Atlas Consolidated Mining & Development Corp. · PSE:AT
Atlas Consolidated Mining & Development — Investor Presentation (November 2014)
33 slides from Atlas Consolidated Mining & Development's investor presentation, November 2014
Slide 1: Investor Presentation
Investor Presentation November 2014
Slide 2: Disclaimer
Disclaimer This presentation was prepared solely and exclusively for the parties expressly and specifically invited for the purpose of this discussion. Neither this presentation nor any of its annexes may be reproduced, disclosed or used without the prior written consent of Atlas Consolidated Mining
Slide 3: About Atlas Mining
About Atlas Mining • Incorporated in 1935, Publicly listed on the PSE since 1970 • AT PM : 2.076bn shares Main Business Interests: Carmen Copper Corporation (100%) • Operational area: 1,676 has. in Toledo, Cebu • JORC reserve: 412M @ 0.34% Cu • 2013 Production: 155 dmt copper concentrate Carmen Copp
Slide 4: Key Investment Considerations
Key Investment Considerations • Largest copper producer in the Philippines underpinned by a large resource base and highly demandable concentrate • Expanded mining and processing capacity – the main engine that will increase productivity and improve cost efficiencies • Solid financial performance •
Slide 5: Largest copper producer in the Philippines
Largest copper producer in the Philippines Carmen Copper: Toledo Mine production (in million pounds of Copper, (LHS)) 89.9 91.5 9M2014 copper metal production: 81.4 mn lbs 71.0 60.4 40.2 4.9 1955 2008 2009 2010 2011 2012 2013 • Produced nearly 6 billion pounds of copper in concentrate since 1955 • A
Slide 6: With over 45 years of production history
With over 45 years of production history Copper sold 1935 Incorporated as (mn lbs Cu) Masbate Consolidated 1973 Atlas Consolidated 100 Mining Company Mining was listed in the American Stock 90 90 92 1953 Incorporated as Atlas 2004 Carmen Copper Exchange (ASX) incorporated as SPV to 80 Consolidated M
Slide 7: Underpinned by a large resource base
Underpinned by a large resource base 0 Note: “Cu” denotes the chemical symbol for copper. Updated estimates of ore reserves and copper mineral resources as of 30 June 2014. Source: Company data 7
Slide 8: Fully integrated operations and logistics
Fully integrated operations and logistics Reliable and Cost Efficient Power and Water Supply Toledo Power (40mw) + New plant (88mw) Malubog Dam (35mld) Safe and Secure MALUBOG DAM Tailings Disposal 94 mcm, +335 masl BIGA PIT CARMEN PIT SANGI PORT Infrastructure Reliability Logistical Efficiency Carm
Slide 9: Highly demandable copper concentrate (low in impurities)
Highly demandable copper concentrate (low in impurities) Impurity content and penalty thresholds Penalty China Minimum CCC (1) Mine A (2) Mine B (2) Requirement (3) Limit (3) (5) Arsenic (%) < 0.003 0.2 - 0.5 0.8 - 1.5 < 0.2 < 0.5 < 0.5 < 1.0 Lead (%) < 0.03 3 to 6 6 - 8.5 < 1.0 <6 Zinc (%) < 0.14 6
Slide 10: Close proximity to key markets
Close proximity to key markets Proximity to North Asia Customers …and smelters in Asia Average freight days (North America to China): ~17 days South 4% Canada Korea 3% 37% Korea U.S. 7% Japan 5% China Taiwan 3% 122 9 5 India Philippines 3% 0.4% China Indonesia Japan Peru 8% 6% Australia 5% 2 Chile 3
Slide 11: Key Investment Considerations
Key Investment Considerations • Largest copper producer in the Philippines underpinned by a large resource base and highly demandable concentrate • Expanded mining and processing capacity – the main engine that will increase productivity and improve cost efficiencies • Solid financial performance •
Slide 12: Carmen Open Pit producing commercially
Carmen Open Pit producing commercially 12
Slide 13: Original Processing Plant
Primary Crusher Original Processing Plant Tailings Pump house Conveyor #1 Tailings Pipeline Secondary & Tertiary Crusher Coarse Ore Stockpile Fine Ore Grinding Bin & Flotation Screening Plant Magnetite Plant Head Tank Tailings Thickeners 11.2 MW Power Plant 13
Slide 14: OLD Copper Concentration Process
Old Capacity: OLD Copper Concentration Process 40,000 tons/day 14
Slide 15: EXPANDED Copper Concentration Process
EXPANDED Copper Concentration Process Expanded Capacity: 60,000 tons/day 15
Slide 16: Carmen Copper Expansion-Ore Processing Plant
Carmen Copper Expansion-Ore Processing Plant 16
Slide 17: Carmen Copper Expansion – Primary Crusher Line
Carmen Copper Expansion – Primary Crusher Line 17
Slide 18: Carmen Copper Expansion – Ball Mills
Carmen Copper Expansion – Ball Mills 18
Slide 19: Carmen Copper Expansion – Rougher Flotation
Carmen Copper Expansion – Rougher Flotation 19
