Slide 1: Archer Exploration Limited Investor Presentation April 2016
For personal use only Archer Exploration Limited Investor Presentation April 2016
Slide 2: Contents: three projects moving to commercialisation
Contents AXE has 3 projects rapidly moving to commercialisation For personal use only AXE is focused on capital efficiency and promotion of early cash flow projects Magnesite business case Agricultural Carbon Graphite/Graphene business case business case • World leading resource • Further studies du
Slide 3: Archer – series of discrete industrial minerals projects
Archer – series of discrete industrial minerals projects • For personal use only Advanced near term production opportunity Key information* in Magnesite. • Opportunity to be cash flow positive in next ASX Code: AXE 12 – 18 months. Share price: $0.079 per share • Projects adjacent to existing infrast
Slide 4: Diversified business
Diversified business • Leigh Creek Magnesite For personal use only • World’s largest magnesite deposit of its type & 20+ year resource. • Discussions with magnesite mineral processors provides low cost and highly capital efficient path to production. • Commercial calcining of magnesite expected to c
Slide 5: Leigh Creek Magnesite Deposits
Leigh Creek Magnesite Deposits • 6 magnesite deposits that For personal use only extend for more than 120km NW of Leigh Creek Township • Magnesite is a series of parallel dipping beds with dolomite interburden • Closure of Alinta’s operation’s has created the opportunity and need to move ahead with
Slide 6: World's largest cryptocrystalline resource
World’s largest cryptocrystalline resource Leigh Creek Magnesite Project is 48% of world cryptocrystalline resources For personal use only Cryptocrystalline magnesite is a unique and scarce mineral (7% of world’s total magnesite resources) that has superior characteristics over macrocrystalline ma
Slide 7: Magnesite resources
Magnesite resources • 453 million tonnes @ 41.4% MgO For personal use only • Mineral Resource calculated to 60m deep but is open at depth • Located 20km northwest of the Leigh Creek township • Detailed historic DFS drilling, metallurgical and other test work results owned by Archer. • JORC 2012 reso
Slide 8: Favorable market; Strong demand growth
Favorable market; Strong demand growth Demand for magnesia is expected to continue growing through 2017, at a rate of For personal use only 3.6% pa ( growth trend rate of the last 12 years = 4.7% pa) Global Magnesia Demand Expected Growth 2017E Growth (%) (‘000 t) High Value Deadburn (DBM) 2,197 3.5
Slide 9: Magnesia: Ore to Finished Product
Magnesia: Ore to Finished Product Magnesite ore For personal use only Calciner Caustic calcined Dead burn magnesia magnesia (CCM) (DBM) Refractories Plant/animal nutrition Electrical insulation Waste/water treatment Welding fluxes Flame retardants Electrofused magnesia Metal precipitation Constructi
Slide 10: Magnesite Project highlights - Scope
Magnesite Project highlights - Scope Low project capital cost of circa $2m (including $1.1m for For personal use only pilot). No capital required for production process. Forecast annual production of 125,000tpa for 20+ years starting from Mount Hutton (17.5Mt @ 40.1% MgO). Archer targeting 50,
Slide 11: Magnesite Project highlights - Economics
Magnesite Project highlights - Economics 125,000 tn magnesite produces circa For personal use only 50,000 tn magnesia Expected to be fully equity funded D&A expected minimal Resource capable of supporting 20+ yr project life Net margin is expected to be between A$30/tn (low) and A$100/tn (
Slide 12: Key dates
For personal use only Key dates Activity Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Magnesite Pilot test Secure offtake Sign toll processing agreement Magnesite mining Magnesite toll processing Customer sales Graphite Pilot scale testing Grant of mining lease Secure offtake 12
Slide 13: Carbon and Graphite projects continue development
Carbon and Graphite projects continue development • Sugarloaf Agricultural Carbon For personal use only • Deposit outcrops • Early test work shows potential use as soil conditioner. • Potential to dig, crush and sell at mine gate. • Potential for cashflow generation with minimal capex in 2017/2018 •
Slide 14: Key investment takeaways
Key investment takeaways Emerging industrial minerals Cryptocrystalline magnesite has superior physical and chemical For personal use only producer characteristics enabling the production of high value magnesia products Management has extensive magnesite marketing expertise Close proximity to
Slide 15: Leigh Creek Magnesite Project conceptual development layout
For personal use only Additional Information Leigh Creek Magnesite Project conceptual development layout 15
Slide 16: Disclaimer
Disclaimer Competent persons statement For personal use only The exploration results and Exploration Target reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr Wade Bollenhagen, Exploration Manager of Archer Exploration Limited. Mr Bollenhagen is a Memb
Slide 17: Archer Exploration Limited contact details
For personal use only Archer Exploration Limited ASX code: AXE Company details: Level 1, 28 Greenhill Road Wayville South Australia 5034 www.archerexploration.com.au Further Greg English (Chairman) information: T +61 8 8272 3288 genglish@archerexploration.com.au
Slide 18: Appendix Sugarloaf agricultural carbon project
Appendix Sugarloaf agricultural carbon project A unique carbon material with soil conditioning properties For personal use only Unique non-graphitic carbon with low crystallinity Macro- and micro-nutrients occur as both highly soluble and low solubility forms. Previous plant trials proved that
Slide 19: Sugarloaf: Potential soil conditioner
Appendix Sugarloaf agricultural carbon project Potential soil conditioner For personal use only Further tests on run-of-mine Sugarloaf carbon are planned to further characterise the soil improvement properties. If these tests prove successful: Possibility to develop a low cost mining operation
Slide 20: Sugarloaf: A simple operation with local demand
Appendix Sugarloaf agricultural carbon project A simple operation with local demand For personal use only Raw unprocessed Sugarloaf carbon improves soil wettability and aids moisture retention. Deposit outcrops at surface. Located on farm land owned by Archer. Surplus land to support future gr
Slide 21: Appendix Graphene potential
Appendix Graphene potential High grade Campoona graphite concentrate enables production of pure graphene For personal use only Research collaboration agreement with University of Adelaide. Test results showed: Production of high grade graphene using one step process. Manufacture of numerous pr
Slide 22: Appendix Campoona Shaft - battery grade graphite
Appendix Campoona Shaft - battery grade graphite Campoona graphite targeting > 99% Cg natural graphite concentrate For personal use only Aim to produce products grading to 99.5% carbon, matching the world’s highest quality natural graphite. Production of up to 10,500 tpa high purity graphite T