ATLAS IRON LIMITED INVESTOR PRESENTATION – June / July 2015 Investment Highlights Significant iron ore producer – production returning to 14-15Mtpa Set to generate strong positive cash margin from mining operations
• 3 Pilbara iron ore mines underpin strong cash flow generation
• Abydos and Wodgina mines in production. Mt Webber mine on track for July production • Capital investment program for Atlas’ 3 Pilbara mines complete • Mine to customer infrastructure solution in place for Atlas’ 3 Pilbara mines • Targeting 2.7-3.8Mt shipped in Sep quarter as Mt Webber ramps up • Targeting year-end production rate of 14-15Mtpa • Break-even cost of production reduced to ~US$50 per tonne1 • Cash margin net to Atlas of ~A$9/dmt assuming iron ore price of US$65/dmt2 • Improved price certainty from US denominated iron ore forward sales • Strategic and valuable port and stockyard allocations • Considerable support from Atlas’ contractors, the WA State Government, and Pilbara Port Authority • Strong Board and management team, led by founding Director David Flanagan who has recently returned as Managing Director • Over 1 billion tonnes of iron ore Resources, and over 500 million tonnes of iron ore Reserves
1. IODEX 62%Fe CFR. China breakeven price defined by adjusted iron units, spot product FOB discount, moisture and full cash costs on the basis of targeted 14-15Mtpa run rate by year end. AUD:USD exchange rate of 0.785. Full cash costs include; C1 production costs, royalties, freight, corporate and administration, expensed exploration and evaluation, interest expense and sustaining capital expenditure. C1 Cash costs are inclusive of both contractors and Atlas’ costs within the total. 2 2. IODEX 62%Fe CFR basis, after contractor rate uplift and collaboration margin. Capital Raising Investment Opportunity Raising up to A$180 million at 5 cents per share 1:1 free attaching option maximises investor leverage to Atlas’ success
Offer . Equity issue to raise up to A$180 million
. Placement to Atlas' key contractors, new and existing investors for up to A$80 million. ~A$41 million already committed by contractors1 Offer size . Placement to existing Atlas shareholders via a Shareholder Participation Offer to raise up to A$100 million, with ability to place any shortfall. Atlas Directors participating
. Offer price 5 cents per share, a 58% discount to last price2. Materially lower than Atlas shares have ever traded Offer structure & price . 1:1 free attaching option for every placement share subscribed (exercise price 7.5 cents, expiry 30 June 2017) . Atlas will apply to the ASX for the New Options to be listed on the ASX, and expects option to trade as AGOO
. Strengthen Atlas’ balance sheet, increasing working capital to manage periods of iron ore price volatility Use of funds . Contractor participation in satisfaction of certain obligations and liabilities and to satisfy amounts payable to BGC . Directors may consider applying funds to pay down debt, dependent on funds raised
. Further details of the Offer, including how to participate in the Offer, are set out in Section 7 of the Prospectus
Further . Investors should have regard to the Prospectus and the "Key Risks" in Section 12 of the Prospectus information . Not for distribution in the United States. Refer to Section 1.3 of the Prospectus for details in relation to foreign jurisdiction restrictions
1. Satisfying obligations and liabilities to Subscribing Contractors, and deferred payment amount to BGC 3 2. Pre-dilution for capital raising
Atlas’ New Lower Costs of Production Atlas’ New Lower Costs of Production Atlas and its stakeholders working together to build a more sustainable business
• Collaborating contractors under contractor collaboration agreements (Abydos and Wodgina mines) working with Atlas to significantly reduce costs
• McAleese – haulage, MACA – mining (Abydos & Wodgina) and crushing (Abydos), QUBE – port handling • Collaborating contractors to share in iron ore price upside through contractor rate uplift and 25% profit share • Atlas and collaborating contractors driven by the same objective • BGC agreement to reduce mining costs by an estimated 10-12% at Mt Webber Mine • Support received from Pilbara Ports Authority and WA State Government
