Terramin Australia Limited · ASX:TZN
Terramin Australia — UBS Resources Conference June 2010
30 slides from Terramin Australia's conference presentation, Jun 2, 2010
Slide 1: Focused on Zinc
TERRAMIN AUSTRALIA LIMITED For personal use only Focused on Zinc UBS Resources Conference June 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 & Strategy Outlook for Zinc Performance of Angas Regional Exploration Progress at Oued Amizour Conclusions TERRAMIN AUSTRALIA LIMITED SLIDE No. 3
Slide 4: Corporate Introduction & Strategy
For personal use only Corporate Introduction & Strategy TERRAMIN AUSTRALIA LIMITED SLIDE No. 4
Slide 5: Terramin is ...
Terramin is ... For personal use only ...a low zinc cost producer with a world class project Angas Zinc Mine - South Australia (100%) at nameplate capacity with low cash costs Oued Amizour Project – Algeria (65%) in final feasibility for a 2 ~ 4Mtpa mine Menninnie Dam Project - South Austr
Slide 6: Fast facts
Fast facts For personal use only Market Capitalisation: $102m Shares on Issue: 166.0m Options Outstanding: 15.5m Cash $20m and Debt $23m Convertible Notes: 5 Year $5.0m at $2.21/share 5 Year US$10.0m at VWAP ($1.70/share minimum) 5 Year US$15.0m at VWAP Shareholders (over 4000) N
Slide 7: Strategy
Strategy For personal use only Finding and developing base metal mines in close proximity to infrastructure with low capital and operating costs To grow the company by building on existing portfolio through focused exploration seeking to acquire base metal projects that meet criteria F
Slide 8: Zinc Market Fundamentals
For personal use only Zinc Market Fundamentals TERRAMIN AUSTRALIA LIMITED SLIDE No. 8
Slide 9: Zinc price outlook
Zinc price outlook For personal use only Forecasts indicate that a significant amount of mine supply will close over the next five years leading to market deficits in the latter years Source: Brook Hunt, April 2010 TERRAMIN AUSTRALIA LIMITED SLIDE No. 9
Slide 10: Zinc price outlook
Zinc price outlook For personal use only Brook Hunt is forecasting a significant increase in the zinc price in the medium term under a range of different growth scenarios Tala Hamza project start up could be well timed to capture a period of high zinc prices Source: Brook Hunt, April 2010 TERRAM
Slide 11: Performance of Angas Zinc Mine
For personal use only Performance of Angas Zinc Mine TERRAMIN AUSTRALIA LIMITED SLIDE No. 11
Slide 12: Angas in 2010
Angas in 2010 For personal use only 2010 targets 400,000t ROM 48~50,000t zinc concentrate 18~20,000t lead concentrate Realised zinc price: About US$2,400/t until September 5 year mine life on current Probable Reserve Growing positive cash flow to support broader corporate objectives No
Slide 13: Production ramp up
Production ramp up For personal use only Mill throughput increased consistently during 2009 Reached nameplate capacity of 400,000tpy in the December quarter Zinc concentrate production down slightly in the March quarter due to lower head grade TERRAMIN AUSTRALIA LIMITED SLIDE No. 13
Slide 14: Fleurieu Regional Exploration
For personal use only Fleurieu Regional Exploration TERRAMIN AUSTRALIA LIMITED SLIDE No. 14
Slide 15: Objectives
Objectives For personal use only Extend Angas Mine life Find new mines TERRAMIN AUSTRALIA LIMITED SLIDE No. 15
Slide 16: Early exploration results
Early exploration results For personal use only A recently completed first pass drilling programme generated encouraging results High grade gold at Lady Jane 3m @ 11.1g/t from 1m depth 13m @3.2g.t from 80m depth Wide intersections of anomalous copper and gold at historic Preamimma Mine F
Slide 17: 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 18: Example of Survey Results
Example of Survey Results For personal use only TERRAMIN AUSTRALIA LIMITED SLIDE No. 18
Slide 19: Angas exploration targets
Angas exploration targets For personal use only 0 mRL surface 3.0m @ 1.4% 2.0m @ 2.0% 6.8m @ 1.8% 1.8m @ 3.5% 2.2m @ 1.9% 2.3m @ 1.9% -250 mRL 2.1m @ 10.6 % 2.1m @ 2.8% 1.9m @ 3.6% -500 mRL 2.0m @ 5.1% 4.1m @ 4.2% 2.9m @ 5.5% Angas Resource 0 500 with May 2010 Level Development metres -750 mRL Explo
Slide 20: Progress at Oued Amizour Project
For personal use only Progress at Oued Amizour Project TERRAMIN AUSTRALIA LIMITED SLIDE No. 20
Slide 21: 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 22: Oued Amizour location
Oued Amizour…. For personal use only 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. 22
Slide 23: Competitive advantages
Competitive advantages For personal use only Infrastructure deep water port international airport plentiful water on lease Cheap power and fuel (US$) power approximately 4c/kWh low cost fuel – diesel – 20c/l Low cost mining Block cave now selected Quality concentrates 54% Zn @
Slide 24: 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 24.1Mt @ 5.9% Zn, 1.7% Pb As at October 2008 Note: See slides 29 and 30 for complete JORC Statement TERRAM
Slide 25: Feasibility Progress
Feasibility Progress For personal use only Prefeasibility study completed in early 2009 Recommended considering a block cave mine Preliminary capex of US285M for 2.0Mtpa mine Estimated production about 200kt zinc concentrate and 40kt lead concentrate at the 2.0Mtpa production rate Block ca
Slide 26: 2010 Objectives
2010 Objectives For personal use only Finalise Definitive Feasibility Study [Q3] Board approval Submit Mining Lease Application Complete permitting process [Q4] Tender process for civils and decline development Progress project financing Site mobilisation – year end Re-commence regio
Slide 27: Project ranking
Project ranking For personal use only Tala Hamza has the potential to be a top ten zinc producer.... TERRAMIN AUSTRALIA LIMITED SLIDE No. 27
Slide 28: Conclusion
Conclusion For personal use only Terramin is well positioned for the future: Enhanced board capability with major project oversight and delivery experience Building corporate capability experienced operations and project management team Angas Zinc Mine performing well cash flow to suppor
Slide 29: Resources & Reserves Feb 2010
Resources & Reserves Feb 2010 For personal use only Table of Resources Table of Reserves These tables should be read in conjunction with the accompanying notes TERRAMIN AUSTRALIA LIMITED SLIDE No. 29
Slide 30: 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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