Alkane Resources Ltd · ASX:ALK
Alkane Resources — Shareholder Meeting (November 2017)
23 slides from Alkane Resources's shareholder meeting presentation, Nov 29, 2017
Slide 1: Corporate Presentation – AGM Presentation
For personal use only Corporate Presentation AGM Presentation November 2017 Nic Earner, Managing Director
Slide 2: Corporate Overview
Corporate Overview For personal use only Capital Structure Ownership (31 Oct 17) Ordinary shares 506M Australian Hedge Funds, Institutions, 9% Rights 15M 2% Foreign Institutions, 5% Share price (22 Nov 17) A$0.34 Directors & Market capitalisation A$173M Management, 23% 12 Month low/high A$0.21/$0.65
Slide 3: FY2017 Snapshot
FY2017 Snapshot For personal use only • FY2017 Financials • Total revenue A$117.8 million • Loss before income tax A$33.6 million (driven by impairment charges of $40.0 million) • Total equity A$164.9 million • Tomingley Gold Operations • Production 68,836 ounces • Gold revenue A$117.3 million • AIS
Slide 4: Highlights – Last Months
Highlights – Last 12 Months For personal use only Dubbo Project • Process development of high grade ZrO2 and now progressing towards high grade hafnium product • Strategic agreements with marketing agreement with Mintech – (global zirconium specialists), zirconium LOIs & Siemens MOU • Modular design
Slide 5: Tomingley Gold Operations FY17
Tomingley Gold Operations FY17 For personal use only • Resource – 508,000oz of gold (3 Sept 2017) • Reserve – 166,000oz (3 Sept 2017) • Mine method – open cut W1, W3, C1 & C2 • Underground feasibility in progress W1 • Mine Life – 12 months without underground • 218,000oz produced to end June 2017 •
Slide 6: TGO Underground
TGO Underground For personal use only 6393400mN 6393600mN Pit Base of (approx) alluvium 200m RL WY949D 100m RL 3.3 @ 3.86g/t WY948D WY953D 2 @ 0.2g/t WY951D 7.6 @ 4.35g/t WY950D 3 @ 4.89g/t 11 @ 4.21g/t WY954D 16.7 @ 2.52g/t WY951D WY949D 17.75 @ 2.01g/t 4 @ 3.37g/t WY955D incl 3 @ 6.69g/t WY952D 12
Slide 7: Tomingley Regional Exploration
Tomingley Regional Exploration For personal use only CIL Processing Plant 1.2km long mineralised zone, open to the north. Mineralisation similar toCaloma TGO. open cut October 2015 © 2017 Alkane Resources Ltd 7
Slide 8: Toongi Pastoral Company (TPC)
Toongi Pastoral Company (TPC) For personal use only • 3,500 Ha (incl. 1,021Ha of biodiversity offsets) • Farming, mining, cultural heritage protection and conservation co‐existing • 420 Breeding age cattle (self replacing & terminal breeding – Wagyu) • Trading sheep and cattle • 500 Ha’s cropping fo
Slide 9: Dubbo Project is Development Ready
Dubbo Project is Development Ready For personal use only Key Permitting Complete Development Ready Pathway to Construction • Front End Engineering Design • Long history of pilot plant • Low capex modular study due Q1 (FEED) • Provisional offtake in place 2018 • Fully Permitted: Mining Lease • Team e
Slide 10: Project Financials
Project Financials For personal use only FEED completed in Aug 2015 Outotec undertaking a review of modular staging approach Scoping Study completed in Oct 2016 Updated financials, cost and execution plan due Q1 2018 FEED (Aug 2015) Modular – Scoping Study (Oct 2016) – Update due Q1 2018 Sta
Slide 11: Products from Dubbo
Products from Dubbo For personal use only Product Stream Specification Tonnes Revenue % 6,667 tpa Rare earth chemical concentrate 95% REO 30% (REO units) DP Process Plant @ 1mtpa 1,294 tpa REO for magnet production 25% (REO units) REO for other applications 5,373 tpa 5% (REO units) 16,374 tpa Zircon
Slide 12: Products from Dubbo Project
