Australian Mines Limited · ASX:AUZ
Australian Mines — Shareholder Meeting (November 2019)
28 slides from Australian Mines's shareholder meeting presentation, Nov 19, 2019
Slide 1: 2019 Annual General Meeting
For personal use only 2019 Annual General Meeting 19 November 2019
Slide 2: Disclaimer: Forward Looking Statements
Disclaimer For personal use only Forward Looking Statements This document may contain forward looking statements. Forward looking statements can generally be identified by the use of forward looking words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan
Slide 3: Disclaimer: Previously Reported Information
Disclaimer For personal use only Previously Reported Information This document does not contain any new data, results or information, with all references clearly stated. Any exploration and/or resource data, or statements referenced within this document have previously been lodged by Australian Mine
Slide 4: Company Objective
Australian Mines Company Objective For personal use only Production of cobalt sulphate and nickel sulphate battery precursor chemicals with a fully auditable supply chain for the electric vehicle sector Owner of quality Tier 1 cobalt-nickel asset in a stable jurisdiction Reliable supply anticipated
Slide 5: Proposition
Australian Mines Proposition For personal use only ✔ 100% owner of multiple battery metals projects in Australia ✔ Advanced project pipeline with a development-ready flagship project ✔ Australian Mines plans to own and operate the entire process: from mining its own ore through to producing the fina
Slide 6: Company Assets
Australian Mines Company Assets For personal use only The information outlined on this page relating to Sconi was previously released to the market by Australian Mines via the ASX platform on 13 June 2019. Australian Mines confirms in the subsequent public report that SCONI all the material assumpti
Slide 7: 2019 Operating and Financial Highlights
Australian Mines 2019 Operating and Financial Highlights For personal use only Sconi Project • Delivered Bankable Feasibility Study and revised 30+ year mine plan1 • Updated Mineral Resource • Prescribed Project status provided by Government of Queensland • Produced battery chemicals from demonstrat
Slide 8: Sconi Project
For personal use only Sconi Project 8
Slide 9: Sconi Cobalt-Nickel-Scandium Project: Flagship Project
SCONI COBALT-NICKEL-SCANDIUM PROJECT Australian Mines’ Flagship Project For personal use only Located 250 kilometres inland from Townsville, Queensland Approved exporting port with excess capacity located within easy trucking distance along existing sealed, all-weather roads Large scale, fully-integ
Slide 10: Strategic Plan for 2019
SCONI COBALT-NICKEL-SCANDIUM PROJECT Strategic Plan for 2019 For personal use only Completed milestones: ✔ Built demonstration-scale plant ✔ Confirmed processing flow sheet ✔ Produced battery chemicals ✔ Delivered Bankable Feasibility Study ✔ Updated Mineral Resource ✔ Revised 30+ year mine plan 10
Slide 11: Fully-integrated operation on a single site
SCONI COBALT-NICKEL-SCANDIUM PROJECT Fully-integrated operation on a single site For personal use only • Converting raw cobalt and nickel ore into high-purity battery chemicals • Ensures full value-add is captured on site (no further purification of the exported product will be required for use by e
Slide 12: Future low-cost producer of precursor battery chemicals
SCONI COBALT-NICKEL-SCANDIUM PROJECT Future low-cost producer of precursor battery chemicals For personal use only • Positioned to be one of the cheapest and • Planned production most cost-competitive cobalt-producing • 46,800 tonnes of nickel sulphate nickel operations in the world per annum plus •
Slide 13: Bankable Feasibility Study
SCONI COBALT-NICKEL-SCANDIUM PROJECT Bankable Feasibility Study For personal use only 30+ Year Project Life Pre-Tax IRR: 20% Pre-Tax NPV: $1.47 Billion 5.8 Year Payback Period Post-Tax IRR: 15% Post-Tax NPV: $817 million (post tax) (@ 8% discount rate) Strong Forecasted Life-of-Mine Average Operatin
Slide 14: Other Projects
For personal use only Other Projects Flemington Bell Creek Thackaringa 14
