diverging Fastmarkets iron ore index grade spreads (US$/tonne) 60 40 20 0 US$/t -20 -40 -60 -80 58% Fe $/tonne discount to 62% Fe 65% Fe $/tonne premium to 62% Fe 6
Slide 7: Premium quality iron ore is first quartile competitive
Premium quality iron ore is first quartile competitive De-risking exposure to commodity price cycle downturns Razorback premium iron ore First quartile cash costs (62% Fe equivalent) DFS concentrate grade assumptions based on extensive metallurgical testwork VIU-adjusted total cash costa,b curve -
Slide 8: Magnetite concentrate to replace direct shipping ore
Magnetite concentrate to replace direct shipping ore The Braemar – a globally-significant magnetite province The Braemar advantage 2.2km 1km Outcropping ore: very low strip ratio Siltstone-hosted iron ore, not BIF* Soft relative to WA magnetite ores Concentrates to premium grade iron ore U
Slide 9: Outstanding project location in South Australia
Outstanding project location in South Australia Close to rail, port & renewable energy supply Adelaide 240km Open-access rail ~50km Whyalla Port ~315km Grid Power 100% renewable by 20308 ~125km 9
Slide 10: Commitment to staged development pathway
Commitment to staged development pathway6 Reduced risk, increases likelihood of success Single-Step Expansion Significant expansion benefits evident STAGE 1 STAGE 2 STAGE 3 Previous Study Outcomes: 3Mtpa capacity 5Mtpa capacity 7Mtpa capacity PFS Plant Single-Step Unit Optimiseda Expansion Current D
Slide 11: Work to date transferable to Refocused DFS
Work to date transferable to Refocused DFS DFS workstreams have reduced project risk Key outcomes for 2.5mtpa DFS Providing basis for refocused 5mtpa+ DFS Best-in-class consultants engaged throughout Mining strategy optimisation Optimisation studies commenced DR-grade product investigation Pro
Slide 12: Building our ESG platform
Building our ESG platform Founded on renewable energy use and global decarbonisation contribution MGT early action ESG aspiration GHG accountability Grid-connected power supply, high- Environmental embedded renewable generation Renewable energy Minimising scope 3 emissions sustainability S
Slide 13: Magnetite Mines is transforming
Magnetite Mines is transforming Reflecting timing and acceleration of downstream industry needs Mark Eames appointed as Chair Rights Issue for $15.8Mn Jim McKerlie & Ian Kirkham appointed CFO Paul White appointed to Board Simon Wandke appointed to Board Corporate Mark Eames Stephen Weir appointed to
Slide 14: Recently strengthened Board
Recently strengthened Board New governance team with deep corporate and resource credentials Board of Directors Mark Eames Chair of the Board Jim McKerlie Non-executive Director BA Metallurgy (Hons) MBA MAUSIMM BA Economics (Hons) Dip Fin Mgt Global minerals industry experience International CEO
Slide 15: New executive team
New executive team Combining leadership with corporate and international resource project experience Executive Team Tim Dobson Chief Executive Officer Ian Kirkham Chief Financial Officer B.AppSc Ext.Metallurgy, GAICD, MAusIMM B.Ec Economics & Accounting 35 years extensive international mining expe
Slide 16: Corporate overview
Corporate overview Market Cap Share Performance and Register $94.8M $0.05 100 (Share price $0.025 9 Sep 2022) $0.05 90 $0.04 80 Cash $0.04 70 $19.3M Share Price A$ $0.03 60 Volume (M) (30 Jun 2022) $0.03 50 $0.02 40 $0.02 30 Shares on Issue: 3,791M $0.01 20 Listed options MGTOE: 363.3M $0.01 10 Opti
Slide 17: Delivering premium iron ore to high demand markets
Delivering premium iron ore to high demand markets Decarbonisation Outstanding Project Committed to Progressing to Tailwind Credentials Staged Development Development Premium iron ore needed Tier 1 location Refocused DFS with Strengthened Board now to enable low emission 4.2 billion tonne Resource S
Slide 18: References
References 1. 2022 World Steel Association - Global crude steel production, Mt 2. Toward a Fossil Free Future with HYBRIT: Development of Iron and Steelmaking Technology in Sweden and Finland. Metals. 2020 3. Magnetite Mines’ analysis; ‘Can industry decarbonize steelmaking?’ Chemical & Engineering N
Slide 19: Contact
Contact [email protected] +61 8 8427 0516 www.magnetitemines.com 19
Slide 20: Appendix
Appendix 20
Slide 21: Mineral Resources and Reserves
Mineral Resources and Reserves Ore Mineral Mass Rec (Mt, Fe % SiO2 % AI2O3 % P% LOI % Magnetite % Resource (eDTR %) Dry) Razorback Iron Ore Project Indicated 1,500 15.6 18.5 47.9 8.0 0.18 5.4 15.0 Inferred 1,500 16.0 18.0 48.3 8.2 0.18 5.5 15.9 FAVOURABLE REGION • South Australia Totalis 10th most a
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