• Pilbara Ports Authority has announced lower port charges • WA State Government offering royalty relief (to be repaid in tranches from March 2016 - September 2017) • WA State Government has announced road haulage concession charges and loading relief • Lump product stream provides improved average revenue per tonne • Improved price certainty from US denominated iron ore forward sales
5 Atlas’ New Lower Costs of Production At Atlas’ new lower costs of production, Atlas’ cash breakeven moves materially lower, creating a more sustainable business
Estimated Benchmark Breakeven Price Reconciliation: Atlas Iron (62% Fe, US$/dmt, CFR China) Key Assumptions Costs: AUD/USD $0.785. AUD$/wmt Price: USD$/dmt Costs based on nominal production run-rate of 15mtpa (i.e. 320kt/mth, 480kt/mth Material shift and 450kt/mth from Abydos, Wodgina and Mt Webber respectively). 60.8 lower in Payment of Contractor Collaboration Margin included for Wodgina and Abydos. breakeven price 2.6 No Contractor Collaboration Deed cost assumed for Mt Webber, however 0.5 estimated 10-12% mining cost savings (via the BGC Agreement). 51.2 4.1 50.2 Royalties of 10.5% at Wodgina and 8.0% at Mt Webber and Abydos. 5.8 Corporate, administration, exploration and evaluation costs of $2.0m/mth. Interest of 8.75% p.a. applied to secured debt of US$269m (i.e. A$343m at 0.5 11.7 AUD/USD $0.785). 2.8 35.4 Moisture of 5.7%, 3.8% and 4.5% at Wodgina, Abydos and Mt Webber respectively (i.e. average expected moisture over next 24 months). Average assumed lump premium of A$10/dmt, with Lump contributing 66% and 50% of Abydos and Mt Webber product respectively. No Lump product assumed to be produced at Wodgina. Average ‘Other’ contractual penalties of US$0.50/dmt assumed to provide for impurities not specified in contracts. Quality / Value in Use discount of 12.5%, relating to discounts for ore impurities. Average assumed grade of Atlas ore of 57.0% Fe, compared with benchmark grade of 62.0% Fe.
WA State Government Royalty Relief not included in Break Even Price analysis
(1)
C1 Cost C1
(A$/wmt)
(US$/dmt)
(US$/dmt)
Moisture (A$/t) Moisture
Lump Premium Lump
Other Penalties Other
Full Cash Costs Cash Full
Grade (US$/dmt) Grade
AUD/USD ($/dmt) AUD/USD
Quality (US$/dmt) Quality
Pre-Agreement
Profit Share (A$/wmt) Share Profit
Breakeven (US$/dmt) Breakeven (US$/dmt) Breakeven
(1) Based on unaudited March management accounts, prior to mine suspension.
6 Solid Cash Margin from Operations At Atlas’ new lower costs of production, Atlas is set to produce solid cash margins from its mines
Key Assumptions
The above pricing scenarios are by way of illustration only. The IODEX 62% Fe CFR China price was US$61/dmt as at 19th June 2015, and has not been as high as US$75/dmt for some time (Nov14) AUD/USD $0.785. Costs based on nominal production run-rate of 15mtpa (i.e. 320kt/mth, 480kt/mth and 450kt/mth from Abydos, Wodgina and Mt Webber respectively). Payment of Contractor Collaboration Margin included for Wodgina and Abydos. No Contractor Collaboration Deed cost assumed for Mt Webber, however estimated 10-12% mining cost savings (via the BGC Agreement). Royalties of 10.5% at Wodgina and 8.0% at Mt Webber and Abydos. Corporate, administration, exploration and evaluation costs of $2.0m/mth. Interest of 8.75% p.a. applied to secured debt of US$269m (i.e. A$343m at AUD/USD $0.785). Moisture of 5.7%, 3.8% and 4.5% at Wodgina, Abydos and Mt Webber respectively (i.e. average expected moisture over next 24 months). Average assumed lump premium of A$10/dmt, with Lump contributing 66% and 50% of Abydos and Mt Webber product respectively. No Lump product assumed to be produced at Wodgina. Average ‘Other’ contractual penalties of US$0.50/dmt assumed to provide for impurities not specified in contracts. Quality / Value in Use discount of 12.5%, relating to discounts for ore impurities. Average assumed grade of Atlas ore of 57.0% Fe, compared with benchmark grade of 62.0% Fe. WA State Government Royalty Relief not included in cash margin analysis
7 Atlas’ Projects and Infrastructure Access Key Pilbara Operations Significant strategic foothold in WA’s prolific Pilbara region 3 mines, growth projects, and production infrastructure in place
3 Iron Ore Mines
Port access contracted at premier global iron ore port
1,219Mt Resources 510Mt Reserves
1. Resources and Reserves as at 30 June 2014, please refer to the JORC compliance statements in the appendices to this presentation. 9 2. Resource as at May 2015, please refer to the JORC compliance statements in the appendices to this presentation.
