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  • 1. Northern Limb Pig Iron Project January 2014
  • 2. 1 Disclaimer The content of information contained in this Presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind. This Presentation is being supplied to you solely for your information. While the information contained herein has been prepared in good faith, neither Ironveld plc) (“Company”) nor its shareholders, directors, officers, agents, employees or advisers give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers and liability therefor is expressly disclaimed. This Presentation does not constitute, or form part of, an admission document, listing particulars or a prospectus relating to the Company, nor does it constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract therefor. Recipients of this Presentation who decide to subscribe for, or purchase, ordinary shares in the Company following the publication of the final document relating to the proposed Admission (the “Admission Document”) are reminded that any application so to subscribe for or purchase may only be made on the basis of the information contained in the Admission Document which may be different from the information contained in this Presentation and will contain additional information. 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  • 3. 2 Company Snapshot Corporate Summary Shares in Issue 286.3million 52 Week Low 3.98p 52 Week High 19.85p Current Share Price 11.56p Market Capitalization £33.21 million Major Shareholders No. of Shares % Africa Asia Capital 39,746,893 13.92 Michinoko Limited 34 472 224 12.07 Weighbridge Trust Limited 22 044 100 7.72 Directors and related hldgs 21 168 169 7.41 Barclays Wealth 15 018 932 5.26 Artemis Fund Managers 10 907 408 3.82 143 357 725 50.2 Recent Announcements Date Ironveld Plc Grant of Share Options 08 Nov 13 Ironveld Plc Result of AGM 05 Nov13 Ironveld Plc AGM Statement 05 Nov 13 Ironveld Plc Director’s Dealings 29 Oct 13 Ironveld Plc Blocklisting Application 18 Oct 13
  • 4. 3 Ironveld Strategic approach  Drivers  Bushveld Ti Magnetite cannot be exported as Direct Shipping Ore as it is:  Lower grade than haematite  Cannot be used directly in a blast furnace  Carries a titanium penalty which outweighs the vanadium bonus  In order to maximise value the ore must be processed on site to:  Produce pig iron and  Vanadium by products  Reduce logistics requirements  Approach  Technology  Pre heating not pre reduction  Reduces electrical power requirements  Uses cheaper coal readily available in South Africa  Value add  South African drive to beneficiate not export ore – reduced royalty payments  Transport a lower volume much higher value products  Significant vanadium revenues  Off take potential is both local and offshore  Project Scale  Matches infrastructure and utilities availability  12MW smelter proposed as project start
  • 5. 4 Ironveld Pig Iron Project  Ironveld holds interests in prospecting rights in the Northern Limb of the Bushveld Complex north of Mokopane, South Africa  Ironveld will develop a new pig iron plant with associated vanadium and titanium slag by products  Ironveld expects to mine its own magnetite resource at approximately 2.4 million tons magnetite per annum as feedstock for its Pig Iron Plant to produce 1,000,000 tons of Pig Iron per annum.  Total Project Mineral Resource of 32.05 million tons of Iron in situ  Excellent infrastructure of roads, rail and access to power and water  Pre Feasibility Study published June 2013.  12MW smelter recommended. Anticipated production of 46 000 tonnes of pig iron by mid 2015 with
  • 6. 5 PFS Highlights  PFS demonstrates the viability of developing the Ironveld Pig Iron Project delivering one million tons per annum of pig iron and 9,670 tons of Ferro Vanadium production from 2019  World class vanadium grades significantly enhance the overall Project economics  Post- tax project IRR of 28.8% and NPV (10%) of R 10,694 million (US$ 1,069 million) with a capital payback of seven years  Estimated capex of R 9,375 million (US$ 938 million) for a 25 year LOM with operating Cost of R 2,393/t pig iron and R 47/kg FeV  Study has been based on pig iron prices of U$ 450/ t and U$35/kg for FeV, yielding total annual revenue of R 6,500 million at full production  Robust infrastructure surrounding the Project with delivery routes for water, rail and power identified  Confirmation of viability to install an early stage 12MW smelter to produce an initial 46,000 tons of Pig iron and 445 tons of ferro vanadium per annum from 2015 some two years ahead of the larger project  The 12MW smelter will provide significant near term revenue as well as deliver proof of concept ahead of commissioning of four 75MW smelters required to achieve the longer term one million ton production target  Cost of 12MW smelter estimated to be US$60 million. It is expected that this would be financed principally through third party project finance
