Macro Metals Limited · ASX:M4M
Macro Metals — Kogi Iron — Investor Presentation (February 2014)
33 slides from Macro Metals's investor presentation, February 2014
Slide 1: Company Presentation
ABN 28 001 894 033 Company Presentation February 2014 Iggy Tan Managing Director www.kogiiron.com | ASX: KFE
Slide 2: Company Video
ABN 28 001 894 033 Company Presentation Company Video www.kogiiron.com | ASX: KFE
Slide 3: Vision to be an African Iron Ore producer
ABN 28 001 894 033 Vision to be an African Iron Ore producer Company Presentation Significant iron ore resource Project scale upside Advantages in doing business in Nigeria Vision to be an ASX 300 company Kogi Iron Strong Board with credentials to develop Limited (KFE) project www.kogiir
Slide 4: Chairman Dr Ian Burston OA
ABN 28 001 894 033 Chairman Dr Ian Burston OA Company Presentation Legend in Iron Ore Has held the following positions MD Hamersley Iron MD Portman Mining NED Fortescue Metals Group Lead by Chairman Aztec Industry Exec Chairman Cape Lambert Chairman African Iron Limited Veteran Dr Bursto
Slide 5: Corporate Snapshot
Corporate Snapshot Projects (Nigeria, West Africa) Ownership ASX Code KFE Agbaja Iron Ore Project (178km2) 100% Shares on Issue 320.2m Additional 200km2 underexplored land package 100% Share Price¹ A$0.10 ASX Share Price Performance Market Capitalisation A$32.0m Options on Issue None Cash2 A$1.2m Ma
Slide 6: Republic of Nigeria
ABN 28 001 894 033 Former British colony, population 163m Company Presentation Gained independence in 1960 President elected by popular vote Oil and oil products 95% of exports and 80% of budget revenue Republic of Oil production approx. 2.46 million barrels per day Nigeria GDP real grow
Slide 7: Citigroup Beyond BRICs – Global Growth Generators (3G)
Citigroup1 Beyond BRICs – 11 Global Growth Generators (3G) Highest GDP growth 2010-2050 Two African countries including Nigeria 1. Citigroup Feb 2011 Williem Buiter (Chief Economist) http://enwikipedia.org/wiki/3G-(countries) www.kogiiron.com | ASX: KFE 7
Slide 8: Nigeria forecast to be in top 10 world economies by 2050
Nigeria forecast to be in top 10 world economies by 2050! 3G Counties in green boxes 1. Citigroup Feb 2011 Williem Buiter (Chief Economist) http://enwikipedia.org/wiki/3G-(countries) www.kogiiron.com | ASX: KFE 8
Slide 9: Standard Bank UK – MINT countries
Standard Bank UK – MINT - Mexico, Indonesia, Nigeria & Turkey (MINT) Nigeria - Strongest fiscal balance, lowest public debt, population, market- oriented reforms Foreign direct investment (FDI) at $8.9 billion (16% of Africa’s total FDI) 1. http://businessdayonline.com/2013/04/nigeria-fastest-
Slide 10: Mining in Nigeria
ABN 28 001 894 033 Contemporary Mining Act (2007) and Regulations Company Government Presentation is a regulator – no “free carried participation” Relative ease of Cadastre tenement application and approvals Mining in Favourable fiscal regime for foreign mining Nigeria companies: • Corporate
Slide 11: Project logistics overview
Beneficiation Crusher Plant Free Dig Mining ROM Tailings AGBAJA PLATEAU Water Approx 20 km EscravosTransfer Banda Barge Facility Transshipment Station 4,000-8,000 t River 20,000 t Ocean Barge Barge Niger River 602 km Gulf of Guinea 33 km 170,000 t OGV www.kogiiron.com | ASX: KFE 11
Slide 12: Agbaja is a Unique Deposit
ABN 28 001 894 033 Highly unique magnetite deposit Sedimentary magnetite - Channel Iron Deposit (CID) Company Presentation High grades, softer ore Less liberation size Most Magnetite (BIFs) 25-40% Fe Agbaja is a Agbaja plant feed head grade of ~46% Unique Less tonnes needed to be mined
Slide 13: Significant Resource
ABN 28 001 894 033 Project area of 178km2 Total Resource of 586 Mt at 41.3% Fe 1 Company Presentation Indicated Resource of 466 Mt at 41.4% Fe Only 20% of the project is drilled Current Exploration Target2 is 1.8 – 3.0 Bt at 32 - Significant 48% Fe Sufficient Indicated Resource to suppor
Slide 14: Low strip ratio, soft and friable ore
Low strip ratio Soft and friable ore Moderate grinding 20 km 3-6 km www.kogiiron.com | ASX: KFE 14
Slide 15: Preliminary Feasibility Study
ABN 28 001 894 033 Study Area Company Resource Coffey Mining Company Presentation Mine Planning Coffey Mining Metallurgy & Process Tenova Australia Bioleaching Senders Consulting Pipeline Patterson & Cooke Preliminary Barging Prestedge Retief Dresner Wijnberg Feasibility Operations Wilson & Associat
Slide 16: Agbaja Operations PFS
ABN 28 001 894 033 24 Hour, year round operation “Employ at Gate” philosophy Company Presentation Employment of around 540 personnel Strong local content 800 -1000 construction work force Agbaja Road to be constructed – Plateau to River Operations River transport system – plant & equip
Slide 17: Mining Operations
ABN 28 001 894 033 Mine plan design for first 21 Years Stage 1 and Stage 2 mine areas Company Presentation Life-of-mine average strip ratio of low 0.55 to 1 Avg annual plant feed of 11 Mtpa Avg feed grade of 46% Mining Low mining costs of US$8.12/t of concentrate Operations produced Du
