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 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
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 Iron Iron • Bungalow Joint Venture – Baotou Iron & Steel earning 50% Port Iron interest by funding first $40M of development; 338Mt Mineral Base Metals Resource 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 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 DEVELOPING RESOURCES FOR DEVELOPING MARKETS
BOARD & MANAGEMENT Jim Hazel Ben Hammond BEc, FFin, FAICD BSc (Geol), MBA, MAusIMM, GAICD Non-Executive Director Acting-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 GM Finance & Company Non-Executive Director Secretary Steve Brown Jim White Beng (Elec), MEAust, CP Eng David Klingberg AO BApp Sci (Met), FIEAust, CP Eng Chief Operating Officer (Eyre Executive Director FTSE, D UniSA, BTech, Iron Pty Ltd) FIEAust, FAusIMM, FAICD Non-Executive Chairman Angela Webb Poh Kiat CA BA (Acc), GDip Fin, GDip ACG, • Former CEO of Kinhill Dip CE GAICD Non-Executive Director Limited Finance Manager & Company • Former Chancellor of the Secretary (Eyre Iron Pty Ltd) University of South Australia Lu Bingqiang AK Tareen BE (Mining) Chief Advisor – Strategic Non-Executive Director Investments India & South Asia 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 (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 DEVELOPING RESOURCES FOR DEVELOPING MARKETS
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 DEVELOPING RESOURCES FOR DEVELOPING MARKETS
EXISTING DEVELOPMENTS 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 DEVELOPING RESOURCES FOR DEVELOPING MARKETS
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 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 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 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 DEVELOPING RESOURCES FOR DEVELOPING MARKETS
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