Iberian Investors Presentation August 2009
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Iberian Investors Presentation August 2009

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  • I really liked the presentation . I am a shareholder for several years . I suggest you make it more inviting for people go to your web site to try the presentation . I did so by chance . You are making great strides in communicating better to your intended audience . Keep at it . I would like to see news on a frequent basis . Outsmart the competition and use the internet heavily to get out your message . Can you post some feedback on the September analyst trip to the company's mines . I was disappointed to see the share price
    remain the same , I was expecting a boost in price following the trip's end . Hopefully this will
    happen soon . Well best of luck , keep working hard and continue to expand you communicating skills . Regards Rick Murphy Shareholder

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    Iberian Investors Presentation August 2009 Iberian Investors Presentation August 2009 Presentation Transcript

    • August 2009
    • Forward Looking Statements This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward looking information may include, but is not limited to, statements with respect to the future financial or operating performances of the Corporation, its subsidiaries and their respective projects, the timing and amount of estimated future production, estimated costs of future production, capital, operating and exploration expenditures, the future price of copper, gold and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the costs and timing of future exploration, requirements for additional capital, government regulation of exploration, development and mining operations, environmental risks, reclamation and rehabilitation expenses, title disputes or claims, and limitations of insurance coverage. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Corporation and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the section entitled “Risk Factors” in the Corporation’s annual information form dated April 30, 2009. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Unless otherwise stated, the information contained in this presentation is as of August 1, 2009. 2
    • Iberian Minerals – Key Messages • Base metals producer – copper, lead, and zinc in concentrate with gold and silver credits • Project debt at Aguas Tenidas paid off • Stable countries of operation (Peru and Spain) • Goal for future growth through mergers and acquisitions, with plans to be multi-mine • Unique story for investors “Growing Iberian Minerals as a major iconic name in the base metals industry” 3
    • Iberian Minerals - Key Goals Continue to… • maintain Condestable in steady state of production • ramp-up Aguas Tenidas with a view to achieving commercial production • review and assess corporate and asset opportunities - base metals in North/South America or Europe/Middle East/Africa region • assess and structure hedging/financial transactions to attain best overall group benefits • leverage the Trafigura relationship • focus on key values for social and environmental responsibilities • focus on broad recognition, and the growth of Iberian as an iconic name in the base metals industry ...and above all, to enhance value for all shareholders. 4
    • Corporate Summary • Toronto Venture Exchange listed: IZN • Headquartered in Toronto, with offices in Geneva, Seville and Lima • Operations in Peru and Spain • More than 1,750 employees and contract workers worldwide 5
    • Capital Structure TSXV: IZN Common Shares 336.6M Warrants1 26.0M Options 8.4M Debenture2 20.0M Fully Diluted 391.0M 52 week range $0.97 - $0.19 Month range (June) $0.35 - $0.50 Market Cap June 30 $163.3M Average daily volume (3month) 911,147 IZN three month chart Major Shareholder Trafigura Beheer B.V 45.2% 1 8,382,126 warrants expire in August 2009 with exercise prices ranging from $2.20 to $2.60 2$25 million convertible debt held by Dundee Resources, bearing interest at 6% and convertible at $1.25. Dundee Resources (Dundee) holds a convertible subordinated Debenture maturing July 26, 2011 with an interest rate of 6% payable semi-annually. The outstanding principal amount of the Debenture will be convertible at Dundee’s option at any time, in whole or in part, into units of the Company at a conversion price of $1.25 per unit. Each unit will be comprised of one common share and one-half of warrant, with each warrant being exercisable into one common share at an exercise price of $2.00 for a period of two years after the date of the issue of the warrants. 6
