27 slides from Resource Minerals International's shareholder meeting presentation, Nov 26, 2014
Slide 1: Annual General Meeting Managing Director's Presentation
ABN: 97 008 045 083 702 Murray Street, West Perth Western Australia 6005 Phone: 61 8 9213 9400 Fax: 61 8 9213 9444 Website: www.resmin.com.au 26 November 2014 The Company Announcements Office Australian Securities Exchange Limited 4 Floor, 20 Bridge Street SYDNEY NSW 2000 Annual General Meeting Mana
Slide 2: AGM 26 November 2014 PNG Nickel: Wowo Gap Project
For personal use only AGM 26 November 2014 PNG Nickel : Wowo Gap Project Market Opportunity Resource Capability VALUE 1
Slide 3: Disclaimer
For personal use only DISCLAIMER This presentation has been prepared by Resource Mining Corporation Limited (“RMC” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation wi
Slide 4: Competent Persons Statement
For personal use only COMPETENT PERSONS STATEMENT The information in this presentation is extracted from various reports to the Australian Securities Exchange and are available on the ASX website www.asx.com.au . The Company confirms that it is not aware of any new information or data that materiall
Slide 5: Market: Forecast Nickel Consumption Growth
MARKET For personal use only Forecast Nickel Consumption Growth • World nickel consumption has risen at CAGR of around 4% since 2006; • China consumption growing above trend at 18% CAGR since 2006; • All sectors are growing, lead by robust Chinese stainless steel demand growth 4
Slide 6: Market: 2013 World Nickel Consumption by Region
MARKET For personal use only 2013 World Nickel Consumption by Region • Total World nickel consumption around 1.8 Mt in 2013 • China accounted for 49% of global nickel consumption in 2013 • BUT • China has limited domestic nickel resources and mine production; • Nickel Pig Iron technology developed o
Slide 7: Market: 2013 World Nickel Consumption by Type
MARKET For personal use only 2013 World Nickel Consumption by Type • Chinese Nickel Pig Iron producers supplied 26% of the world’s nickel • China now produces NPI containing around 0.5 Mtpa of nickel; • BUT • This relies upon large tonnages of imported nickel laterite ore as feedstock to the NPI ind
Slide 8: Market: 2013 Chinese Nickel Ore Imports
MARKET For personal use only 2013 Chinese Nickel Ore Imports • Principal sources are Indonesia and Philippines • High Grade (1.8% Ni) ores from Indonesia are the predominant feedstock for the Chinese NPI Industry • It is estimated that 80% of Chinese NPI production (20% of global nickel consumption)
Slide 9: Opportunity: The Indonesian Ban is a Game Changer
OPPORTUNITY For personal use only The Indonesian Ban is a Game Changer! • The Indonesian Export Ban: • Prohibits the export of unprocessed ores; • Applies to all ores including nickel, bauxite and iron ores; • Policy objective is to incentivise investment in local mineral processing; • Became effect
Slide 10: Opportunity: Options to address the shortfall
OPPORTUNITY For personal use only Options to address the shortfall 1. Do nothing ‐ not a valid option; 2. Increase supply from existing sources; 3. Invest in Indonesian ore processing facilities; 4. Develop new sources of ore supply. 9
Slide 11: Opportunity: Increase supply from existing sources
OPPORTUNITY For personal use only Increase supply from existing sources • Philippines • Does not have the quality or quantity equivalent to Indonesia; • Will require time to expand significantly to sustain exports; • 25% increase in Philippine exports sourced from existing mine stocks; • Recent gr
Slide 12: Opportunity: Increase supply from existing sources
OPPORTUNITY For personal use only Increase supply from existing sources Source: DENR, Philippines • New Caledonia • Has vast resources of high grade ore; • Controlled by a small number of local companies with very strong ties to non‐Chinese international mining companies or trading houses; • Most
Slide 13: Opportunity: Invest in Indonesian ore processing facilities
OPPORTUNITY For personal use only Invest in Indonesian ore processing facilities • Recent nickel industry performance is very poor with substantial startup delays, cost overruns and capacity shortfalls 12
Slide 14: Opportunity: Invest in Indonesian ore processing facilities
