Eq Resources Limited · ASX:EQR
Eq Resources — Carbine Tungsten — Shareholder Meeting (November 2015)
33 slides from Eq Resources's shareholder meeting presentation, Nov 24, 2015
Slide 1: Carbine Tungsten Limited 2015 Annual General Meeting
Carbine Tungsten Limited ASX Code: CNQ Jim Morgan, Managing Director & CEO 2015 Annual General Meeting 24 November 2015
Slide 2: Disclaimer
2015 ANNUAL GENERAL MEETING DISCLAIMER Forward Looking Statements Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projection
Slide 3: Agenda
AGENDA 1. Chairman’s Welcome 2. Housekeeping 3. Notice of Meeting to be Read or Taken as Read 4. Minutes of 2014 AGM 5. Chairman’s Address 6. Managing Director / CEO Report 7. Resolutions 8. Other Business 9. Meeting Close
Slide 4: Chairman's Introduction
CHAIRMAN’S INTRODUCTION Board of Directors Board Member Experience Russell Krause, Non-Executive Chairman Russell Krause has over 25 years Executive Management and Director level experience in a range of corporate advisory, stockbroking, and investment banking roles with some of Australia’s leading
Slide 5: Tungsten: Industrial Enabling Metal with Strategic Importance
TUNGSTEN.... INDUSTRIAL ENABLING METAL WITH STRATEGIC IMPORTANCE Aeronautical & Automobile Manufacturing With a density of 19.25 g/cm3, tungsten is also among the heaviest metals. Rail & Heavy Earthmoving Highest melting point of all metals at 3,422 ± 15 oC and a boiling point which corresponds appr
Slide 6: Tungsten: Industrial Enabling Metal with Strategic Importance
TUNGSTEN.... INDUSTRIAL ENABLING METAL WITH STRATEGIC IMPORTANCE Electronics New Generation Solar Cells
Slide 7: Mt Carbine Mine - Overview
MT CARBINE MINE - OVERVIEW Mt Carbine Mining Leases cover ~367 hectares. Mining Leases cover ~ 367 hectares The historical Mt Carbine tungsten mine is located 130km by sealed highway from the port of Cairns in North Queensland, Australia.
Slide 8: Evolution of Carbine Tungsten Limited
EVOLUTION OF CARBINE TUNGSTEN LIMITED 2018 Onwards** Junior Diversified Significant Mine Development Exploration Company Major Tungsten Producer 2012-2014 Pure Play Tungsten Mining & 2016 - 2017 Onwards** Production Company Tungsten Stockpile Development & Production ** Development & Production Date
Slide 9: Mt Carbine Tungsten Project - Overview
MT CARBINE TUNGSTEN PROJECT - OVERVIEW Mt Carbine Project Outline Key Findings Re-Cap NPV $161 million • 2012 Feasibility Study confirmed the technical and Resource financial feasibility of the Mt Carbine Project. Mine 47Mt @ 0.13% WO3 • Pre-tax Internal Rate of Return (IRR) of 60%. Stockpile 12Mt @
Slide 10: Our Commitment to Environment, Safety & Community
OUR COMMITMENT TO: ENVIRONMENT, SAFETY & COMMUNITY • Continually modified to keep pace with the Company’s changing operational activities. • Carbine endeavours to engender and promote the values of a safe work place and work culture for all its employees and contractors. • Responsible environmental
Slide 11: 2014-2015 Funding Initiatives
2014-2015 FUNDING INITIATIVES Capital Raising Activities • $645,227 raised through the exercise of 6,452,273 unlisted options during October and November 2014. Options were issued as part of the placement to professional and sophisticated investors on 15 November 2013 with an exercise price of $0.10
Slide 12: 2015-2016 Funding Initiatives
2015-2016 FUNDING INITIATIVES Non-Renounceable Entitlements Offer Revised Non-renounceable Pro-rata Entitlements Offer announced on 18 November 2015 on the basis of 1 new share for every 4 shares held at the record date at an issue price of $0.025 per new share. If fully subscribed the Entitlements
Slide 13: 2015-2016 Funding Initiatives
2015-2016 FUNDING INITIATIVES Placement to Institutional Investment Fund – Lanstead Capital LP (“Lanstead”) - Binding Agreements finalised with Lanstead, an intentional institutional investment fund, to invest AUD$2 million in return for 80,000,000 ordinary shares issued over two tranches at a price
Slide 14: ~12 million tonnes of at-surface stockpiled material
~12 million tonnes of at-surface stockpiled material with an annual processing capacity of up to 3 million tonnes per annum (MTPA)
Slide 15: Hard Rock Stockpile Project
HARD ROCK STOCKPILE PROJECT Project Ready Status Maintained Funding: Technical due diligence phase of the funding negotiations with Mitsubishi RtMJ completed in April 2014. US$15 million secured loan (including prepayment fund of previous US$1 million loan) approved by Mitsubishi RtMJ Board in lat
Slide 16: Funding Options Continue to be Explored
Funding Options Continue to be Explored
Slide 17: Tailings Retreatment Plant
TAILINGS RETREATMENT PLANT Continues to provide invaluable technical and marketing knowledge through ongoing research and development activities.
