Company Overview O September 2010 September 2010 C Disclaimer - - PDF document

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Company Overview O September 2010 September 2010 C Disclaimer - - PDF document

Company Overview O September 2010 September 2010 C Disclaimer This document has been prepared as a summary only, and does not contain all information about the Companys assets and liabilities, financial position and performance, profits


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SLIDE 1

C O Company Overview

September 2010 September 2010

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SLIDE 2

Disclaimer

This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities. This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by Indo Mines Limited. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the Shares or that there will be an increase in the value of the Shares in the future. Further details on risk factors associated with the Company’s operations and its securities are contained in the Company’s prospectuses and other Further details on risk factors associated with the Company s operations and its securities are contained in the Company s prospectuses and other relevant announcements to the Australian Stock Exchange. Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of recoverable pig iron, expected product prices, expected costs, statements relating to the continued advancement of the Company’s projects and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as “aim”, “could”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements statements. Although the company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements include the potential that the Company’s projects may experience technical, geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by the Company or disclosed in the Company’s published material. The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position. The information in this report that relates to Exploration Results and Mineral Resources of the Jogjakarta Iron Project is based on information compiled by Mr Philip Welten who is a member Australian Institute of Mining and Metallurgy Mr Welten is a consultant of Indo Mines Limited Mr Welten has by Mr Philip Welten, who is a member Australian Institute of Mining and Metallurgy. Mr Welten is a consultant of Indo Mines Limited. Mr Welten has sufficient experience, which is relevant to the style of iron ore 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’. Mr Welten consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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SLIDE 3

Capital Structure

  • 163.2m shares on issue

Market Capitalisation approx $36 million → Undervalued against peers

  • 27.7m unlisted options
  • 55m performance shares

(converting 1 for 1)

  • USD $4m convertible note from

Anglo Pacific Group Plc

  • Major Shareholders

Board and Management 37.1m 22.6% Anglo Pacific Group 20.1m 12.3% Iron Project Vendors 10.9m 6.7% 68.1m 41.6% Top 40 Holders 124.9m 76.7%

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SLIDE 4

Current Projects

  • 605 Million Tonnes of Iron Sands

C t t f W k t i d

Iron Project - Jogjakarta

  • Contract of Works to mine and

process ALL iron sands throughout Indonesia

  • Project NPV of US$808 million
  • Project NPV of US$808 million

based on 1mt pa of pig iron

M k k Th l C l Mangkok Thermal Coal

  • South Kalimantan
  • Production commenced

Jakarta

INDONESIA South Kalimantan Coal

  • High quality thermal coal,

approx 6,000 to 7,000 kcal/kg Iron Sands INDONESIA

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SLIDE 5

Board of Directors

  • Martin Hacon (Managing Director/CEO) – former Vice President New

Zealand Steel, responsible for the iron sands business, by-product and steel manufacturing businesses manufacturing businesses.

  • Chris Catlow (Non-Executive Chairman) – former Director - Business

Development, and founding CFO of Fortescue Metals Group (ASX:FMG).

  • Derek Fisher (Non-Executive) – MD/CEO of Moly Mines (ASX:MOL)
  • Paul Kopejtka (Non-Executive) – Executive Chairman of Murchison Metals

(ASX: MMX) (ASX: MMX)

  • Darryl Harris (Non-Executive) – MD of Beacon Minerals (ASX:BCN) and

Outotec Business Development Manager with significant knowledge of f t h l i ferrous technologies.

  • Keith Brooks (Non-Executive) – extensive corporate finance experience and

contact base in Asia / Indonesia.

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SLIDE 6

A New Generation Minerals Producer

Targeting a Unique Market g g q Niche TO BE:

  • The Domestic Raw Material

Supplier of Choice to the Growing Indonesian Steel d M t l I d t and Metals Industry

  • A Raw Material Supplier Of

Choice to the Asian Metals I d t Industry

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SLIDE 7

Indonesia Overview

  • Democracy with population of

240 million+ R f d fi i l i tit ti

400 500 600

Gross Domestic Product US$ billion

  • Reformed financial institutions
  • The worlds 3rd fastest growing

economy in 2009 C dit d b Fit h S&P d

200 300 400

  • Credit upgrade by Fitch, S&P and

Moody in the last year

  • Resource rich (iron, coal, oil…)

O f th t f i

100 1980 1985 1990 1995 2000 2005 2010

% GDP Growth

  • One of the top performing

economies through the GFC

  • Close to the major markets and

growing economies of the world

4.00% 5.00% 6.00% 7.00%

growing economies of the world

  • Government to invest >US$200

billion in new infrastructure projects

0 00% 1.00% 2.00% 3.00% 0.00% 2007 2008 2009 2010

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SLIDE 8

Indonesian Steel Industry: Overview

  • Next major market for steel

products – China, India, Indonesia

  • Currently the lowest consumption
  • f steel per capita in the world

Indonesia…..

