Lincoln Minerals Limited · ASX:LML
Lincoln Minerals — Investor Presentation (May 2015)
27 slides from Lincoln Minerals's investor presentation, May 12, 2015
Slide 1: Delivering Australia's Highest Quality Graphite Project
Delivering Australia’s Highest Quality Graphite Project LINCOLN MINERALS LIMITED ASX : LML Kookaburra Gully Trench 4 www.lincolnminerals.com.au 12m @ 20.5% graphi=c carbon
Slide 2: Important Notice
Important NoIce This presenta=on has been prepared by Lincoln Minerals Limited (“LML") and Australian Graphite Pty Ltd (“AGL”) as an aid to a spoken explana=on. It should not be considered as an offer or invita=on to subscribe for or purchase any securi=es in LML or AGL nor as an inducement to make a
Slide 3: Corporate Snapshot
Corporate Snapshot • A focused emerging graphite producer with ASX Code LML five projects in the Eyre Peninsula – a proven world-‐class flake graphite province Market CapitalisaIon A$10.7 million • Mining lease applica=on submijed for Shares on issue 268.4 million flagship Kookaburra Gully Graphite Pr
Slide 4: Investment Case
Investment Case • Focused graphite company with Australia’s highest quality deposit • Flagship assets ideally located in close proximity to necessary infrastructure • Flagship Kookaburra Gully Project • Very high-‐grade deposit ranked in the world’s top 10 highest graphite grade resources • High pu
Slide 5: Graphite Market Fundamentals
Graphite Market Fundamentals STRONG GROWTH MARKET • US$13.6 billion global market • Growth since 2002 has been approx. 7.5% each year and forecast to grow 3.7% each year (CAGR) from 2014 un=l 2020 • Expected to reach US$17.56 billion in 2020 • Demand for graphite and graphene projected to more than
Slide 6: Graphite Market Fundamentals: Battery Commercialisation
Graphite Market Fundamentals BATTERY COMMERCIALISATION • Graphite is a key input in the manufacture of lithium-‐ion bajeries • Bajeries widely used in electric vehicles, smart phones, portable computer devices and more – come in ba_ery backup for solar powered homes • Global demand for bajery mater
Slide 7: Graphite Market Fundamentals: Chinese Graphite Market
Graphite Market Fundamentals CHINESE GRAPHITE MARKET • Supply =pped to decline due to lower grades, higher opera=ng costs, =ghter environmental controls and as the country moves to consume more of its own graphite • Demand forecast to increase, driven largely by government plans to increase hybrid &
Slide 8: Graphite Market Fundamentals: Tesla-Zen Solar Graphite Market
Graphite Market Fundamentals TESLA-‐ZEN SOLAR GRAPHITE MARKET • Tesla this week stated that response to their bajery announcement has been “crazy off the hook,” with 38,000 reserva=ons for the Powerwall and 2,500 reserva=ons for the higher-‐capacity Powerpack. • “We’re basically sold out through th
Slide 9: World Class Graphite Assets
World Class Graphite Assets Significant acreage posi=on in the minerals rich Eyre Peninsula in South Australia – ranked 19 as world’s most ajrac=ve des=na=on for mining investment by Frasers Ins=tute Lincoln Minerals Limited Emerging Graphite Producer
Slide 10: Kookaburra Gully
Kookaburra Gully High-‐grade and Quality Graphite Resource JORC Mineral Resource: • 2.2 Mt Indicated and Inferred at 15.1% TGC (5% TGC cutoff) • or 3.16 Mt Indicated and Inferred at 11.5% TGC (2% TGC cutoff) Global Resources by Graphite Grade “Kookaburra Gully is within the Top 10 global resources ba
Slide 11: Kookaburra Gully Deposit
Kookaburra Gully Deposit • Iden=fied by Pancon=nental Mining in 1980s • Graphite flake length 50-‐1500 micron 30m @ 20.5% TGC • Up to 40% Total Graphi=c Carbon • Substan=al upside poten=al with deposit located at NE end of 5km long electromagne=c anomaly 31m @ 18.5% TGC • Mineralisa=on extends from s
Slide 12: Kookaburra Gully – Robust Scoping Study
Kookaburra Gully – Robust Scoping Study • Small open pit & process plant (cf Uley Graphite Mine) = small environmental footprint • Process 250,000 tonnes per annum (tpa) ore Kookaburra Gully Tumby • Produce up to 40,000tpa of high grade (93-‐98% Bay TGC) graphite concentrate Realisable infrastructu
Slide 13: Kookaburra Gully – Robust Project Economics
Kookaburra Gully – Robust Project Economics Low capital investment less than $50 million and compeOOve cash operaOng costs $350.0$ Project#Cash#Flow#(pre:tax#A$m)# $300.0$ $250.0$ A$#million# $200.0$ $150.0$ A$/US$$rate$0.90$ $100.0$ A$/US$$rate$0.75$ A$/US$$rate$1.00$ $50.0$ AMC$model$(0.92)$ $0.0$