Wodgina Mine Strong production and cash flow
• Commenced mining in 2010 • 22Mt shipped to date • After short suspension, mining recommenced May 2015 • On track for 5-6Mtpa production rate by 30 June 2015, ~2 year mine life • Large value fines stockpiles can be sold stand alone, or blended into standard fines product • Mining above water table • 13.6Mt Ore Reserves (Standard Fines)* • 3.2Mt Ore Reserves (Value Fines)1* • 40.3Mt Mineral Resources* • Remaining Life of Mine strip ratio of 0.85:1
Product stockpiles at Wodgina * As at 30 June 2014, please refer to the JORC compliance statements in the appendices to this presentation.
1. Value Fines is product sold in the grade range of approximately 54-56%Fe 10
Abydos Mine Lump shipments well received with strong demand for Atlas’ lump product
• Commenced mining June 2013 • 4.9Mt shipped to date • After short suspension, mining recommenced May 2015 • Running at 3-4.3Mtpa production rate, ~2 year mine life • Lump product has been well received by market and selling at good premium; ~66% of Abydos target production • Miralga Creek in close proximity and could access Abydos infrastructure • Mining above water table • 11.3Mt Ore Reserves* • 22.1Mt Mineral Resources* • Remaining Life of Mine strip ratio of 0.75:1
Loading trucks at Abydos for dispatch to Port Hedland
* As at 30 June 2014, please refer to the JORC compliance statements in the appendices to this presentation.
11 Mt Webber Mine Production re-start in July 2015 8-9 year mine life at 6Mtpa
• On track for July 2015 restart; targeted to bring year end production Pilbara production to 14-15Mtpa • Mt Webber production not within contractor collaboration uplift or profit share, to date • 8-9 year mine life at 6Mtpa • Lump product to account for approximately 50% of Mt Webber production from late 2015 • Mining above water table • 54.8Mt Ore Reserves* • 63.3Mt Mineral Resources* • Life of Mine strip ratio ~0.25:1 • Corunna Downs only 35km from Mt Webber mine
Mt Webber processing plant and product stock piles * As at 30 June 2014, please refer to the JORC compliance statements in the appendices to this presentation.
12 Port Access Mine to customer infrastructure solutions in place Strategic and valuable port access at premier global iron ore port
• Port Hedland is one of the world’s premier iron ore ports and is in close proximity to key markets in China • Atlas’ allocation at the port of Port Hedland is strategic and valuable
• Up to 15.0Mtpa capacity at the Qube-operated, Government-owned, Utah Point multi-user facility • Up to 31.5Mtpa access to port allocation at the proposed South West Creek through Atlas’ 63% interest in the North West Infrastructure JV (NWI) (which holds 50Mtpa)1 • Atlas’ port allocation supports current production plans and allows the opportunity to match rail solutions to underpin and optimise the development of any future Pilbara projects
1. NWI was conferred a 50Mtpa channel capacity allocation to facilitate the development of Port facilities. The South West Creek allocation is not yet the subject of a firm lease agreement, with progression of lease negotiations interrelated to demonstrating a product delivery solution 13 Lump Product Sales Product innovation driving increased margins Strong demand for Atlas’ lump product
• Atlas Lump product successfully produced and contracted from the Abydos mine • Estimated 66% of ore tonnes report to the lump product category • ~1 million tonnes contracted to date • Successful response in iron ore markets from initial sales • Excellent physical properties • Lump to be produced from the Mt Webber in growing quantities from late 2015 • Estimated 50% of Mt Webber ore tonnes will report to the lump product category • Successful test work program supports lump yield and physical properties • Plant modifications to be implemented to establish the lump circuit, modest cost ~$4M • Lump attracts a price premium, improving revenue and lowering breakeven cost
