Slide 1: Cleveland Mine Development
elementos.com.au For personal use only CLEVELAND MINE DEVELOPMENT AN ADVANCED LOW COST TIN-COPPER-TUNGSTEN PROJECT IN TASMANIA, AUSTRALIA SEPTEMBER 2015
Slide 2: Why You Should Invest
WHY YOU SHOULD INVEST elementos.com.au For personal use only EXPERIENCED LOW CAPITAL MANAGEMENT STRATEGY WORLD CLASS SIGNIFICANT PROJECT UPSIDE 2
Slide 3: Elementos Ltd (ASX:ELT) Capital Structure
ELEMENTOS LTD (ASX:ELT) elementos.com.au For personal use only Capital Structure (Sept. 2015) Top 20 Shareholders Shares on issue 767.4m Retail Options on issue 38.8m Remaining Top 20 Board & Share price ASX A$0.011 Management Market Capitalisation A$8.4m Mr. Andrew Greig Cash (end of Q1 FY2016) A$0
Slide 4: Experienced Management with a Single Focus and Skin in the Game
EXPERIENCED MANAGEMENT elementos.com.au For personal use only WITH A SINGLE FOCUS AND ‘SKIN IN THE GAME’ TIM MCMANUS CHIEF EXECUTIVE OFFICER RICK ANTHON NON-EXECUTIVE CHAIRMAN BSC MBA MAUSIMM • LAWYER WITH OVER 30 YEARS’ EXPERIENCE IN COMMERCIAL AND CORPORATE LAW. • 20 YEARS MINING EXPERIENCE IN BAS
Slide 5: 100% Ownership of Tier 1 Tin & Tungsten Assets
100% OWNERSHIP OF TIER 1 TIN & TUNGSTEN ASSETS elementos.com.au For personal use only THE CLEVELAND PROJECT IS A BROWNFIELDS REDEVELOPMENT OF TWO DEPOSITS ACCESSIBLE FROM THE SAME UNDERGROUND INFRASTRUCTURE: A LARGE RENISON STYLE TIN & COPPER DEPOSIT AND A WORLD-CLASS LONG LIFE TUNGSTEN PORPHYRY DEP
Slide 6: Low Capital Strategy
LOW CAPITAL STRATEGY elementos.com.au For personal use only ELEMENTOS IS DEVELOPING THE CLEVELAND MINE THROUGH A STAGED LOW-CAPITAL DEVELOPMENT STRATEGY: THE STAGED DEVELOPMENT STRATEGY: • MINIMISES UPFRONT CAPITAL • FUNDS FUTURE STAGES FROM ESTABLISHED CASH FLOWS • MAXIMISES THE BENEFITS OF CAPITAL
Slide 7: Why Invest in Tin? The Highest Value Base Metal
WHY INVEST IN TIN ? THE HIGHEST VALUE BASE METAL elementos.com.au For personal use only ACCORDING TO THE WORLD BANK, TIN’S RESERVES TO PRODUCTION RATIO DECLINED NEARLY 40 PERCENT FROM 2000 TO 2011, MEANING THAT CURRENT PRODUCTION LEVELS CAN ONLY BE SUSTAINED FOR ABOUT 19 MORE YEARS SOURCE: ROSKILL A
Slide 8: Why the Demand? Essential Metal to Technology and Development
WHY THE DEMAND? elementos.com.au For personal use only ESSENTIAL METAL TO TECHNOLOGY AND DEVELOPMENT SOURCE: ITRI ROSKILL USAGE ESTIMATES IN KT, APRIL 2015 8
Slide 9: The Next Growth Catalyst
THE NEXT GROWTH CATALYSIS elementos.com.au For personal use only PRODUCTION CAPACITY OF LITHIUM-ION BATTERIES IS ANTICIPATED TO MORE THAN TRIPLE BY 2020 THE LITHIUM-ION BATTERY MEGA-FACTORIES ARE COMING TIN IMPROVES A LITHIUM BATTERY BY: • PROVIDING GREATER CAPACITY • EXTENDING BATTERY LIFE • ITS LA
Slide 10: The Cleveland Project
THE CLEVELAND PROJECT elementos.com.au For personal use only TIN-COPPER & TUNGSTEN JORC RESOURCES & RESERVES ✓ LOW CAPITAL EXPENDITURE AND OPERATING COSTS IN THE BOTTOM HALF OF THE COST CURVE (C3) ✓ TWO WORLD-CLASS DEPOSITS ACCESSIBLE FROM THE SAME INFRASTRUCTURE ✓ APPROVALS AND MINING LEASE LODGED
Slide 11: World Class Minerals Field
WORLD CLASS MINERALS FIELD elementos.com.au For personal use only THE CLEVELAND PROJECT AREA COVERS THE NORTHERN MARGINS AND METAMORPHIC AUREOLE OF THE MEREDITH GRANITE WHICH IS ASSOCIATED WITH NUMEROUS WORLD CLASS TIN DEPOSITS; RENISON, MT BISCHOFF AND CLEVELAND. CLEVELAND HAS: • 2,020 DIAMOND DRIL
Slide 12: Established Port & Transport Route
ESTABLISHED PORT & TRANSPORT ROUTE elementos.com.au For personal use only 12
Slide 13: Excellent Infrastructure
EXCELLENT INFRASTRUCTURE elementos.com.au For personal use only POWER ON SITE WARATAH (22KV & 110KV) TOWNSHIP 15KM TD1 CROSS-SECTION PROCESS PLANT DESIGN (650 KTPA THROUGHPUT) 13
Slide 14: Stage 1 – Tailings Reprocessing: Why Is the Resource There?
