Investor Presentation
November 2019
Innovative Technology Existing Infrastructure Globally Significant Orebody
Global Iron Ore & Steel Forecast Conference
18 March 2020
Global Iron Ore & Steel Forecast Conference Investor - - PowerPoint PPT Presentation
Globally Significant Orebody Existing Infrastructure Innovative Technology 18 March 2020 Global Iron Ore & Steel Forecast Conference Investor Presentation November 2019 Disclaimer Important Notice The purpose of this presentation is to
November 2019
Innovative Technology Existing Infrastructure Globally Significant Orebody
18 March 2020
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Important Notice The purpose of this presentation is to provide general information about Magnetite Mines Limited ("MGT"). It is not recommended that any person makes any investment decision in relation to MGT based on this presentation. This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by MGT that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of MGT, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom. MGT accepts no responsibility to update any person regarding any inaccuracy,
information. Additional Information This presentation should be read in conjunction with the Annual Report at 30 June 2019 together with any announcements made by MGT in accordance with its continuous disclosure obligations arising under the Corporations Act 2001. Any references to resources estimations should be read in conjunction with MGT’s Mineral Resources statement for its Magnetite projects at 30 June 2019 as released to the Australian Securities Exchange on 12 and 20 November 2018. MGT confirms in the subsequent public report that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and, in the case of estimates of mineral resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. All amounts within this presentation are stated in Australian Dollars consistent with the functional currency of MGT, unless
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Crowson, P. Intensity of use reexamined. Miner Econ 31, 61–70 (2018); Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License
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Research on China's Steel Demand Using Combined Forecast- International Journal of u- and e- Service, Science and Technology Vol.8, No.1 (2015), pp.189-200
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200000 400000 600000 800000 1000000 1200000
40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 1850 1856 1862 1868 1874 1880 1886 1892 1898 1904 1910 1916 1922 1928 1934 1940 1946 1952 1958 1964 1970 1976 1982 1988 1994 2000 2006 2012 2018
Crude steel production China '000t Crude steel production '000t (excl China)
Long Term Crude Steel Production History (LHS except China RHS)
US UK Japan India Other Asia Africa/ME China
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400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Regional Crude Steel Production
Traditional steel Africa/Middle East India Other Asia China 600 700 800 900 1,000 1,100 1,200 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
China quarterly iron ore imports and crude steel production (annualised)
China Crude Steel Production (annualised) China Iron Ore Imports (annualised) Traditional includes Europe/CIS/Americas/Oceania/Japan
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Existing Rail, Port and Power Infrastructure Low capital cost
Soft magnetite ore with simple flowsheet Premium product (68.5% Fe with ~3.3% SiO2) potential for high and competitive margins
Located in a mining-friendly jurisdiction Low sovereign risk
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Fe % 68.5 Silica % 3.3 Alumina % 0.4 Phosphorus % 0.01
55.0% 57.0% 59.0% 61.0% 63.0% 65.0% 67.0% 69.0% RAZORBACK Carajas Fines (Vale) Newman Fines (BHP) Vale SSF Vale BBF PB Fines (RioTinto) MAC fines (BHP RTX Fines (Rio Tinto) Roy Hill W Pilbara Fines SIMEC Fines JMB fines (BHP) FMG Blended Yandi (BHP&Rio) Atlas Fines FMG SSF Robe (Rio Tinto)
Announcement – 13/09/16 – Metallurgical Update – Positive Results Data MMI daily iron ore report
On the supply side, global iron ore production totals 1.5 billion tonnes annually of which approximately 60 million tonnes [4%] is high-grade [67%+ preferred for pellet production].2 Erik Hedborg, senior iron ore analyst at CRU in London, expects Chinese pellet demand to grow more than 40% by 2023 to roughly 190 million tonnes, from 140 million tonnes in 2018, and keep rising.3
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technology developed by CSIRO to increase plant feed grade and yields
material to avoid processing of lower grade ore
during PFS
MRA output controls the
MR Sensor Ore Diverter
Upgraded Ore Waste
$0.001 $0.010 $0.100 $1.000 $10.000 $100.000
Reference – Open source data. Indicative only. Calculation of AUD Value per resource tonne: Market Capital Value/Contained Metal adjusted to 62% Fe
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$17.00 /tonne
Magnetite Mines
Razorback Iron Project
$0.003/tonne
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Globally significant iron ore resource in low sovereign-risk jurisdiction
Open-access to existing port, road, rail and power infrastructure
Conventional processing/beneficiation flowsheet with technology upside
Low enterprise value/resource tonne
100% project ownership and open to partnerships
Study work– a catalyst for growth and re-rating