Atlas Lump Atlas Standard Fines
14 Atlas Production by Mine Year-end production back to 14-15Mtpa
• Sep quarter 2015 target; 2.7-3.8Mt shipped, as Mt Webber ramps-up • Dec quarter 2015 target; 3.5-4.0Mt shipped, for year-end production rate of 14-15Mtpa • Opportunities to extend mine life at Abydos and Wodgina • Potential to expand production at Mt Webber by simple low-cost plant expansion • Potential to extend Mt Webber mine life • Portfolio of project opportunities beyond existing reserves, targeting extended mines lives and higher production (subject to further study and feasibility)
McPhee Creek Trucked Tonnes
Actual Forecast Abydos Resource 15,080 Conversion Corunna Downs Trucked Tonnes Wodgina 12,479 Blending 5,135 Miralga Creek 10,920 11,720 2,341 1,000 Mt Webber Expansion 2,526 Resource Conversion 7,413 3,686 3,495 5,825 7,000 7,000 7,000 917 2,042 1,000 1,000 1,000 833
5,206 5,508 2,100 5,619 6,450 6,000 6,000 6,000 2,795 1,290 844 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Pardoo Wodgina Mt Dove Abydos Mt Webber Mt Webber (Stage 3) (in study)
Note: Mine production estimates and mine lives based on ore reserves as at 30 Jun 14, less depletion FY15 to April 2015. Potential for increased production above 6Mtpa at Mt Webber also 15 based on existing ore reserves. Key Growth Projects Corunna Downs and Miralga Creek Potential to leverage existing mine infrastructure
• Corunna Downs presents an opportunity to contribute to Atlas’ existing trucked operating model • Mineral Resource at Corunna Downs already 65Mt @ 57.3%Fe1 • Low phosphorous, low alumina exploration results to date indicate potential scale of the resource and its blending capacity • Glen Herring Prospect confirms the presence of mineralisation beyond the initial exploration target area • Only 35km from Mt Webber mine
• Miralga Creek has potential to bolt-on to existing Abydos infrastructure, including haul road • 3.8Mt @ 57.7% Fe1 from minimal drilling • Only 35km from the Abydos mine
1. Resource as at May 2015, please refer to the JORC compliance statements in the appendices to this presentation. 16
Key Growth Projects McPhee Creek and Davidson Creek Significant resources for potential future expansion
• McPhee Creek
• Approximately 100km East of Atlas’ Mt Webber mine
• Approximately 65km from Corunna Downs, ideally located should a blending operation between the two sites be contemplated
• Reserves of ~188Mt and Resources of ~247Mt
• Davidson Creek hub
• 100km east of Newman in the South East Pilbara, is the largest of Atlas’ projects in the region
• Reserves of ~239Mt and Resources of ~476Mt
17 Offer and Timetable Corporate Snapshot Raising up to A$180 million at 5 cents per share 1:1 free attaching option maximises investor leverage to Atlas’ success Corporate Structure
Committed by Committed Committed Maximum Pre-raising Contractors1 plus A$50m plus A$100m A$180m
Ordinary shares on issue 919.5m 1,745m 2,744m 3,466m 4,519m
Listed options on issue - 825m 1,825m 2,547m 3,600m
Undiluted market capitalisation at $0.05 per share A$46m A$87m A$137m A$173m A$226m
Cash# A$59m A$50m A$97m A$132m A$179m Debt drawn as at 11 June 2015* A$347m A$347m A$347m A$347m A$347m Enterprise value at $0.05 per share A$334m A$384m A$387m A$388m A$394m
# Current cash is as at 31 May 2015. Cash after capital raising is pro-forma 31 May post raising, net of capital raising expenses. In addition to increase in cash as a result of placement and SPO, creditor position will reduce to the extent of contractor participation. Please refer to section 10 of the Prospectus. * USD$268.8 million, converted at AUD:USD 0.775. 1. ~A$41m committed by contractors, in satisfaction of certain obligations and liabilities. Cash decrease reflects costs of the issue and $5m cash payable to BGC in the circumstance where the minimum is raised.
