Alara Resources Limited · ASX:AUQ
Alara Resources — Shareholder Meeting (November 2014)
21 slides from Alara Resources's shareholder meeting presentation, Nov 19, 2014
Slide 1: 2014 Annual General Meeting
For personal use only IAN WILLIAMS, CHAIRMAN 19 NOVEMBER 2014 PHILIP HOPKINS, MANAGING DIRECTOR
Slide 2: Agenda
Agenda For personal use only Corporate Update 2014 in Review Current Status Year Ahead Projects Update Zinc Profile Questions www.alararesources.com 2 2014 Annual General Meeting
Slide 3: Objectives
Objectives For personal use only Three key objectives: To ensure that 1 Remain focused and diligent on defined strategies and targets Alara is the company of choice 2 Advance plans on or ahead of schedule for both investors and employees alike 3 Seek and implement value enhancements for the Company
Slide 4: Board of Directors
Board of Directors For personal use only Ian Williams, AO Philip Hopkins John Hopkins James Phipps Chairman Managing Director Non-Executive Director Non-Executive Director BE (Elec), FAusIMM, FIEAust BSc (Mining Engineering); MBA; LLB; FAICD B.A. (Philosophy), J.D. (Law) > Over 40 years’ experience
Slide 5: Projects Overview
Projects Overview Daris/Washihi For personal use only Copper-Gold Project OMAN Khnaiguiyah Zinc-Copper Project SAUDI ARABIA Corporate Office PERTH, AUSTRALIA Project Resources Ownership Location Status Khnaiguiyah Zinc-Copper 50% (60% HoA) Saudi Arabia DFS completed Seeking ML resolution Washihi Cop
Slide 6: Capital Structure
Capital Structure: ASX: AUQ For personal use only Stock (AUQ) Issued Capital – Ordinary Shares (1) 242M – Unlisted Options (1) 17M Share Price (1) $0.027 Market Cap. (1) $6.5M Cash (2) $2.8M Debt Nil Directors’ Shareholdings (1) Chairman Ian Williams 0.1M MD Philip Hopkins 2.0M Director John Hopkins
Slide 7: FY 2014 in Review
FY 2014 in Review For personal use only Corporate: ● Restructured Board of Directors and Management Team ● Received R & D Tax Incentive Scheme refunds totalling A$4.75m ● Moved Corporate office to West Perth Saudi Arabia: ● Heads of Agreement achieved for 60:40 JV arrangement with Manajem ● JV Agree
Slide 8: Activities Subsequent to End of FY 2014
Activities Subsequent to End of FY 2014 For personal use only Corporate: ● Small Holding Share Sale implemented – reducing total number of shareholders from +2,000 to ~850 (consolidated register and reduced administration costs) ● Total number of Unlisted Options on issue reduced, via lapse and volu
Slide 9: Cash position & Forecast Expenses
Cash position & Forecast Expenses For personal use only Cash position as at 30 September 2014: A$2.8M Forecast expenses Q2 2015: A$0.900M (down from Q1 2015: A$.985) Projected monthly general base costs forecast to reduce month on month (to ~$130k/month) to the end of FY2015 www.alararesources.com 9
Slide 10: The year ahead
The year ahead For personal use only Corporate: ● Continue to monitor, manage and reduce costs and outgoings ● Achieve interim finance at end of the FY ● Prepare for Khnaiguiyah Project ramp up Saudi Arabia: ● Secure ML for Khnaiguiyah Zinc-Copper Project ● Advance the Project into Finance stage ● P
Slide 11: Saudi Arabia: Khnaiguiyah Zinc-Copper Project
For personal use only SAUDI ARABIA Khnaiguiyah Zinc-Copper Project www.alararesources.com 11 2014 Annual General Meeting
Slide 12: Current Status – Saudi Arabia
Current Status – Saudi Arabia For personal use only Legal Action: ● JV Partner, Manajem has filed a claim against Alara with the Saudi Board of Grievances ● Alara will file 4 specific counter claims against Manajem ● Legal Actions are not key or central to the Project’s way forward ● Manajem is stru
Slide 13: The year ahead – Saudi Arabia
The year ahead – Saudi Arabia For personal use only Khnaiguiyah Zinc-Copper Project Joint Venture: ● Secure ML and progress into Project financing stage ● Advance Community Relations Plan ● Prepare to ramp up the Project Project Finance: ● Submit Saudi Industrial Development Fund (SIDF) application
Slide 14: Oman: Daris/Washihi Copper-Gold Project
For personal use only OMAN Daris/Washihi Copper-Gold Project www.alararesources.com 14 2014 Annual General Meeting
Slide 15: The year ahead – Oman
The year ahead – Oman For personal use only Daris / Washihi Copper-Gold Project way forward: ● Crystallise commercial strategy for the Project and action Project optimisation: ● Final review of toll mining / treatment option ● Complete optimisation studies for HMS and recovery If retention strategy
Slide 16: Zinc
For personal use only Zinc www.alararesources.com 16 2014 Annual General Meeting
Slide 17: Zinc - Usage
Zinc - Usage For personal use only Demand & usage allocation may change: • New on-line galvanising • High yield fertiliser www.alararesources.com 17 2014 Annual General Meeting
Slide 18: Zinc – Khnaiguiyah Project Modelled at US$1.05/lb
Zinc – Khnaiguiyah Project Modelled at US$1.05/lb Historic market deficit resulted in For personal use only 600 1.6 the Zinc price rising to kT Price USD/lb 400 1.4 >US$2.00/lb (2006)* 200 1.2 Brook Hunt forecasts Zinc to rise 0 1 to US$1.24/lb this year and climb ‐200 0.8 steadily thereafter ‐400 0
Slide 19: In Summary
In Summary For personal use only > 2 Mtpa* Robust Zinc/Copper project in Saudi Arabia • Focus on securing ML within JV to move the Project forward • Striving to resolve impasse with JV partner • Ready to finance and move toward construction • De-risking and exploring upsides for the Project > 0.5 Mt
Slide 20: Question Time
Question Time For personal use only ABN: 27 122 892 719 Level 3, 35 Havelock Street, West Perth WA 6005 Telephone +61 8 6323 5900 I Facsimile +61 8 6323 5999 ASX Code: AUQ info@alararesources.com I www.alararesources.com www.alararesources.com 20 2014 Annual General Meeting
Slide 21: Disclaimer and Statements
Disclaimer and Statements For personal use only FORWARD LOOKING STATEMENTS This Presentation has been prepared as a summary only and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and rights and liabiliti
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