Alara Resources Limited · ASX:AUQ
Alara Resources — MENA Mining Show 2013
35 slides from Alara Resources's conference presentation, Oct 30, 2013
Slide 1: ASX/Media Release: Presentation at the MENA Mining Show
Alara Resources Limited A.B.N. 27 122 892 719 Telephone | +61 8 6323 5900 Level 3, 35 Havelock Street Facsimile | +61 8 6323 5999 West Perth, Western Australia 6005 AUSTRALIA Web | www.alararesources.com Email | info@alararesources.com PO Box 1890 West Perth, Western Australia 6872 ASX/MEDIA RELEASE
Slide 2: Investor Presentation: Moving from Explorer to Producer
For personal use only Investor Presentation World Trade Centre, Dubai 28-29 October 2013 Moving from Explorer to Producer
Slide 3: Company Overview
For personal use only Company Overview
Slide 4: Company Profile - Restructured Board
For personal use only Company Profile ……. Restructured Board! Board of Directors Company Data Ian Williams AO Chairman ASX Code AUQ • 40+ years’ mining industry experience Market Capital (29 October 2013) $19.1M • Hamersley Iron, Rio Tinto, Century Zinc and Pasminco • Awarded Order of Australia for
Slide 5: Management Team - Getting Set for Growth
For personal use only Management Team …. Getting Set for Growth Justin Richard – Country Manager, Saudi Arabia & Oman (Saudi Arabia) 20+ years’ experience, including Corporate Counsel and head of legal for UGL Limited’s resources division, Senior Commercial Officer / Contracts Julian Tambyrajah – Ac
Slide 6: Company History & Background
Company History & Background Khnaiguiyah (KMC) Project Path (Saudi Arabia) Potential Project For personal use only Construction Commencement Finance Preparation Started July 2014 July 2013 DFS Completed April 2013 Daris/Washihi Scoping Study (Oman) Maiden JORC Resource February 2013 February 2012 Da
Slide 7: Current Company Project Overview
For personal use only Current Company Project Overview Moving from Exploration into Development and Production Khnaiguiyah Washihi & Daris Project Projects • Focused on mining in the Middle East (Saudi Arabia) (Oman) • Two major projects Khnaiguiyah – Saudi Arabia Daris/Washihi – Oman • Project Stat
Slide 8: Key Milestones to Date
For personal use only Key Milestones to Date www.alararesources.com 7 © Alara Resources Limited
Slide 9: Key Company Milestones
Key Company Milestones • Formed Alara Resources from Strike Resources to explore for uranium 2007 For personal use only • Signed Daris/Washihi Joint Ventures 2010 • Signed Khnaiguiyah Joint Venture 2010 • Mining licence granted 2010 • Mining Rights Agreement signed for Khnaiguiyah 2011 • Maiden JORC
Slide 10: Why Saudi Arabia
For personal use only Why Saudi Arabia Photo – AMEK Al Masane Plant – Saudi Arabia www.alararesources.com 9 © Alara Resources Limited
Slide 11: Why Saudi Arabia - Technical
For personal use only Why Saudi Arabia - Technical • 1970’s BRGM did full review – 5300 deposits • Saudi Geological Survey • DMMR (mines department) - +4,000 maps • New mining code 2004 – ease of operation • Resource Potential in the Arabian Shield – 40 fully identified resources – 15 ready to progr
Slide 12: Why Saudi Arabia - Commercial
Why Saudi Arabia - Commercial • 2012 Saudi mining budget – largest to date For personal use only • Saudi government focus • Petroleum • Mining • Financial services • 20% Corporate tax (nil personal) • Royalties – nil • SIDF – 75% debt available (low rates) • Ownership – 100% permitted • Profits & Ca
Slide 13: Khnaiguiyah Project, Saudi Arabia
Khnaiguiyah Project For personal use only Saudi Arabia Photo – AMEK Al Masane Plant – Saudi Arabia www.alararesources.com 12 © Alara Resources Limited
Slide 14: Location Map
For personal use only Location Map • Located 200km west of Riyadh – Capital City • 170km from Riyadh on a 6- lane highway -30km on a 2- lane highway to • Nearby town of Al Quwayiyah • Population of ~200,000 - light industry and technical college • Next to Khnaiguiyah • Population ~ 150 people www.al
Slide 15: Brief Technical Overview
Brief Technical Overview • Khnaiguiyah Mining Licence, 2 Exploration Licences For personal use only and 5 Exploration Licence applications pending • Total Licence area approximately 380km2 • Mining Licence and environmental approvals issued • DFS completed in April 2013 • 2 Mtpa process plant throug
Slide 16: JORC Mineral Resource Summary
JORC Mineral Resource Summary The current JORC Mineral Resources at Khnaiguiyah are: For personal use only • Measured & Indicated (Domains 1 & 2) 25.32Mt @ 4.03% Zn and 0.17% Cu • Measured & Indicated (Domain 3) 8.53Mt @ 0.64% Cu • Inferred (Domains 1 & 2) 4.32Mt @ 2.90% Zn and 0.03% Cu The current
Slide 17: Mining
Mining • Three open cut pits (K1, K2 and K3) within 3km For personal use only • Centrally located ROM pad and processing facility. • 100% drill and blasting for ore and waste • Leased mining gear - owner operator basis • 2Mtpa to be completed in 9 years followed by treatment of low grade stockpiles
Slide 18: Processing