Slide 18: Tungsten Market
TUNGSTEN MARKET The tungsten market has significant changed from this in 2014:- Source: 2014 ITIA AGM, Toronto, Canada
Slide 19: Tungsten Market
TUNGSTEN MARKET To this as at July 2015:- CNQ Share Price History Source: 2015 ITIA Conference, Vietnam
Slide 20: Tungsten Market
TUNGSTEN MARKET To this now:- Average European APT Price - July to November 2015 $250 $225 $200 FANYA Possible Future EFFECT - ~25% DROP $165 Forecasts $150 USD China State Reserve Bureau Tender Bid for $100 10,000kg @ US$141 REJECTED $50 $0 VERY FEW MINES WORLDWIDE WOULD BE PROFITABLE AT THESE PRIC
Slide 21: Tungsten Market
TUNGSTEN MARKET • Global tungsten market appears to be over-supplied with FANYA stockpile overhanging the market. • Sustained low Ammonium Paratungstate (“APT”) prices significantly impairing the profitability and operating margins of many current and near-term tungsten producers. • Chinese specialt
Slide 22: Planned Acquisition Mt Carbine & Mossman Quarries
PLANNED ACQUISITION MT CARBINE & MOSSMAN QUARRIES • Memorandum of Understanding entered into for the potential acquisition of the Mt Carbine and Mossman Mt Carbine & Mossman Quarries. Quarries • Due Diligence phase will commence upon the completion of the Non-renounceable Entitlements Offer. • If su
Slide 23: Planned Acquisition Mt Carbine & Mossman Quarries
PLANNED ACQUISITION MT CARBINE & MOSSMAN QUARRIES • Established business operating for over 20 years within the Mt Carbine Mining Leases. • Mt Carbine Quarries has a stockpile of mined rock that has been processed through an optical ore sorter amounting to ~6Mt, plus access to the mined rock in the
Slide 24: Long Term Strategic Importance Mt Carbine & Mossman Quarries
LONG TERM STRATEGIC IMPORTANCE MT CARBINE & MOSSMAN QUARRIES • White Paper on Developing Northern Australia released by the Federal Government in June 2015 offers many strategic business opportunities, such as:- ‒ Commonwealth Government providing a new $5 billion Northern Australian Infrastructure
Slide 25: Proposed Cost Reduction Program
PROPOSED COST REDUCTION PROGRAM Even though the Company significantly reduced its cost structure during 2014:- Expenditure Reduced by $0.8m from $3.7m (2013/2014) to $2.9m (2014/2015) The Board intends to continue its cost reduction and review program with the following additional measures being ass
Slide 26: Environmental Compliance
ENVIRONMENTAL COMPLIANCE 2015-2016 Wet Season Water Management Strategies
Slide 27: Mt Carbine Mineral Resource
MT CARBINE MINERAL RESOURCE MT CARBINE MINERAL RESOURCE SUMMARY - JULY 2014 TUNGSTEN RESOURCE AS WO3 Cut-off Grade Tonnes WO3 WO3 Resource Resource (%) (Mt) (%) (mtu) Low Grade Stockpile Indicated 0.00 12.0 0.075 840,000 Main Zone Hard Rock Indicated 0.05 18.0 0.140 2,520,000 Main Zone Hard Rock Inf
Slide 28: Future Exploration Activities
FUTURE EXPLORATION ACTIVITIES MT CARBINE, QUEENSLAND • Two prospects, Iron Duke and Petersen’s Lode, exist within EPM 14871 and 14872 and in the case of Iron Duke, the mining leases. • These prospects are dominated by scheelite mineralisation. • Mapping and sampling indicate both prospects have exte
Slide 29: Future Exploration Activities
FUTURE EXPLORATION ACTIVITIES Iron Duke - Mt Carbine, Qld • Present resource estimate does not Present mapped include any Iron Duke mineralisation. extent of Iron Low grade • Lies within the planned open-cut stockpile Duke prospect envelope. • Average true width 8m from 6 drill holes with an average
Slide 30: Future Exploration Activities
FUTURE EXPLORATION ACTIVITIES Petersen’s Lodes - Mt Carbine, Qld • Lies within EPM 14872 and is ~1-2km south-east of Mt Carbine. • Sub-vertical zone of scheelite mineralisation hosted by sheared and altered metasediments traced for 1.3 km along the strike. • More detailed exploration is planned. • O
Slide 31: Tenement Schedule
TENEMENT SCHEDULE State Ownership Area Status Notes Expiry Date Queensland ML 4867 Mt Carbine Quarries Pty Ltd 358.5 ha Granted Subject to sub-lease agreement with 31/07/2022 100% Carbine Tungsten Limited with pre- emptive right to purchase.** ML 4919 Mt Carbine Quarries Pty Ltd 7.891 ha Granted Sub
Slide 32: 2015-2016 Outlook
2015-2016 Outlook • Metal Bulletin article released on 16 November 2015 suggests that the concentrate price may have stabilised: “SHANGHAI TUNGSTEN SNAPSHOT: Concentrate price stable; SRB (“China State Reserve Bureau”) supports sentiment. “ • Initiate due diligence process for the proposed purchase
Slide 33: Thank-you
Thank-you Carbine Tungsten Limited ACN 115 009 106 50 Scott Street, Bungalow, CAIRNS QLD 4870 - PO Box 1040, Bungalow, CAIRNS QLD 4870 Telephone: +61 (0)7 4052 2400 - Facsimile: +61 (0)7 4052 2444 www.carbinetungsten.com.au (ASX: CNQ)
Carbine Tungsten — Shareholder Meeting (November 2015) on 6ix