Australian Mines Limited · ASX:AUZ
Australian Mines — Investor Presentation (March 2018)
36 slides from Australian Mines's investor presentation, Mar 21, 2018
Slide 1: Powering the Next Generation of Motor Vehicles
POWERING THE NEXT GENERATION OF MOTOR VEHICLES For personal use only March 2018 ASX: AUZ australianmines.com.au March 2018
Slide 2: Disclaimer
Disclaimer For personal use only This document is a visual aid accompanying a presentation by the Managing Director during Australian Mines’ international roadshow in March and April 2018. It is not intended to be read as a stand-alone document. It contains select information, in abbreviated or summ
Slide 3: Your next car will likely be an electric vehicle
Your next car will likely be an electric vehicle For personal use only • Electric vehicles to account for 30% of all new car sales across Europe by 20251 • Each year, there will be 1 million more UK-registered electric vehicles cruising the English countryside, for example • Globally, electric vehic
Slide 4: Nickel and Cobalt (not petrol or diesel) will power your future
Nickel and Cobalt (not petrol or diesel) will power your future For personal use only • Electric vehicles are powered by lithium-ion batteries • Composition of lithium-ion batteries may vary slightly between vehicle manufacturers • Typical electric vehicle batteries comprise nickel and cobalt plus m
Slide 5: The changing face of global energy
The changing face of global energy For personal use only • 1750 - 1900 • Driven by the steam engine • Energy companies = coal • 1900 - 2020 • Fueled by internal combustion engine • Energy companies = oil & gas • 2020 - ???? • Powered by renewable energy • Energy companies = battery metals Image sour
Slide 6: Australian Mines - Preferred international battery metal supplier
Australian Mines - Preferred international battery metal supplier For personal use only Australian Mines: • Rapidly growing resource and battery chemical company • Listed on Australian Stock Exchange (ASX stock code symbol “AUZ”) • Included in the S & P / ASX All Ordinaries Index • Preferred supplie
Slide 7: Australian Mines – A successful resource / mining company
Australian Mines – A successful resource / mining company For personal use only • Australian Mines, as our name implies, has its roots in mining • Successfully operated an underground nickel mine in Western Australia • Expanded operations into battery metals in 2016 • 100% owner of three battery met
Slide 8: Developing into a fully-integrated supplier to the battery industry
… and we are developing into a fully-integrated supplier to the battery industry For personal use only • Australian Mines is currently operating a smaller-scale processing plant in Perth, Australia • Producing battery metal (cobalt sulphate and nickel sulphate) samples for our partner and leading el
Slide 9: Demonstration-scale processing plant
Demonstration-scale processing plant For personal use only The demonstration-scale processing plant constructed on Simulus Engineering’s premises in Western Australia is the largest test plant of its type operating in Australia. This plant is presently producing battery metals (cobalt sulphate and n
Slide 10: Full-scale plant utilises proven, low-risk technology & design
Full-scale plant utilises proven, low-risk technology & design For personal use only Cobalt sulphate to be produced will contain approx. 21% cobalt metal equivalent Nickel sulphate to be produced will contain approx. 23% nickel metal equivalent • Australian Mines proposed commercial processing plant
Slide 11: Supply agreement positions Australian Mines as a market leader
Supply agreement positions Australian Mines as a market leader For personal use only • Australian Mines has executed a binding off-take term sheet agreement with Korean- based SK Innovation • Off-take quantities are up to: • 12,000 tonnes of cobalt sulphate per year, and • 60,000 tonnes of nickel su
Slide 12: Who is SK?
Who is SK? For personal use only • Korean-headquartered, SK is the world’s 57th largest company with annual revenue in excess of $120 billion • SK is ranked 1st in the Korean oil & gas and telecommunication sectors, and is the 3rd largest Korean company by sales ($122 billion) and in assets ($142 bi
Slide 13: Flemington: potential 2nd production source of battery metals
Flemington: Australian Mines’ potential 2nd production source of battery metals For personal use only • Flemington Project: • Continuation of Clean TeQ Holding’s Sunrise deposit8 • Mining Lease application submitted • Environmental study in progress • Permanent water source secured • Only a fraction
Slide 14: Sconi's scandium upside - build lighter, stronger cars
Sconi’s scandium upside - build lighter, stronger cars For personal use only • In addition to working on developing multiple battery metal operations, Australian Mines has established a Research and Development Division researching the application of MIG fighter-jet superalloy for the electric vehic
Slide 15: Opportunity to invest early in a growing global company
Opportunity to invest early in a growing global company For personal use only • Australian Mines is more than what our name may suggest • We are growing into a global resource and battery chemicals company • Capable of producing high-quality cobalt and nickel products for the rapidly expanding elect
Slide 16: For personal use only
For personal use only February 2018 www.australianmines.com.au 16
Slide 17: For further information
For further information: For personal use only Shareholder Contact: Media Contact: Sophia Bolhassan Michael Cairnduff Investor Relations Manager Cannings Purple Ph: +61 488 022 944 Ph: + 61 406 775 241 E: sbolhassan@australianmines.com.au E: mcairnduff@canningspurple.com.au March 2018 www.australian
Slide 18: For personal use only
For personal use only March 2018 www.australianmines.com.au 18