STAGE 1 – TAILINGS REPROCESSING elementos.com.au For personal use only WHY IS THE RESOURCE THERE? THERE ARE TWO PRIMARY METHODS OF TAILINGS DAM 1 TIN RECOVERY – GRAVITY AND FLOTATION. TAILINGS WERE DEPOSITED DURING THE EARLY DAYS OF FLOTATION IMPLEMENTATION. CLEVELAND EXPERIENCED POOR RECOVERIES WIT
Slide 15: Stage 1 – Tailings Reprocessing
STAGE 1 – TAILINGS REPROCESSING elementos.com.au For personal use only 2017 PRODUCTION TARGETED BASED ON A 3.8 MT ORE RESERVE HOW WILL ELEMENTOS RECOVER THE RESOURCE ? • BY IMPLEMENTING MODERN GRAVITY AND FLOTATION TECHNOLOGY, WHICH IS NOW WELL UNDERSTOOD AND HAS ADVANCED SIGNIFICANTLY I.E. ULTRA-FI
Slide 16: Stage 2 – Open Pit Mining in 2018
STAGE 2 – OPEN PIT MINING IN 2018 elementos.com.au For personal use only INDEPENDENT SCOPING STUDY COMPLETED BY AMC CONSULTANTS PTY LTD MINING INVENTORY1 OF 600KT AT 0.50% TIN AND 0.14% COPPER. FIVE PITS - AVERAGE STRIP RATIO OF 5.1 200KTPA OF ORE PER ANNUM OVER 3 YEARS >98% OF THE MINING INVENTORY1
Slide 17: Stage 3 – Underground Mining in 2021
STAGE 3 – UNDERGROUND MINING IN 2021 elementos.com.au For personal use only ABERFOYLE LTD MINED 5.7M TONNES BETWEEN COLLAPSE OF THE TIN COUNCIL 1968 AND 1986 (~18YRS) WITH MODERN MINING METHODS FOR ~24,000 TONNES OF TIN AND 10,000 TONNES OF COPPER IN CONCENTRATE. CLEVELAND WAS CLOSED ON THE DISCOVER
Slide 18: Stage 3 – Underground Mining in 2021
STAGE 3 – UNDERGROUND MINING IN 2021 elementos.com.au For personal use only INDEPENDENT SCOPING STUDY COMPLETED BY AMC CONSULTANTS PTY LTD EXISTING 3.5 KILOMETRE DECLINE AND 25 KILOMETRES OF UNDERGROUND DEVELOPMENT. UNDERGROUND INFRASTRUCTURE, OREBODY GEOMETRIES AND GROUND CONDITIONS ARE AMENABLE TO
Slide 19: Long Mine Life on Existing Resources
LONG MINE LIFE ON EXISTING RESOURCES elementos.com.au For personal use only FULLY FUNDED BY CASH FLOW FROM STAGES 1 AND 2 - STAGE 3 WILL NOT REQUIRE ADDITIONAL EQUITY. MINING INVENTORY1 OF 1.9 MT AT STOPE OPTIMISATION RESULTS (LOOKING WEST) 0.61% TIN AND 0.22% COPPER AND 1.7 MT AT 0.31% TUNGSTEN OXI
Slide 20: Project Comparison - Cost
PROJECT COMPARISON - COST elementos.com.au For personal use only NET DIRECT CASH COST (C1) REPRESENTS THE CASH COST INCURRED AT EACH PROCESSING STAGE, FROM MINING THROUGH TO RECOVERABLE METAL DELIVERED TO MARKET, LESS NET BY-PRODUCT CREDITS (IF ANY). PRODUCTION COST (C2) IS THE SUM OF NET DIRECT CAS
Slide 21: Project Comparison – Contained Tin
PROJECT COMPARISON – CONTAINED TIN elementos.com.au For personal use only DEVELOPMENT PROJECTS - MEASURED & INDICATED JORC RESOURCES ONLY IRON CONTAMINATED PROJECTS TIN PROJECTS CLEVELAND 21
