Asiamet Resources Limited · LSE:ARS
Asiamet Resources — Investor Presentation (October 2019)
41 slides from Asiamet Resources's investor presentation, Oct 14, 2019
Slide 1: Building Indonesia's Next Copper Mine
BUILDING INDONESIA’S NEXT COPPER MINE AIM : ARS OCTOBER 2019 JUNE 2019
Slide 2: Forward Looking Statement
Forward Looking Statement The information contained in this confidential document (the “Presentation”) has been prepared by Asiamet Resources Limited (the “Company” or "Asiamet") solely for informational purposes. Information contained herein does not purport to be complete and is subject to certain
Slide 3: Forward Looking Statement
Forward Looking Statement The documented geometries of mineralised inventory or exploration targets are not intended to be a proxy, or used as a basis, for mineral resource calculations. It is not certain if additional exploration will result in the delineation of Mineral Resources in, or near, thes
Slide 4: Asiamet – Overview
Asiamet – Overview Asiamet Resources Limited (AIM:ARS) a company focused on development and exploration of high quality, large scale, copper-gold and base-metals deposits ESTABLISHED COMPELLING CORPORATE PORTFOLIO VALUE • Multi Asset Company • Large portfolio of advanced • Internationally recognised
Slide 5: Corporate Overview
Corporate Overview Experienced team with proven track record Board of Directors Tony Manini Peter Bird Executive Chairman Chief Executive Officer Geologist, +30 years, Rio Tinto, Oxiana/OZ Geologist, +30 years, Normandy, Newcrest, Minerals, Tigers Realm, EMR Capital. Merrill Lynch, Heemskirk. Mining
Slide 6: Corporate Overview
Corporate Overview Key Shareholders 1,095.9m £42m JP Morgan Asset Management Global Natural Resources Fund 9.00% Asipac Group 6.47% Shares on Issue Market Cap. Board and Management 4.30% 3.85p Namarong Investments 3.71% £2.1m £40m Cash Enterprise Value (Dec 2018) 6
Slide 7: Why Copper? Solid Fundamentals
Why Copper? Solid Fundamentals CAPITAL INVESTMENT REQUIRED TO MEET FORECAST CONSUMPTION IN 2027 (US$Bn) REFINED CONSUMPTION BY REGION vs Primary Supply 35 35 30 30 25 25 million tonnes 20 20 15 15 10 10 5 5 0 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 China Other Asia North America Europe Row Pr
Slide 8: Copper Driving Force of Clean Energy
Copper Driving Force of Clean Energy Copper connects and delivers clean energy to the world Less than 1% of the worlds vehicles are electric, by 2030 Electric Vehicles are expected to make up 11% of new car sales With the rise in Electric Vehicles as will the need for copper Source : Reuters Sou
Slide 9: Key Projects – Indonesia
Key Projects – Indonesia KSK Contract of Work (100%) Beutong IUP (80%) BKM Copper Deposit – Feasibility Study ~400km² in highly prospective JORC Compliant Resources of 2.4Mt Completed, Heap Leach SX-EW operation Kalimantan volcanic arc - 15 key Cu (5.3Blb) Cu, 2.1Moz Au, 20.9Moz Ag and Au pros
Slide 10: BKM Copper Project
BKM Copper Project Central Kalimantan 10
Slide 11: KSK Project – BKM Copper Deposit
KSK Project – BKM Copper Deposit Development Opportunity with Significant Resource Growth BKM Feasibility Study completed Q2 2019 Initial Ore Reserves JORC (2012) Numerous additional high probability targets outlined by surface sampling, geochemistry and geophysics. All within close proximity
Slide 12: BKM Copper Deposit
BKM Copper Deposit Strong Technical Fundamentals At surface and outcropping, locally up to 150m thick Section 17m @ 0.77% Cu Incl. 4m @ 1.55% Cu 24m @ 0.92% Cu 22m @ 1.25% Cu 7.5m @ 4.11% Cu 53.2m @ 0.73% Cu Incl. 29.2m @ 1.02% Cu BKM32550 Excellent continuity of copper mineralisation 92m @ 0.90
Slide 13: KSK Project – District Scale Potential
KSK Project – District Scale Potential BKZ – High Quality Stand Alone Base Metal Target BKZ Project, outcropping massive sulphide, polymetallic mineralisation, underlain by copper-silver mineralisation Polymetallic mineralisation confirmed over a strike length of 225m, is up to 110m in east-west
Slide 14: Beutong Project
Beutong Project Aceh, Sumatra 14
