REIS 2013 Broken Hill - Centrex Metals ASX:CXM

DEVELOPING RESOURCES FOR DEVELOPING MARKETS

DEVELOPING

RESOURCES

FOR

DEVELOPING

MARKETS

Broken Hill Resources & Energy Investment SymposiumMay 2013

Gavin Bosch

General Manager Finance


FORWARD LOOKING STATEMENTS

• These materials include forward looking statements. Forward looking statements inherently involve subjective

judgement and analysis and are subject to significant uncertainties, risks and contingencies, many of which are

outside of the control of, and may be unknown to Centrex Metals Limited (‘Centrex’ or the ‘Company’).

• Actual results and developments may vary materially from those expressed in these materials. The types of

uncertainties which are relevant to the Company may include, but are not limited to, commodity prices, political

uncertainty, changes to the regulatory framework which applies to the business of the Company and general economic

conditions. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking

statements.

• Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations

under applicable law or any relevant stock exchange listing rules, the Company does not undertake any obligation to

publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances

on which any such statement is based.

• Forward looking statements include, but are not limited to, statements concerning Centrex’s planned exploration

program, targeted resources, commencement of product export and other statements that are not historical facts.

When used in this document, the words such as “could”, “target”, “plan”, “estimate”, “intend”, “may”, “aim”, “potential”,

“should”, and similar expressions reflected in these forward-looking statements are reasonable, such as statements

involving risks and uncertainties and no assurance can be given that actual results be consistent with these forward-

looking statements.


THE KEY MESSAGES

• Three significant Chinese backed joint ventures covering iron ore, base metals and a deep-water port

• Newly defined iron ore deposit at Kimba Gap

• Acquiring more projects and seeking to form additional international partnerships

• Attracting foreign investment to fund project development and grow the business

• A$ 46.5M uncommitted cash (31 March) after recently paying A$ 15.7M fully franked special dividend

• Developing cost effective infrastructure and export solutions for projects

• New representation in India to build an additional investment base


COMPETITIVE STRENGTHS & STRATEGY

• Substantial and growing bank of end to end project knowledge

• Management team with strong total supply chain operational experience (iron ore, coal, phosphate, gold and steel)

• Strong international partnerships

“Acquire, define and develop a portfolio of resource projects for developing markets to provide shareholder value.”

Our focus is on;

• Bulk commodities

• End to end project solutions

• Value extraction

• Optimising capital risk


BOARD & MANAGEMENT

David Klingberg AOFTSE, D UniSA, BTech, FIEAust, FAusIMM, FAICD

Non-Executive Chairman

• Former CEO of Kinhill Limited

• Former Chancellor of the University of South Australia

Jim HazelBEc, SFin, FAICDNon-Executive Director

Graham ChrispBTech (CE)Non-Executive Director

John den DryverBE (Mining), MSc, FAusIMMNon-Executive Director

Jim WhiteBApp Sci (Met), FIEAust, CP EngExecutive Director

Poh KiatDip CENon-Executive Director

Lu BingqiangBE (Mining)Non-Executive Director

Ben HammondBSc (Geol), MBA, MAusIMM, GAICDActing-CEO

Alastair WattsBSc (Geol), Dip Bus, MAusIMMGM Exploration

Gavin BoschBCom, CPA, CSAGM Finance & Company Secretary

Steve BrownBeng (Elec), MEAust, CP EngChief Operating Officer (Eyre Iron Pty Ltd)

Angela WebbCA BA (Acc), GDip Fin, GDip ACG, GAICDFinance Manager & Company Secretary (Eyre Iron Pty Ltd)

AK TareenChief Advisor – Strategic Investments India & South Asia


CENTREX OVERVIEW• Eyre Iron Joint Venture - 40% interest in magnetite iron ore

projects with Wuhan Iron & Steel funding first $75M of development; 680Mt Mineral Resource at flagship Fusion project

• Port Spencer Joint Venture - 50% interest in proposed deep-water port facility with Wuhan Iron & Steel to fund next $4M of development; State Government approval received

• Bungalow Joint Venture – Baotou Iron & Steel earning 50% interest by funding first $40M of development; 338Mt Mineral Resource

• Goulburn Joint Venture - Shandong 5th Geo-Mineral Prospecting Institute earning 35% for $2M exploration; ability to earn 80% by funding to production

• Wilgerup - 100% interest 13.3Mt Indicated DSO Resource

• Kimba Gap – Recently announced independent magnetite Exploration Target

• Gundaroo - Exploration Licence Application for NSW Gold-Base Metals project near Goulburn

Base Metals

Iron

IronIron

Port


CORPORATE OVERVIEW

• Capital Structure (ASX:CXM)– Shares on Issue: 313.6M

– Options & Rights on Issue: 3.3M– Market Capitalisation (@ $0.14): A$ 43.9M– Cash (31st March 2013): A$ 46.5M

