Ironveld Plc · LSE:IRON
Ironveld — Investor Presentation (November 2016)
21 slides from Ironveld's investor presentation, November 2016
Slide 1: Company Presentation
Company Presentation November 2016 “Extracting maximum value from Bushveld Magnetite producing High Purity Iron, Vanadium and Titanium products”
Slide 2: Disclaimer
Disclaimer The content of information contained in this Presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may expose an individu
Slide 3: Highly Deliverable, High Grade Project
Highly Deliverable, High Grade Project Development of mine fed 15MW DC Smelter within the Northern Limb of the Bushveld Complex, South Africa Total Project Mineral Resource contains 32 million tons of Iron in situ Project scale is supported by excellent infrastructure of roads, rail and access
Slide 4: Key Milestones delivered
Key Milestones delivered…… • Mining Right duly executed to mine magnetite • Mining Environmental Management Program approved • Smelter Environmental Management Program approved • Formal letter received from ESKOM confirming power supply availability for the project • Offtake secured for all three pr
Slide 5: Government Backing - IDC
Government Backing - IDC The support of the Industrial Development Corporation is significant endorsement of the projects quality and importance to South Africa. The IDC will provide senior loan facilities (“the Facilities”) to Ironveld Mining (Pty) Ltd and Ironveld Smelting (Pty) Ltd, subsidiarie
Slide 6: Empowerment Partners
Empowerment Partners Zolani Mtshotshisa Zolani holds a Masters Degree in Communication from Leipzig, Germany and MSc in International Relations from University of Zimbabwe in Harare. Upon his return from 12 year exile worked in different sectors of the South African economy including – banking, fish
Slide 7: Management
Management Keneilwe Ndala, CEO Mining Keneilwe holds a BTech Engineering (Mining) from the University of Johannesburg. She is the holder of a South African Mine Managers Certificate of Competency (Metal Mines). She started her carrer as a Learner Offical at Hotazel Manganese Mines in Kuruman. In 200
Slide 8: Project Location
Project Location Excellent infrastructure of roads, rail & access to power & water Eskom and Power • South African power supply situation is progressively improving with Eskom raising power capacity • Eskom has indicated that through Knobel Substation located approximately 30 km from Ironveld Smelte
Slide 9: High Quality Asset with Upside
High Quality Asset with Upside MML Mineral Resources* for the Ironveld Project, <120 m at 20% Fe cut-off, as at 04 Jul, 2013 Densit Fe V2O Farm Cut-off Million Fe Fe2O3 TiO2 SiO2 P2O5 S y Metal 5 g/cm3 Name Fe% Tonnes % % millions % % % % % Measured Mineral Resources Altona 20 2.18 4.55 51.7 73.9 1.
Slide 10: Products
Products High Purity Iron Powder Vanadium South Africa imports all its HPI powder Vanadium redox flow battery (VRB) systems for grid energy storage applications are under development with high potential Iron powders (atomized and reduced) are widely used in to have a significant impact on futu
Slide 11: Offtake/Marketing Agreements
Offtake/Marketing Agreements High Purity Iron Powder & Titanium Slag A contract has been signed with Oreport for the offtake of the High Purity Iron powder and the Titanium slag for five years. Oreport is an established marketing and related services company with expertise in commodities, steel
Slide 12: Construction Timeline: 15MW DC Smelter
Construction Timeline: 15MW DC Smelter 12 months Detailed Design 4 months Earthworks and Civils 12 months Construction 9 months Power Line 3 months Commissioning Production 11
Slide 13: Definitive Feasibility Study
Definitive Feasibility Study USD million 2017 2018 2019 2020 2021 2022 2023 2024 Capital expenditure 27 35 Sales 0 14 56 59 64 68 72 81 Profit before tax (PBT) 0 4 23 25 27 28 30 32 Tax 0 0 0 0 4 8 9 9 Profit after tax (PAT) 0 4 23 25 23 20 21 22 Free cash flow (27) (30) 25 26 23 22 23 24 Based on D
Slide 14: Summary: Value-driven growth
Summary: Value-driven growth World Class project, supported by South African Government and institutions Debt funding negotiations nearing completion Free cash flow generative early with early debt pay back Security of payment through 5 year offtake agreements Low capex and highly delivera
Slide 15: Appendix
Appendix
Slide 16: Metallurgical Test Work
Metallurgical Test Work Trial smelt conducted at Mintek produced 70 tons of Pig Iron With high recoveries of Titanium and Vanadium Conversion of Pig Iron to High Purity Iron Product produced used for marketing trials 15
Slide 17: Simple, Modern Process
Simple, Modern Process Reductant addition Offgasses MINING OPERATION BENEFICIATION 15 Mw DC Smelter Ore transport Crushed ore feed Titanium Slag Product Offtake Openpit mining of Main Crush ore to -1mm Preheat and Melt ore Magnetite Layer Vanadium Alloy Oxygen Convertor Vanadium Slag Product Offtake
Slide 18: Group Structure including B-BBEE
Group Structure including B-BBEE Ironveld plc Group Companies 100% B-BBEE Ironveld Mauritius 100% HDSA 100% Ironveld Vanadium Ironveld Holdings 100% 74% Ironveld Mining Ironveld Smelting 5% 21% 74% 74% 68% Zemkinkomo Ironveld Smelting Luge Prospecting Lapon Mining HW Iron B-BBEE and Mining 27% Holdi
Slide 19: Board
Board Giles Clarke, Chairman Giles is President of the England and Wales Cricket Board and Chairman of the Finance & Commercial Affairs committee of the International Cricket Council. He is also Chairman of Westleigh Investments Holdings Limited, Amerisur Resources plc, Kennedy Ventures plc and of s
Slide 20: Consultants
Consultants Sipho Mkhize, Consulting Engineer Sipho holds a BSc Engineering (Mechanical) from the University of Natal, an MDP in General Management from Unisa (SBL) and a Bachelor of Business and Administration (Honours) from the University of Stellenbosch (USB). He started his career at Mobil Oil R
Slide 21: Corporate Social Responsibility
Corporate Social Responsibility The Social Labour Plan (SLP) Includes the following projects: Dairy Farming Local Economic Development Projects Adult Basic Education and Training, Learnerships & Internships Bursary Scheme Career Progression Plan for the employees sourced from local commu