Slide 1: Briefing to Shareholders
For personal use only Briefing to Shareholders 6 December 2012
Slide 2: Disclaimer, Forward Looking Statements and Competent Person's Statement
Disclaimer, Forward Looking Statements and Competent Person’s Statement For personal use only This presentation has been prepared by Astron Corporation Limited (the “Company or Astron”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company
Slide 3: Agenda
Agenda For personal use only • Milestones Achieved 2012 HJS • Financial Highlights 2012 MN • Donald Project SP • Senegal MN • Market Dynamics HJS • Way Forward 2013 HJS 3
Slide 4: Milestones Achieved 2012
For personal use only Milestones Achieved 2012 4
Slide 5: Milestones Achieved 2012
Milestones Achieved 2012 For personal use only 5
Slide 6: Financial Highlights 2012
For personal use only Financial Highlights 2012 6
Slide 7: 2012 Financials: Balance Sheet
2012 Financials: Balance Sheet For personal use only 2012 2011 AS AT 30 JUNE $M $M PPE includes CIP 16.7 12.4 Donald / Senegal 48.6 27.0 Land use rights 8.7 8.4 Current assets (excluding cash) 11.2 13.6 Cash & term deposits 121.2 147.4 Total Assets 206.4 208.8 Liabilities 7.5 7.0 Net Assets 198.9 20
Slide 8: 2012 Financials: Commentary
2012 Financials: Commentary For personal use only Cash • Cash and deposits retained for investment and project development • More than 95% of cash and deposits in AUD INSTITUTION AMOUNT (M) AVERAGE RATE CBA 98.6 5.1% Goldman Sachs JB Were 5.1 4.8% Bank of China 14.9 5.0% Other Banks 2.6 1.8% Total 1
Slide 9: 2012 Financials: Commentary - Cash Treasury
2012 Financials: Commentary For personal use only Cash – Treasury Continued to investigate and consider a number of products, e.g. bonds and capital guaranteed products - No significant enhancement to returns To obtain higher returns need to: - Commit funds for usually plus 12 months - Take market r
Slide 10: 2012 Financials: Commentary - Cash Utilisation
2012 Financials: Commentary For personal use only Cash Utilisation • Cash has been utilised as follows: CASH UTILISED $M Acquisition of water rights 18.0 Development expenditure Donald and Senegal 3.5 Share buy-back 3.1 Other PPE and CIP 4.3 Expenditure on redomiciliation 1.1 Acquisition of Greenpow
Slide 11: 2012 Financials: Net Asset Value
2012 Financials: Net Asset Value For personal use only YEAR ENDED 30 JUNE 2012 CPS Cash 99 Cash – 99 11
Slide 12: 2012 Financials: Net Asset Value
2012 Financials: Net Asset Value For personal use only YEAR ENDED 30 JUNE 2012 CPS Cash 99 Net current assets less liabilities 3 Cash – 99 Net current assets less liabilities – 3 12
Slide 13: 2012 Financials: Net Asset Value
2012 Financials: Net Asset Value For personal use only YEAR ENDED 30 JUNE 2012 CPS Cash 99 Net current assets less liabilities 3 PPE & land use rights 21 Cash – 99 PPE & land use rights – 21 Net current assets less liabilities – 3 13
Slide 14: 2012 Financials: Net Asset Value
2012 Financials: Net Asset Value For personal use only YEAR ENDED 30 JUNE 2012 CPS Cash 99 Net current assets less liabilities 3 PPE & land use rights 21 Donald 38 Donald – 38 Cash – 99 PPE & land use rights – 21 Net current assets less liabilities – 3 14
Slide 15: 2012 Financials: Net Asset Value
2012 Financials: Net Asset Value For personal use only YEAR ENDED 30 JUNE 2012 CPS Cash 99 Net current assets less liabilities 3 PPE & land use rights 21 Donald 38 Senegal 1 Senegal – 1 Donald – 38 Cash – 99 PPE & land use rights – 21 NAV per share of 162cps Net current assets less liabilities – 3 1
Slide 16: 2012 Financials – Fund Raising
2012 Financials – Fund Raising For personal use only Donald Astron Corporation • In the process of engaging a • Global roadshow merchant bank to act as undertaken in May 2012 adviser to assist with fund – Well received raising for Donald – Two significant • Initial interest from debt shareholders ca
Slide 17: 2012 Financials – Share Price Relativity
2012 Financials – Share Price Relativity For personal use only 110 Astron S&P/ASX 300 Metals & Mining (rebased) 100 90 Share Price (rebased to 100) 80 70 60 50 40 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 During the FY 2012 ATR continually outperformed the A
Slide 18: Donald Project
For personal use only Donald Project 18
Slide 19: Donald Mineral Sands Project
