Slide 1: Annual General Meeting FY12 Budget Book
For personal use only ANNUAL GENERAL MEETING FY12 Budget Book 17 November 2011 1
Slide 2: Agenda
Agenda For personal use only • Chairman’s introduction Gerry King • Financial highlights Mark Nielsen • Legal update Mark Nielsen • Senegal update Mark Nielsen • Donald update Simon Peters • Market & funding update Scott McDaniel • Questions Alex Brown Forward looking statements This presentation co
Slide 3: Chairman's introduction
For personal use only Chairman’s introduction Gerry King 3
Slide 4: Chairman's introduction
Chairman’s introduction For personal use only • During the 2011 financial year Astron’s share price increased by 66% from 185cps to 308cps • Main focus of the Astron Group continues to be the development of the Donald Project: – Purchased entitlement to 6,975ML of water per annum – Phase 1 of the Cu
Slide 5: Chairman's introduction
Chairman’s introduction For personal use only • In China, Astron continued its R&D projects and trading activities • In Senegal we were re-awarded our exploration licence enabling Astron to continue the development of its mineral sands project • Astron’s strong balance sheet and the positive outlook
Slide 6: Financial highlights
For personal use only Financial highlights Mark Nielsen 6
Slide 7: 2011 Financials: Balance Sheet
2011 Financials: Balance Sheet 2011 2010 For personal use only AS AT 30 JUNE $M $M PPE includes CIP 12.4 11.4 Donald 27.0 21.8 Land use rights 8.3 10.0 Current assets (excluding cash) 13.7 4.6 Cash & term deposits 147.4 166.5 Total Assets 208.8 214.3 Liabilities 7.0 4.6 Net Assets 201.8 209.7 Contri
Slide 8: 2011 Financials: Commentary
2011 Financials: Commentary For personal use only Property, plant & equipment • Expenditure relating to development of facilities and laboratory at Yingkou • Purchase of land at Donald Intangibles • Donald – Expenditure capitalised in terms of AASB6 Land use rights • Land in Yingkou – China • 50 yea
Slide 9: 2011 Financials: Commentary (Cash)
2011 Financials: Commentary For personal use only Cash • Cash and deposits retained for investment and project development • More than 95% of cash and deposits in AUD INSTITUTION AMOUNT (M) AVERAGE RATE CBA 118.2 5.7% Goldman Sachs JB Were 11.2 5.6% Bank of China 16.9 6.0% Other banks 1.1 2.1% Total
Slide 10: 2011 Financials: Commentary (Cash – Treasury)
2011 Financials: Commentary For personal use only Cash – Treasury • Continued to investigate and consider a number of products e.g. bonds and capital guaranteed products - No significant enhancement to returns • To obtain higher returns need to: - Commit funds for usually plus 12 months - Take marke
Slide 11: 2011 Financials: Cash Utilisation
2011 Financials: Commentary For personal use only Cash Utilisation • Cash has been utilised as follows: CASH UTILISED $M Share buy-back 5.0 Purchase of land – Donald 2.5 Development of facilities at Yingkou & other CIP 2.6 Development expenditure - Donald 5.2 Operating activities 1.5 Net cash and te
Slide 12: 2011 Financials: Net Asset Value
2011 Financials: Net Asset Value For personal use only YEAR ENDED 30 JUNE 2011 CPS Cash 237 Cash 73% 12
Slide 13: 2011 Financials: Net Asset Value
2011 Financials: Net Asset Value For personal use only YEAR ENDED 30 JUNE 2011 CPS Cash 237 Debtors, stock less payables (NCA) 11 NCA 3% Cash 73% 13
Slide 14: 2011 Financials: Net Asset Value
2011 Financials: Net Asset Value For personal use only YEAR ENDED 30 JUNE 2011 CPS Cash 237 Debtors, stock less payables (NCA) 11 Property, plant & land use rights 33 PPE & land use rights 10% NCA 3% Cash 73% Tangible NAV per share of 281 cps (excluding Donald) 14
Slide 15: 2011 Financials: Net Asset Value
2011 Financials: Net Asset Value For personal use only YEAR ENDED 30 JUNE 2011 CPS Cash 237 Debtors, stock less payables (NCA) 11 Property, plant & land use rights 33 Donald 43 Donald 14% PPE & land use rights 10% NCA 3% Cash 73% NAV per share of 324 cps 15
Slide 16: Legal update
For personal use only Legal update Mark Nielsen 16
Slide 17: Legal update
Legal update For personal use only • Gambia - The claim concerns the wrongful cancellation of a mining licence issued to Astron's subsidiary Carnegie Minerals (Gambia) Limited - The arbitration hearing is scheduled to complete in March 2012 • AZ - Entered into a transaction to acquire WIM 150 Projec
