Earths Energy Ltd · ASX:EE1
Earths Energy — Cradle Resources — Investor Presentation (April 2013)
19 slides from Earths Energy's investor presentation, April 2013
Slide 1: Panda Hill Niobium Project, Tanzania
For personal use only Panda Hill Niobium Project Tanzania April 2013
Slide 2: Project Status
Project Status • Panda Hill is an advanced Niobium project that warrants immediate For personal use only commencement of feasibility work • The Project has been tied up with a sole private owner since late 1990s • Potential value only recently identified: an initial JORC inferred resource an ind
Slide 3: The Opportunity
The Opportunity • The Niobium price is ~US$40,000/t, about five times the Copper price For personal use only • Niobium is listed by the USA as a “strategic” and “critical” metal essential to national security due to its lack of substitutes and limited availability • There are three Niobium producers
Slide 4: Post Acquisition Capital Structure
Post Acquisition Capital Structure Existing Shares 105,000,000 For personal use only New Shares1 10,000,000 115,000,000 Market Capitalisation at $0.20 ~$23M Performance Shares2 50,000,000 Options3 24,000,000 Net cash position (post raising) will be ~A$2.6 million Notes: 1 Cradle intends to offer 10
Slide 5: Project Management Team
Project Management Team • Grant Davey Managing Director (on completion) For personal use only • Russell Bradford Project Study Consultant • Keith Bowes Project Director • Neil Inwood Resource Geologist • Nick Castleden Exploration Geologist • Craig Burton Corporate and Strategy A strong, capable tea
Slide 6: Niobium and the Future
Niobium and the Future • Niobium enables significant cost benefits in For personal use only construction and machinery manufacture • $9 of Nb added to a car: • Reduces the weight by 100kg • Increases fuel efficiency • Decreases greenhouse gases • 0.022% Nb added to large bridge construction: • Reduc
Slide 7: Niobium Demand
Niobium Demand • Solid demand growth is expected over For personal use only the next ten years • Growth will be due to: • General growth in steel volumes • Increased Nb concentration in steels • 20% of steel produced in developed countries is HSLA; compared to only 10% Source: Roskill World Steel As
Slide 8: Niobium Supply
Niobium Supply • Three existing producers (CBMM, IAMGOLD, Anglo America) For personal use only • No new producers since 1976 (although market has grown substantially) • No greenfields supply under construction; no new projects with demonstrated feasibility • Undeveloped Niobium deposits are characte
Slide 9: Panda Hill Niobium Project
Panda Hill Niobium Project • Located in Mbeya region, For personal use only Tanzania • Excellent local infrastructure (grid power, roads, rail) • 160 holes drilled from 1950 – 1990s Panda Hill, Mbeya 9
Slide 10: Coffey JORC Inferred Resource 2012
Coffey JORC Inferred Resource 2012 For personal use only Lower Cut-off Tonnage Grade Nb2O5 Content (KT) Nb2O5 % (Mt) (Nb2O5 %) 0 76.0 0.43 327 0.2 71.6 0.45 322 0.3 56.0 0.50 280 0.4 37.9 0.58 220 0.6 12.7 0.77 98 0.7 6.9 0.87 60 Note: Figures have been rounded. Ordinary kriged estimate using 2m dow
Slide 11: Conceptual Cross Section
Conceptual Cross Section For personal use only 11
Slide 12: Panda Hill/Niobec Comparison
Panda Hill/Niobec Comparison Panda Hill compares favourably to IAMGOLD’s Niobec mine (an existing Niobium For personal use only producer): • Niobec – 46 Mt at 0.53% Nb2O5 – underground (mineable) • Panda Hill – 56 Mt at 0.50% Nb2O5 – open pit • Lower mining costs at Panda Hill due to low strip ratio
Slide 13: Scoping Study
Scoping Study Ready to commence scoping study July 2013 For personal use only • 2 Mtpa operation • Confirmatory and extensional drilling • Metallurgical test work • Capital and operating costs estimates • Social and environmental plan • Resource upgrade and mining study Q1 2014 delivery for US$1.6 m
Slide 14: Extraction Process
Extraction Process Well known, simple extraction process: For personal use only • Two stage flotation to produce a concentrate (~55% Nb2O5) • Then a converter (mini-roaster) to produce FeNb (~60% Nb) • The above process is used by all existing Niobium producers • FeNb is marketed directly to steel m
Slide 15: High Level Capital Estimate
High Level Capital Estimate For personal use only 2 Mtpa Operation (US$ millions) Vendor Option 14 Process Plant, Converter 160 Mining Fleet 8 Service Infrastructure 20 Prison move 5 Contingency 20 Total US$227m 15
Slide 16: Project Ownership Structure
Project Ownership Structure • Cradle owns 50% of RECB1, a special purpose vehicle which owns the Panda For personal use only Hill Project (comprising three granted Mining Leases). • Cradle has an option to purchase the remaining 50% of the Project within four years (15 March 2017). • The Option exer
Slide 17: Cradle's Competitive Advantage
Cradle’s Competitive Advantage • Niobium is listed as a “strategic” and “critical” metal due to its lack of For personal use only substitutes and limited availability • Only 3 Niobium producers worldwide, all highly profitable – customers looking for diversification • No greenfield Niobium projects
Slide 18: Disclaimer and Competent Person
Disclaimer and Competent Person The summary information contained herein has been provided by Cradle Resources (“Cradle” or the “Company”). No representation, express or implied, or warranty as to the accuracy or completeness of the information contained herein is made by any party and nothing conta
Slide 19: For additional information contact
For personal use only For additional information contact: Grant Davey Director info@ver.com.au +61 8 9320 4700
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