Northern Limb Pig Iron Project
January 2014
1
Disclaimer
The content of information contained in this Presentation has not been approved by an authorised person withi...
2
Company Snapshot
Corporate Summary
Shares in Issue 286.3million
52 Week Low 3.98p
52 Week High 19.85p
Current Share Pric...
3
Ironveld Strategic approach
 Drivers
 Bushveld Ti Magnetite cannot be exported as Direct Shipping Ore as it is:
 Lowe...
4
Ironveld Pig Iron Project
 Ironveld holds interests in prospecting
rights in the Northern Limb of the
Bushveld Complex ...
5
PFS Highlights
 PFS demonstrates the viability of developing the Ironveld Pig Iron Project delivering one
million tons ...
6
Pig Iron fundamentals
 Lower melting point than that of
steel scrap.
 Combined with a denser charge
make-up result in ...
7
Introduction
ROM feed (massive) Mt/a ~2.10
Ore concentrate Mt/a 2.10
Key mineral processing plant parameters:
MML ore fe...
8
Introduction (cont).
ROM feed (MML +
disseminated)
Mt/a ~2.50
Ore concentrate Mt/a 2.10
Key mineral processing plant par...
9
Introduction (cont).
Ore concentrate Mt/a 2.10
Pig iron ingots Mt/a 1.00
Ferrovanadium kt/a 9.20
Key products from metal...
10
Process flow sheet selection
11
 Removal of gangue minerals to upgrade the iron
oxide content to over 50% as Fe
 Massive ore fraction (>40% Fe)
 Dis...
12
 Feed compositions
 Disseminated
 Massive
 Concentrate composition
Mineral Processing (cont).
Fe TiO2 Al2O3 CaO MgO...
13
 Massive
 Disseminated
 Photo-micrographs
Mineral Processing (cont).
14
 Massive
 Disseminated
 Photo-micrographs
Mineral Processing (cont)
15
 Massive
 Disseminated
 Photo-micrographs
Mineral Processing (cont)
16
 Permroll magnetic separation equipment
Mineral Processing
17
Pre-heating vs. Pre-reduction
Benefits ofPre-heating vs Pre-reduction and considerations
Pre-treatment Benefit in elect...
18
 Drying concentrate at 150 degrees C
 Pre-heating concentrate to 1000 degrees C
 Hot transfer to DC arc smelting fur...
19
 Pre-heating furnaces
 Smelting furnaces
 Vanadium pig iron
Pre-heating and Smelting
Polysius Polcal 80 t/h
x 4
DC a...
20
 Hot transfer of molten iron into transfer ladles
 Tapping cooling of titania slag
 Refining of molten iron converte...
21
 Hot transfer of molten iron into transfer ladles 1.05 Mt/a
 Refining of molten iron converter stage to remove
vanadi...
22
Conclusions
 MML ore to concentrate requires minimal processing
 MML + disseminated requires more extensive
processin...
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
Sm...
24
Infrastructure and Logistics
 Power
 Pre reduction and hot charging furnace reduces power
requirements
 Eskom have i...
25
Metallurgical Test Work
 Test work conducted on 414kg of material from MML & 283kg from
disseminated footwall magnetit...
Appendix
27
Main Magnetite Layer
28
Resource Statement
 Mineral Resource estimations were undertaken on the MML down to a
vertical depth of 120 m, at a 20...
29
Prospecting Rights Contractual Arrangements
 Ironveld has contracted with
Pan Palladium and Hacra to
explore for Magne...
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Peter Cox Ironveld

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Peter Cox Ironveld

  1. 1. Northern Limb Pig Iron Project January 2014
  2. 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. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness thereof, nor is any responsibility accepted for any errors, misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of, or reliance on, this Presentation or otherwise in connection with it. By accepting this Presentation you confirm, represent and warrant that you have consented to receive inside information (as defined in the Criminal Justice Act 1993 and the Financial Services and Markets Act 2000 (as amended) (the “Acts”)), and you agree not to deal in any securities of the Company until such time as such inside information has been made public and until such time that the Placing has been publicly announced by the Company or the Company decides not to proceed with the Placing. This Presentation may not be reproduced or redistributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose without the prior consent of the Company. The contents of this Presentation are confidential and are subject to updating, completion, revision, further verification and amendment without notice. The Presentation is being distributed on request only to, and is directed at, authorised persons or exempt persons within the meaning of FSMA or any order made thereunder or to those persons falling within the following articles of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”): Investment Professionals (as defined in Article 19(5)) and High Net Worth Companies (as defined in Article 49(2)). Persons who do not fall within any of these definitions should not rely on this Presentation nor take any action upon it but should return it immediately to the Company. This Presentation is exempt from the general restriction in section 21 of FSMA relating to the communication of invitations or inducements to engage in investment activity on the grounds that it is made only to certain categories of persons. Neither this Presentation nor any copy of it should be distributed, directly or indirectly, by any means (including electronic transmission) to any persons with addresses in the United States of America (or any of its territories or possessions) (together, the “US”), Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, or to any corporation, partnership or other entity created or organised under the laws thereof, or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. The recipients should inform themselves about and observe any such requirements or relationship. The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any other jurisdiction, and are not being offered or sold, directly or indirectly, within or into the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland or to, or for the account or benefit of, any US persons or any national, citizen or resident of the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, unless such offer or sale would qualify for an exemption from registration under the US Securities Act and/or any other applicable securities laws. Forward-looking Statements This Presentation or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the “Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at the date of this Presentation. No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company, any of their respective directors, officers, partners, employees or advisers or any other person as to the accuracy or the completeness of the information or opinions contained herein and to the extent permitted by law no responsibility or liability is accepted by any of them for any such information or opinions. Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently.
  3. 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. 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. 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. 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. 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. 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. 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. 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. 11. 10 Process flow sheet selection
  12. 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. 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. 14. 13  Massive  Disseminated  Photo-micrographs Mineral Processing (cont).
  15. 15. 14  Massive  Disseminated  Photo-micrographs Mineral Processing (cont)
  16. 16. 15  Massive  Disseminated  Photo-micrographs Mineral Processing (cont)
  17. 17. 16  Permroll magnetic separation equipment Mineral Processing
  18. 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. 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. 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. 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. 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. 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. 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. 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. 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. 27. Appendix
  28. 28. 27 Main Magnetite Layer
  29. 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. 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
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