Products from Dubbo Project For personal use only The Dubbo Project provides a strategic source of zirconium, rare earths, niobium and hafnium. REE 30% REE Magnets 25% EV’s Non‐Magnets 5% Catalysts Hafnium Revenue 30% Wind power Glass Superalloys Plasma cutting tips Hf Robotics Phosp
Slide 13: Key Product Pricing – 2017
Key Product Pricing ‐ 2017 For personal use only PrNd Mischmetal Pr Oxide PrNd Oxide Nd Oxide ZOC Zircon Sand © 2017 Alkane Resources Ltd 13
Slide 14: Applications of Rare Earth Elements
Applications of Rare Earth Elements For personal use only • 30% of revenue forecast from REE Phosphors • 175,000tpa global consumption 2017E 16% • 10+% annual consumption growth estimates in magnets Ceramics • ~90% REE produced by China 5% • Alkane uniquely placed as a source of REE outside of China
Slide 15: Rare Earth Permanent Magnets (REPM)
Rare Earth Permanent Magnets (REPM) For personal use only Demand for rare earth permanent magnets is intense from fast growing sectors such as electric vehicles, renewable energy and consumer electronics. Wind Power Electric Vehicles • Growing at 14% CAGR • Growing at up to 50% CAGR • 196kg of REE u
Slide 16: Applications of Zirconium
Applications of Zirconium • For personal use only 42% of revenue forecast from zirconium • Zirconium price leveraged to the zircon market which is benefiting from a recent rally in prices TV Glass/ Other Refractory 3% Zirconium Chemicals Demand 14% 38% Advanced Ceramics Foundry 10% 18% Ceramic Pigme
Slide 17: Applications of Niobium
Applications of Niobium For personal use only • 17% of revenue forecast from niobium • 90% of Nb used in the production of high strength low alloy (HSLA) steels. • World production estimated at 80,000t Nb with a global market of US$3‐4B. • CAGR anticipated at 10%. Demand expected to be driven by gre
Slide 18: Applications of Hafnium
Applications of Hafnium • For personal use only 10% of revenue forecast from hafnium Others 1t Revert Westinghouse 10t 2t Demand 66t Stability and strength at high China temperatures makes hafnium 2t 40t ideally suited to superalloy AREVA 35t applications Supply 70t 2t ATI 20t 2t 5t 80% of hafnium m
Slide 19: Why Invest in the Dubbo Project?
Why Invest in the Dubbo Project? For personal use only STRATEGIC METALS Zr REE Nb Hf DUBBO PROJECT One of the most advanced strategic metals projects in Australia DEVELOPMENT READY MODULAR DEVELOPMENT STRATEGIC JURISDICTION All key permits and Reduces capital and lead time Valuable source of supply
Slide 20: Next Months
Next 12 Months For personal use only Dubbo Project • Updated hafnium product development • Updated speciality zirconium product development • Updated business case for modularisation, including financial and marketing • Securing and negotiation of offtake • Progression of financing • Commencement of
Slide 21: Disclaimer
Disclaimer For personal use only This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other tre
Slide 22: Dubbo Project Resources & Reserves
Dubbo Project Resources & Reserves For personal use only Dubbo Project – Mineral Resources Resource Category Tonnes ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 TREO* (Mt) (%) (%) (%) (%) (%) (%) Measured 42.81 1.89 0.04 0.45 0.03 0.14 0.74 Inferred 32.37 1.90 0.04 0.44 0.03 0.14 0.74 Total 75.18 1.89 0.04 0.44 0.03
Slide 23: TGO Resources and Reserves
TGO Resources and Reserves For personal use only TOMINGLEY GOLD OPERATIONS MINERAL RESOURCES (as at 30 June 2017) MEASURED INDICATED INFERRED TOTAL Total Gold DEPOSIT Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Koz) Open Pittable R
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