Donald Mineral Sands Project For personal use only Tier 1 resource – sufficient to Proven ore Close to mine for over reserve of existing 100 years 150mt infrastructure: World class port, rail location – and road Murray Basin Stage 1 to produce Standard 950ktpa of open-cut HMC; 30 year mining mine li
Slide 20: Donald's Positioning
Donald’s Positioning For personal use only Comments Major Suppliers • 8% world supply of Zircon and 4% TiO2 units (6.5Mt) Zircon (1.5Mt) of Ti02 Others Iluka India 13% QIT (Rio 80%) 2% 2% 9% • 80% of revenue from high value Kenmare Iluka QIT (Rio 80%) BeMax 4% 3% 39% materials (Zircon and Rutile) 43
Slide 21: 2012 Achievements
2012 Achievements For personal use only Purchase of high security water rights Proven processing of fine grade material Appointment of EGM (ex Jacinth Ambrosia PM) Proven washing process to reduce U/Th impurities Publication of Proved Ore Reserve Completed Work Plan Draft Complete Cultur
Slide 22: Geology
Geology For personal use only • 4,039Mt combined Measured + Indicated + Inferred Mineral Resource* • 461Mt combined Proved + Probable Ore Reserve** • Includes 150Mt Proved Ore Reserve - implies first 12 years of production * ASX announcement dated 1 December 2011 ** ASX announcement dated 15 June 20
Slide 23: Tenements
Tenements For personal use only • Recent changes to the Mineral Resources Act (1990) include the formation of a new type of minerals licence, a Retention Licence • This new licence type will eliminate relinquishment requirements and secure the tenement in the longer term • DMS has applied to convert
Slide 24: Parallel Project Development
Parallel Project Development For personal use only • Development Team in Place • Proactive Tenement acquisition • Secured prime areas of the Basin • Drilling Approved • Birchip Strand Investigations Q1 2013 • Jackson Resource Definition Q1 2013 • Preliminary Feasibility Q2-4 2013 24
Slide 25: Next Steps
Next Steps For personal use only Finalisation of DFS Submission and approval of Work Plan Progress purchase of additional land holdings and compensation agreements Develop project approvals plan for stage 1B Undertake infill drilling on Jackson bringing resource to indicated resource status Undertak
Slide 26: Senegal
For personal use only Senegal 26
Slide 27: Senegal, West Africa
Senegal, West Africa For personal use only • Political and social stability – Firm commitment from Government for Grand Cote development of project Project – Elections have been consistently smooth and democratic, including recent election of new President • Good infrastructure Sabodala (Gold) Proje
Slide 28: Niafarang Project
Niafarang Project For personal use only Large coastal High grade, no area – known overburden mineral sands and low slimes deposits Indicated Mineral Resource at 1% HM cut-off** 75km along Sand the coast – only To produce 15ktpa of Zr, Strand tonnes Grade Mineral Assemblage % of THM 6 km explored (1s
Slide 29: Milestones
Milestones For personal use only Exploration licence Achievements GM appointed Key Prefeasibility study complete Resource announced Probable reserve announced 29
Slide 30: Market Dynamics
For personal use only Market Dynamics 30
Slide 31: Market Dynamics
Market Dynamics For personal use only Short Term Long Term • Outlook for pricing has deteriorated • Producer inventories have increased • Producers managing production to limited further inventory build • Outlook for Ti02 is better than zircon • Downstream inventories remain very low 31
Slide 32: Market Dynamics
Market Dynamics For personal use only Short Term Long Term • Fundamentals underlying strong zircon demand growth expectations, in particular in China, remain intact • Recent high prices have spurred greater efforts to find a zircon substitute, but no solution found • Global zircon production will de
Slide 33: 2013 Way Forward
For personal use only 2013 Way Forward 33
Slide 34: Way Forward 2013
Way Forward 2013 For personal use only Complete Focus will transactions with Completion Detailed Let EPCM be preparation and sign off DFS engineering equity partners contracts of Donald and funding providers Senegal Completion Announce Obtain mining of EIA DFS licence 34
Slide 35: Way Forward 2013
Way Forward 2013 For personal use only Continue with R&D developing Development at China Yingkou facilities downstream processes Corporate & Complete implementation of Administration new IT system 35
Slide 36: Questions
For personal use only Questions 29F, Wing-On-Centre, 111 Connaught Road Central, Hong Kong www.astronlimited.com T: +61 2 9375 2361 F: +61 2 9375 2121