Shareholdings (pre raising)
IMC Group 9.7%
Top 20 33.2% Average value traded ~$5m per day in the 12 months prior to trading suspension
Number of shareholders ~30,000
19 Atlas’ Term Loan B
Facility Size . US$275,000,000 - fully drawn as at 31 December 2012, subsequently been paid down to US$268,800,000
. Term of the Facility is five years, maturing December 2017 Term / Interest . Interest rate of LIBOR plus 7.50% (LIBOR floor of 1.25%) . The Facility has no earnings or net asset based maintenance covenants
. Atlas must ensure that the “Total Assets” to “Total Secured Total Debt” ratio is not less than 2.00 to 1.00 . The Assets to Debt Covenant is tested semi-annually, as at the last date of each semi-annual period (30 June and Asset to Debt 31 December of each year), with the final assessment completed at the time of lodging half-year and full-year Covenant accounts . At 30 April 2015 (pro forma balance sheet in the Prospectus), the Company’s Asset to Debt Covenant ratio is 2.43. Atlas expects the ratio to be lower than as at 30 April 2015, but still in compliance as at 30 June 2015
20 Timetable & Important Dates
Event Date
Prospectus lodged with ASIC and ASX 11 June 2015
Atlas General Meeting 25 June 2015
Closing Date for the SPO and Contractor Issue 5:00PM WST Closing Date for the Placement and Shortfall Placement (other than Targeted Placees) 13 July 2015
Targeted Placees allocation process 16 and 17 July 2015 5:00PM WST Closing Date for the Placement and Shortfall Placement (Targeted Placees) 17 July 2015 Issue Date for New Securities 24 July 2015
Dispatch Holding Statements for New Securities 27 July 2015
Expected reinstatement to quotation of Shares on ASX and commencement of trading 27 July 2015 for New Securities
Dates and times are indicative only and subject to change. The Company reserves the right, subject to the Corporations Act, ASX Listing Rules and other applicable laws to vary the dates and times of this indicative timetable without notice, and in particular to bring forward or extend the Closing Date and/or Issue Date of one or more components of the Offers. Any shortening or extension of a Closing Date and/or Issue Date may have a consequential effect on the date for the issue of the New Securities. In particular, the Company reserves the right to bring forward the Issue Date of the issue of New Securities for all or part of the Committed Amount. The Company reserves the right to issue New Securities progressively, before or after the scheduled issue date for the other New Securities.
21 Summary
• New operating model provides measure of resilience to future iron ore price volatility
• Significant iron ore producer – year-end production targeting a return to 14-15Mtpa
• 3 Pilbara iron ore mines underpin strong cash flow generation
• Strategic and valuable port and stockyard allocations
• Considerable support from Atlas’ contractors, the WA State Government, and Pilbara Port Authority • Strong Board and management team, led by founding Director David Flanagan who has recently returned as Managing Director
• Over 1 billion tonnes of iron ore Resources, and over 500 million tonnes of iron ore Reserves
• Attractively priced capital raising
22 David Flanagan Managing Director Atlas Iron Limited
Ph: +61 8 6228 8016 email: [email protected] www.atlasiron.com.au 23 Iron Ore / Steel Markets Update
24 Iron Ore Price Recovery Price had declined steadily during the financial year to a low of c.$47/t, but recovered to >$60/t on the back of lower physical availability (especially for May / June) and a large focus on iron ore company stress
Platts 62% benchmark price CFR China (US$/dmt) • General steady decline over financial year 100.00 • Accelerated over Easter seeing a decline of c.$9/t over the holiday period reaching a 90.00 low of c.$46/t (Platts) • However market has since recovered 80.00 some of those losses with spot (Platts) averaging US$60.95/dmt CFR China in 70.00 May and continued into June at >$60/dmt • Recent relevant news flow: 60.00 - Vale higher cost production (30mtpa), potential for reduction 50.00 - Increased news flow regarding financial stress of iron ore miners and reduced 40.00 physical availability of cargoes likely contributors to improved market
conditions
Jul-14
Oct-14 Apr-15
Jan-15 Jun-15
Mar-15
Feb-15
Aug-14 Sep-14 Nov-14 Dec-14 May-15 - BHP and Vale have both signalled a Source: Platts data as at 18 June 2015 slow down in their expansions - Major iron ore miners placed on Negative CreditWatch by S&P
25 Recent price levels testing significant portions of the industry supply curve At recent iron ore prices approximately 400 million tonnes of global supply is uneconomic.
