20:20 Resources Investor DEVELOPING RESOURCES Series, Sydney FOR DEVELOPING November 2013 MARKETS Gavin Bosch Chief Financial Officer 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. DEVELOPING RESOURCES FOR DEVELOPING MARKETS
KEY MESSAGES • Working towards becoming shareholder in numerous mining projects • Funding development and growth through foreign investment at the project level to minimise shareholder dilution • Three Chinese backed joint ventures already in place over iron ore and base metals Iron Iron • Strategy being enacted to isolate large-scale magnetite joint venture project capital requirements Base Iron Metals from parent company and current cash reserves Port Gold • On-ground presence in India to increase international partnership potential • A$ 45.1M in uncommitted cash as at September 30 th 2013 • Paid A$ 15.7M special dividend in 2013 • Several projects (gold, iron ore, base metals) in exploration phase preparing for further foreign investment attraction • Pursuing further acquisition opportunities DEVELOPING RESOURCES FOR DEVELOPING MARKETS
BOARD & MANAGEMENT Jim Hazel Ben Hammond BEc, SFin, FAICD BSc (Geol), MBA, MAusIMM, GAICD Non-Executive Director CEO Alastair Watts Graham Chrisp BSc (Geol), Dip Bus, MAusIMM BTech (CE) GM Exploration Non-Executive Director Gavin Bosch John den Dryver BCom, CPA, CSA BE (Mining), MSc, FAusIMM CFO & Company Secretary Non-Executive Director Steve Brown Poh Kiat Beng (Elec), MEAust, CP Eng David Klingberg AO Dip CE Chief Operating Officer (Eyre Non-Executive Director FTSE, D UniSA, BTech, Iron Pty Ltd) FIEAust, FAusIMM, FAICD Non-Executive Chairman Angela Webb Lu Bingqiang CA BA (Acc), GDip Fin, GDip ACG, • Former CEO of Kinhill BE (Mining) GAICD Limited Non-Executive Director Finance Manager & Company • Former Chancellor of the Secretary (Eyre Iron Pty Ltd) University of South Australia AK Tareen Chief Advisor – Strategic Investments India & South Asia DEVELOPING RESOURCES FOR DEVELOPING MARKETS
CORPORATE OVERVIEW • Capital Structure (ASX:CXM) – Shares on Issue: 314.1M – Options & Rights on Issue: 5.2M – Market Capitalisation (@ $0.13): A$ 40.8M Cash (30 th September 2013): – A$ 45.1M 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 5.7 SEL Holdings Ltd 5.2 United Iron Ltd 4.8 Mr Sik Ern Wong 2.7 Davan Nominees Pty Ltd 1.9 Mr Melvin Boon Kher Poh 1.7 Keng Chuen Tham 1.4 Total 69.0 DEVELOPING RESOURCES FOR DEVELOPING MARKETS
IDEALISED DEVELOPMENT MODEL MINORITY SHAREHOLDER PROJECT LEVEL FLOAT JOINT VENTURE FOREIGN INVESTMENT CENTREX FUNDING MARKET EXPLORE OR DEVELOP ACQUIRE DEVELOPING RESOURCES FOR DEVELOPING MARKETS
CURRENT JOINT VENTURES DEVELOPING RESOURCES FOR DEVELOPING MARKETS
EYRE IRON MAGNETITE JOINT VENTURE (CXM 40%) Joint venture with world’s 4 th largest steel group Wuhan Iron • & Steel (WISCO) • Deal structure (for 60% interest to WISCO): − $75M farm-in contribution by WISCO − $78M directly to Centrex (uncommitted) • Flagship magnetite iron ore project at Fusion with 680Mt of Mineral Resources • Expanded PFS at Fusion underway with drilling to commence at Bald Hill deposit in 2013 • If PFS successful then option to undertake project level IPO on ASX to raise BFS funds South • WISCO to underwrite shortfall of IPO and Centrex to dilute Australia to 30% Alternate options for 3 rd party to fund BFS, or trade sale if • PFS unsuccessful • Strategies now in place to isolate project equity needs from Centrex and its current cash reserves For details of resources see announcement 18 th February 2013 http://www.asx.com.au/asxpdf/20130218/pdf/42d2m8n09wywwg.pdf DEVELOPING RESOURCES FOR DEVELOPING MARKETS
