Terramin Australia Limited · ASX:TZN
Terramin Australia — Shareholder Meeting (April 2009)
29 slides from Terramin Australia's shareholder meeting presentation, Apr 30, 2009
Slide 1: Focused on Zinc - Annual General Meeting Update April 2009
TERRAMIN AUSTRALIA LIMITED For personal use only Focused on Zinc Annual General Meeting Update April 2009
Slide 2: Important information
Important information For personal use only The information in this presentation is designed as an aid to a spoken explanation. It is not to be considered without that explanation. It is not intended to guide any investment decisions in Terramin Australia Ltd. The information is intended as a guide
Slide 3: Company fast facts
Company fast facts For personal use only Public company - ASX listing Shareholders 3,876 Shares on issue 138.1 million* Convertible/redeemable Notes USD20.5 M and AUD5.0 M Market Cap AUD97 million Shareholders Insiders & long term 23.4% Institutions (Australian & international) 33.7% Corporates (Tra
Slide 4: Our asset portfolio
Our asset portfolio For personal use only Angas Zinc Mine (100%) In production Oued Amizour Project (65%) In feasibility Menninnie Dam Menninnie Dam JV (24%), Nonning JV (farming in) On hold Attributable metal in resources 6.2 billion pounds lead and zinc USD5.3 billion in ground v
Slide 5: A year of progress
A year of progress For personal use only Angas mine brought into production On budget In full production Mine performing well No refinancing required Repayments on debt concentrated in later years TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 5
Slide 6: Delivering on promises
Delivering on promises For personal use only Tala Hamza project Expanded mineral resource Initial mining reserve Prefeasibility financed and completed Feasibility financed and proceeding Identified project financing parties: ME funds; smelter; Chinese bank via NFC; Algerian Bank; Investe
Slide 7: A great future for zinc
A great future for zinc For personal use only TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 7
Slide 8: Our strategic partners
Our strategic partners For personal use only Sempra Off take Agreements in place for Angas and Tala Hamza; US$20 million Investec Loan facility for Angas construction; paid down to A$30m/54 months Transamine A private commodity trading company, specialising in raw materials Offices in
Slide 9: Angas mine
Angas mine For personal use only 60 km from Adelaide Australia’s first mining belt (c1841) tenements total 1,160km2 Angas new discovery in 1991 TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 9
Slide 10: Angas – low operating cost attributes
Angas – low operating cost attributes For personal use only shallow virgin ore body grid power- low fixed price coarse grind no fly-in fly-out precious metals credit local equipment support services TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 10
Slide 11: First concentrate shipment – July
First concentrate shipment – 28 July 08 For personal use only TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 11
Slide 12: Underground operations
Underground operations For personal use only decline at -160m four development levels 75, 95, 120 and 140 levels (2,800m total ) two stopes in production owner operated fleet 2 jumbos 3 loaders 2 trucks 4 ancillary TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 12
Slide 13: Resource upside
Resource upside For personal use only TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 13
Slide 14: Angas regional potential
Angas regional potential For personal use only tenements total 1,160km2 old mines typified by high grades and exploitation to shallow depth only 20 identified targets satellite mines probable process plant not capacity constrained TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 14
Slide 15: Oued Amizour Algeria
Oued Amizour Algeria For personal use only - on the doorstep of European smelters - major supplier of energy to Europe Asturiana –world’s largest zinc refinery Oued Amizour Zinc Project Ghazaouet zinc refinery TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 15
Slide 16: Oued Amizour Project - Strong partners