Approx US$50/dmt representing Atlas break-even under contractor collaboration model, on 62% benchmark CFR basis
Source: Wood Mackenzie, Atlas commentary added RoW – Rest-of-World
26 Displacement is Occurring Closures have accelerated following record low prices
Significant 2014 closures and export reductions (Mtpa and associated cost of production closed) With Chinese domestic closures continuing in 2014 and 2015
Source: Wood Mackenzie Source: Wood Mackenzie
27 Project Delays Helping Future Demand / Supply Balance It is common for new supply to come on line slower than originally planned
Project delivery outcomes continue to be slower than originally forecast
By Number By Tonnes of of Projects Capacity p.a.
> A number of new major projects continue to progress (ie Roy Hill, S11D) which will come to market over the coming years - In some instances, however, these will replace legacy production which is tailing off or uneconomic > However, there have been significant delays to new projects or project expansions which affect the medium term expected demand and supply balance: - Sino Iron Stage 2, projects in West Africa, Baosteel/Aurizon WPIOP - Smaller players such as CSN (20mt) and Usiminas (12mt) have postponed expansion projects > Many new greenfields projects promoted by companies outside the big 4 delayed due to: - Economics – require higher pricing - Infrastructure needs - Funding hurdles > Changes in new project development affect expected demand / supply balance and hence expected future prices - Project pipeline highly dependent on market sentiment and conditions – delayed or cancelled expansions may be reinstated if conditions improved
Source: Citi Research, May 2015 28 Chinese Domestic Production proven to be price elastic China domestic iron ore production significantly reduced but increasing as prices recover
Imported Ore now at 21% discount to domestic Domestic mine ulisation declined (but recovering in May)
Source: Bloomberg, JP Morgan June 2015 Source: Mysteel, JP Morgan June 2015
Meaning reduced domestic concentrate (higher grade) and supporting lump premiums (substitute product)
ore ore production
of ore)
mth
(Mt/ China domestic irondomestic China
Source: UBS, China Customs, Antaike, Tex Report; tonnes of ore only; June 2015 Source: RBC Capital Markets June 2015
29 Inventory Levels Reducing Significant reduction of inventory suggests at least in recent history, market has been in supply deficit
Total Inventory Trending Sharply Lower Across all Parts of the Value Chain
Port Stocks Approaching «Effective Zero» With Mills Holding Less Stock in Absolute Tonnes & Days
Source: Mysteel, UBS June 2015. Note: 64 sample steel mills, which the output of 64 mills account for 28.5% of total China steel production Source: Antaike, Mysteel, Credit Suisse research June 2015
30 Where is the Ore Going? Whilst there is concern regarding Chinese domestic steel demand, Chinese steel exports are continuing to fill the gap and provide a longer term growth driver
Crude Steel Production has recovered to growth trend CISA output / utilsation kicking over April/May
China CISA membership mills (Large/Medium) annualized crude steel output (Mt)
Source: CISA, UBS June 2015 Source: CISA, Mysteel, JP Morgan June 2015
With Chinese Steel Exports growing strongly... … but finished product steel inventory also increasing
Source: China Customs, SGX June 2015 Source: Mysteel, CEIC, JP Morgan estimates June 2015
31 Information Relating to the Reporting of Exploration Activities, Mineral Resources and Ore Reserves
Competent Person's Statement
All references to future production and production & shipping targets and port access made in relation to Atlas are subject to the completion of all necessary feasibility studies, permit applications, construction, financing arrangements, port access and execution of infrastructure-related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Ore Reserves, as well as the relevant competent persons' statements.
Any references to Ore Reserve and Mineral Resource estimations should be read in conjunction with the competent person statements included in the ASX announcements referenced in this presentation as well as Atlas’ other periodic and continuous disclosure announcements lodged with the ASX, which are available on the Atlas website.
The information in this Presentation that relates to Ore Reserve estimations for the Abydos, Mt Webber, Wodgina and McPhee Creek Areas, is based on, and fairly represents information and supporting documentation compiled by Mr Srinivasa Rao Gadi, who is a member of the Australasian Institute of Mining and Metallurgy. Srinivasa Rao Gadi is a full time employee and shareholder of the Company. Srinivasa Rao Gadi has sufficient experience which is relevant to the style of 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 JORC Code. Srinivasa Rao Gadi consents to the inclusion in this Prospectus of the matters based on his information in the form and context in which it appears.
