Company Update RESOURCES FOR February 2013 DEVELOPING MARKETS - - PowerPoint PPT Presentation

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Company Update RESOURCES FOR February 2013 DEVELOPING MARKETS - - PowerPoint PPT Presentation

DEVELOPING Company Update RESOURCES FOR February 2013 DEVELOPING MARKETS DEVELOPING RESOURCES FOR DEVELOPING MARKETS FORWARD LOOKING STATEMENTS These materials include forward looking statements. Forward looking statements


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SLIDE 1

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

Company Update

February 2013

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SLIDE 2

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

FORWARD LOOKING STATEMENTS

  • These materials include forward looking statements. Forward looking statements inherently

involve subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside of the control of, and may be unknown to Centrex Metals Limited (‘Centrex’ or the ‘Company’).

  • Actual results and developments may vary materially from those expressed in these materials.

The types of uncertainties which are relevant to the Company may include, but are not limited to, commodity prices, political uncertainty, changes to the regulatory framework which applies to the business of the Company and general economic conditions. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements.

  • Forward looking statements in these materials speak only at the date of issue. Subject to any

continuing obligations under applicable law or any relevant stock exchange listing rules, the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based.

  • Forward looking statements include, but are not limited to, statements concerning Centrex’s

planned exploration program, targeted resources, commencement of product export and other statements that are not historical facts. When used in this document, the words such as “could”, “target”, “plan”, “estimate”, “intend”, “may”, “aim”, “potential”, “should”, and similar expressions reflected in these forward-looking statements are reasonable, such as statements involving risks and uncertainties and no assurance can be given that actual results be consistent with these forward-looking statements.

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

CENTREX OVERVIEW

  • Eyre Iron Joint Venture - 40% interest in magnetite iron ore

projects with Wuhan Iron & Steel funding first $75M of development; 653Mt Mineral Resource at flagship Fusion project

  • Port Spencer Joint Venture - 50% interest in proposed deep-

water port facility with Wuhan Iron & Steel to fund next $4M of development; State Government approval received

  • Bungalow Joint Venture – Baotou Iron & Steel earning 50%

interest by funding first $40M of development; 338Mt Mineral Resource

  • Goulburn Joint Venture - Shandong 5th Geo-Mineral

Prospecting Institute earning 35% for $2M exploration; ability to earn 80% by funding to production

  • Wilgerup - 100% interest 13.3Mt Indicated DSO Resource
  • Eyre Peninsula Exploration - 100% interest in iron ore rights to

7 licences in South Australia

  • Gundaroo - Exploration Licence Application for NSW Gold-

Base Metals project near Goulburn

Base Metals Iron Iron Iron Port

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SLIDE 4

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

COMPETITIVE STRENGTHS & STRATEGY

  • Substantial and growing bank of end to end project knowledge
  • Management team with strong total supply chain operational experience (iron ore, coal,

phosphate, gold and steel)

  • Strong international partnerships

“Acquire, define and develop a portfolio of resource projects for developing markets to provide shareholder value.” Our focus is on;

  • Bulk commodities
  • End to end project solutions
  • Value extraction
  • Optimising capital risk
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SLIDE 5

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

BOARD & MANAGEMENT

David Klingberg AO

FTSE, D UniSA, BTech, FIEAust, FAusIMM, FAICD

Non-Executive Chairman

  • Former CEO of Kinhill

Limited

  • Former Chancellor of the

University of South Australia

Jim Hazel

BEc, FFin, FAICD

Non-Executive Director

Graham Chrisp

BTech (CE)

Non-Executive Director

John den Dryver

BE (Mining), MSc, FAusIMM

Non-Executive Director

Jim White

BApp Sci (Met), FIEAust, CP Eng

Executive Director

Poh Kiat

Dip CE

Non-Executive Director

Lu Bingqiang

BE (Mining)

Non-Executive Director

Ben Hammond

BSc (Geol), MBA, MAusIMM, GAICD

Acting-CEO

Alastair Watts

BSc (Geol), Dip Bus, MAusIMM

GM Exploration

Gavin Bosch

BCom, CPA, CSA

GM Finance & Company Secretary

Steve Brown

Beng (Elec), MEAust, CP Eng

Chief Operating Officer (Eyre Iron Pty Ltd)

Angela Webb

CA BA (Acc), GDip Fin, GDip ACG, GAICD

Finance Manager & Company Secretary (Eyre Iron Pty Ltd)

AK Tareen

Chief Advisor – Strategic Investments India & South Asia

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

CORPORATE OVERVIEW

  • Capital Structure (ASX:CXM)

– Shares on Issue: 313.6M – Options & Rights on Issue: 3.3M – Market Capitalisation (@ $0.19): A$ 59.6M – Cash (31st December 2012): A$ 63.3M – Cash (Forecast Ex-Dividend 11th March 2013) A$ 47.6M

Top 10 Shareholders % Issued Capital South Cove Ltd 25.8 Wugang Australian Resources Investment Pty Ltd 12.9 Baotou Iron & Steel (Group) Company Ltd 7.0 HSBC Custody Nominees (Australia) Ltd 5.3 SEL Holdings Ltd 5.2 United Iron Ltd 4.8 Mr Sik Ern Wong 2.6 Davan Nominees Pty Ltd 2.0 Mr Melvin Boon Kher Poh 1.7 Keng Chuen Tham 1.4 Total 68.7

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

INITIAL FOCUS & RECENT DEVELOPMENTS

  • Progress existing developments

– Support feasibility studies for the WISCO and Baotou iron

  • re joint ventures (SA)

– Progress Federal Government approvals for Port Spencer deep water export facility (SA)

  • Maximise value from existing portfolio

– Finalise transaction for third Chinese backed joint venture

  • ver base metals project (NSW)