Processing • 9 years mining - 4 years stockpile reclaim For personal use only • Conventional differential floatation • Design on +6% Zn - Conservative • Crushing and grinding designed at higher end of bond indices – opportunity . • Grinding availability 75% - conservative • Higher throughput with “s
Slide 19: Concentrate Production
For personal use only Concentrate Production • Annual throughput (tonnes) 2,000,000 • Milled (tonnes) 26,000,000 • Grade (Zn) 3.33% • Grade (Cu) 0.25% • Recovery (Zn) 92% • Recovery (Cu) 88% • Zinc concentrate (55%) 1.4 Mt • Copper concentrate (25%) 0.2Mt • Zinc in concentrate (tonnes) 775,000 • Cop
Slide 20: Zinc World Wide Production Summary
For personal use only Zinc World Wide Production Summary YOU ARE HERE START OF PRODUCTION • Zinc supply is falling off • Zinc demand is rising • Wood Mackenzie “Zinc will be the only metal to grow in unit value relative to its position in 2010 and will peak in 2016-2019” www.alararesources.com 19 ©
Slide 21: Zinc Price Forecast
For personal use only Zinc Price Forecast Zinc price to peek at the projected/possible project start up date of mid 2016 Khnaiguiyah Targeting production of 72,000t to Project uses a lesser “consensus” price ~2,650/tonne 120,000t zinc as concentrate Current Price www.alararesources.com 20 © Alara Re
Slide 22: Capex Summary
Capex Summary • Capex based on fixed lump sum prices For personal use only • Mobile mining equipment is proposed to be leased • Tender bids have been received • Item US$M Process facilities (includes first fills) 157 Power 15 Accommodation village 12 Site infrastructure, workshops and buildings 15 C
Slide 23: Project Commercial Summary
Project Commercial Summary • Project revenue: A$2,074 M For personal use only • Project costs : A$1,201M • EBITDA: A$873M • Cash flow (post Capex): A$467M • Capex: US$257M • Project NPV: A$170M • IRR: 23% • Weighted Avg cost of capital 9.1% • Payback: 2.8 years • Average production of 80ktpa Zn and
Slide 24: Daris/Washihi Project, Oman
For personal use only Daris/Washihi Project Oman www.alararesources.com 23 © Alara Resources Limited
Slide 25: Project Location
For personal use only Project Location • Long history of copper mining (circa 4,000 BC) • Economy on course for excellent growth • Conducive investment climate “Metals” are in top five promoted sectors in the Sultanate • Transparent taxation policies • World class infrastructure www.alararesources.c
Slide 26: Copper Gold Exploration JV Licenses
For personal use only Copper Gold Exploration JV Licenses • Closer to in-country copper smelter • Close to Port of Sohar - a deep sea port • Located in a copper - gold producing region • In midst of several “VMS styled” copper deposits • Direct road access • Water for operations available www.alarar
Slide 27: Alara Oman Mineral Resource Inventory
Alara Oman Mineral Resource Inventory Washihi Resource Model For personal use only Deposit Tonnes Cu% Au g/t Washihi 6,840,000 0.90 0.17 (JORC Indicated) Washihi 7,270,000 0.71 0.20 (JORC Inferred) Daris East Sulfide Ore 240,024 2.65 0.43 (JORC Measured+Indicated) Daris East Resource Model Notes to
Slide 28: Largest Oman Copper Resource
Largest Oman Copper Resource Resource in MT For personal use only 16 14 12 10 8 6 4 2 0 www.alararesources.com 27 © Alara Resources Limited
Slide 29: Scoping Study Summary
For personal use only Scoping Study Summary • 2013 0.5 Mtpa Scoping study - robust return • 7 year mine life • $32m Capex • NPV = $36m • Scoping Study being updated to 1 Mtpa • Further deposits in JV License areas • Strong metallurgical tests results • The copper concentrate produced to be sold to a
Slide 30: Future Milestones
For personal use only Future Milestones www.alararesources.com 29 © Alara Resources Limited
Slide 31: Key Future Milestones 2014
For personal use only Key Future Milestones …… 2014 • Appoint Oman Country Manager – Done • Appoint influential Saudi representative to the Board - Done • Complete Board and Management Team restructure • Complete the updated Scoping Study on Daris/Washihi • Finalise the considerations for Daris/Wash
Slide 32: Summary
For personal use only Summary www.alararesources.com 31 © Alara Resources Limited
Slide 33: Alara Overview and Summary
Alara Overview and Summary • Strategy to mine in the Middle East For personal use only • First area of development is Saudi Arabia • Robust DFS and Project- Khnaiguiyah • Project has extensive geological upside • Project has material Capex reduction options • Saudi Arabia ideal development location
Slide 34: JORC Code Competent Person Statements
JORC Code Competent Person Statements JORC Code Competent Persons’ Statement For personal use only The information in this report that relates to Ore Reserves in relation to the Khnaiguiyah Zinc-Copper Project (Saudi Arabia) was compiled by Mr Geoff Davidson, who is a member of the Australian Instit
Slide 35: Alara Resources Limited - Disclaimer and Contact
Alara Resources Limited For personal use only ABN: 27 122 892 719 ASX Code: AUQ Level 3, 35 Havelock Street Level 14, The Forrest Centre West 221 St Perth WATerrace Georges 6005 Perth, Western Australia 6000 Telephone +61 8 6323 5900 Telephone:+61 Facsimile +61 8 8 6323 9214 9787 5999 Facsimile: +61