Slide 14: Kookaburra Gully Conceptual Mine Plan
Kookaburra Gully Conceptual Mine Plan Main components • Open pit mine D OA • Enclosed processing and MC 4372 TAR OR storage sheds Legend L AW ( ! Roundabout • Pit & all infrastructure total PIL Drainage channel approx. Legend110 hectares Natural channel • No major ( gRoundabout ! roundwater issues N
Slide 15: Simple 4-stage on-site processing plant
Kookaburra Gully Simple 4-‐stage on-‐site processing plant Lincoln Minerals Limited Emerging Graphite Producer
Slide 16: Kookaburra Gully Pilot processing plant options
Kookaburra Gully Pilot processing plant opIons Detailed metallurgical tests show a high-‐grade coarse flake concentrate can be produced with: • Concentrate grades up to 98% TGC • Up to 24% coarse flake (larger than 150 micron) • Acid leach tests have shown that these concentrates can be easily upgrad
Slide 17: Kookaburra Gully - Peer comparison
Kookaburra Gully -‐ Peer comparison Lincoln Archer Valence Lamboo Kibaran Syrah Triton Talga Kookaburra Campoona Deposit Uley McIntosh Epanko Balama Nicanda Hill Nunasvaara Gully & Wilclo South South South Western JurisdicIon Tanzania Mozambique Mozambique Sweden Australia Australia Australia Austr
Slide 18: Upside potential with world-class assets
Upside potenIal with world-‐class assets Project Current Status 2014 -‐ 2015 • Indicated & Inferred JORC Mineral • Pilot plant metallurgical studies Resource • Customer and market • 2.2 Mt @ 15.1% TGC development KOOKABURRA GULLY • Scoping studies completed • Obtain ML & approval to mine • Mineral
Slide 19: Graphite market opportunity with direct exposure
Graphite market opportunity with direct exposure QINGDAO INTERNATIONAL GRAPHITE EXCHANGE CENTER • Lincoln is a 25% founda=on shareholder in the graphite and graphene trading plaoorm • Other shareholders include Qingdao Hainaer Nanometer Technology Co., Ltd (PRC 48%), Pleasant King Limited (Hong Kong
Slide 20: Development
ProducIon to commence in early CY16 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Drilling - Kookaburra Gully Extended Expl'n Resource Estimation Mining Lease Application Government Approval Process Mining Lease Drilling - geotechnical Kookaburra Gully Development Pilot Plant Processing Mine & Process Plant Design
Slide 21: Summary
Summary • Focused graphite company with Australia’s highest quality deposit • Flagship assets ideally located in close proximity to necessary infrastructure • Flagship Kookaburra Gully Project • High-‐grade high-‐quality deposit ranked in the world’s top 10 highest graphite grade resources • High
Slide 22: Thank You
subsoil TSF WRSF South pit ROM pad WRSF West process plant topsoil THANKYOU Dr. A. John Parker Managing Director LINCOLN MINERALS LIMITED +61 8 8274 0243 jparker@lincolnminerals.com.au Lincoln Minerals Limited Emerging Graphite Producer
Slide 23: Appendix
Appendix This presenta=on has been prepared by Lincoln Minerals Limited (“LML") as an aid to a spoken explana=on. The informa=on contained in this presenta=on is based on a number of public statements, Quarterly Reports and ASX releases made by LML: References • Lincoln Minerals, 2012. Scoping study
Slide 24: Kookaburra Gully Mineral Resource
Kookaburra Gully Mineral Resource Lincoln Minerals Limited Emerging Graphite Producer
Slide 25: Other Projects
Other Projects • Dominant posi=on on Eyre Peninsula - tenements total 4,063 km2 - proven world class iron ore & flake graphite province - Proven copper-‐lead-‐zinc, uranium, nickel-‐cobalt, manganese and silver poten=al - close to infrastructure • Eyre Peninsula has a long history of iron ore and
Slide 26: Other Projects
Other Projects Mine Development Reserves Feasibility Studies Kookaburra Gully Mine Planning Graphite Gum Flat Scoping Studies HemaIte & MagneIte Koppio Resources Eurilla Fe Graphite Eurilla U Minbrie Cu Pb Zn Ag ExploraOon Drill Cockabidnie Ni Co Eurilla Cu Pb Zn Successes Cummins Fe Campoona Syncli
Slide 27: Base metal potential on Eyre Peninsula
Base metal potenIal on Eyre Peninsula • Historical mining on Eyre Peninsula for copper, lead and silver goes back to the mid-‐late 1800s - Tumby Bay region - Minbrie-‐Cleve-‐Cockabidnie region • Significant new discoveries include Menninnie Dam (lead-‐ zinc), Paris (silver) and Minbrie (copper-‐