Oued Amizour Project - Strong partners For personal use only Exploration Permit 5225PE 100% owned by Western Mediterranean Zinc (WMZ) Incorporated private Algerian company WMZ Ownership: 65.0% Terramin Australia Limited (TZN) 32.5% ENOF (Algerian Govt. company) 2.5% ORGM (Algerian Govt. compan
Slide 17: Oued Amizour - mérites de projet
Oued Amizour - mérites de projet ? “Pas de problème!” For personal use only wide mineralised intersections diesel – 18c / litre with large high grade intervals water – mine lease bores process power – reliable low cost 3-4c/kWhr major port and international airport (10kms) TERRAMIN AUSTRAL
Slide 18: Diamond drill intersections
Diamond drill intersections For personal use only Wide intersections …with high grade intervals Hole metres Pb+Zn% Hole metres Pb+Zn% 21 281 4.1 30 151 13.2 7 231 4.9 20 147 12.9 30 223 9.4 28 140 13.0 13 215 6.7 5 123 11.8 11 210 5.0 4 114 13.3 17B 203 9.9 17B 101 15.7 5 202 8.1 47 92 14.9 20 197 1
Slide 19: Resources and potential
Resources and potential For personal use only Indicated plus Inferred resource 58.6Mt at 1.3% Pb and 5.2% Zn Latest hole TH044 68 metres at 10.5% Pb + Zn corresponding ORGM hole – 20 metres at 3.5% Pb + Zn Will increase Resource grade TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 19
Slide 20: And the bigger picture
And the bigger picture For personal use only 4,064,000 mN TALA HAMZA 5225PE TERAMIENnnuR AUSTRLI MTEDprTil 4,062,000 mN +5% 2.5 to 5.0% 1.0 to 2.5% 0.0 to 1.0% Target not reached 4,060,000 mN 0 250 500 1,000 metres TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No
Slide 21: Metallurgy - a premium product
Metallurgy - a premium product For personal use only primary grind P80 minus 53 microns regrind of both lead and zinc rougher concentrates bond rod mill work index 15.6kWhr/t low contaminant zinc concentrate 53% Zn (4% Fe, <2% SiO2) at 90% recovery TERRAMIN AUSTRALIA LIMITED April 2009 SLI
Slide 22: Pre-feasibility outcomes
Pre-feasibility outcomes For personal use only Basis: - Reserve of 24.1Mt at 5.9% zinc and 1.7% lead, and - 2 million tonne per annum ore throughput producing 113,000t zinc in conc. and 27,000t of lead in conc. Capital cost US$ 266 million (down 25%) Life-of-mine C1 cash cost US 42 cents/lb pa
Slide 23: Feasibility study – value add propositions
Feasibility study – value add propositions For personal use only TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 23
Slide 24: The case for zinc
The case for zinc For personal use only A major zinc supply crisis was looming as old mines decline & 10 close in next few RED years DOGS! Will it be much worse now many new projects on hold, while old mines have closed early? TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 24
Slide 25: The case for Terramin's projects
The case for Terramin’s projects For personal use only TERRAMIN AUSTRALIA LIMITED April 2009 SLIDE No. 25
Slide 26: AGM Resolutions – May 2009
AGM Resolutions – 28 May 2009 For personal use only Ordinary business Resolutions 1 – 3 Annual Report and Accounts, Remuneration Report, Re-election of director (Mr S Bonett) Special business (ordinary resolutions) Resolution 4 Transamine share issue ($7.5m / 11.5m shares) approval Resolution 5 Tran
Slide 27: Summary, and in perspective
Summary, and in perspective For personal use only Commercial & technical management team experienced in development, production and refining Differentiating factors - Angas: fixed grid power, logistics, precious metal credits - Tala Hamza: orebody widths, low cost power, infrastructure Mine comparat
Slide 28: Company contacts
Company contacts For personal use only Kevin Moriarty +61 8 8213 1415 Executive Chairman Colin Jackson +61 8 8213 1405 Corporate Consultant Level 22, Westpac House 91 King William Street Adelaide, South Australia 5000 (t) +61 8 8213 1415 (f) +61 8 8213 1416 TERRAMIN AUSTRALIA LIMITED April 2009 SLID
Slide 29: Focused on Zinc - Annual General Meeting Update April 2009
TERRAMIN AUSTRALIA LIMITED For personal use only Focused on Zinc Annual General Meeting Update April 2009
Terramin Australia — Shareholder Meeting (April 2009) on 6ix