Australian Silica Quartz Group Limited · ASX:ASQ
Australian Silica Quartz — Bauxite Resources — 4th Asian Bauxite & Alumina Conference (2014)
24 slides from Australian Silica Quartz's conference presentation, 2014
Slide 1: Opportunities & Challenges in Developing a New Bauxite Project
Peter Canterbury, Bauxite Resources Limited Opportunities & Challenges in Developing a New Bauxite Project
Slide 2: Forward Looking Statements
Forward Looking Statements These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, or other similar w
Slide 3: Developing a New Bauxite Project - Opportunities & Challenges
Developing a New Bauxite Project - Opportunities & Challenges How will current bauxite supply/demand dynamic impact new developers? Barriers to entry - why BRL is well positioned Constraints on growth - infrastructure challenges and environmental concerns. How are the new projects affected?
Slide 4: Company Profile
Company Profile Stock Code: BAU Ordinary Shares 231m Market Cap $29m (at 0.125c) Bank Debt $0 ROB NASH PETER CANTERBURY Current cash $30.5m (30/09/2014) Resource 396.5Mt bauxite Chair Rob Nash CEO Peter Canterbury LUKE ATKINS JOHN SIBLY Major Shareholders % HD Mining & Inv PL 8.5% Yankuang Res PL 8.
Slide 5: Favourable bauxite market
Favourable bauxite market Long Term outlook for aluminium market very positive – driven by demand Bauxite supply constraints due to Indonesian bauxite export ban Health and Infrastructure issues in West Africa However combination of built up inventories and new sources has resulted in a bala
Slide 6: New Projects - Barriers to Entry
New Projects - Barriers to Entry Need Large Scale Resource – Customers want a long term bauxite source to plan alumina production around Efficient Logistics – Majority of bauxite costs is freight Suitable bauxite – Gibbsite/Boehmite - Energy and Caustic considerations Capital & Infrastructur
Slide 7: Large Scale Resources
Large Scale Resources Each Bauxite is different and will require technical modification to a refinery if bauxite is different to the one the refinery was built around. Customers want a secure source of long term bauxite BRL and Joint Venture Partners have current resources of 396.5Mt with pote
Slide 8: Efficient Logistics
Efficient Logistics Typical Bauxite Project >70% logistics cost Mining Costs US$5-10/t Established shipping route Stable political and economic Local Transportation US$5-20 environment Port/Shipping Costs US$10-40 Distance to market, vessel size and availability on route key to shippin
Slide 9: BRL Darling Range Resources Location & Distribution
BRL Darling Range Resources Location & Distribution Bauxite Resource Tenement Ownership Holdings Solely BRL 40.2Mt 732km2 Joint Venture 268.5Mt 6,192km2 with Bauxite Alumina JV (Yankuang Group) Joint Venture 87.8Mt 981km2 with HD Mining &Investments Total 396.5Mt 7,905km2 9
Slide 10: Logistics – BRL
Logistics – BRL Distance from Chinese Market – BRL 4,300 nautical miles BRL close to existing rail facilities to deep water ports Felicitas and Fortuna located very close (2-15km) from existing rail siding Dual gauge/dual track rail line to Kwinana Port 10
Slide 11: Suitable Bauxite
Suitable Bauxite What makes a bauxite suitable - Cost to refine - Determined by: Low/High Temperature Digestion Gibbsite/Boehmite/Diaspore Energy and Caustic considerations Logistics Costs Environment and energy considerations likely gain increased focus globally - especially in China
Slide 12: Resources Summary
Resources Summary Resource Size Al2O3 Available Al2O3 Reactive SiO2 Al2O3 avail:SiO2 Depth of Summary reactive overburden Max Bauxite Bulk Density Mt % % % (m) Thickness (m) BRL 100% Fortuna 40.2 38.8 32.1 1.8 18 2 13 2.17 BRL 100% Sub total 40.2 38.8 32.1 1.8 JV with Bauxite Alumina JV (Yankuang Gr
Slide 13: Capital/Infrastructure Constraints
Capital/Infrastructure Constraints Infrastructure is largest challenge to all new bauxite projects Funding of large scale capital projects very difficult under current market conditions Tonnage of bauxite shipped generally lower than other bulk commodities such as iron ore Therefore capital
Slide 14: Development Constraints
Development Constraints New Projects Development Constraints Land Security Environmental Considerations Agreement with landowners Building Infrastructure – Approvals Policy framework in place in jurisdiction the Company is intending to operate BRL Projects All resources on large priv
Slide 15: BRL's Competitive Advantage
BRL’s Competitive Advantage Resources on private cleared farmland (native title extinguished) Tenements close to existing infrastructure, roads and rail With good access to bulk handling ports Established export routes with significant freight distance advantage to China Located close to m
Slide 16: Key Company Projects
3 Key Company Projects THREE PROJECT GROUPS 1. Bauxite Resources own 100% resource development 2. Joint Venture with Yankuang Group – Bauxite Alumina Joint Venture (BAJV) 3. Joint Venture with HD Mining and Investments PL (HD Mining) 16
Slide 17: Northern Darling Range
Northern Darling Range Existing resource of 268.1Mt (Felicitas & Fortuna) Further resource upside Recent maiden resource at Dionysus of 20.3Mt 17
Slide 18: BRL's Bauxite Projects - Fortuna
BRL’s Bauxite Projects - Fortuna BRL 100% Tenement Focus area is the Fortuna deposit – 40.2Mt resource located on 2 private farms Upside potential with a number of additional properties targeted 15 km from existing rail siding ~ 100km by existing rail to Kwinana bulk port Fortuna Concept Stu
Slide 19: BRL's Bauxite Projects - Felicitas
BRL’s Bauxite Projects - Felicitas Bauxite Alumina Joint Venture (BAJV) with Yankuang Resources (YK) Bauxite and Alumina rights YK to fund 70% of all bauxite exploration costs for 70% bauxite resource Felicitas Resource of 228Mt of which over 50% in measured category with further exploration u
Slide 20: BRL's Bauxite Projects – Athena & Dionysus
BRL’s Bauxite Projects – Athena & Dionysus HD Mining Joint Venture JV with Shandong Geological Institute HD fund 100% of exploration and feasibility works to earn up to 60% interest Identified 87.8Mt of refinery grade bauxite resource with further exploration resource upside Two distinct pro
Slide 21: Eastern Darling Range
Eastern Darling Range 15Mt Ceres resource Recent 36.2Mt Athena resource announced in Wandering-Pingelly area Supportive community Albany Port 280km from project area 21
Slide 22: Customer demand/sentiment toward new bauxite operations
Customer demand/sentiment toward new bauxite operations Customers looking for long term resource security Some refineries can be adjusted for different bauxites Value in Use (VIU) critical to evaluation of bauxites – what is a source of bauxite worth in an individual refinery Logistics secur
Slide 23: BRL – Why we are positioned favourably
BRL – Why we are positioned favourably Demand from China will require multiple new bauxite sources Australia is logical supply source BRL has large resource of efficient bauxite Infrastructure – Use of existing infrastructure means low capital entry with near term potential Location – Larg
Slide 24: BRL – Strategy
BRL – Strategy Develop pipeline of projects to supply demand from China for both bauxite and alumina Fast tracking development (subject to further studies, approvals and FID) of Fortuna project for the supply of DSO bauxite to China within 3 years Resolve the proposed development options under
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