Aspire Mining Limited · ASX:AKM

Aspire Mining — Coking Coal Industry Chain Summit, July 2011

30 slides from Aspire Mining's conference presentation, Jul 7, 2011

  1. Slide 1: Coking Coal Industry Chain Summit, July 2011

    For personal use only Coking Coal Industry Chain Summit, July 2011 QINGDAO, China ABN 46 122 417 243

  2. Slide 2: Forward Looking Statements & Disclaimer

    Forward Looking Statements & Disclaimer For personal use only Forward Looking Statements Certain statements in the presentation are or may be “forward‐looking statements” and represent the Company’s intentions, projections, expectations or beliefs concerning among other things, future exploration ac

  3. Slide 3: Mongolia Coking Coal – An Awakening Giant

    For personal use only Mongolia Coking Coal – An Awakening Giant

  4. Slide 4: Mongolian Coking Coal Projects

    Mongolian Coking Coal Projects For personal use only 4

  5. Slide 5: Mongolian Coal Production & Exports

    Mongolian Coal Production & Exports For personal use only Source: Mongolian National Mining Association, Renaissance Capital estimates 5

  6. Slide 6: Mongolian Coking Coal Production

    Mongolian Coking Coal Production For personal use only Company Mine % Coking 2016 Production Coking Grades Coking (mt) Thermal (mt) Mongolian Mining Corp (MMC) UHG 60% 6 4 Hard & Semi Hard Mongolian Alt Group (MAK) Barun Noran 70% 5 2 Semi Soft Naryn Sukhait SouthGobi Resources (SGO) Ovoot 70% 7.5 3

  7. Slide 7: Well Positioned to Supply to North Asian Markets

    Well Positioned to Supply to North Asian Markets For personal use only Via Russian Eastern Ports • 3 days to Japan • 3 days to South Korea • 5 days to Eastern Chinese Ports vs • 15 days + Demurrage from Australia/Canada 7

  8. Slide 8: The Great Mongolian Coking Coal Advantage

    The Great Mongolian Coking Coal Advantage For personal use only Mongolian Coking Coal Exports:  Currently 16Mt (2010), rising to 52Mt (2016)  All coking coal exports mined are within 300 kilometres of China 8

  9. Slide 9: Proximity to Coal Markets – China

    Proximity to Coal Markets – China For personal use only Ovoot Inner Mongolia Liaoning Hebei Shandong Jiangsu Chinese Coking Coal Imports by Province Map: Largest Provincial Importers of coking coal Source: China Coal Resource, Shanxi Fenwei Energy Consulting 9

  10. Slide 10: Exporting Mongolian Coking Coal through Russia?

    Exporting Mongolian Coking Coal through Russia? For personal use only 1. Until Ovoot there was no coking coal in the North of Mongolia 2. 2 out of 6 groups bidding for TT believe so 3. Longer distances to Port, but rates are lower • Ovoot – Naushki, 980km, US 2-3cents/t/km • Naushki – Vostochny, 3,8

  11. Slide 11: Is it Possible to Export Mongolian Coking Coal through Russia?

    Is it Possible to Export Mongolian Coking Coal through Russia? For personal use only 11

  12. Slide 12: The Inefficiencies of Mongolian Coal Exports to China

    The Inefficiencies of Mongolian Coal Exports to China For personal use only  Change of gauge requiring transhipment  Borders with China closed from time to time • Long waiting times • Border costs add US$6-9/T • Bottlenecks with 16Mtpa. What happens for 50Mt?  The Mongolian coking coal discount •

  13. Slide 13: Tavan Tolgoi – The Elephant in the Room

    Tavan Tolgoi – The Elephant in the Room For personal use only  Massive 6.4Bt of Resources – 1.6Bt coking coal  2 x 15Mtpa Open pit mines  2 x 10Mtpa of washed coal 1) West Tsankhi • 100% being sold to foreign consortium • Decision date ~ July 2011 • 1,100km TT railway part of development scenario

  14. Slide 14: Aspire Mining Limited

    For personal use only Aspire Mining Limited

  15. Slide 15: Company Snapshot – Corporate Structure

    Company Snapshot – Corporate Structure For personal use only Capital Structure (ASX:AKM) Share Price (LTM) Undiluted Diluted $1.20 60.0m Share Price (24 June 11) $ 0.570 0.570 6 Apr 2011 Shares Outstanding m 540.0 849.22 Final quality data confirms high quality Market Capitalisation $m 307.8 484.0 c

  16. Slide 16: Aspire's Strategic Investor Interest

    Aspire’s Strategic Investor Interest For personal use only 19.9% 8.6% Interest Interest (Oct 2010) (Mar 2011) 16