  • 7. 6 Pig Iron fundamentals  Lower melting point than that of steel scrap.  Combined with a denser charge make-up result in lower energy requirements and faster melting time in steel manufacture  Two main types of Pig Iron  Basic (used for steel making)  Foundry (used for grey iron – automotive industry)  Pig Iron prices carry a significant mark up in comparison to Iron Ore  Using Ti magnetite to make pig iron by products are produced as part of the iron making process.  Ti slag and a vanadium slag. The Vanadium can be processed to vanadium products  Currently doing work to commercialize Ti slag $- $200.00 $400.00 $600.00 $800.00 2001M1 2001M7 2002M1 2002M7 2003M1 2003M7 2004M1 2004M7 2005M1 2005M7 2006M1 2006M7 2007M1 2007M7 2008M1 2008M7 2009M1 2009M7 2010M1 2010M7 2011M1 2011M7 2012M1 2012M7 2013M1 PIGIRON$/tonne YEAR/MONTH Brazilian Pig Iron Export prices
  • 8. 7 Introduction ROM feed (massive) Mt/a ~2.10 Ore concentrate Mt/a 2.10 Key mineral processing plant parameters: MML ore feed
  • 9. 8 Introduction (cont). ROM feed (MML + disseminated) Mt/a ~2.50 Ore concentrate Mt/a 2.10 Key mineral processing plant parameters: MML + disseminated feed
  • 10. 9 Introduction (cont). Ore concentrate Mt/a 2.10 Pig iron ingots Mt/a 1.00 Ferrovanadium kt/a 9.20 Key products from metallurgical plant Fe Carbon Silicon 97.3 2.5 0.1 Grade % V C Si P S Al Mn Fe FeV 75-A 75 0.2 1 0.05 0.04 2 0.5 Balance
  • 11. 10 Process flow sheet selection
  • 12. 11  Removal of gangue minerals to upgrade the iron oxide content to over 50% as Fe  Massive ore fraction (>40% Fe)  Disseminated ore fraction (<40% Fe)  Coarse crushing magnetic separation at >50 mm  Finer crushing, grinding and magnetic separation < 3mm  Dry LIMS (Low Intensity Magnetic Separation)  Concentrate particle size < 1 mm Mineral Processing
  • 13. 12  Feed compositions  Disseminated  Massive  Concentrate composition Mineral Processing (cont). Fe TiO2 Al2O3 CaO MgO SiO2 V2O5 50 15 5 1.5 1.6 5 1.16
  • 14. 13  Massive  Disseminated  Photo-micrographs Mineral Processing (cont).
  • 15. 14  Massive  Disseminated  Photo-micrographs Mineral Processing (cont)
  • 16. 15  Massive  Disseminated  Photo-micrographs Mineral Processing (cont)
  • 17. 16  Permroll magnetic separation equipment Mineral Processing
  • 18. 17 Pre-heating vs. Pre-reduction Benefits ofPre-heating vs Pre-reduction and considerations Pre-treatment Benefit in electrical energy saving Pre-heating 20% Pre-reduction 40% Pre-heating with Cogen up to 50% Pre-treatment Coal requirement Pre-heating normal thermal coal (abundant) Pre-reduction highly reactive coal (scarce)
  • 19. 18  Drying concentrate at 150 degrees C  Pre-heating concentrate to 1000 degrees C  Hot transfer to DC arc smelting furnace at 800 degrees C  Smelting at 1700 degrees C  Tapping of iron for transfer to refining stage  Tapping of titania slag prior to granulation and storage Pre-heating and Smelting
  • 20. 19  Pre-heating furnaces  Smelting furnaces  Vanadium pig iron Pre-heating and Smelting Polysius Polcal 80 t/h x 4 DC arc furnaces – SMS Siemag (75 MW x 4)
  • 21. 20  Hot transfer of molten iron into transfer ladles  Tapping cooling of titania slag  Refining of molten iron converter stage to remove vanadium  Removal of vanadium oxide into slag from converter.  Further refining of iron and re-carburising to foundry iron  Casting of foundry iron  Production of FeV (Ferrovanadium) from V2O5 flake extracted from converter slag Tapping, hot metal transfer, refining and casting
  • 22. 21  Hot transfer of molten iron into transfer ladles 1.05 Mt/a  Refining of molten iron converter stage to remove vanadium  Removal of vanadium oxide as converter slag ~9 kt V/a (as V2O5).  Further refining of iron and re-carburising to foundry iron 1 Mt/a Iron Production Fe Carbon Silicon 97.3 2.5 0.1