PORT SPENCER (CXM 50%) • Joint Venture signed with Wuhan Iron & Steel for the South development of a multi-user deep-water bulk commodity Australia export facility at Port Spencer • WISCO to fund next A$ 4M of development for 50% • Current design for a relatively low cost facility with 20Mtpa capacity using a 5,000tph shiploader to load Cape vessels using a 515m jetty • PFS commenced for potential even lower off-shore capital transhipment start-up option • No cyclones or dredging required Land already owned for 3 rd party user subdivision feeding • on to common central conveyor • South Australian Government conditional development approval for Stage 1 received December 2012 • Federal Government now approved DEVELOPING RESOURCES FOR DEVELOPING MARKETS
BUNGALOW MAGNETITE JOINT VENTURE (CXM 70%) • Joint Venture with Baotou Iron & Steel Group Co (Baotou) formed in 2010 • Deal structure: − $40M Farm-in contribution by Baotou in three stages − Ability for Baotou to earn 50% − $24M contributed so far • 338Mt Mineral Resource at Bungalow project and currently at Prefeasibility Study Level South • Successful initial laboratory test work on Australia additional hematite by-product from magnetite circuit For details of resources see announcement 25 th May 2012 http://www.asx.com.au/asxpdf/20120525/pdf/426gp0l17x8p6l.pdf DEVELOPING RESOURCES FOR DEVELOPING MARKETS
GOULBURN BASE METALS JOINT VENTURE (CXM 65%) Joint Venture with Shandong 5 th Geo- • Mineral Prospecting Institute (Shandong) executed in 2013 • Base metals project with drill ready IP targets and historical occurrences • JV Structured in three stages: − $2M Farm-in contribution by Shandong to earn 35% − Shandong fund BFS to earn 50% − Shandong fund construction to earn 80% • FIRB approval received, awaiting Chinese Government approvals NSW • Drilling program planned for first half of 2014 For details on the geological aspects of the Goulburn project see announcement 17 th December 2012 http://www.asx.com.au/asxpdf/20121217/pdf/42bz4xwgwlzt5r.pdf DEVELOPING RESOURCES FOR DEVELOPING MARKETS
EXPLORATION & DEVELOPMENT DEVELOPING RESOURCES FOR DEVELOPING MARKETS
WILGERUP (100%) • 100% Centrex owned DSO hematite project at Wilgerup • Massive hematite JORC Indicated Resource of 13.3Mt @ 57.7% Fe • All mining approvals received • Develop in line with Port Spencer • Reviews underway for potential early export options For details of resources see announcement 23 rd October 2009 South http://www.asx.com.au/asxpdf/20091023/pdf/31lk86y343jpv1.pdf Australia DEVELOPING RESOURCES FOR DEVELOPING MARKETS
KIMBA GAP IRON ORE (CXM 100%) • 4.6km outcropping banded iron formation South • Dual tenancy agreement with Arrium to explore for Australia magnetite on 600m of strike located on their license • Located near existing hematite and magnetite iron ore mines • Around 60km from Whyalla • Exploration Target of 330Mt to 500Mt @ 21% to 27% DTR to produce high quality iron ore concentrate • The potential quantity and grade of this Exploration Target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource • It is uncertain if further exploration will result in the determination of a Mineral Resource • Marketing campaign for joint venture partner commenced For details of resources see announcement 3 rd July 2013 http://www.asx.com.au/asxpdf/20130703/pdf/42gv2y425ctg63.pdf DEVELOPING RESOURCES FOR DEVELOPING MARKETS
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