Astron Limited · ASX:ATR
Astron — Shareholder Meeting (November 2010)
33 slides from Astron's shareholder meeting presentation, Nov 25, 2010
Slide 1: Annual General Meeting
For personal use only ANNUAL GENERAL MEETING 25 November 2010
Slide 2: Agenda
Agenda For personal use only Chairman’s Introduction Gerry King Legal Update Gerry King Financial Highlights Mark Nielsen Donald Update Simon Peters The Market Scott McDaniel The Way Forward Scott McDaniel Questions Forward looking statements This presentation contains forward looking
Slide 3: Chairman's introduction
For personal use only Chairman’s introduction Gerry King
Slide 4: Chairman's introduction
Chairman’s introduction For personal use only Donald progressing well POSCO negotiations continuing $166.5m of cash on balance sheet at 30 June 2010 $4m of cash generated compared to $884,000 last year Matilda case - Astron awarded $1.7m Pricing forecasts for Zircon and TiO2 products are
Slide 5: Chairman's introduction: 2010 Delivery
Chairman’s introduction For personal use only 2010 Delivery Funding partners ✓ on-going Infrastructure streamlined ✓ Donald Mining licence completed ✓ Resource upgraded ✓ Five new exploration licences awarded ✓ China Construction of Yingkou factory structure completed ✓ Senegal Technical committee a
Slide 6: Legal update
For personal use only Legal update Gerry King
Slide 7: Legal update
Legal update For personal use only Gambia ◦ Astron has prepared its claim to be delivered to the Gambian Govt within the next month ◦ Gambian Govt is required to provide a defence ◦ The Arbitration is expected late 2011 AZ ◦ AZ has made claim to restrain the vendor from selling to Astron ◦ Court
Slide 8: Financials
For personal use only Financials Mark Nielsen
Slide 9: 2010 Financials: Balance sheet
2010 Financials: Balance sheet For personal use only 2010 2009 As at 30 June $m $m PPE includes CIP 11.4 9.0 Donald 21.8 20.4 Land - use rights 10.0 10.7 Current assets (excluding cash) 4.6 6.5 Cash & term deposits 166.5 168.9 Total Assets 214.3 215.5 Liabilities 4.6 4.3 Net Assets 209.7 211.2
Slide 10: 2010 Financials: Commentary
2010 Financials: Commentary For personal use only Property, Plant & Equipment Expenditure relating to construction of Yingkou factory Intangibles Donald – Expenditure capitalised in terms of AASB6 Land Use Rights Land in Yingkou – China 50 years lease Amortised over this period
Slide 11: 2010 Financials: Commentary - Cash
2010 Financials: Commentary For personal use only Cash Cash and deposits retained for investment and project development More than 95% of cash and deposits in AUD Institution Amount Average Rate CBA 121.7 5.6% Goldman Sachs JB Were 20.9 5.75% Bank of China 21.6 5.2% Other Banks 2.3 2.1% Total 16
Slide 12: 2010 Financials: Commentary - Cash Treasury
2010 Financials: Commentary For personal use only Cash - Treasury Investigated and considered a number of products, eg bonds and capital guaranteed products o No significant enhancement to returns To obtain higher returns need to: ◦ Commit funds for usually plus 12 months ◦ Take market risk Ke
Slide 13: 2010 Financials: Commentary - Cash utilisation
2010 Financials: Commentary For personal use only Cash utilisation • Cash has been utilised as follows: Cash used/(received) $m Share buy back 1.2 PPE and WIP 3.4 Deposit on WIM 150 0.5 Development expenditure 1.3 Operating activities (4.0) Net cash and term deposits utilised 2.4 • Disclosure of ter
Slide 14: 2010 Financials: Net asset value
2010 Financials: Net asset value For personal use only Year ended 30 June 2010 Cps Cash 259 Cash 79%
Slide 15: 2010 Financials: Net asset value
2010 Financials: Net asset value For personal use only Year ended 30 June 2010 Cps Cash 259 Land use rights 16 Land use rights 5% Cash 79%
Slide 16: 2010 Financials: Net asset value
2010 Financials: Net asset value For personal use only Year ended 30 June 2010 Cps Cash 259 Land use rights 16 PPE 18 PPE 5% Land use rights 5% Cash 79% Tangible NAV per share of 293 cps (excluding Donald)
Slide 17: 2010 Financials: Net asset value
2010 Financials: Net asset value For personal use only Year ended 30 June 2010 Cps Cash 259 Land use rights 16 PPE 18 Donald 33 Intangibles 11% PPE 5% Land use rights 5% Cash 79% NAV per share of 326 cps