Slide 18: Senegal update
For personal use only Senegal update Mark Nielsen 18
Slide 19: Senegal
Senegal For personal use only • Exploration licence renewed until 26 November 2013 • Appointed a Project Manager with 25 years mining experience to manage development of the project • Large coastal based mineral sands deposit • No overburden and low slimes Stage 1 Niafarang Deposit (6kms) • First ph
Slide 20: Senegal - Timing
Senegal - Timing For personal use only • Exploration program commenced by end of 2011 • EIS underway to convert to mining licence • EIS approval expected early 2012 • Feasibility study initiated • Mining licence – mid 2012 20
Slide 21: Donald Project
For personal use only Donald Project Simon Peters 21
Slide 22: Donald Project – tenements
Donald Project – tenements For personal use only Tenements 5,576 sq km Drilling Program Exploration Targets Resource Potential Mineralogy Coarse Grain Mineral Sand 22
Slide 23: Donald Project – water and land
Donald Project – water and land For personal use only 2011 DELIVERY Purchase of 6,975 ML pa water entitlement should provide sufficient water for the ✓ project Purchase of 699 hectares of land in the ✓ mining licence area Cultural Heritage Survey • January 2011 Taylor’s Lake Source of Water 23
Slide 24: Donald Project – geology
Donald Project – geology For personal use only 2011 DELIVERY Mineralogical analysis from 2010 drilling campaign ✓ Further work done Resource and Reserve Statement ✓ 24
Slide 25: Donald Project – approvals
Donald Project – approvals For personal use only 2011 DELIVERY Draft Work Plan submitted ✓ Mine schedule ✓ Mine plan and layout ✓ Environmental plan ✓ Rehabilitation plan ✓ Cultural heritage plan – Stage 1 ✓ 25
Slide 26: Donald Project – mine sequence
Donald Project – mine sequence For personal use only • Piping and haul roads to move with mine face • Stockpiles off mine path 26
Slide 27: Donald Project – basic design (plant layout)
Donald Project – basic design (plant layout) For personal use only Source: RJ Robbins – Definitive Engineering Study 2011 27
Slide 28: Donald Project – project execution plan
Donald Project – project execution plan For personal use only 2012 EXECUTION PLAN Key Contracts Procurement Strategy Detailed Engineering Construction Management Commissioning & Close Out Plan 28
Slide 29: Market & Funding update
For personal use only Market & Funding update Scott McDaniel 29
Slide 30: Titanium feedstock market update
Titanium feedstock market update For personal use only Supply gap driven by: Significant shortfall (from 2012) '000 TiO 2 units • Decrease in existing suppliers 400 300 200 • Limited new suppliers 100 0 -100 • Urbanisation in China -200 -300 -400 • Higher mining costs -500 -600 -700 2000 2002 2004 2
Slide 31: Titanium feedstock market update
Titanium feedstock market update For personal use only • Driven by TiO2 pigment • Closed high-cost plants • Marginal performance by low-cost plants • Future demand driven by Asia-Pacific / China • Global supply side => grow to 5.8 million tonnes in 2012 • Supply constrained by lack of inventory (201
Slide 32: Zircon market structure
Zircon market structure For personal use only Demand '000 tonnes 2,000 • Driven by unprecedented growth 1,800 in industrialisation 1,600 1,400 • Primary application – ceramics 1,200 • 70% China consumption 1,000 and growing 800 600 400 Supply 200 0 • Some operations coming to the 1990 1993 1996 1999
Slide 33: Zircon market update 2011
Zircon market update 2011 For personal use only • In balance during the 2011 year • Increasing supply deficits starting 2012 – (100k tonnes) • Additional supply from new projects expected • Delays based on financing and approvals • Shortfall will significantly affect pricing 33
Slide 34: Donald funding
Donald funding For personal use only • Arrangement with POSCO terminated in May 2011 • Enables Astron to consider other funders • Discussions with POSCO and KORES are continuing • Institutional and industry players expressed interest in Donald Project • On completion of BFS Astron will undertake a r
Slide 35: Questions
Questions For personal use only Alex Brown 35