PIL BARA INF RAST RUCT URE A NE W L ANDSCAPE PIL BARA INF - PowerPoint PPT Presentation

PIL BARA INF RAST RUCT URE – A NE W L ANDSCAPE PIL BARA INF RAST RUCT URE – A NE W L ANDSCAPE Inve stor Pre se nta tion – Nove mbe r 2013 AJM Globa l Iron Ore & Ste e l F ore c a st Confe re nc e 11&12 Ma rc h 2014 Russe ll T ippe r, Chie f E xe c utive Offic e r, Bro c kma n Mining Austra lia Russe ll T ippe r, Chie f E xe c utive Offic e r, Bro c kma n Mining Austra lia

Disc la ime r T his pre se nta tio n ha s b e e n pre pa re d b y a nd issue d b y Bro c kma n Mining L imite d (“Bro c kma n” o r “the Co mpa ny”) to a ssist it in info rming inte re ste d pa rtie s a b o ut the Co mpa ny. I t sho uld no t b e c o nside re d a n invita tio n o r o ffe r to sub sc rib e fo r o r purc ha se a ny se c uritie s in the Co mpa ny o r a s a n ind uc e me nt to ma ke a n o ffe r o r invita tio n with re spe c t to tho se se c uritie s. No a g re e me nt to sub sc rib e fo r se c uritie s in the Co mpa ny will b e e nte re d into o n the b a sis o f this pre se nta tio n. T his pre se nta tio n c o nta ins fo rwa rd lo o king sta te me nts. While Bro c kma n ha s no re a so n to b e lie ve tha t a ny sta te me nts a re e ithe r fa lse , misle a d ing o r inc o rre c t, it c a nno t g ua ra nte e tha t thro ug h e ithe r pa ssa g e o f time o r a c tio ns b e yo nd the c o ntro l o f Bro c kma n, the y will no t b e c o me so . Yo u sho uld no t a c t o r re fra in fro m a c ting in re lia nc e o n this pre se nta tio n ma te ria l. T his o ve rvie w o f Bro c kma n d o e s no t purpo rt to b e a ll inc lusive o r to c o nta in a ll info rma tio n whic h its re c ipie nts ma y re q uire in o rde r to ma ke a n info rme d a sse ssme nt o f the Co mpa ny’ s pro spe c ts. Yo u sho uld c o nduc t yo ur o wn inve stig a tio n a nd pe rfo rm yo ur o wn a na lysis in o rde r to sa tisfy yo urse lf a s to the a c c ura c y a nd c o mple te ne ss o f the info rma tio n, sta te me nts a nd o pinio ns c o nta ine d in this pre se nta tio n b e fo re ma king a ny inve stme nt d e c isio ns. T he re a re a numb e r o f risks, b o th spe c ific to Bro c kma n a nd o f a g e ne ra l na ture whic h ma y a ffe c t the future o pe ra ting a nd fina nc ia l pe rfo rma nc e o f Bro c kma n a nd the va lue o f a n inve stme nt in Bro c kma n inc lud ing a nd no t limite d to e c o no mic c o nd itio ns, sto c k ma rke t fluc tua tio ns, iro n o re d e ma nd a nd pric e mo ve me nts, a c c e ss to infra struc ture , timing o f e nviro nme nta l a ppro va ls, re g ula to ry risks, o pe ra tio na l risks, re lia nc e o n ke y pe rso nne l, re se rve a nd re so urc e e stima tio ns, na tive title a nd title risks, fo re ig n c urre nc y fluc tua tio ns, a nd mining de ve lo pme nt. 2

Ca pita l Struc ture As a t 17 F e brua ry 2014 Sha re s o n issue 8.4 b illio n Ma rke t c a pita lisa tio n A$502.8 millio n Ca sh o n ha nd * A$37.5 millio n De b t* NI L E nte rprise va lue A$465.3 millio n Optio ns o n issue 435 millio n * E stima te d e xc lud ing T ra nspo rt Se rvic e s disc o ntinue d o pe ra tio n 3

Broc kma n Pilba ra Asse ts 4

Mine ra l Re sourc e s/ Ore Re se rve s Summa ry* Proje c t Re sourc e Gra de Re se rve Gra de (Mt) (% F e ) (Mt) (% F e ) Ma rilla na De trita l 1,528 42.6 1,001 42.4 CI D 102 55.6 48 55.5 Ophtha lmia Co o nd ine r DSO 129 58.3 - - K a lg a n Cre e k DSO 52 59.1 - - Sirius DSO 124 60.3 - - We st Pilba ra Duc k Cre e k 18 56.5 T OT AL 1,953 1,049 * Refer Appendix 2 for detail 5

Asse mbling 35 Mtpa - 2014 Gro wing a c c e pta nc e tha t the Ma rilla na Proje c t is a c ruc ia l pa rt o f • ANY ne w e a st Pilb a ra infra struc ture initia tive d ue to its sig nific a nt to nna g e thro ug hput a nd lo ng mine life (‘ 20/ 20’ ) Ophtha lmia Proje c t – b e c o ming a stra te g ic a nd sig nific a nt future • pro je c t in its o wn rig ht impro ving the e c o no mic s o f a ny infra struc ture o ptio n (i.e . Ba se Ca se (E PI R) o r se c o nd T PI Ra il Ac c e ss Applic a tio n fo r up to 15 Mtpa ) • Bro c kma n is stro ng ly fo c use d o n a d va nc ing ra il a nd port infra struc ture options in c o o pe ra tio n with o the rs (i.e . NWI sha re ho ld ing , Aurizo n Re la tio nship Ag re e me nt, E a st Pilb a ra I nd e pe nd e nt Ra ilwa y, T PI a c c e ss a pplic a tio n a nd Mo Us with T ia njin Po rts Gro up a nd F lind e rs Mine s) e a se a nd De ve lopme nt Ag re e me nt ne g o tia tio ns with PHPA • Port L we ll pro g re sse d a nd o n tra c k to suppo rt po rt c a pa c ity a llo c a tio n a nd e na b le fund ing initia tive s 6

