25 slides from St. George Mining's conference presentation, Oct 8, 2018
Slide 1: ASX Media Release: Presentation - LME Week
ASX / MEDIA RELEASE 8 October 2018 For personal use only PRESENTATION ‐ LME WEEK St George Mining Limited (ASX: SGQ) (‘St George’ or ‘the Company’) is participating in LME Week with investor presentations in London as from 8 October 2018. A copy of the Investor Presentation for LME Week is attached.
Slide 2: Western Australia's Next Big Nickel Sulphide Story
Western Australia’s Next For personal use only Big Nickel Sulphide Story LME Week London, 8 October 2018 ASX: SGQ
Slide 3: St George – Growth Nickel Stock
St George – Growth Nickel Stock Nickel-copper For personal use only sulphide discovery in WA Major Drilling to expand re-rating resource potential of St George Upswing in nickel price On right: Diamond drilling at Mt Alexander 2
Slide 4: Nickel Market Dynamics are Changing
For personal use only Nickel Market Dynamics are Changing 3
Slide 5: EV Demand
EV Demand Demand Rises on Electric Vehicle For personal use only Revolution: • Nickel sulphide (Class 1 nickel) is required for EV batteries; nickel pig iron, etc (Class 2) is not suitable for batteries • 1Mt deficit in 2025 = price pressure Source: McKinsey Basic Materials Institute Australian Fina
Slide 6: Upswing in Price Cycle
Upswing in Price Cycle UBS, Miner’s Price Review, June 2018: For personal use only “EV battery demand is emerging faster than expected. Inventory is falling, premia are rising, indicating a scramble for nickel metal. Meanwhile little battery-ready mine supply investment is being made.” Decreasing St
Slide 7: Nickel Price to Outperform
Nickel Price to Outperform UBS, Miner’s Price Review, June 2018: For personal use only Best Commodities on Risk/Return ? “Nickel is our preferred play on a >12 month view.” Commodity Units Current Price LT Forecast ‘Upside’ LT v. Current Cobalt US$/t 62,750 43,200 (32%) Copper US$/t 5,972 7,280 22%
Slide 8: Securing Nickel Supply
Securing Nickel Supply As the nickel market tightens and the battery market grows, industry players are looking to secure supply. For personal use only Battery manufacturers are competing for M&A is heating up. supply by offering offtake finance and taking strategic stakes in miners. The West, The W
Slide 9: St George – Corporate Overview
For personal use only St George – Corporate Overview 8
Slide 10: Market Profile and Capital Structure
Market Profile and Capital Structure For personal use only Listed shares (SGQ): 298,116,211 Share Ownership Listed options (SGQOB): 24,579,714 Top 10: 19% Top 20: 27% SGQOB - exercise price of 20c, expiring on 30 Sept 2020. Directors: 6% Market cap: A$39m (@12 per share) Cash: A$4m (at 30 Sept 2018)
Slide 11: Highly Qualified Team
Highly Qualified Team For personal use only Directors, Management and Consultants with a Track Record of Success John PRINEAS, Executive Chairman – founding shareholder with over 25 years experience in mining, and the banking and legal sectors servicing the resources industry. Tim HRONSKY, Technical
Slide 12: Successful Exploration Creates Value
For personal use only Successful Exploration Creates Value 11
Slide 13: Mt Alexander – Favourable Location
Mt Alexander Favourable Location For personal use only Three Projects in Western Australia: • Stable and reliable mining jurisdiction MT ALEXANDER DISCOVERY • Exceptional discovery in Western Australia • High-grade nickel-copper sulphides Favourable Location: • Located S-SW of world class nickel and
Slide 14: Australia's Latest Nickel-Copper Sulphide Discovery
Australia’s Latest Nickel-Copper Sulphide Discovery For personal use only Cathedrals Belt Discovery at Shallow Depths: • Massive sulphide mineralisation 30m from surface • Deeper drilling is underway to scope continuity at depth High Grade and Polymetallic: • Nickel sulphide plus copper, cobalt and
Slide 15: Exploration Success and Upside
Exploration Success and Upside • 100% success rate in testing EM conductors in the east-northeast Cathedrals Belt For personal use only • 200 sq km of underexplored tenement package • Highly mineralised north-northwest Mt Alexander Belt remains underexplored Above: Mt Alexander tenements against RTP
Slide 16: Large Scale Mineral System
Large Scale Mineral System • Cathedrals Belt mineralisation starts 30m from surface with potential for For personal use only repetition and extension at depth • Longer strike of mineralisation than Nova (circa. 1km strike - see Presentation dated 15 May 2018 by Independence Group NL and inset Nova g
Slide 17: Drilling Success Continues
Drilling Success Continues Wide intersections of high-grade Ni-Cu-Co-PGEs For personal use only 2017 – some of the best intersections (with assays): MAD71 (Stricklands Prospect): 17.45m @ 3.01%Ni, 1.31%Cu, 0.13%Co and 1.68g/t total PGEs from 37.45m, including 5.3m @ 4.39%Ni, 1.45%Cu, 0.21%Co and 2.0
Slide 18: Investigators Prospect
Investigators Prospect Multiple high-grade hits over a 1,500m strike High powered SAMSON electromagnetic (EM) survey identifies large areas of EM conductivity For personal use only indicating potential for extensive sulphide mineralisation Testing of EM conductors and definition drilling is ongo
Slide 19: Down Plunge at Investigators
Down Plunge at Investigators Down plunge strike of mineralisation extended by latest drilling Mineralised ultramafic dips to the north at an angle of about 30 degrees For personal use only Drilling down dip continues to intersect high-grade sulphides Drill hole MAD108 on the MAD60 section (app
Slide 20: Stricklands Prospect
Stricklands Prospect +400m strike with wide intercepts For personal use only Multiple high-grade hits including drill hole MAD71: 17.45m @ 3.01%Ni, 1.31%Cu, 0.13%Co and 1.68g/t total PGEs from 37.45m including the massive sulphide zones of: 5.3m @ 4.39%Ni, 1.45%Cu, 0.21%Co and 2.09g/t total PGEs f
Slide 21: Cathedrals Prospect
Cathedrals Prospect High grade mineralisation on two surfaces For personal use only Numerous intersections of nickel-copper sulphides on two surfaces – the Cathedrals ultramafic and the footwall fault below including MAD56: 7.5m @ 3.90%Ni, 1.74%Cu, 0.12%Co and 3.32g/t total PGEs from 57.8m, includ
Slide 22: Metallurgical Testwork
Metallurgical Testwork High Recoveries from Ore: For personal use only • >99% recoveries of Ni and Cu to concentrates from preliminary testwork on massive sulphides Clean Concentrate: • No deleterious elements like MgO, talc or arsenic Standard Flotation: • Separate nickel and copper concentrates pr
Slide 23: Opportunity for Low Cost/High Margin Project
Opportunity for Low Cost/ High Margin Project For personal use only Shallow Mineralisation Existing Infrastructure Clean Concentrate Low cost drilling/ low Nearby processing High grade Ni and Cu cost potential mining plants plus cobalt and PGEs Well defined zones of Close to existing roads
Slide 24: Creating shareholder wealth through exploration success
St George Mining: creating shareholder wealth through exploration success For personal use only Above: diamond drill rig at Stricklands, Cathedrals Belt. Right: Drill core from MAD108. 23
Slide 25: Disclaimer
DISCLAIMER: Certain statements contained in this presentation, including information as to the future financial or operating performance of St George Mining Limited (ASX:SGQ) and its projects, are forward looking statements: -may include, among other things, statements regarding targets, estimates a