Waratah Minerals Limited · ASX:WTM
Waratah Minerals — Battery Minerals — Investor Presentation (January 2018)
37 slides from Waratah Minerals's investor presentation, January 2018
Slide 1: Fast-tracking Montepuez & Balama Projects
Fast-tracking Montepuez & Balama Projects BATTERY MINERALS LIMITED January 2018 Investor Presentation 1
Slide 2: Overview
Overview Share Price David Flanagan Jeff Dawkins Managing Director Chief Financial Officer 0.14 10 Millions Daily Volume Traded On-Market 9 Jeff Dowling Andy Cardoso 0.12 Daily Close Price - BAT 8 Non-Exec Chairman Mozambique Country Director Daily VolumeTraded On-Market 0.10 (based in Mozambique) 7
Slide 3: Recent events: Offtake and $20M placement
Recent events: Offtake and $20M placement Battery Minerals signs offtake with four customers for Montepuez product • Urbix - Binding offtake term sheet for up to 11,000tpa of graphite concentrate • GEM - Binding offtake agreement for 10,000tpa of graphite concentrate • Black Dragon - Binding offtake
Slide 4: Montepuez: Advanced Graphite Project
Montepuez: Advanced Graphite Project • Huge Mineral Inventory: o Probable Ore Reserve 41.4Mt @ 8.8% TGC @ 4% TGC cut-off1 o Indicated & Inferred Resource 105.9Mt @ 7.74% TGC @ 2.5% cut-off1 o Significant exploration potential • Fast Development Timetable: o Approvals expected in March Q 2018 o Const
Slide 5: VES Reveals an Exceptional Project
VES Reveals an Exceptional Project Montepuez Graphite Project 2 VES Outcomes (First Module Only) Achievable Capex – smaller Annual production of graphite concentrate 45,000 – 50,000pa plant with low technical risk Capex (pre-production) US$42.3 million Opex (per tonne of concentrate) US$337/t Lowest
Slide 6: What Has Changed from the Feb17 Montepuez DFS?
What Has Changed from the Feb17 Montepuez DFS? Plant Type Prod. Rate 45-50ktpa concentrate = down from 100ktpa Capex Capex US$42.3 million = down from US$126 million OpexOpex Lowest quartile OPEX of US$337/t concentrate = down 35% from US$422/t Grade Grade Target first 10 years @ 12% TGC = 35% incre
Slide 7: Product Marketing Strategy – Offtake Agreements
Product Marketing Strategy – 4 Offtake Agreements January 2018 – Three Binding Offtake Agreement each for 10,000tpa • GEM - Binding offtake agreement for 10,000tpa of graphite concentrate • Black Dragon - Binding offtake agreement for 10,000tpa of graphite concentrate • Keshuo - Binding offtake agre
Slide 8: Product Strategy – MoUs and toll treatment
Product Strategy – MoUs and toll treatment Technology, test-work and toll treatment agreements with Urbix • Battery Minerals has also signed: • a binding Test-work Term Sheet • Memorandum of Understanding covering Toll Treatment • MoU covering Technology commercialization with Urbix. Battery Mineral
Slide 9: Montepuez Exploration Target – Additional Growth
Montepuez Exploration Target – Additional Growth 300-400MT @ 5-10 % TGC • 5 VTEM target areas • Only 15-20% of targets have been drilled • VTEM conductors remain largely untested • All deposits remain open at depth and along strike • Potential for 300- 400Mt @ 5-10% TGC • Drilling completed, assays
Slide 10: Montepuez Exploration Upside
Montepuez Exploration Upside ▪ BF029D/34D - 272.6m @ 9.88% from surface - combined twin intersection. ▪ BF026D - 196m @ 8.41 % from 165m ▪ BF033D - 133m @ 8.04% TGC from 1.5m Note: See September 2017 Quarterly Activities Report announced to ASX dated 31 October 2017 for further details and CP statem
Slide 11: Balama: Concept Study Justifies Move to Feasibility Study
Balama: Concept Study Justifies Move to Feasibility Study • Balama Total Resource of 16.3Mt at 10.4% TGC2 (6% TGC cut-off) made up of Indicated Resource – 8.9Mt @ 9.3% TGC & Inferred Resource – 7.3Mt @ 11.8% TGC • Additional resource potential down-dip, along strike • Concentrate recovery 93% and 63
Slide 12: Battery Minerals Production Profile
