David Flanagan Atlas Iron Limited

Transcription

1 David Flanagan Atlas Iron Limited

2 ASX Small to Mid Caps Conference Hong Kong

3 Disclaimer This presentation has been prepared by Atlas Iron Limited ( Atlas or the Company ). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. There are a number of risks, both specific to Atlas and of a general nature which may affect the future operating and financial performance of Atlas and the value of an investment in Atlas including and not limited to economic conditions, stock market fluctuations, iron ore demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign currency fluctuations, and mining development, construction and commissioning risk. You should not act or refrain from acting in reliance on this presentation material. This overview of Atlas does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

4 Pilbara Iron Ore Strategy Production October 2008 Strong Team Near Term Cashflows Low Capital Cost World s Largest Iron Ore Port World s Largest Iron Ore Region Large prospective landholding Strategically located tenements First and only third party rail and port access agreement with FMG 3

5 Corporate Shareholding IMC Group 19.6% Black Rock 6.2% Atlas has a very strong shareholder register, comprising of international and domestic institutions. Hunter Hall 5.9% LinQ Resource Fund 4.9% Top % Capital Structure Ordinary Shares 291M Market Cap at $1.46 $425M Cash ~A$120M Debt A$0m Enterprise Value $305m Options 48m All $ figures refer to AUD. Equity Positions 19.9% Warwick Resources (ASX Code :WRK) Iron Ore Developer 40% Shaw River Resources (ASX Code :SRR) Diversified Explorer 4

6 Board and Management Board of Directors Non Executive Chairman David Nixon Managing Director David Flanagan Non Executive Director Jyn Sim Baker Non Executive Director David Hannon Non Executive Director Geoff Clifford Company Secretary Tony Walsh Key Management Operations Manager Ken Brinsden General Manager Pardoo Jeremy Sinclair Chief Financial Officer Mark Hancock Exploration Manager Mark Gunther Land Tenure & Approvals Garry Plowright Mining Manager Pardoo Adam Liebenberg Magnetite Project Director Bob Third Iron Ore Marketing Daniel Taylor 5

7 Pardoo Mine Layout and Exploration Targets 6

8 Pardoo Mining Fleet 1

9 Abydos Proposed Mine Layout 8

10 Abydos Exploration Targets Widths and grades reflect results from rock chip sample traverses 9

11 Mid West Projects 100% Ownership Granted Mining leases <20km to proposed rail route Target 30-40Mt at 60-63% Fe Pending Port and Rail First pass drilling completed at Weld Range results pending Resource due Q

12 Project Pipeline State of play 11

13 DSO Resources and Target DSO Resources Growth Calendar Year Ending 12

14 DSO Conceptual Production Pipeline 1 Mid-West Production is dependent on the timely delivery of the OPR Port and Rail which is currently due for completion in early

15 Next 12 Months Milestones DSO Production Oct 08 Pardoo DSO Off take agreement Oct 08 Ridley Magnetite Pre Feasibility Study Dec 08 Pardoo DSO Exports Dec 08 Complete Mid-West Scoping Study Jan 09 Revised Resources and Reserves (All Projects) Jan 09 Complete Abydos Definitive Feasibility Study Jun 09 Revised Resources and Reserves (All Projects) Jul 09 Abydos DSO Off take agreement Sep 09 14

16 Appendix 1. DSO Resources and Reserves July Magnetite Resources 3. Project Development Pipeline 4. Pardoo Mine FlowSheet 5. Path to Production 6. JORC Statements 15

