Prescient presentation - Petmin

NAIC
37
Executive Summary
• Commodity – pig iron fits within Petmin’s strategy of investing in ‘urbanisation’ commodities and more specifically the steel value
chain.
• Market – since our investment pig iron prices have increased for $450/t to over $500/t – long term prognosis remains positive
despite current volatility (average Pig Iron Price for the last 6 months has been >$500).
• Current estimates for NAIC’s cost of production are $260/t against a Q32011 Producer Median of $507/t.
• At current pricing project has a real NPV10 of >$500m (Phase 1 ~550ktpa).
• Significant competition for smelting plant location (Pennsylvania, Quebec, Louisiana, Labrador) means substantial financing,
electrical tariffs and tax incentives are a reality. Initial discussions have been held with all provinces.
• Exploration has made good progress with >4500m’s drilled since Petmin’s investment in October 2010.
• >480/1370 samples of phase have been reanalysed – results are in line with original expectations at Heavy Mineral % of ~9%
and useable Fe minerals (Magnetite, Titanomagnetite and Ilmenite) at ~50% of the HM’s.
• Maiden resource announcement aimed for January 2012.
• Metallurgically we have produced a viable concentrate with magnetic separation only (optimisation is still required)
• Plans for a bulk sample to be fed through a pilot plant – Ordering of major equipment for the pilot plant has begun.
• Discussions have been held with Tenova to carry out a conceptual study for the smelting plant – their proposal has been
received.
The work completed to date has confirmed our belief that this a real project with the potential to
be a significant business.
…Committed …A PLATFORM to growth, FOR dedicated GROWTH to value