Terramin Australia Limited · ASX:TZN

Terramin Australia — Investor Presentation (September 2009)

28 slides from Terramin Australia's investor presentation, Sep 3, 2009

  1. Slide 1: Leveraged to zinc – Australian Roadshow September 2009

    TERRAMIN AUSTRALIA LIMITED For personal use only Leveraged to zinc Australian Roadshow September 2009

  2. Slide 2: Important information

    Important information For personal use only The information in this presentation is designed as an aid to a spoken explanation. It is not to be considered without that explanation. It is not intended to guide any investment decisions in Terramin Australia Ltd. The information is intended as a guide

  3. Slide 3: Terramin strategy

    Terramin strategy For personal use only  Finding and developing base metal mines  in close proximity to infrastructure and  with low capital and operating costs  To grow the company by  building on existing portfolio through focused exploration  aggressively seeking to acquire base metal proje

  4. Slide 4: Leveraged to zinc – asset positioning

    Leveraged to zinc – asset positioning For personal use only The Company is a low cost producer and has and a world class project in final feasibility;  Angas Zinc Mine - South Australia (100%)  In production – C1 cash cost US34 cents  expansion to accelerate cash flow  Oued Amizour Project – Alg

  5. Slide 5: Why zinc?

    Why zinc? For personal use only  Mine closures and production cuts  1.1 Mt zinc metal reduction in 2009 (10% of world supply) [ILZSG]  Many proposed projects unlikely to proceed  high capital and operating cost, difficult locations  Lack of investment in exploration and development  delays any

  6. Slide 6: Why zinc? China demand

    Why zinc? For personal use only China China's share of global demand - monthly to -galvanising 50% M arch 2009 demand is 45% Base metals (average) growing by 40% Steel 15–20% % of total world use 35% 30% -galvanised steel 25% is 50% of new zinc 20% consumption in China 15% 10% -steel nearly 50% 5% 2

  7. Slide 7: 2009 Zn Cost Curve, C1

    2009 Zn Cost Curve, C1 Section Header (used to create Tab Pages and Table of Contents) For personal use only 2009 ZINC INDUSTRY COST DATA: FLEXED DATA 90 Tala Hamza 80 70 Angas C1 Cash Cost (c/lb Zn) 60 50 40 30 20 10 0 0 2000 4000 6000 8000 10000 12000 14000 16000 Cumulative Production (Paid Mlbs Z

  8. Slide 8: Company fast facts

    Company fast facts For personal use only Public company - ASX listed No of Shareholders 4,200 Shares on issue 139 million Convertible/redeemable Notes USD30.5 M and AUD5.0 M [ USD notes 5 year term convertible at market ] Market Capitalisation (at share price of $0.71) ~AUD100M Turnover (daily avera

  9. Slide 9: Building on a year of progress

    Building on a year of progress For personal use only  Angas mine completes first year of production  production on forecast  debt restructured  optimisation initiatives implemented  EBITDA forecast $54m over next two years the next step? - production expansion to accelerate cash flow  Tala Ham

  10. Slide 10: Angas Mine

    Angas Mine For personal use only  60 km from Adelaide  Australia’s first mining belt (c1845)  Company tenements total 1,160km2  Angas: new discovery 1991  Mining Lease grant August 2006  MARP approved March 2007  construction from June 2007  Production from August 2008  Fast effective path

  11. Slide 11: Angas – low operating cost attributes

    Angas – low operating cost attributes For personal use only  shallow virgin ore body  grid power- low fixed price  coarse grind  no fly-in fly-out  precious metals credit  local equipment support services TERRAMIN AUSTRALIA LIMITED SLIDE No. 11

  12. Slide 12: Angas C1 cash cost

    Angas C1 cash cost For personal use only 80 June 2009 quarter C1 Cash Cost before bi-product credits US71 c/lb  Basis 70 zinc treatment charge US 60 21 50 cents/lb and lead 37 credit at US83 cents/lb US cents/lb 50 9  Current prices 40 5 zinc US 84 cents/lb 30 lead US 95 cents/lb 15 C1 Cash Cost a

  13. Slide 13: Throughput expansion option

    Throughput expansion option For personal use only  Expand process plant to 500,000 tonnes pa -$3.6M - SAG mill VS drive, additional cyclones, upgrade pumps, flotation capacity, two extra lead filter leafs - crushing/conveying/thickening/tailings storage/concentrate out loading – no expenditure  Un

  14. Slide 14: Resource upside

    Resource upside For personal use only Go od po te Good potential for nt new shoots ial fo r ne w sh oo ts TERRAMIN AUSTRALIA LIMITED SLIDE No. 14