The information in this Presentation that relates to Ore Reserve estimations for the Davidson Creek Hub Project Area is based on, and fairly represents information and supporting documentation compiled by Mr Jeremy Peters, who is a member of the Australasian Institute of Mining and Metallurgy. Jeremy Peters is a full time employee of Snowden Mining Industry Consultants Pty Ltd. Jeremy Peters has sufficient experience which is relevant to the style of 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 JORC Code. Jeremy Peters consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this Presentation that relates to Mineral Resources (other than for Corunna Downs and Miralga Creek) is extracted from the ASX Announcement titled ‘Updated Resources and Reserves’ dated 13 August 2014 which is available at http://www.atlasiron.com.au/irm/content/asx-announcements.aspx.
The information in this Presentation that relates to Mineral Resources for Corunna Downs and Miralga Creek is extracted from the ASX Announcement titled ‘North Pilbara Mineral Resource Update’ dated 28 May 2015 which is available at http://www.atlasiron.com.au/irm/content/asx-announcements.aspx.
Atlas confirms that it is not aware of any new information or data that materially affects the information included in the 13 August 2014 and the 28 May 2015 announcements referred to above and, in the case of estimates of Mineral Resources, all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. Atlas confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the 13 August 2014 or the 28 May 2015 announcement.
32 Disclaimer
This Investor Presentation (Presentation) has been prepared by Atlas Iron Limited (ABN 63 110 396 168) (Atlas) in relation to its capital raising proposal, as described in this Presentation (Capital Raising Proposal).
Summary Information This Presentation contains a summary of information about the Capital Raising Proposal, Atlas, its subsidiaries, and its activities which are current as at the date of this Presentation. The information in this Presentation is general in nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Atlas or that would be required in a prospectus or a product disclosure statement prepared in accordance with the Corporations Act. This Presentation is not a substitute for the prospectus dated 11 June 2015 in respect of the Capital Raising Proposal (Prospectus). Investors are encouraged to carefully read and consider the Prospectus in its entirety. No representation or warranty, express or implied, is provided in relation to the accuracy, reliability or completeness of any statements, estimates or opinions, conclusions or other information provided in this Presentation. Statements in this Presentation are made only as of the date of this Presentation unless otherwise stated and the information in this Presentation remains subject to change without notice. Subject to its obligations under applicable law, Atlas is not responsible for updating, nor undertakes to update, this Presentation. It should be read in conjunction with Atlas’ other periodic and continuous disclosure announcements lodged with ASX, which are available at www.asx.com.au.
Not an Offer This Presentation may not be released or distributed in the United States. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or any other place in which, or to any person to whom, it would be unlawful to make such an offer or invitation. This Presentation is not a prospectus, product disclosure statement or other disclosure document under Australian law or any other law. New Shares and New Options have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (U.S. Securities Act) or the securities laws of any state or other jurisdiction of the United States. Accordingly, the New Shares may not be offered or sold, directly or indirectly, in the United States, unless they have been registered under the U.S. Securities Act (which Atlas has no obligation to do or procure) or are offered and sold in a transaction exempt from, or not subject to, the registration requirements of the U.S. Securities Act and any other applicable state securities laws. The distribution of this Presentation (including an electronic copy) outside Australia may be restricted by law. If you come into possession of this Presentation, you should observe such restrictions and should seek your own advice on such restrictions. Any non-compliance with these restrictions may contravene applicable securities laws. Refer to the "Foreign Jurisdictions" pages of this Presentation for more information. By accepting this Presentation you represent and warrant that you are entitled to receive such Presentation in accordance with the above restrictions and agree to be bound by the limitations contained herein.
Financial Data All dollar values are in Australian dollars (A$) and financial data is presented with a financial year end of June 30 unless otherwise stated.
Effect of rounding A number of figures, amounts, percentages, estimates, calculations of value and fractions in this Presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this Presentation.
Past performance Past performance and pro-forma financial information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of Atlas’ views on its future financial performance or condition. Investors should note that past performance of Atlas, including the historical trading price of Atlas shares, cannot be relied upon as an indicator of (and provides no guidance as to) future Atlas performance, including the future trading price of Atlas shares. The historical information included in this presentation is, or is based on, information that has previously been released to the market.