Slide 20: Carmen Copper Expansion – Other Equipment
Carmen Copper Expansion – Other Equipment 10units - 16m3 capacity each 20
Slide 21: Increasing productivity: higher throughput and grade
Increasing productivity: higher throughput and grade Daily Cu Metal Production Daily Ore Milling Tonnage 63,500 MT (in lbs) 70,000 (in '000 MT) 600,000 499,000 lbs 60,000 Commissioned expansion 50,000 43,000 MT project in March 2014 40,000 500,000 30,000 20,000 10,000 400,000 256,000 lbs 0 300,000 0
Slide 22: Increasing productivity: higher recovery and lower tails
Increasing productivity: higher recovery and lower tails Daily Cu Metal Production 95.00% Copper Recovery (in lbs) 600,000 90.00% 499,000 lbs Commissioned expansion 85.00% project in March 2014 500,000 80.00% 75.00% 70.00% 400,000 256,000 lbs 65.00% 300,000 Tailings 0.100% 0.090% 0.080% 200,000 0.07
Slide 23: Declining cash costs to temper effect of lower prices
Declining cash costs to temper effect of lower prices 3.50 3.00 2.50 2.00 Target C1 cost in 2015: $1.50/lb 1.50 Average C1 cost 2.31 2.17 in 9M2014: 1.00 1.91 1.92 1.94 1.85 1.83 1.80 1.87 $1.86/lb 1.68 1.49 0.50 - 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14* C1 C2 C3 Source: Company data
Slide 24: Improving cost efficiencies resulting in significant cost reduction
Improving cost efficiencies resulting in significant cost reduction Carmen Copper C1 Cost Reduction Strategy (in US$/lb) 3.00 2.50 2.00 • Instituting a culture of prudency • High copper 1.50 grade at • Secured a Carmen • Mill power supply orebody expansion of • Gold, silver, 2.47 contract with 40 kt
Slide 25: Carmen Copper
Carmen Copper SUMMARY OF OPERATIONS Year-on-Year 9M2013 9M2014 Change Production Milling Tonnage ('000 dmt) 11,865 13,452 13% Daily Milling Average (dmt per day) 43.5 49.3 13% Ore Grade (%Cu) 0.322% 0.324% 1% Copper Concentrate ('000 dmt) 117.1 137.2 17% Copper Metal Gross (in '000 lbs) 68,855 81,38
Slide 26: Berong Nickel
Berong Nickel SUMMARY OF OPERATIONS Year-on-Year 9M2013 9M2014 Change Production Milling Tonnage (wmt) 561,308 1,106,985 97% Shipment Number of Shipments 11 18 64% Volume (wmt) 549,505 956,944 74% Costs C1 cash cost 15.48 8.03 -48% C2 cash cost 16.89 9.88 -42% C3 cash cost 31.07 18.29 -41% Source: C
Slide 27: Berong resource base
Berong resource base JORC reserves and Potential resources (in million tons) 140 120 120 Reserves 100 Resources 80 60 40 20 9 0 Reserves Resources Reserves Resources % Ni Cut-off 1.00 .90 Note: grade “Ni” denotes the chemical symbol for nickel. Updated estimates of ore reserves and nickel mineral re
Slide 28: Key Investment Considerations
Key Investment Considerations • Largest copper producer in the Philippines underpinned by a large resource base and highly demandable concentrate • Expanded mining and processing capacity – the main engine that will increase productivity and improve cost efficiencies • Solid financial performance •
Slide 29: Sustainable Financial Track Record
Solid financial performance Sustainable Financial EBITDA (in Php mn) Track Record Revenues (in Php mn) 13,000 12,590 5,000 12,500 4,658 4,528 12,000 4,500 11,500 10,977 4,000 11,000 10,500 3,500 10,000 9M2013 9M2014 3,000 2,500 Net Income (in Php mn) 2,000 2,000 Due to higher financing 1,800 1,626 c
Slide 30: Key Investment Considerations
Key Investment Considerations • Largest copper producer in the Philippines underpinned by a large resource base and highly demandable concentrate • Expanded mining and processing capacity – the main engine that will increase productivity and improve cost efficiencies • Solid financial performance •
Slide 31: Growth platform in place
Growth platform in place A clear strategy to strengthen and grow its core operations Long Term Long-term Medium Term growth beyond Organic and core operations Short Term sustainable growth Securing and of core operations • Exploration strengthening core upside and operations • Expand mill resource t
Slide 32: Summary of Key Investment Considerations
Summary of Key Investment Considerations • Largest copper producer in the Philippines underpinned by a large resource base and highly demandable concentrate • Expanded mining and processing capacity – the main engine that will increase productivity and improve cost efficiencies • Solid financial per
Slide 33: Atlas Consolidated Mining and Development Corporation
Atlas Consolidated Mining and Development Corporation 9F Quad Alpha Centrum Bldg. 125 Pioneer St. Mandaluyong City 1554 PH T +632 5849788 │ F +632 6354495 ir@atlasphilippines.com www.atlasmining.com.ph
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