  15. Slide 15: Angas regional potential

    Angas regional potential For personal use only  Focus currently around Angas  20 identified regional targets  Process plant design not capacity constrained  Targeting incremental feed  Gold potential being reviewed TERRAMIN AUSTRALIA LIMITED SLIDE No. 15

  16. Slide 16: Oued Amizour Project

    Oued Amizour Project For personal use only  Located near Bejaia in northern Algeria - 250 km east of Algiers  Positioned at the doorstep of Europe’s smelters  Perfect location and infrastructure  Algeria is major energy supplier to Europe TERRAMIN AUSTRALIA LIMITED SLIDE No. 16

  17. Slide 17: Oued Amizour Project - Ownership

    Oued Amizour Project - Ownership For personal use only  Exploration Permit 5225PE  100% owned by Western Mediterranean Zinc (WMZ)  incorporated private Algerian company WMZ Ownership: 65.0% Terramin Australia Limited (TZN) 32.5% ENOF (Algerian Govt. company) 2.5% ORGM (Algerian Govt. company) Alg

  18. Slide 18: Project summary so far

    Project summary so far For personal use only  Terramin interest acquired in 2006  ORGM non-JORC “reserve” 30Mt @ 6.9% Pb+Zn  WMZ major infill and feasibility drilling programme through 2007 to December 2008  additional 58 diamond drill holes (up to four rigs)  Scoping study completed in Februar

  19. Slide 19: For personal use only

    For personal use only TERRAMIN AUSTRALIA LIMITED SLIDE No. 19

  20. Slide 20: Oued Amizour - project merits

    Oued Amizour - mérites de projet ? “Pas de problème!” For personal use only  wide mineralised intersections  diesel – 18c / litre with large high grade intervals  water – mine lease bores  process power – reliable low cost 3-4c/kWhr  major port and international airport (10kms) TERRAMIN AUSTRAL

  21. Slide 21: Pre-feasibility study

    Pre-feasibility study For personal use only  Bateman Engineers/Golder Associates/Terramin  Most elements at feasibility standard (±15%)  Study assumes  conventional crush-SAG mill-flotation  bulk mining using low cost SLC or Block caving  access via twin declines for production and ventilation

  22. Slide 22: Pre-feasibility outcomes

    Pre-feasibility outcomes For personal use only  Capital cost USD 266 million: 2 Mtpa throughput  Production per annum average  210kt zinc concentrate (54% Zn grade at 90% recovery)  40kt lead in concentrate (60% Pb grade at 72% recovery)  Highly marketable product (low Fe and Si)  Life of Mine

  23. Slide 23: Going forward

    Going forward For personal use only  Proceeding to Feasibility  further geotechnical and hydrogeological drilling  finalisation of portal and decline design  optimisation of mine plan and 4-5 Mtpa production options  continuing assessment of block cave option  finalisation of EIS  application

  24. Slide 24: Value add propositions

    Value add propositions For personal use only  Block cave  opportunity for higher tonnage/lower unit cost  look at increasing production to 3-4Mtpa  Underground crushing and conveying  increased production  reduced ventilation requirements  Early start to declines  bring forward mine commence

  25. Slide 25: Additional Reserves?

    Additional Reserves? For personal use only Resources Indicated Potential for 24.8Mt at 1.8% Pb additional reserves and 6.5% Zn Inferred 33.8Mt at 0.9% Pb and 4.3% Zn Potential for additional at 2.5% ZnEq cut-off resources TH044 68m @ 10.5% PbZn TERRAMIN AUSTRALIA LIMITED SLIDE No. 25

  26. Slide 26: And the bigger picture

    And the bigger picture For personal use only 4,064,000 mN TALA HAMZA 5225PE TERAMIENuusR AUSTRLI MTEDinTcl 4,062,000 mN +5% 2.5 to 5.0% 1.0 to 2.5% 0.0 to 1.0%     Target not reached   4,060,000 mN            0 250 500 1,000 metres TERRAMIN AUSTRALIA LIMITED SLIDE No. 26 674,00

  27. Slide 27: Summary and in perspective

    Summary and in perspective For personal use only  Low cost mine at Angas for expanding near term cash flow  Develop Tala Hamza as a major low-cost Pb-Zn producer  Management team with proven capability  Board with major project oversight and delivery experience Growing a large global producer wi

  28. Slide 28: Company contacts

    Company contacts For personal use only Kevin Moriarty +61 8 8213 1415 Executive Chairman Colin Jackson +61 8 8213 1405 Corporate + 61 400 892 612 Level 22, Westpac House 91 King William Street Adelaide, South Australia 5000 (t) +61 8 8213 1415 (f) +61 8 8213 1416 TERRAMIN AUSTRALIA LIMITED SLIDE No.

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