Metals X Limited · ASX:MLX
Metals X — Investor Presentation (October 2008)
36 slides from Metals X's investor presentation, Oct 15, 2008
Slide 1: Investor Update Presentation October 2008
Level 3 Hyatt Centre 123 Adelaide Terrace East Perth WA 6004 Tel: +618 9220 5700 www.metalsx.com.au For personal use only “We are miners” Peter Cook, Managing Director Investor Update Presentation October, 2008
Slide 2: Disclaimers
Disclaimers For personal use only General Disclaimer This presentation has been prepared by Metals X Limited (“Metals X” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation contain
Slide 3: Who is Metals X Ltd?
Who is Metals X Ltd? For personal use only Metals X Limited (MLX) is an Australian based diversified metals & mineral producer, developer and explorer Australia’s largest tin producer: MLX is Australia’s largest tin producer with c.9Kt p.a. of production from the Renison Tin operations in Tasmania
Slide 4: MLX Capital structure
MLX Capital structure For personal use only Major Shareholders Share price as at 9 Oct, 2008 ($ in AUD) APAC Resources Limited (HKEX: 1104) 17.6% Shares price (ASX code: MLX) $0.14 Jinchuan Group 14.8% Board & Management 16.0% Shares on Issue (million) 1,187.7 Guinness Peat Group 7.6% JP Morgan 6.3%
Slide 5: Project locations
Project locations For personal use only Collingwood Gillian Explorer 108 Rover 1 Wingellina (Ni/Co) Mt Keith Central Musgraves Yandal Belt Project Kambalda Agaton Production Royalty Renison (Sn/Cu) Development Renison Expansion Project (Sn/Cu) Exploration 5
Slide 6: Principal assets
Principal assets For personal use only Sn Existing Operations Future Growth Renison Expansion Project Renison Tin Operations Project Project (Rentails) Mines Renison Underground Ore Sources Historic Renison tailings Mt Bischoff Open Cut Dams Total Identified 111,000 tonnes Tin Total Identified 76,00
Slide 7: Tin division overview
Tin division overview For personal use only “Tin is experiencing unprecedented demand growth, driven largely by emerging economies but also by tin’s unique and benign properties leading to significant lead replacement…at the same time Tin is facing a supply crisis which has driven prices to record l
Slide 8: Tin division – global tin industry
Tin division – global tin industry* Increasing Demand, Supply Constraints For personal use only Consumption growth strong: >30% over 5 years (2002-2006) Primary and growing use of tin: Solder for electronics devices (55% total consumption) Lead replacement a key driver: Universal switch to “le
Slide 9: Tin division – global supply/demand
Tin division – global supply/demand* For personal use only *Source: International Tin Research Institute 9
Slide 10: Tin division – global supply/demand
Tin division – global supply/demand* For personal use only FORECAST ('000 tonnes) 2005 2006 2007 2008 2009 World World Refined Production 346.7 354.1 346.5 328.8 343.5 DLA Sales 7.7 9.3 7.7 3.9 1.0 World Refined Consumption 333.2 364.6 356.7 361.5 356.5 Global Market Balance 21.2 (1.2) (2.5) (28.8)
Slide 11: Renison tin operations - Tasmania
Renison tin operations - Tasmania For personal use only 11
Slide 12: Renison tin - operating parameters
Renison tin - operating parameters Leveraging sunk capital: c.A$100 million spent on refurbishment of existing mine, plant and equipment For personal use only on top of sunk capital with a replacement cost of A$250 million today 2 ore sources lower mining risk: Renison underground mine & Mt Bisc
Slide 13: Renison – identified mineral resources
Renison – identified mineral resources Tin (Sn) Copper (Cu) For personal use only Measured & Indicated Tin Resources Identified Mineral Resource – Copper Project Kt Grade (%Sn) Sn Metal (t) Category Kt Grade (% Cu) Cu Metal (t) Renison Bell 2,046 1.97% 40,290 Measured - Ren U/G 224 0.47% 1,060 Mt Bi
Slide 14: Renison Expansion Project (Rentails)
Renison Expansion Project (Rentails) In feasibility: Due for completion Dec quarter 2008, development decision CY2009 For personal use only Background: The Renison expansion project is designed to recover tin and copper from existing on surface mine tailings dams using modern commercially proven
Slide 15: Renison Expansion Project (Rentails)
Renison Expansion Project (Rentails) Renison expansion project (Rentails) has added benefits: For personal use only ¾ Increased Recoveries: Integration of the tin fumer with existing Renison concentrator operations lowers the overall tailings residue to 0.20% Sn (historically 0.44%), lifting Renis
Slide 16: Tin division production & EBITDA potential
Tin division production & EBITDA potential 16Kt For personal use only 14Kt Renison re-start is ramping to >8Kt p.a. of 12Kt 10Kt sustainable tin production 8Kt 6Kt A successful Renison Expansion Project 4Kt 2Kt feasibility would increase production by 0Kt c.50% to more than 12Kt p.a. at similar
Slide 17: Tin division – LME stocks & prices
Tin division – LME stocks & prices For personal use only 30,000 30,000 25,000 25,000 20,000 20,000 $/metric tonne 15,000 15,000 Tonnes 10,000 10,000 5,000 5,000 0 0 Tin Inventories (LHS) Tin Price (AUD) ‐ RHS Renison ‐ cash op costs (AUD) ‐ RHS Source: Bloomberg 17
Slide 18: Nickel division overview
