Develop Global Limited · ASX:DVP
Develop Global — Venturex Resources — Shareholder Meeting (November 2018)
21 slides from Develop Global's shareholder meeting presentation, Nov 30, 2018
Slide 1: Building an Australian Base Metals Business
Building an Australian Base Metals Business 2018 Annual General Meeting 30th November 2018 AJ SAVERIMUTTO | Managing Director
Slide 2: Important Information & Disclaimer
Important Information & Disclaimer Cautionary Statement The information contained in this document (“Presentation”) has been prepared by Venturex Resources Limited (“Company”). This Presentation is being used as a presenter’s aid with summarised information. See Venturex’s other and periodic disclos
Slide 3: We're building an Australian base metals business
Venturex Resources is a base metals developer based in the Pilbara, Western Australia. Venturex Resources has a large, quality asset base and is well positioned for production and growth in global copper and zinc markets. We’re building an Australian base metals business.
Slide 4: Key Activities - 2018
Key Activities - 2018 Supergene Drilling Geotechnical drilling and Metallurgy testing DFS Results and and Confirmation confirmation and excellent Reserve Upgrade 100% conversion Open pit design parameters recovery results Excellent results to to Indicated commence funding Purchase of Camp Share SPP
Slide 5: Australian Mines & Metal Endowment
Australian Mines & Metal Endowment CuEq. Grade (%) Resource (Mt) SOURCE : VXR, MMG, SLR, MLS, ERL, MRP, SYV, HRR, RVR, IGO, NQ (NEX), THX, SFR, HOR, G1A Copper equivalent calculated at metal price assumptions: Cu = USD6450/t, Zn = USD2,535/t, Pb = USD2050/t, Au = USD1200/oz. Bubble size according to
Slide 6: Diminishing Supply | Market Timing
Diminishing Supply | Market Timing Supply shortfall expected by 2020 o Resource depletion on current projects o Grade decline Cu Demand o Lack of investment in new projects o Falling copper inventories o China’s Belt and Road (~7% increase in Demand per year) Cu Supply 4Mt SOURCE: Wood Mackenzie SOU
Slide 7: Strong Demand from EVs | Market Timing
Strong Demand from EVs | Market Timing Electric Vehicles (EVs) o Electric Vehicles (EVs) are a major growth market Kg of Copper o An average EV needs 4 x the copper of a conventional medium sized car o The EV fleet will be 230 million in 2035 and 750 million by 2050 equivalent to half the global fle
Slide 8: DFS – Financial Results
DFS – Financial Results o Excellent project financials NPV8 = AUD 472 MM IRR = 51% NPV8 Free Cash Flow = AUD 818 MM o Average cashflow of ~AUD 80 MM per year o Infrastructure Capital cost reduction to AUD146MM AUD 472 (including contingency) Million 1 o Increased plant capacity to 1.25 Mtpa fr
Slide 9: Sulphur Springs Metal Equivalents
Sulphur Springs Metal Equivalents Metal Production Grades Mined Grade Commodity Price Inputs USD/t USD/lb LOM Per Annum Copper (USD/t) 6,300 2.86 Metal Sold (Cu) 146 Kt 14 Kt CuEq Grade (%) 3.12 Zinc (USD/t) 2,650 1.20 Metal Sold (Zn) 348 Kt 34 Kt Zn Eq Grade (%) 7.41 FX (AUD:USD) 0.72 Costs (CuEq)
Slide 10: Operating Costs
Operating Costs A Cornerstone Asset with Width, Grade and Scale LOM Costs Output Unit Value NPV 8% AUD M 472 Free Cash Flow AUD M 818 Revenue AUD/t 209 Operating Cost Per Tonne AUD/t 122 Capital Cost per Tonne AUD/t 22 Total Cost per Tonne AUD/t 144 Margin AUD/t 65 Mining Area Tonnes (Mt) Cu (%) Cu
Slide 11: Payback
Cash Flow | Project & Profitability Project Cash Flow – Periodic & Cumulative Payback Peak Cash Draw 11
Slide 12: Schedule to Production
Schedule to Production Milestone CY 1 CY 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Mining proposal submission Water licence & works approvals Project financing Plant site earthworks & pre-strip Process plant construction Process plant commissioning Open pit development Production rump-up Full production 12
Slide 13: Financing
Financing Senior Debt Financing Off Taker Financing Roadshow to lenders Road show to off takers Technical due diligence Concentrate prepayments, Mezzanine debt commenced facilities and/or strategic investments Expressions of Interest from lenders have Discussions with off takers will be advanced bee
Slide 14: Schedule to Production
Schedule to Production Mine Infrastructure Process Plant Open Pit Mining Road design optimised Key contractors identified Key contractors identified Tender preparation underway Early contractor engagement Critical task review First piece of major Optimisation opportunities Schedule optimisations bei
Slide 15: Exploration
Exploration 15
Slide 16: Panorama Exploration | Poised for Growth
Panorama Exploration | Poised for Growth • +27km VMS belt • Potential for further look alike deposits • Surface gossan identified at numerous prospects • Drill program to follow 16
Slide 17: Panorama Trend | Poised for Growth
Panorama Trend | Poised for Growth 17
Slide 18: Value Proposition | Poised for Growth
Value Proposition | Poised for Growth Value Markets Shareholders Exploration Strong Vision Cornerstone assets Strong projections for Cu Support of major 27 km of ground similar Robust strategy and Zn markets shareholder to Sulphur Springs Excellent economics Northern Star Strong vision Increasing gl
Slide 19: Building an Australian base metals business
Building an Australian base metals business 19
Slide 20: Thank you
Thank you AJ SAVERIMUTTO | Managing Director Building an Australian base metals business. Registered Office: Level 2, 91 Havelock Street, West Perth, WA 6005 T: + 61 8 6389 7400 F: + 61 8 9463 7836 admin@venturexresources.com Media: Nicholas Read / Read Corporate Ph: +61 8 9388 1474 Email: info@read
Slide 21: Appendix A – Metal Equivalents
Appendix A – Metal Equivalents ASX Release 10 Oct 2018 Total project Revenue (AUD) $ 2,625,412,831 Mined Zinc Grade (%) 3.61% Mined Copper Grade (%) 1.45% Mined Silver Grade (g/t) 15.8 Total Milled Tonnes (T) 12,553,959 Total Opex (inc. Royalties) $ 1,526,913,469 Royalties $ 136,618,422 Total Capex
Venturex Resources — Shareholder Meeting (November 2018) on 6ix