  • 23. 22 Conclusions  MML ore to concentrate requires minimal processing  MML + disseminated requires more extensive processing  Pre-heating preferable to pre-reduction  Smelting of iron containing vanadium  Refining of iron and extraction of vanadium  Recovery of vanadium via converter slag to V2O5 flake and FeV  All process stages have been used at industrial scale  Confirmation testwork on large pilot-scale planned mid 2013
  • 24. 23 Next steps Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr Smelting Trial 12MW Smelter design DFS Power supply engineering Powerline construction Water Supply Offtake Engineering and construction Commision 4x75MW Smelter project Power supply feasibilty study Water Supply feasibilty study Vanadium process and engineering design DFS Exploration LUGE exploration 20142013 2015 ACTIVITY
  • 25. 24 Infrastructure and Logistics  Power  Pre reduction and hot charging furnace reduces power requirements  Eskom have indicated supply  For 12MW smelter by Q12015  For 75MW dependent on completion of Medupi Power Station now scheduled for late 2015  Water  Located close to Glen Alpine Dam; off take to be negotiated  Olifants/Steelpoort Rivers Joint Water forum planned Mokopane supply by 2015  Logistics  80kms of road to rail siding  Transport of higher value pig iron can be containerised allowing use of container facilities at Richards Bay which are being upgraded
  • 26. 25 Metallurgical Test Work  Test work conducted on 414kg of material from MML & 283kg from disseminated footwall magnetite  Excellent recovery rates of FE 92%, grading 53% FE and 3.1% SiO2  Indicates viability of mining main magnetite layer & 5M of disseminated footwall magnetite  Positive impact on ore resource targets & life of mine  Trial smelt conducted at Mintek produced 70 tons of Pig Iron
  • 27. Appendix
  • 28. 27 Main Magnetite Layer
  • 29. 28 Resource Statement  Mineral Resource estimations were undertaken on the MML down to a vertical depth of 120 m, at a 20% Fe cut-off. The Mineral Resource has been separately calculated for the massive magnetite layers (MML) and for the MML including the disseminated Ti-magnetite mineralisation in the footwall (FW). Farm Cut-off Million Density Fe Fe2O3 Fe Metal TiO2 V2O5 SiO2 P2O5 S Name Fe% Tonnes g/cm3 % % millions % % % % % Measured Mineral Resources Altona* 20 2.18 4.55 51.7 73.9 1.13 16.3 1.15 2.9 0.01 0.08 Total Measured 20 2.18 4.55 51.7 73.9 1.13 16.3 1.15 2.9 0.01 0.08 Indicated Mineral Resources Nonnenwerth* 20 22.64 4.20 45.2 64.7 10.24 13.8 1.06 8.5 0.01 0.16 La Pucella* 20 5.61 4.50 50.3 72.0 2.83 15.5 1.16 4.4 0.01 0.08 Altona* 20 7.48 4.54 51.4 73.6 3.85 15.9 1.15 3.2 0.01 0.08 HACRA* 20 12.12 4.31 48.1 68.8 5.83 14.5 1.14 6.0 0.01 0.05 Total Indicated 20 47.85 4.31 47.5 68.0 22.74 14.5 1.11 6.6 0.01 0.11 Inferred Mineral Resources HACRA* 20 6.31 4.45 50.1 71.7 3.16 15.4 1.21 4.2 0.01 0.03 Total Inferred 20 6.31 4.45 50.1 71.7 3.16 15.4 1.21 4.2 0.01 0.03 Measured, Indicated and Inferred Mineral Resources Project Total 20 56.35 4.34 48.0 68.6 27.03 14.7 1.12 6.1 0.01 0.10 Farm Cut-off Million Density Fe Fe2O3 Fe Metal TiO2 V2O5 SiO2 P2O5 S Name Fe% Tonnes g/cm3 % % millions % % % % % Measured Mineral Resources Altona* 20 4.36 3.86 36.3 52.0 1.58 9.7 0.72 19.2 0.01 0.10 Total Measured 20 4.36 3.86 36.3 52.0 1.58 9.7 0.72 19.2 0.01 0.10 Indicated Mineral Resources Nonnenwerth* 20 32.32 3.89 37.9 54.2 12.24 10.6 0.84 16.6 0.01 0.14 La Pucella* 20 6.28 4.35 47.1 67.4 2.96 14.1 1.07 7.8 0.01 0.09 Altona* 20 12.58 3.97 39.0 55.8 4.90 10.7 0.80 16.4 0.01 0.09 HACRA* 20 18.37 3.92 38.9 55.7 7.15 10.7 0.85 15.6 0.01 0.13 Total Indicated 20 69.55 3.95 39.2 56.1 27.26 11.0 0.86 15.5 0.01 0.12 Inferred Mineral Resources HACRA* 20 6.53 4.40 49.1 70.2 3.21 15.0 1.18 5.3 0.01 0.03 Total Inferred 20 6.53 4.40 49.1 70.2 3.21 15.0 1.18 5.3 0.01 0.03 Measured, Indicated and Inferred Mineral Resources Project Total 20 80.45 3.99 39.8 57.0 32.05 11.2 0.88 14.9 0.01 0.11
  • 30. 29 Prospecting Rights Contractual Arrangements  Ironveld has contracted with Pan Palladium and Hacra to explore for Magnetite Ore for its own account  On completion of the exploration Ironveld will apply for mining rights in the name of Pan Palladium and Hacra with a simultaneous section 11 transfer of the mining rights to Ironveld.  Prospecting Right Status  Hacra Mining Right application submitted  Pan Palladium Mining Right application being prepared  Luge Mining and Exploration have a prospecting right for iron ore accepted but not yet granted