Nickel division overview For personal use only “Nickel consumption is expected to grow rapidly as income levels rise in developing countries…nickel demand is expected to rise at 5.1%pa in the medium term…an unfunded supply gap confirms the markets attractiveness” – Mike Jolley, President Director PT
Slide 19: Nickel royalty portfolio
Nickel royalty portfolio For personal use only Mt Keith Royalty (0.375% of sales, operated by BHP Billiton) ¾ Royalty into perpetuity : of 0.375% of the total contained nickel in concentrate revenue and was A$6.54 million in FY07 ¾ 17 to 40 year life on existing operation: Annual ore production fr
Slide 20: Nickel royalty portfolio
Nickel royalty portfolio For personal use only Increasingly valuable in a cost push environment – driving higher long term nickel prices Royalty Commodity Payable rate 2006 2007 2008 Mt. Keith Nickel 0.375% sales $4.5M $6.5M $3.5M Kingston Nickel 0.375% sales - - - Kambalda* Nickel 1.35% production
Slide 21: Nickel royalty portfolio
Nickel royalty portfolio For personal use only Mt Keith and Kingston royalty areas Kambalda dome royalty area 21
Slide 22: Wingellina Project & Central Musgraves
Wingellina Project & Central Musgraves For personal use only NT 128° 40’ 129° 20’ WA SA Western Northern 25° 20’ Australia Territory Ja m WEST Metals # S $$$ es on Exploration Ra MUSGRAVE $ #S S #$ $$$ #$S ng $ $ $$ $ $ S $# $ $ $ e Wingellina Claude Hills $ $ $ $$ $ 26° # S #S S # # S Blackstone Ra
Slide 23: Wingellina – World class project
Wingellina – World class project Phase 1 feasibility completed September 2008: development decision in 2009, initial 20yrs on high For personal use only grades, first possible prod FY2013 Minimum 39yr project life on total Identified Mineral Resource: ¾ Nickel Inventory: 1.62Mt contained, 1.49Mt
Slide 24: Wingellina – World class project
Wingellina – World class project Challenges: For personal use only ¾ Geographically remote: 400km from Adelaide-Darwin Railway and on the state/territory triple point – however feasibility has significantly eliminated the perceived disadvantage of location and isolation ¾ Large up front capital: A
Slide 25: Wingellina – World class project
Wingellina – World class project Globally Significant Resource For personal use only Nickel-Cobalt limonite located in the Central Musgrave Block 8% 183 million tonne ore resource at 0.5% cut-off 38% Measured 165Million tonne mining reserve Indicated Inferred 53% 78 million tonne ore resourc
Slide 26: Wingellina project – globally significant
Wingellina project – globally significant* For personal use only Million tonnes contained nickel 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Source: Company Reports, *Total Identified Mineral Resource 26
Slide 27: Wingellina project – nationally significant
Wingellina project – nationally significant* For personal use only *Australian Treasury 2008 27
Slide 28: Wingellina Overview
Wingellina Overview For personal use only Wingellina 10km 28
Slide 29: Nickel division – LME stocks & prices
Nickel division – LME stocks & prices For personal use only 60,000 70,000 50,000 60,000 50,000 40,000 40,000 $/metric tonne 30,000 30,000 Tonnes 20,000 20,000 10,000 10,000 0 0 Nickel Inventories (LHS) Nickel Price (AUD) ‐ RHS Wingellina Feas ‐ cash op costs (AUD) ‐ RHS Source: Bloomberg 29
Slide 30: Investment division overview
Investment division overview For personal use only “MLX invests in grass roots exploration by controlling other listed specialist explorers…like Westgold Resources Ltd. – Warren Hallam, Director of Metals X Ltd. “Westgold's Rover 1 IOCG project is shaping as one of the most exciting high grade polym
Slide 31: Westgold Resources (28.9% MLX)
Westgold Resources (28.9% MLX) Managing Director: Andrew Beckwith, ASX code: WGR Mkt Cap: A$30m For personal use only WGR is focused on copper/gold exploration in the Tennant Creek area. The company has made 2 key and highly attractive discoveries: ¾ Rover 1: High Grade Au-Cu-Bi-Co-Fe 65m @ 17.7g/
Slide 32: Aragon Resources (48.4% MLX control)
Aragon Resources (48.4% MLX control) Executive Director: Paul Benson, ASX code: AAG, Mkt Cap: A$10M For personal use only AAG key exploration projects are in gold and phosphates MLX interest in AAG has a market value of c.A$5 Million AAG key gold prospects in in WA’s Yandal belt are: ¾ Cables:
Slide 33: Agaton Phosphate PL (75% MLX)
Agaton Phosphate PL (75% MLX) For personal use only Managing Director: Dr. Howard Carr, UNLISTED Early stage, very large Phosphate Sands project North of Perth Potential for large low grade phosphate sands resource upgradeable to P2O5 concentrate 33
Slide 34: This is Metals X Ltd.
This is Metals X Ltd. For personal use only Enterprise Value of A$136Million (c.$30M cash/liquids & no debt) Renison EBITDA capability (based on project execution at current prices) of >A$100 Million Royalty’s have delivered average EBITDA of A$10M during the past 3 years Wingellina a global
Slide 35: MLX Capital structure
MLX Capital structure For personal use only Major Shareholders Share price as at 9 Oct, 2008 ($ in AUD) APAC Resources Limited (HKEX: 1104) 17.6% Shares price (ASX code: MLX) $0.14 Jinchuan Group 14.8% Board & Management 16.0% Shares on Issue (million) 1,187.7 Guinness Peat Group 7.6% JP Morgan 6.3%
Slide 36: For personal use only
Level 3 Hyatt Centre 123 Adelaide Terrace East Perth WA 6004 Tel: +618 9220 5700 www.metalsx.com.au For personal use only “We are miners”