OPPORTUNITY For personal use only Invest in Indonesian ore processing facilities • Economics of NPI in Indonesia are not as compelling as in China; ? • Capital Intensity will be higher than in China. • Input costs (especially energy) will be higher than in China. • Taxation and financing costs will
Slide 15: Opportunity: Develop new sources of ore supply
OPPORTUNITY For personal use only Develop new sources of ore supply • Limited opportunities in the Pacific Basin outside Indonesia and Philippines (refer USGS Report 2011 Ni‐Co Laterite Deposits of the World) Develop new sources of ore supply What about PNG? 14
Slide 16: Opportunity: Papua New Guinea
OPPORTUNITY For personal use only Papua New Guinea • Country with a strong mining history; • Established Mining Law; • Significant foreign investment. • Geological settings similar to Indonesia; • Large laterite nickel inventory with untested exploration targets; • Existing Nickel industry;
Slide 17: Opportunity: Papua New Guinea
OPPORTUNITY For personal use only Papua New Guinea • Current Nickel Laterite Ore situation with China • Existing stocks of high grade Indonesian ore decreasing; • Accelerated imports lower grade Philippine ore; • BLENDING to sustain NPI production in China; • Shanghai Metals Market (3rd Nov), predic
Slide 18: Opportunity: PNG Nickel Deposits
For personal use only OPPORTUNITY PNG Nickel Deposits NORTH ASIAN • 2011 US Geological Survey MARKETS published data identifies Wowo Gap as the largest known nickel laterite deposit in PNG 17
Slide 19: Resource: Wowo Gap Current Status
RESOURCE For personal use only Wowo Gap Current Status • 100% owned and controlled by RMC through Niugini Nickel Limited • Significant Mineral Resource already defined Mineral Resource Classification Mt Nickel (%) Cobalt (%) (JORC 2004) Indicated 72 1.03 0.07 Inferred 53 1.09 0.06 Total 125 1.06 0.0
Slide 20: Resource: Wowo Gap Exploration Target
RESOURCE For personal use only Wowo Gap Exploration Target • 40 to 60 Mt at 1.6% to 1.8% Ni plus additional metal credits: • 0.07 to 0.15% Co; • 0.8 to 1.2% Mn; • 1 to 3% Cr2O3; • 25 to 35% Fe2O3 • 17 to 27% MgO • ONLY 35 km FROM OCEAN • Refer ASX announcement 23 June 2014 – Exploration Target: Wowo
Slide 21: Resource: Wowo Gap Current Status
RESOURCE For personal use only Wowo Gap Current Status • Tenement licence renewed until 28/02/2016: tenure is secure. • Mineralisation open to the north and south of current resource model on EL 1165. • Grant of EL 1980 (neighbouring exploration lease) in 2012 – mineralisation identified in EL 1980
Slide 22: Capability: Wowo Gap Objectives
CAPABILITY For personal use only Wowo Gap Objectives 1. Confirm high grade nickel DSO resource; 2. Complete Feasibility Study and permitting; 3. Develop mine, road and port infrastructure in stages; 4. Get product to market as soon as possible to capitalise on changed market conditions 21
Slide 23: Capability: Planned Wowo Gap work program
CAPABILITY For personal use only Planned Wowo Gap work program 1. Assess higher grade DSO ore 1. Ground Penetrating Radar survey to identify limonite and saprolite boundaries: • Stage 1 completed • Geophysical report received and interpreted • Ground conditions considered for drilling plans • Operat
Slide 24: Capability: Planned Wowo Gap work program
CAPABILITY For personal use only Planned Wowo Gap work program 2. Assess infrastructure requirements for DSO operations 1. Transport corridor; 2. Transhipping facilities; 3. Site support infrastructure. 3. Continue permitting and baseline social and environmental studies: Studies in progress 4. Comp
Slide 25: Capability: RMC capability well established
CAPABILITY For personal use only RMC capability well established • Managing Director and Exploration Manager; • Over 15 years combined experience operating in PNG; • Tenement has been held for over 12 years; • Support network developed with local villages; • Currently ± 300 local people employed as
Slide 26: Value: Wowo Gap work program - significant progress
VALUE For personal use only Wowo Gap work program ‐ Significant progress already achieved • Construction of additional site accommodation and support facilities; • Recruitment and mobilisation of additional PNG based supervisory, technical, administrative and support staff (including 7 x geologist
Slide 27: Thank You
Thank You For personal use only Resource Mining Corporation 702 Murray Street, West Perth, WA, 6008 www.resmin.com.au ASX: RMI 26