– Complete initial exploration drilling at the Kimba Gap iron

  • re prospect (SA)

– Review ground gravity survey results at the Wilgerup DSO hematite project (SA)

  • Acquisitions

– Acquire two early stage bulk commodities projects in 2013

  • Capital management

– Consider cash requirements for existing and future business – Special dividend announcement

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

EXISTING DEVELOPMENTS

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

EYRE PENINSULA IRON ORE

  • Eyre Iron Joint Venture - 40% interest in

magnetite iron ore projects with Wuhan Iron & Steel funding first $75M of development; 653Mt Mineral Resource at flagship Fusion project

  • Port Spencer Joint Venture - 50% interest in

proposed deep-water port facility with Wuhan Iron & Steel to fund next $4M of development; State Government approval received

  • Bungalow Joint Venture - Baotou Iron &

Steel earning 50% interest by funding first $40M of development; 338Mt Mineral Resource

  • Wilgerup - 100% interest 13.3Mt Indicated

DSO Resource

  • Eyre Peninsula Exploration - 100% interest

in iron ore rights to 7 licences in South Australia

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SLIDE 10

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

  • 653Mt of Mineral Resource Defined to date at the

Fusion Magnetite Project, including 287Mt Measured and Indicated*

  • More resource updates expected in early 2013
  • Additional Exploration Targets still to be drilled out
  • Targeted at 5Mtpa concentrate production
  • Critically, independent infrastructure solution
  • Plant 40km from port, concentrate delivered via

slurry pipeline

  • Power from the national grid
  • Water via desalination plant
  • Scoping study completed May 2012
  • Definitive feasibility study well underway with final

scope to be agreed April 2013

EYRE IRON JOINT VENTURE (CXM 40%)

*Refer slide 21 for full details

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

PORT SPENCER (CXM 50%)

  • WISCO have entered into a 50/50 joint

venture for the development of a deep- water bulk commodity facility at Port Spencer

  • Multi user facility, 20 mtpa, opportunity

for low cost expansion

  • 500m jetty to 20m deep water Cape

capable port, no dredging required

  • Excellent government support for a key

infrastructure project

  • South Australian government

development approval for Phase 1 received December 2012

  • EPBC referral process underway
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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

BUNGALOW JOINT VENTURE (CXM 70%)

  • Baotou Iron & Steel Group (“Baogang”) have a

30% interest, Centrex retains a 70% interest

  • Baogang have the right to commit a further

A$16 million to earn a 50% interest

  • 338Mt Mineral Resource including 22Mt

Measured and 164Mt Indicated*

  • 5Mtpa of concentrate production to be exported

from Port Spencer

  • Achievable infrastructure solutions for power,

water and product transport

  • Prefeasibility Study expected completion in early

2013

  • Regional opportunities

*Refer slide 23 for full details

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

WILGERUP (100%)

  • 100% Centrex owned DSO hematite

project at Wilgerup

  • Massive hematite JORC Mineral

Resource of 13.3Mt @ 57.7% Fe*

  • All mining approvals received
  • Off-take agreements already in place
  • Develop in line with Port Spencer

development

  • Options to add value being explored
  • Upgrading of existing lower grade

hematite and magnetite

  • Recent gravity survey being

reviewed for further DSO targets

*Refer slide 24 for full details

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SLIDE 14

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

BUILD PORTFOLIO VALUE

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

NSW BASE METALS (100%)

  • Goulburn Joint Venture
  • Heads of Agreement signed for $2M

exploration program for Shandong 5th Geo-Mineral Institute to earn 35%

  • Further option to acquire up to 80% by

funding through to production

  • Promising IP anomalies
  • Diamond drilling planned for early 2013
  • Gundaroo
  • Exploration Licence Application 4744

roughly 10km west of Goulburn project

  • 100% Centrex tenement application.
  • 280km2 covering a structural corridor

with historically defined gold and base metals mineralisation

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

KIMBA GAP (CXM 100%)

  • Part of 5 Exploration Licences adjacent to the

existing Middleback Ranges iron ore mines

  • 4km strike of outcropping Banded Iron Formation

(BIF) coincident with magnetic and gravity anomalies

  • Native Title Mining Agreement for Exploration in

place

  • First pass drilling program planned for early 2013

targeting both DSO and magnetite mineralisation

  • Prospect located 50km north of Bungalow Joint

Venture

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

BUSINESS DEVELOPMENT

  • Actively pursuing acquisition opportunities in early stage bulk

commodities projects

  • Centrex to take acquisitions through conceptual

development and resource definition

  • Leveraging off international networks to fund project

developments

  • Proven track record of securing foreign investments with

third Chinese backed joint venture signed in January 2013

  • Former Senior Trade Commissioner to India appointed to aid

with marketing current and future projects

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

CAPITAL MANAGEMENT

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

SPECIAL DIVIDEND

  • Conservative approach, but realising value

to shareholders

  • Centrex has surplus cash taking into

account

  • Range of cash requirements for

development assets

  • Cash requirements for business

development

  • Other factors
  • Franking credits available, unutilised
  • Return to shareholders of capital

gained from past transactions

  • Logical outcome – return of surplus cash to

shareholders via fully franked dividend

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

RESOURCE APPENDICIES

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SLIDE 21

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

COMBINED FUSION RESOURCES

Refer slide 22 for individual deposit breakdowns

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DEVELOPING RESOURCES FOR DEVELOPING MARKETS

FUSION RESOURCES

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SLIDE 23

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

BUNGALOW RESOURCES

* DTR (percent weight recovery) and concentrate results were from Davis Tube test work performed at -38µm.

# Due to the effects of rounding, overall totals may not be able to be reproduced from individual classification totals.

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SLIDE 24

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

WILGERUP RESOURCES