Slide 18: Processing Operations
ABN 28 001 894 033 Three stage simple crushing Moderate intensity grinding Company Presentation Coarse liberation size of 250 micron Low intensity magnetic separation Bioleaching pond circuit Processing Simple beneficiation process Operations Natural gas power plant Overall yield of
Slide 19: Processing Plant
KOGI IRON Processing Plant LIMITED Non Mags Tails thickener J Tailings Plateau Slurry Pipeline y jutrients Return & Microbes Da to Pit) Bio Leach Ponds Return and Makeup Water v Pipeline __@ Le Water Storage Banda Barge Facility
Slide 20: Plant and crusher photos
ROM Pad & Primary Crusher Screening and Crushing Plant Ball Milling and LIMS Plant Bioleach Circuit www.kogiiron.com | ASX: KFE 20
Slide 21: Barging Transport
ABN 28 001 894 033 Concentrate filtered < 10% moisture Barging lowest cost form of bulk commodity Company Presentation transport Shallow river barges 21 m x 286 m long Transport 602 km to Escravos Transfer Station 20,000 t Ocean Barges Barging Transhipment Facility in Gulf of Guinea Tran
Slide 22: Banda Barge Facility and Escravos Transfer Station
Banda Barge Facility Escravos Transfer Station Barge configuration with push boat Gulf of Guinea Transhipment Facility www.kogiiron.com | ASX: KFE 22
Slide 23: Environmental & Social Impact
ABN 28 001 894 033 Current local employment content 75% No environmental or social impediments Company Presentation Low value scrub land, limited agricultural use or environmental significance No rare or endangered species of flora or Environmental fauna & Social Large social benefits - lo
Slide 24: Capital Cost Estimates
ABN 28 001 894 033 Capex by Tenova Mining Minerals Group Tenova, independent, extensive experience Company Presentation Item US$ M Mine Development 11.9 Processing Plant 132.7 Capital Costs Pipeline, Banda & Escravos 120.2 Estimates Utilities and Infrastructure 108.2 Insurance , First Fills, Spa
Slide 25: Operating Cost Estimates
ABN 28 001 894 033 Opex by Tenova, PRDW, mining contractor quotes, + Kogi full operating budget Company Presentation Item US$ /t Mining 8.12 Processing incl. pipeline 13.96 Operating Costs Barging (FOB) 18.77 General and Administration 2.13 Estimates Total Operating Costs (FOB) 42.98 www.kogiiron.
Slide 26: Kogi Agbaja Fines Product
ABN 28 001 894 033 Saleable product Low silica ideal for sinter feed Company Presentation Ideal blend with high silica, low phosphorous product Kogi expects some price discount for Al and P Kogi Agbaja Component % Fines Product Fe 56.0 SiO2 3.8 Al2O3 6.6 P 0.25 S 0.03 LOI (1000) 7.28 Sizing
Slide 27: Forecast Price
ABN 28 001 894 033 Long term forecast price of US$ 73 / dmt FOB Using 58% CFR Tianjin historical Company Presentation Discount of US$7 /dmt for Al + P Discount of US$5 /dmt for lower Fe Forecast Price Agbaja Fines www.kogiiron.com | ASX: KFE
Slide 28: Financial Analysis
ABN 28 001 894 033 Positive and robust project Attractive returns with 4 year pay back Company Presentation Gross margin of US$ 30/ dmt Component Disc % Net Present Value 10% US$574 M Financial 12% US$420 M Analysis 14% US$302 M Internal Rate of Return 23.7% Pay back 4 Years EBITDA (Ave pa) US
Slide 29: Benchmarking
ABN 28 001 894 033 Opex of $42.98 /t – bottom half of global magnetite projects Capex Intensity of $99.40/t – bottom quartile of global Company Presentation magnetite projects 6.000 In most favoured quadrant 5,000 27.6 Cape Preston 4,000 CAPEX –A$M Jack Hills Brazil Ridley & Valentines 70 3,00
Slide 30: West Africa: Next Global Iron Ore Hub
ABN 28 001 894 033 Investec Bank Opportunity to break the current iron ore Company Presentation supply oligopoly China is over-dependent on iron ore imports from Australia and Brazil West Africa “Low hanging fruit” in West Africa in terms of large scale, low cost, long life deposits Next Glo
Slide 31: Value Proposition
ABN 28 001 894 033 Vision to be a African Iron Ore Producer Significant Iron Ore resource & scale Company Presentation Highly attractive project with strong returns Strong Government and Community support Entering a very exciting phase Building strong momentum Value Proposition Kogi Iron
Slide 32: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements which are identified by words such as ‘anticipates’, ‘forecasts’, ‘may’, ‘will’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, ‘plan’ or ‘intends’ and other similar words that involve risks and uncertainties.
Slide 33: For further information, please contact
For further information, please contact: Kogi Iron Limited Media Iggy Tan Michael Vaughan Managing Director Cannings Purple Tel: +61 8 9200 3456 Tel: +61 8 6314 6300 Email: [email protected] Email:[email protected] Shareholders are encouraged to visit the Company website (www.kogiiron.c