    • Corporate Structure Iberian Minerals Corp. Switzerland Domicile in Switzerland 100% 100% 100% IZN Holdings Iberian Minerals Minas de Aguas Corp. Holdings Cooperatief Tenidas S.A.U. BVI U.A. Spain Created a unique opportunity for Netherlands the Iberian Group of companies to 100% optimize the structure of future Iberian Minerals transactions Holdings B.V. Netherlands Approved at Iberian’s Annual & 100% 100% Special Meeting of Shareholders on Iberian Minerals Urion Worldwide June 10, 2009 (Suisse) S.A. Investments Ltd Switzerland Bahamas 98.7% Compania Minera Condestable S.A. Peru 7
    • Condestable & Aguas Tenidas Mines Condestable Mine, Peru Producing copper concentrates that also contain silver and gold Aguas Tenidas Mine, Spain Producing copper, zinc and bulk lead/copper concentrates that also contain silver and gold 8
    • Condestable Mine, Peru • The Condestable Mine consists of two mines– Condestable and Raul. Lima • Condestable is located 90km from Lima, Peru, with excellent access to infrastructure • Copper mineralization at Condestable occurs in stratiform sulphide-rich replacement bodies (mantos) and crosscutting sulphide bearing quartz veins Condestable Mine • Acquired in early 2008, IZN holds 98.7% ownership • Stable mining and processing costs 9
    • Plan view of Infrastructure Raul Mine Condestable Mine Mill Offices Tailings Dam #4 Tailings Dam #1, 2 and 3 10
    • Condestable Mine – Reserves & Resources Mineral Resources as at June 30, 2008 Classification 000's tonnes %Cu Measured 5,246 1.76 Indicated 2,433 1.82 Total Measured & Indicated 7,679 1.77 Inferred 8,806 1.24 Proven and Probable Reserves as at June 30, 2008 000’s tonnes % Cu Proven 6,696 1.27 Probable 3,120 1.30 Total Proven & Probable 9,816 1.28 Stocks (Proven) 262 0.80 Total for Mining Plan 10,078 1.27 Extracted from SRK Consulting 43-101 Technical Report dated January 2009 11
    • Transversal Section – Raul Orebody 12
    • Condestable Mine – Overview • Major capital projects completed in 2008 – New primary crusher – Improved tailings thickener – Lesser dependence on fresh water wells • Optimized at 6000+ tonnes per day, Condestable has low direct costs due to minimal ground support and no required backfilling • New 3 year collective labour agreement signed January 2009 • Condestable has historically replaced reserves each year with a comprehensive underground drilling program performed by company personnel 13
    • Condestable Mine - Production • Cash operating cost (C3) for Q1 was US$ 1.05 per pound of Production – First 3 Months 2009 copper produced Production Unit January February March Q1 2009 • Recovery rate of 93%, and an Concentrate DMT 8,676 7,213 8,450 24,339 average copper grade of Contained copper t 2,123 1,854 2,137 6,114 approximately 1.23% Fine gold oz 1,492 1,550 1,616 4,658 Fine silver oz 22,170 18,756 20,772 61,697 14
    • Aguas Tenidas Mine - Overview • Located in the Andalucia province of Huelva in southwest Spain, Aguas Tenidas is 100% owned by MATSA, a wholly owned Spanish subsidiary of IZN • Aguas Tenidas is 80km from Huelva, which contains a major port facility and smelter • Historically a producing mine, Aguas Tenidas was re-discovered in the 1980’s • The deposit is part of a roughly east-west striking chain of VMS deposits • MATSA currently has 420 company employees and approximately 140 contract workers on site 15
    • Aguas Tenidas – June 2008 16
    • Aguas Tenidas Mine – Recent Updates • IZN received a 5 year underground mining/operating permit (including blasting) for the recovery of production ore • IZN received the permanent process plant permit covering the life of mine • IZN received approval for a grant from the Andalucia region totaling €10,092,472 • Production began at the mine on December 22, 2008 with the start-up of the copper circuit. Ramp-up of the mill continues with necessary adjustments • Both the copper and polymetallic circuit are operational • Metallurgic recoveries for copper meets or exceeds expectations • Polymetallic circuit converted to copper/lead bulk and zinc concentrate • Further optimization of the polymetallic circuit planned 17
