Australian Silica Quartz Group Limited · ASX:ASQ
Australian Silica Quartz — Bauxite Resources — Investor Presentation (August 2011)
20 slides from Australian Silica Quartz's investor presentation, August 2011
Slide 1: Bauxite Resources Ltd Investor Presentation
BAUXITE RESOURCES LTD Investor Presentation August 2011 Positive Progress 1
Slide 2: Disclaimer
Disclaimer Forward Looking Statements No representation or warranty, express or implied, is made by Bauxite Resources Ltd that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Bauxite Resources Ltd,
Slide 3: Company Profile
Company Profile Stock Code: BAU Ordinary 235m Options 25m Market Cap $43.5m (31/07/11) Bank Debt $0 Current cash $51.6m (31/07/11) Scott Donaldson CEO & Executive Director Paul Fromson CFO & Company Secretary Barry Carbon AM Chairman 3
Slide 4: Bauxite Resources
Bauxite Resources C5 China shipping route 4
Slide 5: Darling Range tenements
Darling Range tenements (granted & under application) • ~24,000 km2 tenement area • 49 ELs granted, 63Pending • 334 properties have signed agreements • Strong Joint Venture across tenements • Additional resources currently being modelled Global bauxite resource for north Darling Range (Aug 2011) 5
Slide 6: Bauxite Resources Defined
Bauxite Resources Defined • 8 defined projects in the Darling Range • Rusina Resource – 3.7Mt Inferred*1 • Aurora Resource – 7Mt Indicated, 4.4Mt Inferred *1 • Cardea Resource – 6.4MT Inferred*2 • Vallonia Resource – 1.5Mt Inferred *1 • Minerva Resource – 2.2Mt Inferred *1 • Juturna Resource – 8.2Mt
Slide 7: Kimberley tenements
Kimberley tenements • 5 Exploration Licences with 8 in application • Seeking Joint Venture partners • Aerial survey completed and desktop study progressing 7
Slide 8: Darling Range resource proven across operative Joint Ventures
Darling Range resource proven across operative Joint Ventures May 2011 August 2011 • 15.1Mt @ 42.1% Total Alumina, • 33.4Mt @ 41.1% Total Alumina, 31.2% Available Alumina & 30.2% Available Alumina & 3.9% Silica(R) – indicated and inferred 3.9% Silica(R) – indicated and inferred • 39 Exploration Lice
Slide 9: Alumina Refinery JV Agreement
Alumina Refinery JV Agreement Yankuang Agreement (YK) • Bauxite resources and Alumina refinery Joint Ventures • Bauxite and Alumina rights only – BRL retains other mineral rights • YK to fund 70% of all bauxite exploration costs for 70% bauxite rights • YK will pay 90% of BFS, 91% of the refinery co
Slide 10: Alumina Refinery JV Agreement
Alumina Refinery JV Agreement Yankuang Agreement • Work towards site selection for the alumina refinery has commenced • Scoping study for refinery well advanced • Aim for refinery to be substantially commenced within 5 years subject to successful completion of: - bankable feasibility study (BFS) - s
Slide 11: Yankuang Group
Yankuang Group • Total assets of AU$18 billion • In Australia Yankuang through Yanzhou Coal owns Felix Resources • Main businesses; Coal mining, coal-based chemicals, machinery manufacturing, electricity generation and aluminium production • Owns/Controlling stakes in 37 subsidiaries with a staff of
Slide 12: Joint Ventures
Joint Ventures Shandong No 1 Institute of Geology and Minerals Exploration (Shandong Bureau) • 1,000km2 in Darling Range • Bauxite rights only, other minerals remain with BRL • Other mineral rights and joint venture opportunities in discussion • Shandong to earn 60% bauxite ownership by funding 100%
Slide 13: Shandong – HD Mining JV
Shandong – HD Mining JV HD Mining – Perth based arm of Shandong No.1 Institute of Geology & Minerals Exploration • Shandong No.1 Institute of Geology & Minerals Exploration (No.1 Institute) (SDGM) is an integrated geological exploration entity with broad scope of business employing a staff of 1,100
Slide 14: Key advantages of Darling Range bauxite
Key advantages of Darling Range bauxite • Bauxite ore typically low silica and gibbsitic, requiring lower temps and pressure i.e. lower cost to liberate alumina • Established global industry best practises for mining and rehabilitation – bauxite found in rocky upland areas • All projects bar one wit
Slide 15: Mining Approvals and Operations
Mining Approvals and Operations • Application for environmental approval for mining north of Bindoon • Environmental Protection Authority (EPA) has set a Public Environmental Review (PER) level of assessment • Proposal for up to 2Mtpa of bauxite, gravel and other products • Environmental Scoping Stu
Slide 16: Chinese Bauxite Market
Chinese Bauxite Market • Chinese bauxite market recovering post GFC • China importing record levels of bauxite • Bauxite prices making slow recovery currently at ~US$46 (CIF) to China • Bauxite prices in AU$ terms show little change Chinese Bauxite Import and Prices (CIF to Chinese Ports) Source: An
Slide 17: Chinese Alumina and Aluminium market
Chinese Alumina and Aluminium market • China has moved from being net importer of aluminium to now exporting 513kt - increase of 27%yoy • Domestic production of alumina steadily increasing, YTD production 20.3Mt • China increasing self sufficiency for alumina, but still requires bauxite imports Sour
Slide 18: Global Aluminium market
Global Aluminium market • Aluminium prices in 2010-11 have been maintained in $A terms despite large stocks and overcapacity • Aluminium prices have moved from US$1800/t in mid 2010 to US$2,368/t * with strong global demand forecast (* Price Based on USD LME 3 mth Buyer 26th Aug 2011) • Alumina pric
Slide 19: Status
Status Cash in bank At the end of the June quarter the company had $53 million cash at bank. The company also had $0.6 million in security bonds plus $9.0 million in property, plant and equipment. Status of threatened litigation On 28th June 2010 BRL advised ASX that it had received a single page fa
Slide 20: Summary
Summary • Strong Cash Position • JORC Resource doubled since May 2011 • 44% of tenement holdings now granted covering half of total tenement area • Land Access Agreements increased • Experienced Management Team • Dual vision for Alumina Refinery and direct shipping bauxite ore (DSO) Head office: Lev
Bauxite Resources — Investor Presentation (August 2011) on 6ix