Astron Limited · ASX:ATR
Astron — Mines and Money Hong Kong 2012
45 slides from Astron's conference presentation, Mar 21, 2012
Slide 1: Welcome to the Titanium and Zirconium Age
For personal use only WELCOME TO THE TITANIUM AND ZIRCONIUM AGE March 2012 An introduction to the Astron Group 1
Slide 2: Agenda
Agenda For personal use only • Overview • Global Ti And Zr Market • Donald Mineral Sands Project • Niafarang Project (Senegal) • Technical R&D Operation • Funding & M&A Strategy • Management Team and Shareholder Structure 2
Slide 3: Overview
For personal use only Overview 3
Slide 4: Key highlights
Key highlights For personal use only • ASX listed • Dedicated focus on mineral sands mining and processing • Strong balance sheet – $130m of cash • Two significant near term mining projects o Large, long-life, flagship Donald Project in Australia with anticipated Stage 1 production of 120ktpa zircon
Slide 5: Our goals
Our goals For personal use only To become a relevant long term competitive and dynamic player in the zircon and TiO2 feedstock market 1 Size: Anticipated 120ktpa of zircon production from Donald stage 1 should immediately establish us as the number 5 player 2 Longevity: Potential resources to satisf
Slide 6: History
For personal use only History 6
Slide 7: Location of operations
Location of operations For personal use only 7
Slide 8: Global Ti and Zr Market
For personal use only Global Ti and Zr Market 8
Slide 9: Uses of Zircon and TiO2
Uses of Zircon and TiO2 For personal use only Global zircon demand 1.2mt (2011) by Global TiO2 demand 6.5mt (2011) demand of end use sector by end use sector ©TZMI 2012, not to be reproduced without permission ©TZMI 2012, not to be reproduced without permission 9
Slide 10: Zircon market structure
Zircon market structure For personal use only Demand Total titanium feedstock supply/demand balance: 2005–2015 • Driven by unprecedented growth '000 tonnes 2,000 in industrialisation 1,800 1,600 • Demand anticipated to grow by 56% this 1,400 decade as comparable 9% to over the 1,200 last decade 1,00
Slide 11: Titanium feedstock market update
Titanium feedstock market update For personal use only Supply/demand balances for all titanium feedstocks: Demand 2005–2015 • Demand still being driven by TiO2 pigment (c85%) • Global demand for pigment => increase to 5.76 million tones in 2012 (4% above 2011 levels) • Demand over the next decade wi
Slide 12: Forecast supply and demand balance
12 Forecast supply and demand balance For personal use only Total volume of titanium feedstocks and zircon under investigation as new projects '000 TiO2 units & '000 tonnes Number of companies 4,500 45 4,000 40 3,500 35 3,000 30 2,500 25 2,000 20 1,500 15 1,000 10 500 5 0 0 1996 1998 2000 2002 2004
Slide 13: Donald Mineral Sands Project
For personal use only Donald Mineral Sands Project 13
Slide 14: Overview
Overview For personal use only • 4,039 Mt Mineral Resource (JORC*) in Project Area (1,100 drill hole database) • 450Mt Mineral Resource (JORC*) in Mining Licence Area *Reported in accordance with The 2004 JORC Code (The Australasian Code for Reporting of Exploration Results, Mineral Resources and Or
Slide 15: Key advantages
Key advantages For personal use only ✓ 300km to Port of Melbourne ✓ Close to existing infrastructure ✓ Road and rail networks in place ✓ Low sovereign risk ✓ Skilled workforce available ✓ Zircon and titanium are widely forecast to remain supply constrained for many years ✓ Excellent project developm
Slide 16: Location
Location For personal use only Location in Murray Basin Tenements and proposed project phasing 16
Slide 17: Neighbouring tenements and proximity of other mines
Neighbouring tenements and proximity of other mines For personal use only 17
Slide 18: Approvals
Approvals For personal use only Approvals completed Environmental effects statement ✓ Mining licence ✓ Approvals in progress Work plan Co-location of MSP Power line planning permit 18
Slide 19: Geological formation
Geological formation For personal use only • Fine grained deposits: formed off-shore; large, planar and well-sorted; typically low-moderate grade; particle size D50 = 50 micron • Coarse grain deposits: formed on-shore; narrow, varying and stranded; typically high grade; particle size D50 = 120 micro
Slide 20: Geology
Geology Mining licence – MIN 5532 For personal use only • Database with 1,100 drill holes • Resource of 450 Mt within MIN 5532 to sustain operations +20 years (at 15Mtpa) • MIN 5532 is ~15% of the Exploration Area *Reported according to the 2004 JORC Code 20
Slide 21: Geology: DMS resources split by area
Geology DMS resources split by area For personal use only RESOURCE STRIP TONNES RATIO** AREA HM% (MT) (AVERAGE) Area 1 is not classified in 1 5.2 4* 5.5 the resource 2 4.5 407 1.6 Northern extent of resource estimate 3 3.7 951 0.9 ML 4.5 452 1.3 4 4.2 267 1.7 MIN 5532 5 5.1 545 1.5 6 6.1 427 1.7 7 J
Slide 22: Processing steps
For personal use only Processing steps 22
Slide 23: Mine sequence
For personal use only Mine sequence 23
Slide 24: Plant layout
Plant layout For personal use only Source: RJ Robbins – Definitive Engineering Study 2011 24
Slide 25: Mining method and fleet
Mining method and fleet For personal use only • Flexible mining fleet in truck and excavator • Portable mining hopper allows for short haul minimising cost • Strip ratio year 1 to 5 of 2.1, life of mine 2.6 • Direct backfill and in-pit tailings disposal allowing for low cost waste disposal and rehab