17 1. DSO Resources and Reserves 16

18 2. Magnetite Resource 17

19 3. Project Development Pipeline PARDOO (1Mtpa) PARDOO (3Mtpa u/g) ABYDOS (3mtpa s/u) ABDYDOS (6mtpa u/g) ABDYDOS (9mtpa ug) MIDWEST DSO PARDOO MAGNETITE TOTAL Current Resources DSO (Mt) Current Resources Mag (Mt) Bt 39 Mt 1.45Bt Current Reserves (Mt) Mt Exploration Target Mt Mag (36 38% Fe) - Exploration Target Mt DSO (57-60% Fe) Mt Mt Mt Mt Mt Mt Bt Bt Mt Target additional Production (MTPA) Mtpa 1 Target Production Commence Oct 2008 Dec 2009 Dec 2009 Dec 2010 Dec Target Mine Life +5 Yrs +10 Yrs +10 Yrs +10 yrs +10 yrs +6 Yrs +30 Yrs Lump:Fines Ratio 40:60 40:60 TBC TBC TBC TBC Conc. Strip Ratio (waste:ore) 1.8:1 1.8:1 <2:1 <2:1 <2:1 TBC 0.5:1 Transport Road Road Rail / Road Rail Rail Rail / Road Pipe / Rail Distance to Port 75 km 75 km 125 km 150 km 150 km ~450km 75 km Port Facilities FMG 2 / PHPA PHPA 2 FMG 2 / PHPA 2 FMG 2 /PHPA 2 FMG 2 /PHPA 2 Ger/Oak FMG 2 / PHPA 2 1 Target magnetite project concentrate production capacity = 15Mtpa, Atlas equity production = 5Mtpa. 2 Port Access agreement completed 3 Exploration Target Grade 60 to 63% Fe on Midwest tenements. 18

20 4. Path to Production Project Timetables As a company we are proud of our record of delivering on our promises and will protect this reputation Pardoo DSO Abydos DSO Mid West DSO Ridley Magnetite First Drill Testing Aug 2005 Sep 2007 Sep 2008 Sep 2006 Resource Definition July 2006 Oct 2007 Dec 2008 July 2007 Scoping Study Nov 2005 Dec 2007 Dec 2008 Jul 2007 Native Title Agreement Mar 2006 Jul 2009 Jun 2010 Mar 2006 Pre Feasibility Study Jan 2007 Jul 2008 Dec 2009 Dec 2008 Definitive Feasibility Study Jul 2007 Mar 2009 Dec 2010 Dec 2010 Award Mining Contracts Apr 2008 Aug 2009 Aug 2011 Jun 2011 Complete Project Permitting Jun 2008 Sep 2009 Q ~Sep 2011 Next Resource Upgrade Q Q Q Q Commence Mining / Construction Aug 2008 Oct 2009 Oct 2009 Jan 2012 Commence Production Oct2008 Dec 2009 Q Q Commence Shipping Dec 2008 Feb 2010 Q1 2013

21 5. Pardoo Mine Flow Sheet 20

22 6. JORC Statement 1 of 2 Pardoo DSO Project References to Exploration/Production targets and Potential Atlas has reported on 25 July 2008 a resource of million tonnes at 56.0% Fe and a probable reserve of million tonnes at 57.3% Fe at its 100% owned Pardoo DSO Project. While the company intends to do further exploration on the Pardoo Project tenements and remains optimistic it will report additional resources and reserves in the future, any discussion in relation to targets, resources, reserves or ore over and above the resource of million tonnes at 56.0% Fe and a probable reserve of million tonnes at 57.3% Fe is only conceptual in nature. There has been insufficient exploration to define a Mineral Resource over and above the resource of million tonnes at 56.0% Fe, and it is uncertain if further exploration will result in the determination of a Mineral Resource over and above the resource of million tonnes at 56.0% Fe nor the development of a reserve over and above the probable reserve of million tonnes at 57.3% Fe. Abydos Project References to Exploration/Production targets and Potential Atlas has reported on 30 July 2008 a resource of million tonnes at 56.9% Fe and a probable reserve of million tonnes at 58.1% Fe at its 100% owned Abydos DSO Project. While the company intends to do further exploration on the Abydos Project tenements and remains optimistic it will report additional resources and reserves in the future, any discussion in relation to targets, resources, reserves or ore over and above the resource of million tonnes at 56.9% Fe and probable reserve of million tonnes at 58.1% Fe is only conceptual in nature. There has been insufficient exploration to define a Mineral Resource over and above the resource of million tonnes at 56.9% Fe, and it is uncertain if further exploration will result in the determination of a Mineral Resource over and above the resource of million tonnes at 56.9% Fe nor the development of a reserve over and above the probable reserve of million tonnes at 58.1% Fe. Ridley Magnetite References to Exploration/Production targets and Potential Atlas has reported on 2 October 2008 a magnetite resource of 1.45 billion tonnes at 36.6% Fe at its 100% owned Pardoo Project. While the company progresses the pre feasibility study assessing the projects economics, and remains optimistic it will report additional resources in the future, any discussion in relation to targets, resources, reserves or ore over and above the resource of 1.45 billion tonnes at 36.6% Fe is only conceptual in nature. There has been insufficient exploration to define a Mineral Resource over and above the resource of 1.45 billion tonnes at 36.6% Fe, and it is uncertain if further exploration will result in the determination of a Mineral Resource over and above the resource of 1.45 billion tonnes at 36.6% Fe, nor the development of a reserve. MidWest Projects - References to Exploration/Production targets and Potential While the company remains optimistic it will report resources and reserves in the future at its MidWest Projects, any discussion in relation to exploration targets, resource potential, reserves or ore is only conceptual in nature, there has been insufficient exploration to define a Mineral Resource at the company s MidWest Projects and it is uncertain if further exploration will result in the determination of a Mineral Resource. References to Rock chip sample traverses Rock chip traverse sampling method involved collection a sample totaling approximately 1 to 2 kilogram of rock chips collected by hammering surface outcrop at nominal 1 meter spacing along a predetermined traverse generally across strike of mineralization. Several rock chips are collected at each nominal 1 m spaced sampling spot. Exploration Results in General The information in this report that relates to exploration results is based on information compiled by Mr. Mark Gunther who is a member of the Australian Institute of Geoscientists and is an employee of Atlas Iron Limited. Mark Gunther has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results. Mark Gunther consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Dollars All references to Dollars are Australia Dollars 21

