Volt Resources Ltd · ASX:VRC
Volt Resources — Investor Presentation (July 2016)
25 slides from Volt Resources's investor presentation, July 2016
Slide 1: Emerging natural graphite supplier to the hi-tech battery industry
“Emerging natural graphite supplier to the hi-tech battery industry” New York Investor Presentation July-August 2016 ASX: VRC 1
Slide 2: Disclaimer
Disclaimer The information contained in this confidential document (“Presentation”) has been prepared by Volt Resources Limited (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. While the information contained herein has been prepare
Slide 3: Corporate overview
Corporate overview Capital Structure VRC Share Price Chart (12-months) Shares on Issue 913,807,038 0.14 Options and Rights 327,517,082 0.12 Share Price (26 July 2016) A$0.10 0.10 52 week high / low A$0.145 / 0.011 FD Market Cap A$124m 0.08 Cash (30 June 2016) * Est A$7.7m 0.06 Avg daily volume (shar
Slide 4: Board and management
Board and management Senior executive profiles - Minerals marketing specialist with 25 years experience in global roles: 15 yrs at BHP & 10 yrs at ASX listed companies Stephen Hunt B Bus (Marketing) Executive Chairman - Ex-founding director at graphite focused Magnis Resources AICD - Experienced sec
Slide 5: Spherical graphite demand drivers: the "Green effect"
Spherical graphite demand drivers: the “Green effect” ¾ Accelerating demand for electric vehicles - reaching 6m in 2020F (vs c. 800k in 2015) ¾ Evolution of the utility power storage market Upstream impact (benefits VRC): ¾ Drives up demand for naturally sourced Super Jumbo /Jumbo graphite flakes 5
Slide 6: Quantifying the "Green effect" uplift
Quantifying the “Green effect” uplift ¾ Battery sector’s demand for “naturally” sourced spherical graphite: +200% by 2020 Spherical graphite demand ('000 tpa) 180 160 140 120 100 80 60 40 20 0 2015 2020F Source: Benchmark Mineral Intelligence (BMI) Note: Naturally sourced spherical graphite represen
Slide 7: Battery manufacturers: gearing up production capacity
Battery manufacturers: gearing up production capacity ¾ BMI estimates >US$12bn capex on a dozen new facilities globally by 2020 ¾ By then, Tesla’s giga-factory (now being built) may use >90k tpa of spherical graphite 7
Slide 8: Naturally sourced graphite preferred feedstock over synthetic
Naturally sourced graphite preferred feedstock over synthetic ¾ Lower price as much cheaper to produce ¾ Lower impact on the environment ¾ Higher energy density and power output (applicable for EVs) ¾ Notably, Tesla has stated it prefers natural graphite (BMI) 8
Slide 9: Tanzanian graphite suppliers now in play; China at capacity limit
Tanzanian graphite suppliers now in play; China at capacity limit ¾ China likely unable to meet internal spherical graphite requirements (BMI) ¾ Substitution effect away from synthetic graphite starting in China ¾ Diversifying to natural graphite suppliers is now critical for structural reasons ¾ Ot
Slide 10: An upcycle commencing: spherical graphite prices +10% (BMI)
An upcycle commencing: spherical graphite prices +10% (BMI) 10
Slide 11: Vision and core management
Vision and core management Vision: “To become the preferred supplier of high quality super jumbo/jumbo flake graphite to the emerging hi-tech battery industry.” Core management objective: “Generate the highest EBIT margins relative to peers (via…)” ¾ Achieving highest basket price; and ¾ Lowest forw
Slide 12: Tanzania has well establish mining & service industry
Tanzania has well establish mining & service industry PESTEL analysis: Political stable and enjoying solid economic performance Politics ¾ Relatively stable democracy since 1960s & English speaking ¾ Strong and successful purge against corruption (IMF Apr 2016) Economics ¾ Economic performance (GDP
Slide 13: The Resource: Namangale project in southern Tanzania