Battery Minerals Production Profile The staged delivery of growth across the Battery Minerals Project suite. Still targeting 100kpta production rate as defined in DFS and to match Pemba Port allocation. The current estimate for Montepuez expansion is US$26-28M. Subject to successful completion of a
Slide 13: Key Milestones for BAT
Key Milestones for BAT Period Milestone Status • Environmental Impact Assessment ✓ Approved • Value engineering ✓ Completed • Detailed engineering, early works & procurement ✓ Commenced – contracts signed, Ongoing 2H 2017 • Port Allocation from government for Pemba port ✓ 100,000tpa export capacity
Slide 14: Simple Steps
Simple Steps 1. Regulatory Approvals 2. Build a mine 3. Commission and operate safely and efficiently 4. Grow the mines 5. Returns for shareholders 6. Benefit local communities 7. Minimise any environmental impact 14
Slide 15: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement Forward Looking Statements obtained. Their consents remain in place for subsequent releases Battery Minerals’ website. by Battery Minerals of the same information in the same form • Statements and material contained in this Presentation, and context, until th
Slide 16: APPENDICES
APPENDICES • Graphite Price Trend Jan 2016 to Sept 2017 • Graphite Price Forecast • Flake Graphite Cost Curve • Montepuez CAPEX and OPEX • Montepuez Power, Headcount and Haulage • Montepuez Project Delivery Schedule • Montepuez Product size and specification • Balama Central Product size and specifi
Slide 17: Graphite Price Trend Jan 2016 to Dec 2017
Graphite Price Trend Jan 2016 to Dec 2017 Montepuez Basket Price Graphite commodity price have steadily Flake Graphite Price Trend Jan 16 - Dec 17 USD, Metric tonnes improved since March/April 2017 Data source: Benchmark Mineral Intelligence $2,000 Montepuez: Battery Minerals - Flake Graphite Concen
Slide 18: Graphite Price Trend Jan 2016 to Dec 2017 (cont)
Graphite Price Trend Jan 2016 to Dec 2017 (cont) Balama Central Basket Price Flake Graphite Price Trend Jan 16 - Dec 17 Balama Central Graphite Project USD, Metric tonnes ▪ Higher Jumbo and Large flake Data source: Benchmark Mineral product Intelligence $2,000 ▪ Higher basket price of over $1,800 US
Slide 19: Graphite Price Forecast
Graphite Price Forecast BAT has taken a robust, well-referenced, and conservative approach to graphite commodity price assumptions in the VES, to provide a solid basis for decision making September Benchmark Graphite Price Forecast Minerals Price for Montepuez Sources: UBS, BMI, Rosskill basket is U
Slide 20: Flake Graphite Cost Curve
Flake Graphite Cost Curve Flake Graphite Price Trend Jan 16 - Sept 17 USD, Metric tonnes Flake Graphite Cost curve Data source: Benchmark Mineral Intelligence 2017 $2,000 (Opex cost FOB port of origin) 1000 $1,800 900 $1,600 800 $1,400 700 $1,200 600 $1,000 500 $800 400 $600 300 $400 200 $200 100 $0
Slide 21: Montepuez CAPEX & OPEX
Montepuez CAPEX & OPEX COST DRIVERS CAPEX OPEX CAPEX • Small Modular Plant – 70 t/h vs 180 t/h Area US $M Area Cost $/t (Conventional) • Smaller TSF Process Plant 20.9 Mining 46.32 • Cost Effective Buildings Mining fleet and 2.1 • Modular allows for accelerated expansions Processing 128.35 maintenan
Slide 22: Montepuez Diesel, Headcount and Haulage
Montepuez Diesel, Headcount and Haulage Diesel Operations Headcount Haulage Area US $/t Area No Area US $/t Power Generation Plant 62.6 Mining 27 Montepuez to Pemba Warehouse 21.67 Power Generation Camp 7.6 Processing 46 Warehouse to Port 30.75 Mining Fleet 18.7 Maintenance 25 Pemba Port Fees 9.45 M
Slide 23: Montepuez Project Delivery Schedule
Montepuez Project Delivery Schedule 2017 2018 2019 Activity Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Montepuez Graphite Mine Value Engineering Study completed Project Approvals Design Procurement Construction Commissioning Ramp Up Steady State Production and Shipping Note: See ASX announcement dated 18 October 20
