Company Overview. August 2011

Transcription

1 Company Overview August 2011

2 Capital Structure Market Capitalisation approx $130 million Undervalued against peers ASX Code: IDO 229.8m shares on issue 30.5m unlisted options Up to 35m performance shares (converting 1 for 1) USD $4m convertible note from Anglo Pacific Group Plc Major Shareholders: Anglo Pacific Group 28.9m 12.6% Rockcheck Steel Co 41.1m 17.9% Deutsche Bank AG 14.0m 6.1% 84.0m 36.6% Top 40 Holders 206.3m 89.8% 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Volume / Share Price $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Volume Price

3 Current Projects Iron Project - Jogjakarta 605 Million Tonnes of Iron Sands Contract of Works to process iron sands throughout Indonesia Environmental and socialisation approval received to proceed with BFS Mangkok Thermal Coal - South Kalimantan Production commenced High quality thermal coal, approx 6,000 to 7,000 kcal/kg Jakarta Iron Sands South Kalimantan Coal INDONESIA

4 Board of Directors Martin Hacon (Managing Director/CEO) former Vice President New Zealand Steel, responsible for the iron sands business, by-product and steel manufacturing businesses. Chris Catlow (Non-Executive Chairman) former Director - Business Development, and founding CFO of Fortescue Metals Group (ASX:FMG). Derek Fisher (Non-Executive) MD/CEO of Moly Mines (ASX:MOL) Paul Kopejtka (Non-Executive) Non-Executive Director of Murchison Metals (ASX: MMX) Darryl Harris (Non-Executive) MD of Beacon Minerals (ASX:BCN) and Outotec Business Development Manager with significant knowledge of ferrous technologies.

5 A New Generation Minerals Producer Targeting a Unique Market Niche TO BE: The Domestic Raw Material Supplier of Choice to the Growing Indonesian Steel and Metals Industry A Raw Material Supplier Of Choice to the Asian Metals Industry

6 Indonesia Overview Democracy with population of 240 million+ Reformed financial institutions The worlds 3rd fastest growing economy in 2009 Credit upgrade by Fitch, S&P and Moody in the last year Resource rich (iron, coal, oil ) One of the top performing economies through the GFC Close to the major markets and growing economies of the world Government to invest >US$200 billion in new infrastructure projects Gross Domestic Product US$ billion % GDP Growth 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%

7 Indonesian Steel Industry: Overview Next major market for steel products China, India, Indonesia.. August 2010 POSCO announce JV with Krakatau Steel to build a new 6mt steelworks 2009 steel imports represented 5.6% of gross imports. (The #1 imported item by value) The steel industry utilises 100% imported raw materials Current capacity 5mt, forecast domestic demand 2013 of >10mt Currently the lowest consumption of steel per capita in the world 1200 Steel Consumption per Capita (kg)

8 Pig Iron Market and Opportunity Market Overview Pig iron a direct substitute for scrap metal Blast furnace and electric arc furnace operations require scrap as feed Reduced availability of scrap, as developing countries still in construction phase Increasing correlation between pig iron price and iron ore price Indo Mines Opportunity To be lowest cost pig iron producer in the world. Option to produce iron concentrate to provide early cash flows.

9 Iron Sand: What is it? Iron Sand is Titano-magnetite, an abundant ore produced by volcanic activity It contains up to 60% Iron combined with up to 9% Titania (TiO 2 ) High TiO 2 is undesirable in blast furnace feed BUT Ideal feed material for new Direct Reduced Iron (DRI) technologies Vanadium content is a potentially valuable by-product Mining is simple, low cost and environmentally friendly

10 Iron Sands Potential - Java Jakarta 100km Potential Krakatau/POSCO Jogjakarta JAVA Iron Sands 20km Additional Resource Potential JOGJAKARTA 22km 605Mt Iron Sand Mining Concession Additional Resource Potential

11 Infrastructure in Place Jogjakarta 2km Mining Lease Boundary 0 6 metres 273 million tonnes 14.2% Fe 929 holes, 14,000 samples. No overburden or internal waste metres 605 million tonnes 10.8% Fe

12 JORC Resource 605 million tonnes, grade 10.8% Fe Includes 273 million tonnes near surface sand, grade 14.2% Fe Surface Sand Unit (above an average 6m depth) JORC Resource (at a cut off of 9% Fe) Tonnes (Million) Grade (% Fe) Measured % Indicated % Inferred % % The balance of 332 million tonnes is magnetite bearing gravel grading 7.9% Fe. Initial testing indicates that a commercial grade concentrate can be produced

13 Project Update BFS Complete Development Timeline First Concentrate First Pig Iron Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Environmental Approval Start Construction Environmental and Socialisation approval received to enable completion of Feasibility Study Strategic investment by Rockcheck Steel Co Ltd, one of the largest privately owned iron and steel producers in China Outotec appointed to complete process evaluation and design work for pig iron production Iron concentrate converted to pig iron using DRI technology plus smelting Project owned through a Joint Venture company (PMA), Indo Mines 70%, local partner 30%

14 Upside Potential Processing of 330 million tonnes of gravel not included in the scoping study Increase production to >2 million tonnes per annum of Iron products Contract of Work permits processing of Iron Sands anywhere in Indonesia potential for >10 Million tonnes of iron / pig iron / steel per annum Alternate reduction and smelting technology is being investigated to reduce capital and operating costs Increasing Steel Consumption in Indonesia from low base

15 Indonesian Coal - Why? Coal quality and market proximity gives it a competitive edge Indonesian coal production is booming Synergies with Iron Project off-take for processing and power supply Country risk is diminishing - Now over 257 general mining & support projects registered; & 93 PT companies with project approvals

16 Mangkok Project Summary Location The deposit is located close to key infrastructure: Port load out within 30 kms Major haul roads established and operating Mining on same coal seams on adjacent blocks Coal Features 3 to 4 metre thick seams outcropping at surface, average 6,000 to 7,000 kcal/kg high quality thermal coal Coal Production Over 5,000 metres drilled and 10,000 coal samples evaluated Revised Mine Plan complete and production ongoing

17 Disclaimer This document has been prepared as a summary only, and does not contain all information about the Company s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company s securities. This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by Indo Mines Limited. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the Shares or that there will be an increase in the value of the Shares in the future. Further details on risk factors associated with the Company s operations and its securities are contained in the Company s prospectuses and other relevant announcements to the Australian Stock Exchange. Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of recoverable pig iron, expected product prices, expected costs, statements relating to the continued advancement of the Company s projects and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as aim, could, estimate, expect, intend, may, potential, should and similar expressions are forward-looking statements. Although the company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements include the potential that the Company s projects may experience technical, geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by the Company or disclosed in the Company s published material. The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position. The information in this report that relates to Exploration Results and Mineral Resources of the Jogjakarta Iron Project is based on information compiled by Mr Philip Welten, who is a member Australian Institute of Mining and Metallurgy. Mr Welten is a consultant of Indo Mines Limited. Mr Welten has sufficient experience, which is relevant to the style of iron ore mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Welten consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

18 Contact Details Head Office Level 1 15 Rheola Street West Perth WA 6005 Australia Telephone: Fax: admin@indomines.com.au Website: Jakarta Office Plaza Bapindo, Menara Mandiri, 16 th Floor Jl. Jend. Sudirman Kav Jakarta Indonesia

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