Terramin Australia Limited · ASX:TZN
Terramin Australia — Non-Deal Roadshow (October 2010)
36 slides from Terramin Australia's roadshow presentation, Oct 27, 2010
Slide 1: Tala Hamza DFS Results – Terramin Roadshow October 2010
TERRAMIN AUSTRALIA LIMITED For personal use only Tala Hamza DFS Results Terramin Roadshow October 2010
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: Contents
Contents For personal use only Corporate Introduction DFS Results Upside Potential Zinc Market Update Angas Update Conclusions Appendices TERRAMIN AUSTRALIA LIMITED SLIDE No. 3
Slide 4: What is Terramin
What is Terramin For personal use only An Australian zinc miner with a large African project Attributable metal – 3.0 Mt lead and zinc An OPTION on the zinc price Angas Zinc Mine - South Australia (100%) Mine providing operating experience Oued Amizour Project – Algeria (65%) DFS completed,
Slide 5: Fast facts
Fast facts For personal use only Market Capitalisation: $88m TZN Share Price (RHS) & Trading Volumes 2010 Shares on Issue: 166.9m 1800000 1 Options Outstanding: 17.2m 1600000 Cash $10m and Debt $23m 0.9 1400000 Convertible Notes: 1200000 0.8 5 Year $5.0m at $2.21/share 1000000 5 Year U
Slide 6: Project ownership
Project ownership For personal use only Exploration Permit 5225PE (current until Aug 2011) 100% owned by Western Mediterranean Zinc (“WMZ”) incorporated private Algerian company WMZ Ownership: 65.0% Terramin 32.5% ENOF (Algerian Govt. company) 2.5% ORGM (Algerian Govt. company) Terramin is
Slide 7: Project Location
Project Location For personal use only Close to major European markets FRANCE ITALY PORTUGAL Madrid Rome Lisbon SPAIN Sardinia Sicily Mediterranean Sea Rabat Algiers Tunis MALTA MOROCCO ALGERIA TUNISIA location is only one competitive advantage…. TERRAMIN AUSTRALIA LIMITED SLIDE No. 7
Slide 8: Project Location
Project Location For personal use only TERRAMIN AUSTRALIA LIMITED SLIDE No. 8
Slide 9: DFS – Key Outcomes
DFS – Key Outcomes For personal use only Long life mine: An initial 39.9Mt to be mined from the block cave Low operating costs: The scale of the mine and block cave mining ensures low costs Capital cost: Pre-production capex of US$579 million for 4Mtpa mine Favourable local Infrastructure: P
Slide 10: DFS – challenges but results
DFS – challenges but results For personal use only The DFS timetable and conclusions were delayed until September, 2010 because of challenges faced by the project team including: Drilling took longer than expected – the geotechnical complexity of the orebody increased as more data was acquired; It
Slide 11: Anticipated project schedule
Anticipated project schedule For personal use only The DFS assumes conventional drill and blast mining techniques for all the underground development with advance rates of 150m/month for the initial decline development – a very conservative rate. NOTE: Timing of project approvals is subject to our p
Slide 12: Capital Expenditure
Capital Expenditure For personal use only Facility/Element US$M The capex estimate for the mine includes a significant proportion of the block cave Mine 191.0 development required prior to first ore production Process Plant 116.7 Owners costs include US$34.4 million for land acquisition costs Ta
Slide 13: Operating costs
Operating costs For personal use only One of the most compelling features of the project is the low operating cost which is due to the block cave mining method, the scale of the processing plant and location close to infrastructure The estimated C1 cash cost of US32.1cents /lb are due to low die
Slide 14: Mine design
Mine design For personal use only The block cave design incorporates stepped undercut and extraction levels so that the development of the infrastructure follows the footwall of the orebody Total lateral pre-production development for the project is 30.1 kilometres Ventilation shaft MEASURED & I
Slide 15: Mine design
Mine design For personal use only The diagram shows the development required for the stepped extraction level of the block cave with the blue colour representing the drawpoint development More drawpoints can be opened within perimeter if metal prices are favourable The extraction level progres
Slide 16: Process plant
Process plant For personal use only SIMPLIFIED FLOWSHEET The process plant utilises conventional grinding and floatation technology Crushing Grinding Grinding: The circuit consists of a SAG mill and two ball mills Flotation: Conventional float cells with Lead Lead Concentrate the lead rougher
Slide 17: Product quality
Product quality For personal use only Both zinc and lead concentrate products are high quality and do not contain significant deleterious Element Zinc Conc Lead Conc elements Silver ppm <2 13 European smelters will be attracted to the zinc Arsenic ppm 670 666 concentrate because of its low iron
Slide 18: Production profile
Production profile For personal use only First concentrate production is scheduled for the final quarter of 2016 Output from the mine and plant will quickly ramp up to 4Mtpa with peak zinc and lead concentrate production of 425,000t (230,000t Zinc and lead metal) in 2018 The current mine life