Slide 22: Development Strategy Generates Cash
DEVELOPMENT STRATEGY GENERATES CASH elementos.com.au For personal use only THE INTEGRATED TAILINGS-PIT-UNDERGROUND OPERATION IS PROJECTED TO GENERATE NET CASH OF A$166M1 (PRE-TAX) OVER A 15-YEAR MINE LIFE, WITH EXPLORATION POTENTIAL YET TO BE TESTED. 1 REPORTED IN ACCORDANCE WITH THE JORC CODE 2012
Slide 23: Development Strategy Generates Cash
DEVELOPMENT STRATEGY GENERATES CASH elementos.com.au For personal use only THE MINE WILL GENERATE ANNUAL NET CASH OF ~A$20M1 (PRE-TAX), STEPPING UP TO ANNUAL NET CASH OF ~A$30M1 (PRE-TAX), SUSTAINABLE BY FURTHER RESOURCE DEVELOPMENT AND EXPLORATION. 1 REPORTED IN ACCORDANCE WITH THE JORC CODE 2012 E
Slide 24: Significant Upside Potential
SIGNIFICANT UPSIDE POTENTIAL elementos.com.au For personal use only DRILLING PLANNED TO COMMENCE IN 2016 Exploration Target Low High Grade % Estimated Contained Metal Tin (Sn) 3 Mt 16 Mt 0.65 20 - 110 Kt Copper (Cu) 3 Mt 16 Mt 0.20 10 - 30 Kt Tungsten (WO3) 24 Mt 60 Mt 0.30 72 - 120 Kt TIN-COPPER ES
Slide 25: Cleveland Mine – Long Section
CLEVELAND MINE – LONG SECTION elementos.com.au For personal use only 25
Slide 26: Near Term Price Catalysts
NEAR TERM PRICE CATALYSTS elementos.com.au For personal use only ONLY 20% OF THE STORY TOLD SO FAR … Q2 2016 COMPLETION OF DRILLING PROGRAM FOR OPEN PIT AND UNDERGROUND RESOURCE EXPANSION AND RESERVE INPUTS. Q3 2016 COMPLETION OF FEASIBILITY STUDY FOR TAILINGS PROJECT. Q4 2016 FUNDING FOR TAILINGS P
Slide 27: Why You Should Invest
WHY YOU SHOULD INVEST elementos.com.au For personal use only EXPERIENCED MANAGEMENT WITH A DIVERSIFIED AND EXPERIENCED BOARD OF DIRECTORS. • SKIN IN THE GAME. • HISTORY OF SUCCESSFUL PROJECT DELIVERY. LOW CAPITAL STRATEGY TO DELIVER VALUE TO INVESTORS. • FOCUSED ON TIN, THE HIGHEST VALUE BASE METAL
Slide 28: Cautionary Statements
CAUTIONARY STATEMENTS elementos.com.au For personal use only FORWARD-LOOKING STATEMENTS THIS DOCUMENT MAY CONTAIN CERTAIN FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE ONLY PREDICTIONS, BASED ON CERTAIN ASSUMPTIONS AND INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS, MANY OF WHICH
Slide 29: For personal use only
elementos.com.au For personal use only Level 5 – 10 Market Street Brisbane, QLD, Australia +617 3221 7770 ASX: ELT FOR FURTHER ENQUIRIES PLEASE CONTACT: TIM MCMANUS CHIEF EXECUTIVE OFFICER EMAIL: ADMIN@ELEMENTOS.COM.AU WWW.ELEMENTOS.COM.AU 29