DEVELOPING RESOURCES FOR DEVELOPING MARKETS. Company Update. February 2013 DEVELOPING RESOURCES FOR DEVELOPING MARKETS

Transcription

1 DEVELOPING RESOURCES FOR DEVELOPING MARKETS Company Update February 2013

2 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.

3 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 deepwater 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 Iron Iron Iron Port Base Metals Goulburn Joint Venture - Shandong 5 th 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

4 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

5 BOARD & MANAGEMENT Jim Hazel BEc, FFin, FAICD Non-Executive Director Graham Chrisp BTech (CE) Non-Executive Director Ben Hammond BSc (Geol), MBA, MAusIMM, GAICD Acting-CEO Alastair Watts BSc (Geol), Dip Bus, MAusIMM GM Exploration 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 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 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

6 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 (31 st December 2012): A$ 63.3M Cash (Forecast Ex-Dividend 11 th 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

7 INITIAL FOCUS & RECENT DEVELOPMENTS Progress existing developments Support feasibility studies for the WISCO and Baotou iron ore 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 over base metals project (NSW) Complete initial exploration drilling at the Kimba Gap iron ore 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

8 EXISTING DEVELOPMENTS

9 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

10 EYRE IRON JOINT VENTURE (CXM 40%) 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 * Refer slide 21 for full details

11 PORT SPENCER (CXM 50%) WISCO have entered into a 50/50 joint venture for the development of a deepwater 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

12 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

13 WILGERUP (100%) 100% Centrex owned DSO hematite project at Wilgerup Massive hematite JORC Mineral Resource of 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

14 BUILD PORTFOLIO VALUE

15 NSW BASE METALS (100%) Goulburn Joint Venture Heads of Agreement signed for $2M exploration program for Shandong 5 th 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. 280km 2 covering a structural corridor with historically defined gold and base metals mineralisation

16 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

17 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

18 CAPITAL MANAGEMENT

19 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

20 RESOURCE APPENDICIES

21 COMBINED FUSION RESOURCES Refer slide 22 for individual deposit breakdowns

22 FUSION RESOURCES

23 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.

24 WILGERUP RESOURCES