Slide 15: Flemington Cobalt-Nickel-Scandium Project
FLEMINGTON COBALT-NICKEL-SCANDIUM PROJECT A Potential Second Production Hub for Australian Mines For personal use only • Recent drilling continued to intersect thick zones of high-grade cobalt • Results from follow-up resource expansion drilling to be released in 2020 • Significant potential to mate
Slide 16: Bell Creek Nickel-Cobalt Project
BELL CREEK NICKEL-COBALT PROJECT Low-Cost Satellite Operation Potential For personal use only • Potential low-cost satellite nickel-cobalt operation to the Sconi Project • Boosts the cobalt and nickel metal quantities contained within Australian Mines’ Mineral Resources in Queensland projects to: ➢
Slide 17: Thackaringa Cobalt Project
THACKARINGA COBALT PROJECT Early stage cobalt project For personal use only • • The Railway, Big Hill and Pyrite Hill deposits are not Australian Mines’ assets. 17
Slide 18: Outlook and Priorities
For personal use only Outlook and Priorities 18
Slide 19: Cobalt Market Fundamentals
Cobalt Market Fundamentals Constrained supply with high-risk geographical concentration For personal use only • Demand for cobalt forecast to increase substantially reflecting continued global uptake in lithium-ion batteries and pursuit of higher performing batteries • Increasing focus by end-users
Slide 20: Nickel Market Fundamentals
Nickel Market Fundamentals Significant supply growth required to meet rising ongoing demand For personal use only • Majority of current nickel production is not geared towards supplying the battery industry • Nickel sulphate production needed to significantly increase over the next few years in orde
Slide 21: Cobalt/Nickel Market Fundamentals
Cobalt/Nickel Market Fundamentals Reversal of supply/demand imbalance drives positive outlook for prices For personal use only • Australian Mines is well positioned to capitalise on the projected cobalt and nickel supply- demand imbalance over the medium to longer term • Nickel price has recovered s
Slide 22: 2020 Priorities
2020 Priorities Primary focus of Australian Mines remains the financing and construction of Sconi For personal use only SCONI PROJECT Execute new long form offtake agreement Finalise project financing Commence pre-construction The timetable for confirming offtake partners and project financing is a
Slide 23: Offtake Partnerships & Project Financing
Australian Mines Offtake Partnerships & Project Financing For personal use only Offtake • Active discussions ongoing • Encouraging potential offtake partners to make financial commitment to Sconi Project financing Project Finance • Active engagement with potential project financiers is ongoing • Pro
Slide 24: Questions from shareholders
For personal use only Questions from shareholders 24
Slide 25: Competent Persons' Statement: Sconi Project
Competent Persons’ Statement For personal use only Sconi Project, Queensland (Australia) The Mineral Resource for the Sconi Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource was first reported by Australian Mines Limited on 14 February 2019. There h
Slide 26: Competent Persons' Statement: Bell Creek Project
Competent Persons’ Statement For personal use only Bell Creek Project, Queensland (Australia) The Mineral Resource for the Bell Creek Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource was first reported by Australian Mines Limited on 29 April 2019.
Slide 27: Sconi Project Mineral Resources (Effective February 2019)
Sconi Project Mineral Resources (Effective 14 February 2019) For personal use only Mineral Resources as per Australian Mines’ announcement released via the ASX platform on 14 February 2019. Prepared by CSA Global in accordance with the current 2012 JORC Code. There has been no Material Change or Re-
Slide 28: Sconi Project Ore Reserve (Effective June 2019)
Sconi Project Ore Reserve (Effective 13 June 2019) For personal use only Ore Reserve as per Australian Mines’ announcement released via the ASX platform on 13 June 2019. Prepared by specialist mine planning consultants, Orelogy, in accordance with the current 2012 JORC Code. There has been no Materi
Australian Mines — Shareholder Meeting (November 2019) on 6ix