  • August 2010 POSCO announce

JV with Krakatau Steel to build a new 6mt steelworks

Steel Consumption per Capita (kg)

  • 2009 steel imports represented

5.6% of gross imports. (The #1 imported item by value)

  • The steel industry utilises 100%

imported raw materials

  • Current capacity 5mt, forecast

domestic demand 2013 of >10mt

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SLIDE 9

Pig Iron Market and Opportunity

Market Overview

  • Pig iron a direct substitute for

t l Indo Mines Opportunity

  • To be lowest cost pig iron producer in

th ld scrap metal

  • Blast furnace and electric arc

furnace operations require scrap as feed the world.

  • Option to produce iron concentrate to

provide early cash flows. as feed

  • Reduced availability of scrap, as

developing countries still in construction phase p

  • Increasing correlation between pig

iron price and iron ore price

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SLIDE 10

Iron Sand: What is it?

  • Iron Sand is Titano-magnetite,

an abundant ore produced by volcanic activity volcanic activity

  • It contains up to 60% Iron combined

with up to 9% Titania (TiO2)

  • High TiO

is undesirable in blast

  • High TiO2 is undesirable in blast

furnace feed BUT

  • Ideal feed material for new Direct

Reduced Iron (DRI) technologies

  • Vanadium content is a potentially

valuable by-product

  • Mining is simple, low cost and

environmentally friendly

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SLIDE 11

Iron Sands Potential - Java

Jakarta

100km

Potential

Yogyakarta

JAVA Iron Sands

20km

Iron Sand Mining Concession

Additional Resource Potential

22km ‐ 605Mt YOGYAKARTA

Additional Resource Potential

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SLIDE 12

Infrastructure in Place

J o g j a k a r t a

2km

Mining Lease Boundary

6 273 14 2%

  • 929 holes, 14,000 samples.
  • No overburden or internal waste.

0 – 6 metres million tonnes 14.2% Fe 0 – 20 metres 605 million 10.8% Fe metres tonnes Fe

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SLIDE 13

JORC Resource

  • 605 million tonnes, grade 10.8% Fe
  • Includes 273 million tonnes near surface sand, grade 14.2% Fe

Surface Sand Unit

(above an average 6m depth)

JORC Resource (at a cut off of 9% Fe) Tonnes (Million) Grade (% Fe) (at a cut off of 9% Fe) (Million) (% Fe) Measured 115.6 13.9% Indicated 134.9 14.5% Inferred 22.5 14.0% 273.0 14.2%

  • The balance of 332 million tonnes is magnetite bearing gravel grading 7.9%
  • Fe. Initial testing indicates that a commercial grade concentrate can be

produced

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SLIDE 14

Project Update

  • Simple dry mining, gravity and magnetic separation to produce up to 2 million

tonnes of concentrate

  • The deposit is similar to the New Zealand iron sand deposits processed into

steel products for over 30 years

  • Final products tailored to meet customer requirements
  • Iron concentrate converted to pig iron using DRI technology plus smelting
  • URS contracted to complete the Environmental and Social impact studies
  • Project owned through a Joint Venture company (PMA), Indo Mines 70%,

local partner 30%

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SLIDE 15

Upside Potential

  • Processing of 330 million tonnes of gravel not included in the scoping study
  • Increase production to >2 million tonnes per annum of Iron products
  • Contract of Work permits processing of Iron Sands anywhere in

Indonesia – potential for >10 Million tonnes of iron / pig iron / steel per annum D t i t St l f i d

  • Downstream expansion to Steel from iron sands
  • Alternate reduction and smelting technology is being investigated to reduce

capital and operating costs I i St l C ti i I d i f l b

  • Increasing Steel Consumption in Indonesia from low base
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SLIDE 16

Indonesian Coal - Why?

  • Coal quality and market proximity

gives it a competitive edge

  • Synergies with Iron Project – off-take

for processing and power supply gives it a competitive edge

  • Indonesian coal production is

booming for processing and power supply

  • Country risk is diminishing - Now over

257 general mining & support projects registered; & 93 PT companies with registered; & 93 PT companies with project approvals

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SLIDE 17

Mangkok Project Summary

Location

  • The deposit is located close to key

infrastructure:

  • Port load out within 30 kms
  • Major haul roads established

and operating

  • Mining on same coal seams
  • Mining on same coal seams
  • n adjacent blocks

Coal Features

  • 3 to 4 metre thick seams
  • 3 to 4 metre thick seams
  • utcropping at surface, average

6,000 to 7,000 kcal/kg high quality thermal coal

Coal Production

  • Over 5,000 metres drilled and

10,000 coal samples evaluated

  • Mine Plan complete and production
  • Mine Plan complete and production

commenced

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SLIDE 18