The Resource: Namangale project in southern Tanzania ¾ Located in Mozambican mobile belt: a band of highly metamorphosed rocks Note: Magnis Resources Nachu project area identified in ASX media release 31 March 2016 (www.magnisresources.com) The Company confirms that it is not aware of any new inform
Slide 14: Namangale has ready access to critical infrastructure
Namangale has ready access to critical infrastructure ¾ Close proximity to reliable power supply ¾ Sealed roads through tenement ¾ Deep water port at Mtwara is only 140km and heavily under- utilised 14
Slide 15: Initial results from Namangale: premium graphite resource
Initial results from Namangale: premium graphite resource ¾ Substantial maiden total JORC compliant resource: indicated 62.6Mt @ 5.1% TGC and inferred 151.8Mt @ 5.1%** ¾ Very shallow resource (<100m); low cost deposit to explore and mine Tonnes Grade Deposit (Mt) (% TGC) INDICATED Namangale 1 62.6 5
Slide 16: Battery sector wants super jumbo flake graphite
Battery sector wants super jumbo flake graphite ¾ VRC delivering with leading super jumbo flake distribution among East African peers (%) 50 VRC MNS KNL GPX SYR BKT 40 30 20 10 0 Super jumbo Jumbo Large Medium Fine Amorphous Flake distribution - East African natural graphite suppliers >$20m mkt cap
Slide 17: VRC's graphite meets 'purity' grade for commercial applications
VRC’s graphite meets `purity’ grade for commercial applications ¾ Recent graphite concentrate results from Namangale returned grades: “…up to 99.3% TGC with +500 micron flake**” ¾ No industrial chemicals were used; just crushing and flotation process ¾ Delivers VRC material comparative cost advantag
Slide 18: Best of breed metallurgy results
Best of breed metallurgy results Phil Hearse, the MD of BatteryLimits, the consultant undertaking VRC’s metallurgy and PFS stated: “These results from Namangale show high grade coarse flake graphite that is amongst the best we have seen in our experience with graphite projects, especially since ther
Slide 19: Vote of confidence: first four customers signed up
Vote of confidence: first four customers signed up ¾ Off-take MOUs for 100,000 tpa locked in with leading Chinese end-users**, while discussions with potential western off-take partners are gaining traction Customer Business description Annual graphite required (t) Optimum Nano China’s second larges
Slide 20: High super jumbo flake distribution and purity premium prices
High super jumbo flake distribution and purity Î premium prices ¾ VRC has >81%** in super jumbo, jumbo and large flake size categories; this is what the battery sector wants and will pay top dollar to lock in supply Est 12-18mth Purity Graphite product Mesh size Flake size forward price (%) (US$/t)^
Slide 21: Report card: management delivering to plan
Report card: management delivering to plan Milestone 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 PFS commenced Met results Marketing MOUs Ore reserves PFS complete Scoping & funding Offtake agreements BFS commences BFS complete Financial investment decision Construction starts C omplete T o complete 21
Slide 22: Peer comparison and VRC's value proposition
Peer comparison and VRC’s value proposition ¾ Material shareholder value created through exploration and PFS de-risking phases ASX listed - East African - graphite stocks (Market cap: A$m) 1,500 Predevelopment 1,200 900 600 Exploration Phase Study Phase 300 - VRC BKT GPX IXR KNL MNS SYR Source: Bloo
Slide 23: Strategic competitive advantages facilitate value creation
Strategic competitive advantages facilitate value creation ¾ Super jumbo/jumbo flake graphite focused tenement (2,000skm) holder ¾ Super jumbo/jumbo flake, JORC compliant, graphite resource: 214mT @ 5.1% ¾ Best positioned to maximize value across the supply chain for stakeholders: 1) Right product m
Slide 24: Key takeaway
Key takeaway “An upcycle is commencing for spherical graphite and VRC is well positioned to capitalise on this dynamic.” 24
Slide 25: Volt Resources contact details
Volt Resources Telephone: + 61 3 9614 0600 EOZail: Info@voltresources.com Web: www.voltresources.com 25