Ma rilla na Iron Ore Proje c t Summa ry KE Y ST AT IST ICS 1.05 Bt Mining (Pro ve n: 133 Mt Re se rve Pro b a b le : 916 Mt) (JORC) * 419 millio n to nne s a t F ina l produc t 60.5–61.5% F e a nd g ra de Co nve ntio na l truc k Mining - a nd sho ve l Ope ra tions F re e d ig g ing - - Ave ra g e Strip Ra tio : 0.8:1 o ve r life o f mine Up to 20 Mtpa (we t)+ Annua l produc tion Sub je c t to c o nfirma tio n F irst o f a n infra struc ture produc tion so lutio n Ove r 20 ye a rs Mine life (initia l) + Refer ASX announcement for Brockman Resources Limited dated 29 September 2010. *Refer Appendix 2 for detail of Reserves and Resources. 7

Ma rilla na Proje c t F unding Summa ry DE VE L OPME NT F UNDING De finition Sta tus Pote ntia l Sourc e Sta tus Ma rilla na De finitive E ng ine e ring Jo int ve nture Awa iting ra il MINE Study (DE S) pa rtne r d e finitio n c o mple te d (up to 40 %) Ne w Pro po sing Pre - Aurizo n Awa iting ind e pe nd e nt ra il F e a sib ility Stud y fe a sib ility stud ie s RAIL Ac c e ss to T PI ra il Pro c e ss initia te d Aurizo n/ BCK Awa iting o utc o me o f the Ac c e ss pro c e ss DE S c o mple te d Po rt inve sto r Mo U with T ia njin Po rts Gro up Ne w fa c ilitie s a t No rth We st PORT L e a se und e r Build , Own a nd Re c e ive d thre e I nfra struc ture ne g o tia tio n with Po rt Ope ra te (3) E xpre ssio ns o f Autho rity c o nso rtium I nte re st 8

Ma rilla na – Ra il Infra struc ture 9

Pote ntia l use rs of Infra struc ture Produc t Produc tion L ife Proje c t Owne r Sta tus Mt Mtpa ye a rs Ma rilla na BCK 419 20 20 Ma jo r a ppro va ls I ro n Va lle y I OH/ MI N 135 5 27 Mo st a ppro va ls Phil’ s Cre e k MI N 15 3 5 All a ppro va ls Pilb a ra iro n Ore F MS 229 15 15 PF S Pro je c t Mt We b b e r AGO 64 6 11 All a ppro va ls Mc Phe e Cre e k AGO 178 12 15 DF S la te 2013 Da vid so n Cre e k AGO 239 15 16 DF S De c e mb e r 2011 1,300 76 Othe r Proje c t Re sourc e Produc tion Owne r Re sourc e s Mt Mtpa Ophtha lmia BCK 290 Up to 15 Co runna Do wns AGO 25 ? ? Source: various public releases 10

Ba se Ca se : E a st Pilba ra Inde pe nde nt Ra ilwa y Co mple te d Sc o ping Stud y o f E a st • Pilb a ra I nd e pe nd e nt Ra ilwa y Aurizo n a nd NWI (Bro c kma n a nd • Atla s) c o ntinue to c o nsid e r inte g ra te d ra il a nd po rt stud ie s Othe r po te ntia l use rs o f the • infra struc ture to b e invite d to pa rtic ipa te in sub se q ue nt stud ie s • NWI a d va nc ing Po rt L e a se ne g o tia tio ns with PHPA to se c ure the 50 Mtpa inne r ha rb o ur a llo c a tio n in whic h Bro c kma n c a n pa rtic ipa te a s a fo und a tio n sha re ho ld e r 11

Ac c e ss Ca se – T PI Ra ilwa y • Bro c kma n sub mitte d a n Ac c e ss Applic a tio n to the T PI ra ilwa y o n 15 Ma y 2013 und e r the WA Ra il Ac c e ss Co d e (2000) I nd e pe nd e nt a sse ssme nt ind ic a te s • tha t T PI ha s a va ila b le ra il c a pa c ity within its c urre nt c o nfig ura tio n T PI is o b lig e d und e r the Ra il Ac c e ss • Co d e a nd its Sta te Ag re e me nt to fa c ilita te a c c e ss fo r third pa rtie s to its ra il infra struc ture 12

Ra il Ac c e ss Re g ime – Applic a tion Bro c kma n sub mitte d its ra il a c c e ss a pplic a tio n to g a in Ma y 2013 a c c e ss to pa rt o f the T PI ne two rk (196 km) T PI ma d e a n a pplic a tio n to the E RA und e r se c tio n 10 (1) o f Ma y 2013 the Co d e re q uiring its a ppro va l fo r ne g o tia tio ns to pro c e e d E RA a ppro ve d ne g o tia tio ns to pro c e e d Aug ust 2013 E RA d e te rmine d a floor c ost o f $84,742,039 ( $0.55/ tonne ) Se pte mbe r 2013 a nd a c e iling c ost o f $316,901,814 ( $2.04/ tonne b a se d o n 155 Mtpa ) a nd a WACC o f 9.76% re je c ting T PI ’ s pro po se d 2013 flo o r c o st o f $73,412,642 ($0.47/ to nne )a nd c e iling c o st o f $575,642,663 ($3.71/ to nne ) 1 1. As re po rte d 28 June 2013 b y Ma tthe w Ste ve ns, AF R 13