David Flanagan, Atlas Iron Limited - Atlas Iron, The Pilbara’s Emerging Powerhouse

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David Flanagan,Chairman, Atlas Iron Limited delivered this presentation the 2014 AJM Global Iron Ore & Steel Forecast Conference and Exhibition.

The annual AJM Global Iron Ore and Steel Conference is the world's largest gathering of iron ore and steel executives. Over the past 16 years thousands of industry personnel have attended, recognising it as the conference that delivers vital information on the status of the global iron ore and steel sectors.

For more information, visit http://www.globalironore.com.au/home

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David Flanagan, Atlas Iron Limited - Atlas Iron, The Pilbara’s Emerging Powerhouse

  1. 1. 1 Atlas Iron 17th Annual Global Iron Ore & Steel Forecast 11 – 12 March 2014 David Flanagan
  2. 2. 2  This presentation has been prepared by Atlas Iron Limited (“Atlas”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in Atlas or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in Atlas will be entered into on the basis of this presentation or any information, opinions or conclusions expressed in the course of this presentation.  This presentation is not a prospectus, product disclosure document or other offering document under Australian law or under the law of any other jurisdiction. It has been prepared for information purposes only. This presentation contains general summary information and does not take into account the investment objectives, financial situation and particular needs of any individual investor. It is not financial product advice and investors should obtain their own independent advice from qualified advisors having regarding to their objectives, financial situation and needs. Neither Atlas nor any of their related bodies corporate are licensed to provide financial product advice.  This presentation and information, opinions or conclusions expressed in the course of this presentation contain forecasts and forward looking information. Often, but not always, forward looking statements can be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue" and "guidance", or other similar words and may include statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties which may cause actual results and developments to differ materially from those expressed or implied. Forward looking statements in this presentation only speak at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information Atlas does not undertake any obligation to publically update or revise any of the forward looking statements or to advise of any chance in events, conditions or circumstances on which any such statement is based.  There are a number of risks specific to Atlas, and of a general nature which may affect the future operating and financial performance of Atlas and the value of an investment in Atlas including and not limited to economic conditions, stock market fluctuations, iron ore demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign currency fluctuations, and mining development, construction and commissioning risk. The production, shipping and/or export targets in this presentation or expressed during the course of this presentation are subject to completion of the necessary feasibility studies, permitting and execution of all necessary infrastructure agreements.  You should not act or refrain from acting in reliance on this presentation, or any information, opinions or conclusions expressed in the course of this presentation. This presentation does not purport to be all inclusive or to contain all information which you may require in order to make an informed assessment of the prospects of Atlas. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, Atlas and its officers, employees, agents and advisors expressly disclaim any responsibility or liability for any direct, indirect or consequential loss or damages suffered by any person, as a result of or in connection with this presentation or any action taken by you on the basis of the information, opinions or conclusions expressed in the course of this presentation.  All references to future production and production & shipping targets and port access made in relation to Atlas are subject to the completion of all necessary feasibility studies, permit applications, construction, financing arrangements, port access and execution of infrastructure-related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Ore Reserves, as well as any Competent Persons' Statements.  This presentation and information, opinions or conclusions expressed in the course of this presentation should be read in conjunction with Atlas’ other periodic and continuous disclosure announcements lodged with the ASX, which are available on the Atlas website.  Any references to reserve and resource estimations should be read in conjunction with Atlas’ other periodic and continuous disclosure announcements lodged with the ASX, which are available on the Atlas website. Disclaimer
  3. 3. 3 Horizon II Infrastructure Options McPhee Creek1 Resources – 251Mt Reserves – 178Mt SE Pilbara1 Resources – 715Mt Reserves – 239Mt 1. Refer to ASX Announcement, “Reserve – Resource Update” of 24 July 2013
  4. 4. 4 Current Operations Producing Mines  Pardoo, Wodgina, Mt Dove and Abydos Development Mines  Mt Webber – mining commenced Dec 13 Qtr, Haulage from Jun 14 Qtr Logistics  Utah Yard 2 port facility fully operational  Current export rate > 10Mtpa (proven at 12Mtpa run rate)  Port entitlement at Utah Point to facilitate growth up to 15Mtpa Mine Life Extension, Production Expansion  Near mine exploration  Product mix
  5. 5. 5 Mt Webber – The Next Horizon I Mine  Mining operations commenced December 13  Haulage expected Q4 FY14  Completion of accommodation village on time and budget  Government approvals received for upgrade of Hillside-Marble Bar public road  63.7Mt of Mineral Resources1 - 54.9Mt is Ore Reserves1  Low strip ratio mine – Life of Mine strip ratio ~0.3 to 1  Produce at a rate of ~3Mtpa growing to 6Mtpa  Stage 2 approved for development, with haulage expected Q2 FY15 1. Refer to ASX Announcement, “Reserve – Resource Update” of 24 July 2013
  6. 6. 6 Horizon I Additional Potential  Brownfields exploration  Greenfields exploration potential  Corunna Downs discovery continues to impress+  Greenfields exploration success at Miralga Creek ++  Values fines product potential + Refer to ASX Announcement of 9 December 2013, “Outstanding drill results show Corunna Downs is emerging as a major new North Pilbara iron ore province” and ASX Announcement of 31 January 2014, “North Pilbara Exploration and Resource Development Success” for further details. ++ Refer to ASX Announcement of 31 January 2014, “North Pilbara Exploration and Resource Development Success” for further details.
  7. 7. 7 Port Capacity Current and future entitlements:  Up to 15Mtpa capacity at Utah Point  Additional allocation up to 31.5Mtpa through proposed South West Creek Port (NWI) in Port Hedland 46.5Mtpa port capacity gives Atlas ability to:  Drive organic & inorganic pit-to-port growth; and  Match rail solutions to optimise port capacity and development costs Utah Yard 2 Facilities
  8. 8. 8 Corporate Snapshot Shareholding IMC Group 9.41% Dimensional 5.02% Top 20 56% Ordinary Shares on issue 915.5M Market Cap at $1.055* A$966M Cash* A$409M Debt drawn* A$304M Enterprise Value* A$861M Options 12.1M Capital Structure *as at 20 February 2014 SharePrice Volume
  9. 9. 9 Resources and Reserves  In the last two years, Atlas’ reserves and resources have increased by over 500% and 80% respectively  Atlas has significant assets to underpin its growth strategy over the long term 1. Refer to ASX Announcement, “Reserve – Resource Update” of 24 July 2013
  10. 10. 10 Atlas (NWI) – South West Creek – Up to 31.5Mtpa Atlas – Utah Point Up to 15Mtpa Port Allocation at Port Hedland Port

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