Top 10 Shareholders % Issued Capital

South Cove Ltd 25.8

Wugang Australian Resources Investment Pty Ltd 12.9

Baotou Iron & Steel (Group) Company Ltd 7.0

HSBC Custody Nominees (Australia) Ltd 5.3

SEL Holdings Ltd 5.2

United Iron Ltd 4.8

Mr Sik Ern Wong 2.6

Davan Nominees Pty Ltd 2.0

Mr Melvin Boon Kher Poh 1.7

Keng Chuen Tham 1.4

Total 68.7


• Joint Venture with Wuhan Iron & Steel funding first A$ 75M of development

• 680Mt Mineral Resource defined at the Fusion Magnetite

Project, including 312Mt Measured and Indicated

• Additional Exploration Targets to be drilled out

• Targeted at 5Mtpa premium >67% Fe concentrate production

• Competitive advantages

− Backed by a major end user of magnetite

− Cost effective 40km slurry pipeline to port

− Low-cost Cape capable port development

− Power from the national grid

− Water via desalination plant at port

• Definitive feasibility study well underway with final scope to be agreed mid 2013

• Total Joint Venture Mineral Resource of 894Mt across Fusion, Carrow and Greenpatch projects

EYRE IRON JOINT VENTURE (CXM 40%)

For details of resources see announcement 18th February 2013

http://www.asx.com.au/asxpdf/20130218/pdf/42d2m8n09wywwg.pdf


PORT SPENCER (CXM 50%)

• Joint Venture with Wuhan Iron & Steel for the development of a deep-water bulk commodity export facility at Port Spencer

• Multi-user facility with 20Mtpa capacity using a 5,000tph shiploader

• Able to double capacity with 10,000tph shiploader

• 515m jetty to deep water loading Cape vessels on any tide

• No dredging required and no cyclones

• Underpinned already by two magnetite joint ventures, DSO project and grain consortium

• Land already owned for 3rd party user subdivision feeding on to common central conveyor

• South Australian government development approval for Phase 1 received December 2012

• Federal Government referral process underway


BUNGALOW JOINT VENTURE (CXM 70%)

• Baotou Iron & Steel have a 30% interest after having funded A$ 24M of development

• Baotou have the right to commit a further A$ 16M to earn a 50% interest

• 338Mt Mineral Resource including 22Mt Measured and 164Mt Indicated

• 5Mtpa of magnetite concentrate production to be exported via a 100km slurry pipeline from Port Spencer

• Achievable infrastructure solutions for power, water and product transport

• Backed by a major end user of magnetite

• Prefeasibility Study expected completion in 2013

For details of resources see announcement 25th May 2012

http://www.asx.com.au/asxpdf/20120525/pdf/426gp0l17x8p6l.pdf


GOULBURN JOINT VENTURE (65%)

• JV Agreement signed for $2M exploration program for Shandong 5th Geo-Mineral Prospecting Institute to earn 35%

• Requires Chinese and Australian Government approvals

• Second stage option for Shandong to earn 50% by funding a Bankable Feasibility Study

• Third stage option for Shandong to acquire 80% by funding through to production

• Promising IP anomalies near historically defined Zn-Pb-Cu mineralisation

• Drilling access and permits in place

• Diamond drilling program planned for 2013 once joint venture transaction completed


WILGERUP (100%)

• 100% Centrex owned DSO hematite project at Wilgerup

• Massive hematite JORC Indicated Resource of 13.3Mt @ 57.7% Fe

• All mining approvals received

• Off-take agreements already in place

• Develop in line with Port Spencer

• 6 additional DSO targets identified from recent gravity survey

For details of resources see announcement 23rd October 2009

http://www.asx.com.au/asxpdf/20091023/pdf/31lk86y343jpv1.pdf


NEW PROJECTS (CXM 100%)

Kimba Gap

• 4km strike of outcropping banded iron formation (BIF) coincident with magnetic and gravity anomalies

• Exploration Target of 275Mt to 420Mt of magnetite BIF at between 21% and 27% DTR*

• Drilling to date shows potential high iron low silica concentrate product

• Prospect located 50km north of Bungalow Joint Venture with potential for combined operation

*The potential quality and grade is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.

Gundaroo

• Exploration Licence Application 4744 roughly 10km west of Goulburn project in NSW

• 280km2 covering a structural corridor with historically defined gold and base metals mineralisation


CORPORATE & BUSINESS DEVELOPMENT

• Actively pursuing acquisition opportunities in early stage bulk commodity projects

• Centrex to take acquisitions through conceptual development and resource definition

• Leveraging off international networks to fund project developments

• Proven track record of securing foreign investments with third Chinese backed joint venture agreement in January 2013

• Former South Australian Senior Trade Commissioner to India appointed to aid with marketing current and future projects

• Capital management review identified Centrex had funds surplus to its medium term requirements leading to A$ 15.7M fully franked dividend being paid in early 2013

• Special dividend a reward for long-term shareholders

• A$ 46.5M in uncommitted cash remaining after dividend


CONTACT

[email protected]


KIMBA GAP EXPLORATION TARGET


COMPETENT PERSON STATEMENT

The information in this report relating to Exploration Targets is based on and accurately reflects information compiled by Ms Sharron Sylvester of AMC Consultants Pty Ltd who is a consultant and adviser to Centrex Metals Limited and who is a Member of the Australian Institute of Geoscientists (RPGeo). Ms Sylvester has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms Sylvester consented to the inclusion of this information in the 17th May 2013 announcement in the form and context in which it appeared in that document.

Economy & Finance

REIS 2013 Broken Hill - Centrex Metals ASX:CXM