Slide 19: Appendix 1: Sconi Cobalt-Nickel-Scandium Project
Appendix 1: Sconi Cobalt-Nickel-Scandium Project For personal use only • Located within 250 kilometres of the approved cobalt & nickel exporting port of Townsville in northern Queensland, Australia • 100% owned by Australian Mines • No claw-backs or on-going royalties • Project covers 1,377 square k
Slide 20: Sconi Project – perfectly located and development ready
Sconi Project – perfectly located and development ready For personal use only • Sconi Project benefits from existing surrounding infrastructure including: ✓ local housing at nearby Greenvale town ✓ skilled local workforce ✓ State school in town ✓ airport ✓ sealed all-weather roads from site to port
Slide 21: Greenvale – Australian Mines' base for the Sconi Project
Greenvale – Australian Mines’ base for the Sconi Project For personal use only 21/03/2018 www.australianmines.com.au 21
Slide 22: Appendix 2: Flemington Cobalt-Scandium-Nickel Project
Appendix 2: Flemington Cobalt-Scandium-Nickel Project For personal use only • Located 370 kilometres west of Sydney within Australia’s premier cobalt district in New South Wales • Extensive tenement package • Acquiring 100% interest in the project, which includes an existing cobalt Mineral Resource1
Slide 23: Unlocking Flemington's potential
Unlocking Flemington’s potential For personal use only • Potential to unlock significant value at Flemington by increasing the cobalt, nickel and scandium resource • Additional drilling is due to commence with the view of announcing an updated Mineral Resource in the second half of 2018 • Pre-Feasib
Slide 24: Flemington community engagement
Flemington community engagement For personal use only • Employed Community Liaison person from within local Parkes community • Establishing a shop front office in the heart of the Parkes shopping district • information centre for future mining development at Flemington • Plan to employ locally and f
Slide 25: Appendix 3: Thackaringa Cobalt Project
Appendix 3: Thackaringa Cobalt Project For personal use only • Thackaringa exploration tenements 100% owned by Australian Mines • Located within 25 kilometres of Broken Hill in central New South Wales • No third-party royalties or claw back measures • Similar geology as Cobalt Blue next door, and po
Slide 26: Additional cobalt exploration upside
Additional cobalt exploration upside For personal use only • Surface sampling of Target Area A and Target Area B at Thackaringa now completed • Surface sampling of Target Area C in progress – will be completed by May 2018 • Anticipate results for all three areas in June 2018 • Helicopter electromagn
Slide 27: Ground-truthing FLEM targets at Thackaringa in progress
Ground-truthing FLEM targets at Thackaringa in progress For personal use only March 2018 www.australianmines.com.au 27
Slide 28: Appendix 4: Scandium demand growth potential
Appendix 4: Scandium demand growth potential For personal use only • Modelling by respected commodity analyst CRU has reinforced the automotive sector as the key to the future demand prospects of the scandium market • Due to the huge number of cars produced each year, even if only a tiny proportion
Slide 29: Appendix 5: Corporate Overview
Appendix 5: Corporate Overview Capital For personal use only Board of Directors Structure Michael Ramsden (Chairman) Benjamin Bell (Managing Director) Michael Ramsden is a lawyer with more Benjamin Bell is a geophysicist, with 20 years’ than 25 years' experience as a corporate experience in the mine
Slide 30: Appendix 6: References
Appendix 6: References For personal use only Slide 3 -Your next car will likely be an electric vehicle 1 UBS Evidence Lab Electric Car Teardown – Disruption Ahead? https://neo.ubs.com/shared/d1wkuDlEbYPjF/ https://www.businessinsider.com.au/2016-was-a-record-breaking-year-for-global-car-sales-and-it
Slide 31: References
References For personal use only Slide 6 - Australian Mines - Preferred international battery metal supplier 3 Indicative only. The final timetable is subject to Australian Mines securing financing for the project. As per Australian Mines announcement to the market on 31 January 2018, the company ha
Slide 32: References
References For personal use only Slide 7 - A successful resource / mining company (continued) 6 See Australian Mines’ announcement to the ASX dated 6 March 2017 for full details of the terms of its binding off-take agreement with SK Innovation, which include the the following key commercial terms: •
Slide 33: References
References For personal use only Slide 11 - Supply agreement positions Australian Mines as a market leader 7 See Australian Mines’ announcement to the ASX dated 6 March 2017 for full details of the terms of its binding off-take agreement with SK Innovation, which include the the following key commer
Slide 34: References
References For personal use only Slide 13 - Flemington: Australian Mines’ potential 2nd production source of battery metals 8 See Australian Mines Limited’s announcement to the ASX dated 11 August 2017 for further details on the Flemington Project and its exploration potential The Mineral Resource E
Slide 35: References
References For personal use only Slide 21 - Appendix 2: Flemington Cobalt-Scandium-Nickel Project 10 See Australian Mines Limited’s announcement to the ASX dated 11 August 2017 for further details on the Flemington Project and its exploration potential The Mineral Resource Estimate for the Flemingto
Slide 36: Appendix 7: Competent Persons Statement
Appendix 7: Competent Persons Statement For personal use only Sconi Project The Mineral Resource for the Sconi Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource was first reported by Australian Mines on 31 March 2017. There has been no Material Chan
Australian Mines — Investor Presentation (March 2018) on 6ix