Slide 24: Montepuez Product size and specification
Montepuez Product size and specification Montepuez Flake Graphite Concentrate Sizing Flake size Flake size % of TGC grade Flake size (mesh) (micron) concentrate Fine -100 Mesh 0 -150 71.9% 97% Medium +100 Mesh +150 -180 10.2% 96% Large +80 Mesh +180 -300 13.5% 96% Jumbo +50 Mesh +300 4.4% 96% Note:
Slide 25: Balama Central: Product size and specification
Balama Central: Product size and specification Balama Central: Flake Graphite Concentrate Sizing Flake size Flake size % of TGC grade Flake size (mesh) (micron) concentrate Fine -100 Mesh 0 -150 37% 97% Medium +100 Mesh +150 -180 9% 96% Large +80 Mesh +180 -300 25% 96% Jumbo +50 Mesh +300 29% 96% No
Slide 26: Graphite Price drivers
Graphite Price drivers Graphite Price Drivers Source – UBS June 2017 t 26
Slide 27: Graphite Price drivers
Graphite Price drivers Source – Blackrock Investment Institute April 2017 t 27
Slide 28: Graphite Price drivers
Graphite Price drivers How much graphite is needed for electric car take-up? • A typical EV or HEV has a 30-100kWh battery pack (Tesla Model 3 have >60kWh) • Each battery requires ~1.1kg of graphite per kWh. • A Nissan Leaf with a 24kWh battery would need 27kg of graphite • A Tesla Model S with a 85
Slide 29: This is why we are in graphite! Demand will exceed supply by 2020
This is why we are in graphite! Demand will exceed supply by 2020 Mega Chinese anode plant projects alone exceed current supply 29
Slide 30: Battery Minerals Limited – Graphite Prices
Battery Minerals Limited – Graphite Prices Graphite Price – UBS ($/t of concentrate) 30
Slide 31: Battery Minerals Limited – Graphite Prices
Battery Minerals Limited – Graphite Prices Prospective Global Graphite Production t 31
Slide 32: Montepuez Ore Reserves and Mineral Resources
Montepuez Ore Reserves and Mineral Resources • Ore Reserve Estimate January 2017 for Buffalo and Elephant deposits is 41.4Mt @ 8.80% TGC for 3.64Mt of graphite reported at a cut-off grade of 4% TGC • Total Mineral Resource January 2017 for Buffalo and Elephant deposits is 105.9Mt @ 7.74% TGC for 8.2
Slide 33: Montepuez Ore Reserves and Mineral Resources
Montepuez Ore Reserves and Mineral Resources Ore Reserve Estimate January 2017 for Buffalo and Elephant deposits is 41.4Mt @ 8.80% TGC for 3.64Mt of graphite reported at a cut-off grade of 4% TGC MONTEPUEZ GRAPHITE PROJECT – ORE RESERVE STATEMENT @ 4% TGC cut-off - January 2017 Ore Contained TGC Ore
Slide 34: Montepuez Mineral Resource Statement
Montepuez Mineral Resource Statement Total Mineral Resource January 2017 for Buffalo and Elephant deposits is 105.9Mt @ 7.74% TGC for 8.2Mt of graphite reported at a 2.5% TGC cut-off ELEPHANT RESOURCE @ 2.5% TGC cut-off - January 2017 Contained Contained Tonnes TGC V2O5 Classification Type Graphite
Slide 35: Mozambican - Foreign Direct Investment
Mozambican - Foreign Direct Investment Corporate Tax - 32% Investment Incentives / protection • Legal protection for investors (incl. property/ intellectual rights) • No restrictions on loans/interest payments abroad • Multilateral Investment Guarantee Agency (MIGA) plus Overseas Private Investment
Slide 36: Mozambique: a favourable jurisdiction
Mozambique: a favourable jurisdiction • Montepuez Mining Licence Application Submitted: defined approval timeline • Environmental Impact Assessment completed and submitted in October 2017 • July 2017: A secured allocation of 100,000tpa port capacity with Portos e Caminhos de Ferro de Moçambique (CFM
Slide 37: Mozambique - Snapshot
Mozambique - Snapshot OVERVIEW RESOURCES Stable multi-party democracy since 1994 Energy - Hydro, Gas and Thermal Population - 27 million Minerals - Coal, Gold, Graphite, Heavy Sands, ECONOMY Rare Earths, Precious Stones One of Africa's fastest growing economies STRATEGIC POSITION Access to markets –
Battery Minerals — Investor Presentation (January 2018) on 6ix