Aspire Mining Limited · ASX:AKM
Aspire Mining — RIU Sydney Resources Roundup, May 2012
24 slides from Aspire Mining's conference presentation, May 8, 2012
Slide 1: Aspire Mining Limited – RIU Sydney Resources Roundup, May 2012
Aspire Mining Limited For personal use only RIU Sydney Resources Roundup, May 2012 May 2012
Slide 2: Important notices
Important notices For personal use only Nature of this document: This document has been prepared by Aspire Mining Limited (“Aspire”, “AKM”, or the “Company”) and contains summary information about the Company and its subsidiaries as at May 2012. The information in this document does not summarise al
Slide 3: Company Snapshot – Corporate Structure
Company Snapshot – Corporate Structure For personal use only Capital Structure (ASX:AKM) Share Price (LTM) Undiluted Diluted Share Price (1 May 12) $ 0.290 0.290 1.20 24 Jun 2011 10.0 Production target for Shares Outstanding m 620.5 929.12 Ovoot Stage 2 lifted Market Capitalisation $m 179.9 269.4 fr
Slide 4: Projects
Projects For personal use only Project Locations Project Interests Ovoot Coking Coal Project (100%) Jilchigbulag Coal Project (100%) Nuramt Coal Project (100%) Zavkhan Iron Ore Project (Earning 70%) 4
Slide 5: Ovoot Coking Coal Project – Some Facts
Ovoot Coking Coal Project – Some Facts For personal use only Ovoot … New Discovery made by Mongolian Exploration Company under cover Over US $27 M invested in exploration and development to date 36,295 meters total drilling to date Bankable Feasibility Study will require a further $10 M of d
Slide 6: Ovoot – Room to Grow to Tier Resource
Ovoot – Room to Grow to Tier 1 Resource For personal use only Project Tenement and Geology +500sqkm project area. 25,000m drilling programme for 2011/2012. Comprehensive airborne magnetics programme clearly defines extensive basin. 5 exploration target areas. 6
Slide 7: Mongolian Peer Comparison - Resources
Mongolian Peer Comparison - Resources For personal use only +6,500 833.8 691.5 330.7 322 220 149 1 2 3 4 5 6 Typical Coking Hard and Semi Soft Hard and Semi Soft Semi Soft Premium Coking Coal Semi Soft Semi Soft Coking coal Quality No. Projects7 1 2 3 1 2 n/a 1 Market Cap (US$) 8 Private $3.02B $1.2
Slide 8: Exceptional Deposit – Highest Washing Yields and % Coking
Exceptional Deposit – Highest Washing Yields and % Coking = Highest In-Situ Value For personal use only 8
Slide 9: Ovoot Development Timeframe
Ovoot Development Timeframe For personal use only Note: In order for any development to proceed, a mining license needs to be received from the Mongolian Government, economic studies need to be completed and demonstrate positive returns, capital expenditure financed as well as receive approvals and
Slide 10: Ovoot: Major New Quality Coking Coal Supply Source
Ovoot: Major New Quality Coking Coal Supply Source For personal use only Pre-Feasibility Study Targeting the development of up to15 million tonne per annum ROM open pit mine at Ovoot ROM up to 15mtpa, indicative wash yields of 80% = 11-12 Mtpa saleable coking coal* 2 x Wash Plant facilities
Slide 11: Ovoot Indicative Start Up Production
Ovoot Indicative Start Up Production For personal use only 12.0* 11.4* 6.0* 6.0* *Final Product (Mt). Assumes commissioning of second wash plant and completion of Ovoot to Moron rail link. Note: These production targets are conceptual in nature and are based entirely on the existing mineral resource
Slide 12: Ovoot Estimate of CAPEX Requirements
Ovoot Estimate of CAPEX Requirements For personal use only Ovoot CAPEX Estimate Year -3 Year -2 Year -1 Year 1 Year 2 Total Access and coal haul road – Ovoot to Moron USD (M) 17.6 70.4 88.0 Camp, office & security gatehouse USD (M) 6.2 12.3 4.6 23.1 Airstrip USD (M) 1.0 5.3 6.7 13.0 Raw water supply
Slide 13: Capital Intensity Analysis per Tonne of Annualised Production of Coking Coal
