Terramin Australia Limited · ASX:TZN
Terramin Australia — Investor Presentation (October 2018)
31 slides from Terramin Australia's investor presentation, Oct 30, 2018
Slide 1: Investor Presentation
INVESTOR PRESENTATION Investor Presentation Richard Taylor | CEO October 2018
Slide 2: Forward Looking & Competent Person Statements
Forward Looking & Competent Person Statements Disclaimer The material contained in this presentation has been prepared by Terramin Australia Limited (Terramin). It is current as at the date of this presentation. It contains information in a summary form and should be read in conjunction with Terrami
Slide 3: Terramin Australia Overview
Terramin Australia Overview ASX-listed developer with advanced gold and zinc projects located in Australia and Algeria Asset Overview Market statistics - $m, unless stated otherwise Bird-in-Hand Tala Hamza Ownership (%) 100% 65% Share Price (A$p.s.) 0.12 Fully diluted shares on issue (m) 1,870 Locat
Slide 4: New Management Team Bringing Renewed Focus
New Management Team Bringing Renewed Focus New management team appointed with strong motivation to deliver on Terramin’s base and precious metal strategies Key appointments in the last six months Recent developments since change in management Richard Taylor Announced a strategic review - looking a
Slide 5: Bird-in-Hand – Key Highlights
Bird-in-Hand – Key Highlights One of the highest grade gold mines in Australia, with significant regional exploration upside and low start-up capex due to existing infrastructure • Mine will be one of the highest grade gold mines in Australia (13g/t Au) High grade • Open at depth with opportunity to
Slide 6: Bird-in-Hand – High Grade Potential
Grade (g/t) 1 0 5 10 15 20 25 Fosterville 1. Bird-in-Hand Gwalia Peak Nicolsons Penny's Find Waihi Cracow Agnew Lawlers Hera Mt Carlton Jundee Tanami Granny Smith Kalgoorlie Ops Deflector Mt Magnet Ops Beta Hunt Darlot St Ives Murchison Carosue Dam Mungari Plutonic Tomingly Bird-in-Hand – High Grade
Slide 7: Bird-in-Hand Exploration Upside
Bird-in-Hand Exploration Upside Bird-in-Hand gold project has significant exploration upside – deposit open at depth and historic mines highlight the potential along strike. Current Bird in Hand resource stands at 265,000 ounces Planned Infill drilling Planned Extension drilling 7
Slide 8: Terramin Exploration Pipeline – Pathway 1m Oz
Terramin Exploration Pipeline – Pathway 1m Oz Terramin has a pipeline of high grade potential gold targets that will form the basis of its aspirational target of 1m Oz in resource from existing tenements and potential acquisitions. Bird in 265k Oz Resource Hand BIH The Deeps Ridge 500k Oz Planned Re
Slide 9: Opportunity to capture significant value
Opportunity to capture significant value Terramin sees the opportunity to expand its resource base in South Australia driven by significant value generation potential with minimal capex Exploration / development peers Median (producers – EV/reserve): EV / Resource (A$/oz) 701 A$559/oz Producing gold
Slide 10: Robust economics – Scoping Study 2018
Robust economics – Scoping Study 2018 Positioned to deliver outstanding returns for investors Key financial metrics Scoping Study 2018 Low costs, strong margin: All in sustaining Commodity Price Metrics1 costs of approximately A$840/oz, positions Gold price – LOM average US$1,225/oz (A$1,700/oz) t
Slide 11: Simple Mining & Processing
Simple Mining & Processing Terramin’s existing Angas processing facility at Strathalbyn will be a central hub for gold production from BIH and other regional high grade gold exploration targets • Simple small scale underground cut and fill mining operation • High grade gold will be extracted from be
Slide 12: Strategic Location
Strategic Location South Australia… A great place to be in gold • SA Government Gold Commodity Strategy to follow successful launch of its ‘Copper Strategy’ • Gold mineralisation widespread and occurs in almost all geological provinces in the state • Currently eight operational or approved mines inc
Slide 13: Bird-in-Hand – Indicative Time Frames
Bird-in-Hand – Indicative Time Frames Clear pathway to unlock value for shareholders 2018 2019 2020 2021 01 Approvals & Permitting Mining Lease, Miscellaneous Purposes License 02 PFS DFS Infill drilling 03 PEPR, Project Plan & Engineering WE ARE HERE 04 Construction Bird-in-Hand – Forward looking
Slide 14: Tala Hamza Key Highlights
Tala Hamza Key Highlights Tala Hamza is one of the largest undeveloped zinc and lead mines in the world and an important part of the future supply required to meet a projected increase in global zinc demand over the next decade • Terramin owns 65% of the joint-venture, which owns Tala Hamza Control
Slide 15: Strategic Location
Strategic Location Ready access to existing infrastructure – rail, road, port and grid electricity Location map • Located on the north-east of Algeria, close to the Mediterranean coast and customers • Access to major roads, rail, deep water port and international airport – Concentrate will be shippe
Slide 16: Supportive Economics with competitive cost position
