This document summarizes information about an iron ore mining company located in Malaysia. It is a major supplier of iron ore products and one of the largest iron ore concentrate producers in Malaysia. As of June 2013, the company was profitable with 226% year-on-year growth. It has over 152 million metric tons of estimated iron ore resources and expects a mine life exceeding 27 years. The company uses low-cost open-pit mining and has competitive advantages from its location, production capacity, and port access.

1. Hong Kong Stocks Code：2112
August 2013

2. Company Profile
A major supplier of iron ore
products and one of the largest iron
ore concentrates producers in
Malaysia
Major
Businesses
Profit by the end of June 2013 with
year-on-year growth of 226%
Major
Markets
Competitive
Add text
Advantages
in here
• Iron ore mining located in
Malaysia
• Business operations include iron
ore mining, processing & trading
• Sale of product with iron content
50%-62%
• Benefiting from low-cost open-pit operation method • China：Rizhao Steel
：
and high-grade iron ore products
•
Aosen Steel
• Production capacity and profit in rapid growth phase •
Bao Steel (Ningbo Steel)
• Supported by well-developed roads and ports facilities • Malaysia：
：
• Sustainable growth from acquisitions of iron ore
•
Eastern Steel (Shou Steel)
resources
•
Red Sun Fortune
1

3. Overview of Project in Production
Mine is located in Pahang, the
largest iron ore production
state in Malaysia, only 120km
from the port
JORC Data：
Data
Resources
Estimated Iron Ore Resources
152 Mt
(Reported at a 35% Fe cut-off
grade )
Reserves
105 Mt
Mine Life
Expected to exceed 27 years
Average Grade of Iron Ore
46.5%
Estimate Valuation
未来产能增长计划
USD 410,000,000
Mt
Capacity Compound Annual
Growth Rate：76.6%
China：4
Average shipping time to China 4-10days
Area
Average shipping time to
China
Australia
9-12 days
India
12-15 days
South Africa
28-38 days
Brazil
40-45 days
2

4. Low-cost Operations
Low-cost open-pit operation method and high-grade iron ore products
• Using low-cost open-pit operation method
• Mine has an average iron grade of 46.5%, has low levels of impurities, so relatively simple
and low-cost magnetic processing methods can be used
• Average cash operating costs is USD53.7 per tonne in 2012
• Estimated average cash operating costs is USD 45.3 per tonne in 2013
2011 ( Actuals)
2012 (Actuals)
2013(Expected)
2014 (Expected)
2015(Expected)
24.52
24.52
20.96
20.96
20.96
15.03
15.68
13.98
13.98
13.98
0.39
0.39
0.39
0.39
0.39
13.16
13.16
9.97
9.97
9.97
53.10
53.74
45.30
45.3
45.3
(Unit：US$)
Mining cost
Total processing Cost
On and Off-site Management
Transport to port, port costs and
marketing
Total Cash Cost
3

5. 2010~2013 Financial Data
Gross Profit
Revenue
USD’000
27,931
USD’000
54,323
22,076
47,130
27,220
7,650
6,865
664
Fr 2010.8.23
2011
2012
2013.6.30
Fr 2010.8.23
2011
2013.6.30
Profit before Tax
Volume of Turnover
Tonne
2012
464,096
USD’000
433,135
24,035
302,771
14,357
-116
1,851
15000
Fr 2010.8.23
Fr 2010.8.23
2011
2012
2013.6.30
2011
2012
2013.6.30
4

6. 2013~2016 Profit Forecast
2013~2016 Profit Forecast
2013
2014
2015
2016
1,400,000
4,000,000
6,000,000
8,000,000
Sales Revenue
(USD’000）
）
151,200
440,000
672,000
912,000
Net Profit
(USD’000）
）
40,000
80,000
120,000
190,000
Sales Quantity (T)
5

7. New Iron Ore Resources in 2013
Iron Mountain Mine：
Location
Terengganu, Malaysia (about 90km to port)
Estimated Iron Ore Resources
280 Mt（geophysical exploration）
Average Grade of Iron Ore
37%
Mining Method
Open-pit operation
Status
Geophysical Exploration completed, Detailed Exploration is ongoing
未来产能增长计划
6

8. Thank You
7