Investment risk An investment in Atlas shares is subject to investment and other known and unknown risks, some of which are beyond the control of Atlas. Atlas does not guarantee any particular rate of return or performance of Atlas, nor does it guarantee the repayment of capital from Atlas or any particular tax treatment. Investors should have regard to the risk factors outline in this Presentation when making their investment decision. The New Shares and New Options described in this Presentation as part of the Capital Raising Proposal should be considered speculative. Investors should be aware that an investment in Atlas involves many risks, which may be higher than the risks associated with an investment in other companies. Not all investors may wish to assume such risks. Investors should have regard to the Prospectus and the pages addressing "Key Risks" in Section 12 of the Prospectus before making any investment decision.
33 Disclaimer (cont.)
Future performance This Presentation may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Atlas and certain plans and objectives of the management of Atlas. Forward-looking statements can generally be identified by the use of words such as ‘project’, ‘foresee’, ‘plan’, ‘expect’, ‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ or similar expressions. All such forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors, many of which are outside the control of Atlas, which may cause the actual results or performance of Atlas to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this Presentation. Factors that could cause actual results or performance to differ materially include without limitation the following: risks and uncertainties associated with the Australian and global economic environment and capital market conditions, the cyclical nature of the steel industry, the level of activity in the construction, manufacturing, mining, agricultural and automotive industries commodity price fluctuations, fluctuations in foreign currency exchange and interest rates, competition, Atlas' relationships with, and the financial condition of, its suppliers and customers, legislative changes, regulatory changes or other changes in the laws which affect Atlas' business, including environmental laws and operational risk. The foregoing list of important factors is not exhaustive. There can be no assurance that actual outcomes will not differ materially from these statements. To the maximum extent permitted by law, Atlas , the Sole Lead Manager and any of their respective related bodies corporate and affiliates and their officers, employees, agents, associates and advisers: disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions; do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information in this Presentation, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or implied in any forward-looking statement; and disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for negligence).
Disclaimer No representation or warranty is or will be made by any person (including Atlas, the Sole Lead Manager and their respective related bodies corporate and affiliates and their officers, employees, associates, advisers and agents) in relation to the accuracy or completeness of all or part of this document, or any constituent or associated Presentation, information or material (collectively, the Information), or the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in, or implied by, the Information or any part of it. The Information includes information derived from third party sources that has not been independently verified. Subject to any obligations under applicable laws, regulations or securities exchange listing rules, Atlas expressly disclaims any obligation or undertaking to release any updates or revisions to the Information to reflect any change in expectations or assumptions. None of the Sole Lead Manager or its advisers have authorised, permitted or caused the issue, submission, dispatch or provision of this Presentation and, except to the extent referred to in this Presentation, do not make or purport to make any statement in this Presentation and there is no statement in this Presentation which is based on any statement by them.
Not investment advice Nothing contained in the Information constitutes investment, legal, tax or other advice. The Information does not take into account the investment objectives, financial situation or particular needs of any recipient. Before making an investment decision, each recipient of the Information should make its own assessment and take independent professional advice in relation to the Information and any action taken on the basis of the Information. To the maximum extent permitted by law, Atlas, the Sole Lead Manager and their respective related bodies corporate and affiliates and their officers employees, associates, advisers and agents exclude and disclaim all liability, including without limitation for negligence or for any expenses, losses, damages or costs incurred by you as a result of your participation in the Offer and the information in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise. To the maximum extent permitted by law, Atlas, the Sole Lead Manager and their respective related bodies corporate and affiliates and their officers employees, associates, advisers and agents make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of information in this Presentation. Statements made in this Presentation are made only as the date of this Presentation. The information in this Presentation remains subject to change without notice. Atlas reserves the right to withdraw the Offers contemplated by the Capital Raising Proposal or vary the timetable for the Offer without notice.
Acceptance By attending an investor presentation or briefing, or accepting, accessing or reviewing this document you acknowledge and agree to the "Disclaimer" as set out in this Presentation.
Foreign Jurisdictions NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES. Please refer to Section 1.3 of the Prospectus for details in relation to foreign jurisdiction restrictions.
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