Slide 18: Financials - Corporate
Financials - Corporate For personal use only POSCO ◦ Signed a MOU and subsequently a framework agreement with POSCO ◦ Continuing discussions Other investors ◦ Discussions with other major investors continuing Share buy-back ◦ Continue with the share buy back in order to: Provide liquidity in
Slide 19: Donald Project
For personal use only Donald Project Simon Peters
Slide 20: Donald Project – Update
Donald Project – Update For personal use only Geology Drilled 315 holes during May ◦ Results and new geological model in January 2011 Upgraded the Resource Base and a delivered a Probable Reserve (excluding May drilling)
Slide 21: Donald Project – Mineral Resource
Donald Project – Mineral Resource For personal use only 1) Resources have been classified as Indicated and inferred under the 2004 JORC code 2) All resources have been rounded to the nearest 10 million tonnes and one decimal place in grade 3) Donald resources are reported using a 1% HM lower cut-off
Slide 22: Donald Project – Mineral Resource
Donald Project – Mineral Resource August 2010 See diagram below For personal use only Note 1: Ore Reserves The Ore Reserve Estimate is based on Indicated Mineral Resources contained within mine designs above an economic cut-off. The figures presented were rounded and include mining dilution and ore
Slide 23: Donald Project – Mineral Resource: Competent Persons Statement
Donald Project – Mineral Resource Competent Persons Statement For personal use only The information in this report relating to Mineral Resources is based on information compiled by Rod Webster. Rod Webster is a full time employee of AMC Consultants Pty Ltd and a Member of the Australasian Institute
Slide 24: Donald Project – Update: Approvals & regulatory
Donald Project – Update For personal use only Approvals & regulatory Secured Mining Licence in August Discussions with state and federal governments regarding export permits with indications that permits will be successful
Slide 25: Donald Project - Update: Technical & Infrastructure
Donald Project - Update For personal use only Technical & Infrastructure Purchase of Land Parcels within ML Definitive Engineering Study undertaken on 7.5Mtpa plant ◦ Due to complete study by end of December 2010 Logistical studies undertaken & Feasibility Studies updated State and Federal G
Slide 26: The Market
For personal use only The Market Scott McDaniel
Slide 27: The Structure of the Zircon Market - Shortfall
The Structure of the Zircon Market -Shortfall For personal use only Based on TZMI demand and supply assumptions, the Zircon market shortfall is expected to be 500,000 tpa by 2020 Global demand v Global supply: 2009-2020 (Source: TZMI) Result, TZMI forecasts show steady increases in Zircon prices
Slide 28: The Structure of the Zircon Market - Demand
The Structure of the Zircon Market - Demand For personal use only Significant negative impact of global financial crisis on Zircon market 2009 sharpest ever annual decline in Zircon consumption Expect an increase in demand from zirconia, nuclear industry and other technology driven application
Slide 29: The Structure of the Zircon Market - Supply
The Structure of the Zircon Market - Supply For personal use only GFC has deferred work or approvals which could accentuate market supply shortfalls from 2014 Due to resource depletion expectation is that supply from existing suppliers will reduce from 1.13mtpa to 1.0mtpa* Estimated 200,000* t
Slide 30: The Structure of the Market – Ti feedstock
The Structure of the Market – Ti feedstock For personal use only Expect market to be in balance in the medium term From 2014 and assuming demand growth continues above 3.7%* need additional new projects to close the gap '000 TiO 2 units 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,00
Slide 31: The Way Forward
For personal use only The Way Forward Scott McDaniel
Slide 32: The Way Forward 2011
The Way Forward 2011 For personal use only Finalise all outstanding technical and infrastructure issues and approvals Complete detailed designs and quotations Conclude transactions equity partners and funding providers Let construction contracts Possible complementary acquisitions and join
Slide 33: Questions
For personal use only Questions