Supportive Economics with competitive cost position Low pre-production capital and highly competitive operating costs, with optimisation potential from already identified expansion cases Key financials and outputs – DFS 2018 2nd Quartile cost curve position(4) Key financial metrics DFS 20183 Commodi
Slide 17: Significant Upside remains to be delivered in the near term
Significant Upside remains to be delivered in the near term • Initial optimisation study works at target production rate of 2mtpa and slightly lower cut-off grade have been very promising Optimisation ‒ Potential for significant scale efficiencies and unit cost reduction of mine plan ‒ Additional 8M
Slide 18: Potential extension of existing orebody
Potential extension of existing orebody The Tala Hamza Deposit remains open in multiple areas. Land access achieved through 704150E the grant of the Mining Lease opens up the opportunity for a second access, maintain mine life and support expansion Drill Pb+Zn% of the processing plant. Unfinished bu
Slide 19: Near Mine Deposits
Near Mine Deposits The Tala Hamza District is heavily mineralised. There are a number of nearby under explored zinc targets that provide the potential for conveying or haulage to a centralised processing hub at the Tala Hamza Deposit. 19
Slide 20: Large Scale & Long Mine life
Large Scale & Long Mine life Large Scale and Long Mine life allow shareholders to get exposure across commodity cycles. Concentrate production will be significant in global terms with projected mine life of 21 years, outlasting peer projects. Contained zinc metal vs grade(1) Mine life comparison wit
Slide 21: Tala Hamza expected to produce during material supply crunch period
Tala Hamza expected to produce during material supply crunch period Zinc mine production expected to peak in 2020. Additional mine production will be required to replace production from mines that are forecast to close and to meet increased demand for concentrate as the market for refined metals con
Slide 22: Tala Hamza – Forward Looking Plan
Tala Hamza – Forward Looking Plan New management team has been appointed with a clear pipeline of activities to deliver on Terramin’s base and precious metals strategies. Current status: 01 Formal submission of the DFS to the Government of Algeria 02 Wilaya (local administration approvals) 03 Land a
Slide 23: Tala Hamza – Indicative Time Frames
Tala Hamza – Indicative Time Frames Timeframes are for indicative purposes only. The project has been delayed while working with the Algerian authorities to address environmental and social aspects. Timeframes may extend. 2018 2019 2020 2021 01 Approvals & Permitting 02 Early Works and FEED WE ARE H
Slide 24: Reasons to Invest in Terramin
Reasons to Invest in Terramin Terramin is in the right place at the right time and with the right projects and people to capitalise on a strong price environment for its key commodities Right Commodity Right Assets Right People • Gold in AUD at record prices • High grade gold targets • Significant b
Slide 25: Appendices
Appendices A. JV Partners B. Tala Hamza Project Evolution C. Mining Method Overview D. Algeria Country Overview 25
Slide 26: A. Terramin has Control & Supportive JV Partners
A. Terramin has Control & Supportive JV Partners Terramin is the majority owner and operator of the project, which provides it with significant flexibility around future development and funding of the project Ownership structure for Tala Hamza JV Overview of the JV partners • One of the five Algeria
Slide 27: B. Tala Hamza Project Evolution
B. Tala Hamza Project Evolution Block caving unacceptable to Comparison DFS 2010 DFS 2018 Algerian partners Production Conc. Kt - LOM ave 425 155 Higher upfront capex DFS 2010 Material change in scope from Pre-Production Capex (US$M) $579 $341 PFS in 2010 Total Tonnes Mined Mt 40 26 Underhan
Slide 28: C. Mining Method: Underhand Drift & Fill (UDF)
C. Mining Method: Underhand Drift & Fill (UDF) UDF was selected as an alternative to block caving, with JV partners supportive of the revised mining method • Underhand drift and fill (UDF) mining is a • Conventional cut and fill or overhand cut and fill, technique similar to the cut and fill mining
Slide 29: C. Mining Method: UDF: Jinchuan Nickel
C. Mining Method: UDF: Jinchuan Nickel Jinchuan Mining Method • Largest nickel producer in Asia • Underhand Drift and Fill (UDF) • 90% of China’s domestic nickel production • 6.5km along strike and 1km depth • 150,000t of refined nickel metal • 6.0Mt contained nickel metal and 3.9Mt copper • Based i
Slide 30: D. Algeria Overview
D. Algeria Overview Overview Energy & Mining • Located in North Africa • Strong history of energy production: • Population of c. 41m (2017) ‒ Leading African producer of natural gas • Achieved independence from France in 1962 (2.4% of world output)(1) • Abdelaziz Bouteflika (current president) has b
Slide 31: Contact Details
Contact Details For further information please contact: Richard Taylor Main Office Chief Executive Officer Unit 7, 202-208 Glen Osmond Road, Fullarton, Adelaide Simon Iacopetta South Australia, 5063 Chief Financial Officer T +61 (0) 8 8213 1415 F +61 (0) 8 8213 1416 info@terramin.com.au terramin.com
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