    • Aguas Tenidas Mine – Reserves & Resources Cupriferous Polymetallic Tonnes Reserve TOTAL Category Tonnes Cu % Zn % Pb % Ag g/t Au g/t NSR Tonnes Cu % Zn % Pb % Ag g/t Au g/t NSR Mt Euro/t Mt Euro/t Mt Proven 6.11 2.02 1.41 0.28 28.20 0.42 40.10 4.79 0.80 6.21 1.78 60.00 0.86 60.40 10.90 Probable 2.24 2.64 0.77 0.23 29.90 0.46 47.40 5.88 1.23 6.96 2.16 73.70 0.76 71.90 8.11 TOTAL 8.35 2.19 1.24 0.27 28.60 0.43 42.10 10.66 1.03 6.62 1.99 67.50 0.81 66.70 19.01 Resource Category Tonnes Cu (%) Zn (%) Pb (%) Ag (g/t) Au (g/t) Cupriferous Type Measured 6.51 2.30 1.10 0.20 27.70 0.40 Indicated 2.92 2.70 0.50 0.20 29.50 0.50 Total M & I 9.43 2.40 0.90 0.20 28.30 0.40 Inferred 1.55 3.10 0.70 0.10 23.60 0.40 Polymetallic Type Measured 4.54 0.70 7.80 2.20 67.10 1.00 Indicated 5.58 1.30 8.60 2.70 86.50 0.90 Total M & I 10.12 1.10 8.20 2.50 77.80 0.90 Inferred 0.87 1.20 10.30 2.60 111.20 0.90 Extracted from 43-101 Technical Report on the Mineral Resources and Reserves of the Aguas Tenidas Mine Project – Spain, Prepared for Iberian Minerals Corp. by Adam Wheeler, 25 August 2008 18
    • Aguas Tenidas Reserves – Plan View 19
    • Aguas Tenidas – Longitudinal Section 20
    • Aguas Tenidas Mine – Copper Stockworks • Recent Stockworks results are encouraging • Further work on delineation continues • Current Stockworks resources as of August 2008 shown below • Mine plan adjusted to include Stockworks Resource Tonnes Cu Zn Pb Ag Au Class kT % % % g/t g/t Measured 147 3.13 0.31 0.07 8.6 0.04 Indicated 1,220 2.25 0.24 0.06 7.3 0.06 Measured & Indicated 1,366 2.35 0.25 0.06 7.1 0.06 Inferred 248 1.96 0.15 0.05 5.6 0.04 Extracted from 43-101 Technical Report on the Mineral Resources and Reserves of the Aguas Tenidas Mine Project – Spain, Prepared for Iberian Minerals Corp. by Adam Wheeler, 25 August 2008 21
    • Aguas Tenidas - Geology 18.2m @ 2.30% Cu 84.00m @ 2.2%Cu In 9.00m@4.8%Cu In 12.00m@5.00 Cu 26.1m @ 5.00% Cu 67.0m @ 3.00% Cu 8.30m @ 1.2% Cu 22
    • IZN - Finances 2008 • Net income of $ 47.8 million for fiscal 2008, representing $0.19 per share • Completed through CMC a US$ 70 million loan facility which was used to fund construction at Aguas Tenidas • In Q4 2008, the Company closed out MATSA hedges. This resulted in a net realized gain of approximately US$ 225 million. This gain was used to repay the MATSA project finance facility amounting to approximately US$ 159.87 million • Acquired a further 6.7% interest in CMC on November 5, 2008 Key Points • Solid balance sheet with no project debt • Flexibility in dealing, with no bank covenants/restrictions • Financing (bought deal) completed in May 2009 for proceeds of C$40 million 23
    • Iberian – Capex 2009 Condestable Capex 2009/2010: • US$4.7 million • Acquisition of two six-yard scoops, one diamond drill, mill spares (main power transformer and ball mill motor) and completion of the automated plant monitoring and control system. • Limited exploration program on Vinchos Este consisting of 1,500 meters of surface diamond drilling Aguas Tenidas Capex 2009/2010: 2009 2010 US$ (millions) US$ (millions) Mine Infrastructure and Equipment 21.6 7.0 Process Plant 35.8 0.4 Electrical Installations (Surface) 0.8 - Building License 1.1 1.2 Tailings Deposit (Phase II - 2010) 1.0 5.0 Paste Plant 2.8 - Modifications for Bulk Flotation 1.0 - Diamond Drilling 1.9 - TOTAL 66.0 13.6 24
    • Capex – Aguas Tenidas 25
    • Iberian - Hedging Aguas Tenidas Condestable FMT Fixed price Copper FMT Fixed price (Fine metric tons) US$/FMT Copper (Fine metric tons) US$/FMT 2009 6,775 3,854 2009 19,825 4,419 2010 7,900 3,820 2010 20,475 4,420 2011 20,625 3,492 FMT Fixed price Copper call options sold (Fine metric tons) US$/FMT Foz Fixed price 2010 6,100 4,200 Gold (Fine ounces) US$/Foz 2009 2,400 741.5 FMT Fixed price Zinc 2010 2,400 741.5 (Fine metric tons) US$/FMT 2011 2,400 741.5 2009 5,750 1,340 2010 6,600 1,330 Foz Fixed price Silver (Fine ounces) US$/Foz FMT Fixed price Zinc call options sold January 2009 65,000 13.89 (Fine metric tons) US$/FMT 2010 4,900 1,500 26