Slide 19: Project upside
Project upside For personal use only TERRAMIN AUSTRALIA LIMITED SLIDE No. 19
Slide 20: Exploration potential
Exploration potential For personal use only Recent exploration activity at the Lbarkouk prospect has confirmed a large hydrothermal alteration system Channel sampling has recorded a number of polymetallic zones with anomalous copper and gold mineralisation Follow up drilling is in progress wit
Slide 21: The next months
The next 12 months For personal use only Partner due diligence and review of the DFS Negotiate revised fiscal regime Terramin and WMZ Board approval for the project Lodge Mining Lease Application documents Mining Lease granted (maximum 5 month statutory period) Land acquisition Tender
Slide 22: Zinc market update
Zinc market update For personal use only The zinc price has lagged the strong Copper,Lead and Zinc Prices (US$/t) performance of the copper price since the GFC 10,000 A number of commodity analysts are 9,000 bullish in their outlook for the metal over 8,000 the next few years and are forecasting
Slide 23: Zinc market update
Zinc market update For personal use only Analysts zinc price forecasts have played catch-up over the last five years Actual & Forecast Zinc Prices (USc/lb) 160.0 Underestimation of price forecasts leads to less mine 140.0 development and higher prices in the long term as 120.0 100.0 the supply r
Slide 24: Zinc Costs
Zinc Costs For personal use only Production costs have more than doubled from an average of US32c/lb from 2000 - 2004 to an average of US69c/lb from 2006 – 2009 All of the key operating components of mining activity have increased significantly since the middle of the decade Increases in capit
Slide 25: Angas Zinc Mine update
Angas Zinc Mine update For personal use only Angas Mine - Quarterly Ore Mined & Millied (t) 2010 Forecast: 390,000t ROM, 46,000t Zinc Conc and 120,000 17,000t Lead Conc 100,000 Four plus year LOM with exploration drilling targeting additional inventory to extend 80,000 mine life 60,000 40,000
Slide 26: VTEM Survey Area
VTEM Survey Area For personal use only Clear Objectives: Identifying anomalies to follow up in the future Final target generation following groundwork and detailed modelling to enable prioritisation Note – Geologically recent shallow cover containing no historical discoveries TERRAMIN AUSTRALI
Slide 27: Angas exploration targets
Angas exploration targets For personal use only TERRAMIN AUSTRALIA LIMITED SLIDE No. 27
Slide 28: Example of Survey Results
Example of Survey Results For personal use only TERRAMIN AUSTRALIA LIMITED SLIDE No. 28
Slide 29: Menninnie – ready to move
Menninnie – ready to move For personal use only Open Central Zone Inferred Resource of 3.8Mt @ 4.0% Zn and 3.2% Pb, and 34g/t Ag 160km from Pt Pirie lead smelter High lead content Other prospects with good Pb-Zn drill results Large geophysical and Cu-Pb-Zn geochemical anomalies Concept a
Slide 30: Conclusion
Conclusion For personal use only Terramin is poised for a period of growth: The completion of the DFS is a milestone toward a major mine Terramin is investigating options to reduce the time to first production Angas is running smoothly and 2012-15 is major cash flow generator Tala Hamza proj
Slide 31: Appendicies
Appendicies For personal use only Background on Algeria Resources and Reserves TERRAMIN AUSTRALIA LIMITED SLIDE No. 31
Slide 32: About Algeria
About Algeria For personal use only The second largest country in Africa and gained independence in 1962 from France Capital Algiers (3.9m),Total population 34 million, 99% Arab- Berber people and over 95% Sunni Muslim Government: Elected President and Council of Nation (upper house, 144 seats
Slide 33: Relationship with Government
Relationship with Government For personal use only Terramin is working in close collaboration with the Algerian Government which has indicated that Tala Hamza is a “Project of National Importance” Our government owned joint venture partners will engage an international consultancy to conduct due
Slide 34: The Tala Hamza deposit
The Tala Hamza deposit For personal use only Mineral Resource Measured, Indicated and Inferred 68.6 Mt at 4.6% Zn, 1.1% Pb As at November 2009 Resource inclusive of Reserve Ore Reserve Probable 38.1Mt @ 4.8% Zn, 1.4% Pb As at August 2010 Note: See slides 35 and 36 for complete JORC Statement TERRAMI
Slide 35: Resources & Reserves June 2010
Resources & Reserves June 2010 For personal use only Table of Resources Measured Resource Indicated Resource Inferred Resource Total Resources Terramin Zinc Lead Copper Silver Gold Zinc Lead Copper Silver Gold Zinc Lead Copper Silver Gold Zinc Lead Copper Silver Gold Interest Tonnes grade grade grad
Slide 36: Notes to Reserves & Resources
Notes to Reserves & Resources For personal use only 1. Resources for Angas are estimated at a cut off of 2% Pb+Zn 2. Resources for Tala Hamza are estimated at a cut off of 2.5% ZnEq. The Zinc Equivalence formula for Tala Hamza is %ZnEq = %Zn + 0.59 x %Pb and is based on long term predicted prices at
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