  17. Slide 17: Projects

    PROJECTS For personal use only Project Locations Project Interests  Ovoot Coking Coal Project (100%)  Jilchigbulag Coal Project (100%)  Nuramt Coal Project (100%)  Shanagan Joint Venture (51% Earn in)  Zavkhan Iron Ore Project (Earning 70%) 17

  18. Slide 18: Ovoot – Seismic Plan

    Ovoot – Seismic Plan For personal use only Project Seismic Plan  +500sqkm project Hurimt JORC Resource area area  10,000m drilling programme for 2011 Zuun Del Prospect 18

  19. Slide 19: Ovoot – Thick Central Section of the Orebody

    Ovoot – Thick Central Section of the Orebody For personal use only Central thick part of Orebody 1km x 4km. Average total seam thickness – 45m 19

  20. Slide 20: Ovoot JORC Resource & Coal Seam Stratigraphy

    Ovoot JORC Resource & Coal Seam Stratigraphy For personal use only 93% of Resource Tonnes are located in the Upper and three plies of the Lower Seam JORC Resource Above 250m Below 250m Total Depth Depth Measured 70.4 22.9 93.3 Indicated 135.0 47.4 182.4 Inferred 41.9 13.1 55.0 Total 247.3 83.4 330.7

  21. Slide 21: Ovoot Indicative Product Quality & Fluidity Properties

    Ovoot Indicative Product Quality & Fluidity Properties For personal use only Yield IM % Ash % Volatiles CSN % % Indicative Washed Coal Quality 80% 0.6% 8% 25 ‐ 28% 8‐9 • Air dried basis • Above table based on receipt of 90% of coal washing analysis from the 2010 Exploration Programme • ISO Coal Clas

  22. Slide 22: Feasible Rail Path Identified

    Feasible Rail Path Identified For personal use only Commentary Potential Rail Route  Calibre Rail has reviewed a number of rail options to connect Ovoot to coal export markets  Multiple potential users of rail between Moron and Erdenet  Rail path analysis identified a preferred and feasible: • 16

  23. Slide 23: Ovoot to Erdenet Rail Line

    Ovoot to Erdenet Rail Line For personal use only  Northern Mongolian Rail Alliance (“NMRA”) established to drive support for funding rail link between Moron and Erdenet  Apart from Ovoot Coking Coal Project there are many other Projects near Moron which would benefit from a rail link to Erdenet: •

  24. Slide 24: Proximity to Coal Markets – rail access

    Proximity to Coal Markets – rail access For personal use only Asian Importers of Coking Coal: Japan 53Mt1 Korea 18.6Mt2 Taiwan 4Mt3 75.6Mt Russian total Coking Coal Exports to Asian markets: 4.3Mt2 1. Source: UBS Investment Research, 11 April 2011: UBS Global I/O: Commodity Price Review, CY2010 data

  25. Slide 25: Ovoot Development Scenario

    Ovoot Development Scenario For personal use only DSO Constraints Production Stage 0.5 – 1 Mtpa Road capacity 2012 1 limited Large Scale Project Constraints Production Stage • 12 Mtpa Requires Ovoot to 2016 2 • Wash Plant Required Erdenet Rail line 25

  26. Slide 26: Ovoot Stage 2

    Ovoot Stage 2 For personal use only Major new Quality Coking Coal Supply source Indicative ROM ------------------------------- 15Mtpa Target Mine Life ------------------------------- +20years Assumed Yield --------------------------------- 80% Coking Coal Production --------------------- 12 Mtp

  27. Slide 27: Aspire Production of Global Significance

    Aspire Production of Global Significance. For personal use only Largest Met Coal Producers Globally by 2016 (source: AME) Massey Energy Company Marubeni Corporation Mechel OAO Macarthur Coal Limited New World Resources Mongolian Mining Corp Aspire Peabody Energy Corporation Walter Energy Inc. Vale S

  28. Slide 28: Production Comparisons – Independent Coking Coal Peers

    Production Comparisons – Independent Coking Coal Peers For personal use only Market Resource ROM Target Coking Coal Cap.* (mt) (tpa) Production (mtpa) Aspire Mining US$433 M 330.7 15 12 Mongolian Energy Corp US$1.03 B 149 8 5.8 New World Resources US$4.3 B 396 N/R 5.3 Mongolian Mining Corp US$4.6 B

  29. Slide 29: Competent Person Statement

    Competent Person Statement For personal use only In accordance with the Australian Securities Exchange requirements, the technical information contained in this announcement in relation to the Ovoot Coking Coal Project in Mongolia has been reviewed by Mr Neil Lithgow –Non Executive Director for Aspi

  30. Slide 30: Contact details

    Contact details For personal use only Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Unit 2, 454 Roberts Road, Subiaco, Western Australia, 6008 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave‐8 Altai Tower, 3rd Floor, Room 302 David Paull: T

Aspire Mining — Coking Coal Industry Chain Summit, July 2011 on 6ix