    • Trafigura – Available Support • Leverage – project and debt funding • Expertise in hedging commodities and currencies • Off-take agreements – single customer at benchmark/spot • Board expertise – Jeremy Weir and Jesus Fernandez, with invaluable global insight (2 of 7 board members) • Traditionally supportive in financing requirements 27
    • Future Plans - Criteria • Potential acquisition targets in the base metals space • Focus on copper, zinc, lead • Potential interest in nickel • Mid size with ideally a minimum of 25kt annual production of copper equivalent units • Assets preferably in in North/South America or Europe/Middle East/Africa region • Producing (preferable) or (second choice) near production stage with at least a completed bankable feasibility study • Corporate merger or asset acquisition 28
    • Board of Directors Norman Brewster P.Geo, Chairman of the Board, Director – Norman is a geologist who joined IZN in 2002. He also sits on the board of Cadillac Ventures Inc. Philippe Blavier, Director – Philippe is Chairman of the Company’s Audit Committee and a member of the Remuneration Committee of the Company. He has extensive experience at BNP Paribas, where he was Head of Corporate & Investment Banking and Member of the Executive Committee. Jesus Fernandez, Director – Jesus has been part of the Trafigura team since 2004 as Manager of the Corporate Finance team, with an emphasis on mining and downstream oil project investments. He joined IZN’s board in 2008. L. Jack Gunter, P.Eng, FIMM, Director – Jack has over 45 years experience in the mining industry. He has worked previously with Rio Tinto and Phelps Dodge, and also sits on the board of Galantas Gold Corp. Murray John, Director – Murray is an engineer with more than 25 years experience in the resource industry. He is currently the President & CEO of Dundee Resources. Jeremy Weir, Director – Jeremy works as Executive Director and Manager at Trafigura, where he has also been head of the metals derivatives trading structured products and risk management departments. Daniel Vanin, Director – Daniel is the President and CEO of Iberian. 29
    • Management Daniel Vanin – P.Eng, President & CEO – Daniel has worked in the mining industry for over 30 years and has strong international mine development and management skills with extensive experience in Canada, South America, Africa and Russia. He is a professional mining engineer and graduated from McGill University, Montreal, in 1975. Most recently, Daniel was Executive VP & Chief Operating Officer at High River Gold. Prior to that, he was Chief Executive Officer of RBG Resources Plc, in Bolivia, where he managed all operations, project development and construction at the Vinto smelter and Huanuni tin mine. David Poynton, Senior Vice-President, General Counsel and Corporate Secretary - David is a lawyer with more than 20 years experience in private practice with public companies, private entrepreneurs and the non-profit sector, with a particular emphasis on, and understanding of the mining industry. David acted as primary counsel to many TSX and TSX-V issuers before joining Iberian in January 2009. Jeff Hillis, CFO - Mr. Hillis joined Iberian in June 2009. He has worked in the mining industry for over 5 years in progressively more senior finance and reporting positions. He most recently served as CFO of a TSX listed mining company based in Toronto. Jeffrey is a Chartered Accountant (Ontario, 2001). He worked for three years in the audit group of Ernst & Young with major clients in the mining industry. 30
    • Photo Gallery Condestable Plant & Concentrator Crushed ore at Condestable Underground at Condestable Copper flotation at Condestable Ramp underground at Condestable 31
    • Photo Gallery Underground at Aguas Tenidas Aguas Tenidas Underground at Aguas Tenidas Underground at Aguas Tenidas View of the two stockpiles at Aguas Tenidas 32
    • Photo Gallery Aguas Tenidas Process Plant Ball & SAG mills at Aguas Tenidas Concentrates awaiting shipping Paste plant at Aguas Tenidas at Aguas Tenidas 33