Slide 26: Utilities, infrastructure and logistics
Utilities, infrastructure and logistics For personal use only Infrastructure, utilities and logistics • 300kms to Port of Melbourne • Skilled workforce available • 70kms to rail hub • Earthen water channels in place • Possible access to Federal and State Government funding Recent milestones • 7.0 GL
Slide 27: Marketing and customers
Marketing and customers For personal use only • Have existing close relationships with key target customers - Retained our Chinese trading business after the sale of the processing/marketing operations to Imerys in 2008 - Understand key requirements of customers - Maintain very close interface with
Slide 28: Forecast product mix split by revenue and volumes
Forecast product mix split by revenue and volumes For personal use only Product mix split by revenue Product mix split by volume ©TZMI 2012, not to be reproduced without permission 28
Slide 29: Niafarang Project (Senegal)
For personal use only Niafarang Project (Senegal) 29
Slide 30: Overview
Overview For personal use only • Large coastal – based mineral sands deposit • High grade – no overburden – low slimes • EIS underway to convert exploration licence to mining concession • Exploration area c450km2 • Area drilled out to north Senegal: Niafarang Deposit Pre Mining Development 2007–11 3
Slide 31: 2012 plan
2012 plan For personal use only • Exploration licence renewed until 26 November 2013 Phase 1 • Definitive feasibility study - initiated start of 2012 • Environmental approval - anticipated during 2012 • Mining Licence - anticipated during 2012 Phase 2 • Exploration program - initiated start of 2012
Slide 32: Technical R&D Operation
For personal use only Technical R&D Operation 32
Slide 33: Overview
Overview For personal use only Aim is to maintain our competitive advantage, expand our market and open new opportunities by developing new, high value added, technologies Zircon Washing Project • Aim to develop an economic process to reduce the uranium and thorium content of specific zircon sands •
Slide 34: Value add through technology
Value add through technology For personal use only • Pricing differentials between materials and advanced chemicals and metals are substantial Zr Ti Refinement to advanced chemicals and metals will add considerable value 34
Slide 35: Funding and M&A Strategy
For personal use only Funding and M&A Strategy 35
Slide 36: Balance sheet December 2011
Balance sheet 31 December 2011 For personal use only ASSETS Current assets $m Cash and cash equivalents 128.1 Other current assets 13.9 Total current assets 142.0 Non-current assets Property, plant and equipment 14.7 Intangible assets (includes water rights) 46.4 Land use rights 8.7 Total non-curren
Slide 37: Future funding and M&A plan
Future funding and M&A plan For personal use only Funding • Anticipate Donald Stage 1a and Stage 1b to be funded separately • Prefer early funding to be via equity until cashflows are established • Open to strategic / cornerstone investors • Funding at either corporate level or project level • Would
Slide 38: Management Team and Shareholder Structure
For personal use only Management Team and Shareholder Structure 38
Slide 39: Management expertise
Management expertise For personal use only • Board with strong industry and corporate governance expertise • Experienced Exco with expertise in mineral sands, financing and marketing • Excellent network in Chinese zircon and titanium feedstock markets • Operational team has strong project developmen
Slide 40: Board and Exco
Board and Exco For personal use only NAME POSITION EXPERIENCE Chairman since 1985. Formerly a partner of law firm Philips Fox. Over 30 years experience in corporate and Gerry King* Chairman business advising including acting as a director of a number of Australian public companies. Has 35 years mini
Slide 41: Project Team
Project Team For personal use only EXECUTIVE POSITION EXPERIENCE Over 10 years experience in mine operations, project development and construction. Has previously held senior Project Executive Simon Peters positions within both Rio Tinto and Henry Walker Eltin (now Leighton Construction), with signi
Slide 42: Consultants – Donald
Consultants – Donald For personal use only AREA CONSULTANT Mine Design & Resource Geology Australian Mining Consultants (AMC) Exploration Geology Exploration Management Services (EMS) Geology & Hydro Geology Mr John Smart (ex Rio Tinto) Environmental Coffey Natural Systems Tenement Management Ellets
Slide 43: Consultants – Donald
Consultants – Donald For personal use only AREA CONSULTANT Mapping & Geological Database Resource & Exploration Mapping Radiation Australian Radiation Services / ANSTO Flora & Fauna Ecology Partners Cultural Heritage Landskape Consulting Power Parsons Brinckerhoff Water W3+ Roads Driscoll Engineerin
Slide 44: Shareholding and projects
Shareholding and projects For personal use only Other Top 20 Remaining Shareholders Firback/PT Arafua Shareholders (610) 70% 21% 9% ASTRON LIMITED* Donald Mineral Sands Niafarang Mineral Technical R&D Trading Business Project Sands Project (Yingkou, China) (Shenyang, China) (Victoria, Australia) (Se
Slide 45: Disclaimer, forward looking statements and Competent Person's Statement
Disclaimer, forward looking statements and Competent Person’s Statement For personal use only This presentation has been prepared by Astron Limited (the ‘‘Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement t