MMG Ltd. · HKEX:1208
MMG — Investor Presentation (December 2012)
19 slides from MMG's investor presentation, December 2012
Slide 1: Dugald River: A well timed zinc opportunity
DUGALD RIVER A well timed zinc opportunity December 2012
Slide 2: Important Information
IMPORTANT INFORMATION The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organisation/firm) or published, in whole or in part,
Slide 3: A Well Timed Zinc Opportunity
A WELL TIMED ZINC OPPORTUNITY 1. A compelling zinc opportunity High grade, long life, 53 million tonne resource in a stable, well known region with simple processing technology 2. Attractive zinc market fundamentals Limited global growth options, combined with mine closures creates medium to lon
Slide 4: High Grade Long Life Orebody
HIGH GRADE LONG LIFE OREBODY One of the world’s known largest and highest grade undeveloped zinc- lead-silver deposits Total resource of 53 million tonnes with average zinc grade of 12.5% Long life of 20+ years creates a high level of optionality Initial annual production: 200,000 to 220,0
Slide 5: 53 Million Tonne Resource
53 MILLION TONNE RESOURCE 2012 Dugald River Resource at a 6% zinc cut-off grade Zinc Lead Silver Classification Mt (% Zn) (% Pb) (g/t Ag) Measured 20.6 13.1 1.9 56 Indicated 23.0 12.6 2.0 28 Inferred 9.4 10.7 1.4 14 Total 53.0 12.5 1.9 36 Peter Carolan ((Member of AusIMM, employee of MMG) has suff
Slide 6: Limited Global Zinc Growth Options
LIMITED GLOBAL ZINC GROWTH OPTIONS Attractive grade, stable, well-known region, meaningful scale Zinc grade % 20% 18% 16% Dugald River 14% 12% 10% 8% 6% 4% 2% 0% 5 10 15 20 Contained zinc million tonnes Source: Wood Mackenzie. 6 Circles represent undeveloped zinc projects. Size represents expected a
Slide 7: Mine Closures Create Supply Gap
MINE CLOSURES CREATE SUPPLY GAP Major zinc mine closures are equivalent to 3.1% per annum decline on 2012 production out to 2017 Thin global project pipeline, with declining quality Global zinc supply expected to contract by 1.8 million tonnes through closures and reduced output to 2017 (inclu
Slide 8: Solid Zinc Demand Growth
SOLID ZINC DEMAND GROWTH Global growth expected Global zinc demand from 2001 to 2021 to be above historic levels Thousand tonnes per annum CAGR Market consensus implies 18,300 growth rates above 4% 3.8% p.a. in next 5 years 3.5% 12,600 Exposure to growth driven by shift to greater 8,951 galvan
Slide 9: Positive Zinc Price Outlook
POSITIVE ZINC PRICE OUTLOOK Refined implied zinc surplus / (deficit) LME zinc price (real) Thousand tonnes US$/tonne 1,250 4,000 1,000 3,000 750 price as at 13 December 2012 2,000 500 price volume 250 1,000 0 0 -250 -1,000 -500 -750 -2,000 9 Source: Wood Mackenzie.
Slide 10: Stable, Well Known Region
STABLE, WELL KNOWN REGION Queensland North- West Minerals Province 10
Slide 11: Simple Processing Technology
SIMPLE PROCESSING TECHNOLOGY Proven technology - Conventional crushing, fine grinding and flotation Jaw Lead roughers Lead Crush er Ball scavenger Conveyor mill Conveyor Prefloat rougher Crushed ore stockpile SAG Lead mill regrind mill Prefloat cleaner Paste fill plant Lead primary cleaner Tailings
Slide 12: Low Impact Mine Design
LOW IMPACT MINE DESIGN South box cut Processing plant Waste rock pads and run off dams North box cut 12
Slide 13: Permits and Approvals Obtained
PERMITS AND APPROVALS OBTAINED Environmental Impact Statement (EIS) Full environmental approval for the project obtained Q3 2012 Land Access All except one offsite lease has been granted Native Title agreements and landholder compensation and consents obtained 13
Slide 14: Infrastructure Available
INFRASTRUCTURE AVAILABLE Power 35-40MW supply from Mica Creek 62km High Voltage transmission line Roads 11km site access road and bridge Water existing water distribution pipeline approximately 10km north Permanent Village 500 bed accommodation village planned 14
Slide 15: Infrastructure Available (cont.)
INFRASTRUCTURE AVAILABLE (cont.) Transport Concentrate trucked ~80km to planned storage shed and rail load-out facility at Cloncurry Transport by rail to approximately 800km east to Townsville port Planned rail load-out facility concept Port and Shipping 35kt expansion to existing concentrate
Slide 16: Strong Customer Interest
STRONG CUSTOMER INTEREST Dugald River project has been well received by smelter customers who value a new, large and long life supplier to the growing Asian market Experienced marketing team augmented by Minmetals’ China market strength Long established customer relationships stemming from mar
Slide 17: Fully Scoped Capital Cost
FULLY SCOPED CAPITAL COST Approximately A$1,195 million (US$1,195 million)1 additional capital expenditure to enable first shipment in 2015 Interim funding approval through to early 2013 when full project financing arrangements are expected to be completed Plant Design Illustrative Expenditure
Slide 18: Timed to Meet Market Opportunity
TIMED TO MEET MARKET OPPORTUNITY Environmental Approval Q3 2012 Board Endorsement Q4 2012 Finance Approval Early 2013 Commence Site Construction Early 2013 Commence Plant Ramp Up Q3 2015 (first ore processed) First Concentrate Shipment Q4 2015 Life of Mine 20+ years 18
Slide 19: “procress IWEIVIG
A “procress IWEIVIG