Capital Intensity Analysis per Tonne of Annualised Production of Coking Coal For personal use only Capital Production Company Mine Name Mine Type Product Type Capex ($m) Intensity (Mtpa) ($/t) Development Aston Maules Creek Aston (Maules Creek)* Open cut Thermal/Coking 10.50 796 75.81 Aspire Ovoot A
Slide 14: Large New Coking Coal Deposits Need to be Developed
Large New Coking Coal Deposits Need to be Developed For personal use only Source: BHP Billiton, Developments in the coking coal market Presentation 17 April 2012 14
Slide 15: Mongolian Coking Coal now the Dominant Source
Mongolian Coking Coal now the Dominant Source For personal use only 9,000 Chinese Coking Coal Imports 8,000 7,000 Quantity 000' Tonnes 6,000 5,000 4,000 3,000 2,000 1,000 0 Mar Qtr June Qtr Sept Qtr Dec Qtr Mar Qtr June Qtr Sept Qtr Dec Qtr Mar Qtr Jun Qtr Sept Qtr Dec Qtr 2009 2009 2009 2009 2010 2
Slide 16: Rail Critical to Development of Ovoot Coking Coal Project
Rail Critical to Development of Ovoot Coking Coal Project For personal use only Commentary Potential Rail Route Ovoot Coking Coal Project is 550kms from Trans-Mongolian rail terminus Users include coking coal, phosphate, freight and passenger “Erdenet to Moron line” • 411km, 22 Mtpa capacity m
Slide 17: Northern Railways LLC
Northern Railways LLC For personal use only • Focused on Erdenet to Moron rail line • Stand alone Special Purpose Vehicle to: - Apply for BOOT (Build Own Operate Transfer) rail concession - Manage EPC contractors - Raise required funds through issuing debt and equity securities • 51% ownership of Er
Slide 18: Mongolian Investment is Geographically Unbalanced
Mongolian Investment is Geographically Unbalanced For personal use only Northern Mongolia Ovoot = $500m US$ Nil Burenhaan = $500m Nuurstei = +$100m Rail: Erdenet – Moron = $1,200m Rail: Ovoot – Moron = $500m = $2,800m Investment dependant on Northern Khushuut Ukhaa Ukudag Railways LLC US$652M5 US$57
Slide 19: Potential Routes to Coal Markets – Rail Access
Potential Routes to Coal Markets – Rail Access For personal use only Asian Importers of Metallurgical Coal: Japan 68.6Mt1 Korea 25.9Mt1 Taiwan 5.7Mt1 100.4Mt Russian total Metallurgical Coal Exports to Asian markets (incl. China): 1. Source: TEX Report, 2011 data. 3.8Mt1 19
Slide 20: Progress so far for 2012…
Progress so far for 2012… For personal use only ✓ Exploration 4,088m Exploration Drilling in the New Discovery Area completed 1Q12 Preparations to commence exploration drilling at Zavkhan Iron Ore Project Planning for additional exploration drilling at Hurimt and Zuun Del ✓ Establish a Mongoli
Slide 21: Progress so far for 2012 (cont)…
Progress so far for 2012 (cont)… For personal use only Completion Rail Pre- ✓ Feasibility Study Northern Railways LLC 411 km Erdenet – Moron Rail link US$1.1B plus contingency Aspire Mining Ltd 211 km Ovoot – Moron Rail 0 250m 500m spur line Picture: Land Purchase near Erdenet Rail Siding (5 h
Slide 22: Summary
Summary For personal use only Ovoot … Is independent and 100% owned coking coal deposit located in Northern Mongolia Has a maiden 330 MT resource with strong exploration potential and future resource growth Is a premium, high vitrinite, high fluidity coking coal Fully funded exploration and
Slide 23: Competent Person Statement
Competent Person Statement For personal use only In accordance with the Australian Securities Exchange requirements, the technical information contained in this announcement in relation to the Ovoot Coking Coal Project in Mongolia has been reviewed by Mr Neil Lithgow – Non Executive Director for Asp
Slide 24: Contact details
Contact details For personal use only Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Level 2, Suite 20, 22 Railway Road Subiaco, Western Australia, 6008 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave-8 Social Insurance Department Building A
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