23 JORC Statement 2 of 2 Reserve Estimation The information in this report that relates to reserve estimations is based on information compiled by Mr Ken Brinsden who is a member of the Australasian Institute of Mining and Metallurgy. Ken Brinsden is a full time employee of Atlas Iron Limited. Ken Brinsden has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ken Brinsden consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Geological Data, Interpretation and Resource Estimation Alice, Clare, Hubert, Glenda, and Connie Resources The information in this report that relates to mineral resource results is based on information compiled by Mr Hamish Pescini & Mr Richard Gaze who are members of the Australasian Institute of Mining and Metallurgy. Hamish Pescini is a full time employee of Atlas Iron Limited and Richard Gaze is a full time employee of Golder Associates Pty Ltd. Hamish Pescini & Richard Gaze have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they have undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Hamish Pescini and Richard Gaze consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. Geological Data, Interpretation and Resource Estimation Bobby, Floyd, Emma, Olivia, Avalon Point, Mettams, Mullaloo, and Trigg Resources The information in this report that relates to mineral resource results is based on information compiled by Mr Hamish Pescini & Mr David Williams who are members of the Australasian Institute of Mining and Metallurgy. Hamish Pescini are full time employees of Atlas Iron Limited and David Williams is a full time employee of CSA Global Pty Ltd. Hamish Pescini & David Williams have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they have undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.Hamish Pescini and David Williams consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. Geological Data, Interpretation and Resource Estimation South Limb and Dean Resources The information in this report that relates to mineral resource results is based on information compiled by Mr Hamish Pescini & Mr Malcolm Titley who are members of the Australasian Institute of Mining and Metallurgy. Hamish Pescini is a full time employee of Atlas Iron Limited and Malcolm Titley is a full time employee of CSA Global Pty Ltd. Hamish Pescini & Malcolm Titley have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they have undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Hamish Pescini and Malcolm Titley consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. Geological Data, Interpretation and Resource Estimation Magnetite The information in this report that relates to mineral resource results is based on information compiled by Mr Malcolm Titley who is a member of the Australasian Institute of Mining and Metallurgy. Malcolm Titley is a full time employee of CSA Global Pty Ltd. Malcolm Titley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they have undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Malcolm Titley consents to the inclusion in the report of the matters based on their information in the form and context in which it appears. Employees and consultants who contributed significantly to the geological and resource interpretation of the Ridley magnetite resource include Hamish Pescini of Atlas Iron and David Archer of Archer Geological Consulting 22

24 Pilbara s Emerging Powerhouse