Slide 15: Beutong Project – Infrastructure Advantage
Beutong Project – Infrastructure Advantage Road, Power, Port Infrastructure nearby Located only 60km inland and north-east of the township of Meulaboh, Aceh Access to project site is via partially sealed roads from the regional towns of Meulaboh and Takengon Meulaboh - population 50,000. Comme
Slide 16: Beutong Project – Exciting Cu-Au Discovery
Beutong Project – Exciting Cu-Au Discovery Quality Deposit with Significant Upside Potential Copper Model Large, high quality porphyry Cu-Au-Mo deposit Measured + Indicated Resources (100%) 1.2BIbs Cu, 0.36Moz Au, 5.55Moz Ag, 9Mlbs Mo Inferred Resources (100%) 4.1BIbs Cu, 1.75Moz Au, 15.3M
Slide 17: Beutong
Beutong Large, High Quality, Globally Significant 2.50% 2.25% Carrapateena (Australia) 2.00% Ambler (USA) 1.75% 1.50% Marcona (Peru) 1.25% Beutong Metal Inventory Expected to Grow Olympic Dam 1.00% (Australia) 0.75% Beutong Sentinel Antapaccay (Zambia) (Indonesia) 0.50% (Peru) Batu Hijau Kalkaroo (I
Slide 18: BKM Copper Project
BKM Copper Project Central Kalimantan 18
Slide 19: BKM – Feasibility Study Outcomes
BKM – Feasibility Study Outcomes PRODUCTION NPV8 / IRR 1 Up to 25kt Copper Cathode $124.8 million / 19.1% Life of Mine 172.6kt INITIAL CAPEX2 FINANCIALS $223.4 million Revenue: $1.27 billion EBITDA: $563.3 million LOW CAPITAL C14 / AISC4 INTENSITY3 $7,680/t 1.65 / 1.78 1 After corporate income tax a
Slide 20: BKM – Site Layout
BKM — Site Layout Ky ASIAMET RESOURCES =” ARD/Sediment Pond — Conveyor} Neutralisation— | Warehouse —“\ -
Slide 21: BKM – Process Flowsheet
BKM – Process Flowsheet Conventional Process Design Process Route involves: 1. Crushing & grinding 2. Agglomeration 3. Heap-leach 4. Pls pond 5. Solvent Extraction/Electrowinning (SX-EW) 6. Producing Grade A Copper Cathode No Long-lead items – Capital Equipment is readily available 21
Slide 22: Capital Expenditure
Capital Expenditure Plant Area Capital Estimate $M Mining Infrastructure 1.9 Crushing, Agglomeration and Stacking 31.4 Heap Leach 36.8 SX-EW (incl Neutralisation) 31.7 Process Area Services and Utilities 7.7 On Site Infrastructure and Bulk Earthworks 43.9 Off Site Infrastructure 6.9 Sub-Total Direct
Slide 23: BKM – Feasibility Study Dashboard
BKM – Feasibility Study Dashboard LOM Production Profile & Strip Ratio 16.0 4.0 LOM Strip Ratio 1.4:1 14.0 3.5 Tonnes Mined (millions) 12.0 3.0 Strip Ratio for first 5 years 0.99:1 10.0 2.5 Strip Ratio 8.0 2.0 6.0 1.5 Low strip and high soluble 4.0 1.0 copper grades allow for strong 2.0 0.5 0.
Slide 24: BKM – Feasibility Study Dashboard
BKM – Feasibility Study Dashboard Production and Cashflow 25.0 LOM Copper Cathode Production Initial mine life 9 years with production of LME Grade A Copper Cathode – up Copper Cathode Production (Kt) 20.0 to 25kt pa 15.0 Average production of 19.5kt 10.0 5.0 Revenues of $1.27 billion over LOM
Slide 25: C1 and AISC
C1 and AISC Site Operating Costs US$ Million Cost US$/lb Proportion % Mining 270.2 0.71 39.8 Processing 255.5 0.67 37.7 Site Services 91.0 0.24 13.4 General and Administration 10.5 0.03 1.6 LOM Cost / C1 $/lb 627.2 1.65 92.5 Royalties 50.8 0.13 7.5 Sustaining Capex* - - - AISC / $/lb 678.0 1.78 100.
Slide 26: BKM – Value Enhancements
BKM – Value Enhancements Risk Adjusted Initiatives Pre-treatment of the less-leachable heap Value Enhancements $ Million leach ore types (chalcopyrite) using Albion Leaching technology (~$20M) Improved mineralisation geological controls (~$5M) An electricity supply change from LNG to coal (~$4
Slide 27: BKM – Value Enhancements
BKM – Value Enhancements Near mine exploration for targets proximal (less than 3kms) to the BKM Resource that have the potential to add significant value. The high priority targets to be investigated immediately include: BKM ‘link zone target’ the immediate zone between BKM and BKZ Testing of
Slide 28: Valuation – Total Portfolio
Valuation – Total Portfolio US$ Millions BKM NPV8 (excl. Closure) Value Enhancements Beutong (US3-5c/lb) Current Market Capitalisation US6cps Gold Baroi Excluding Volcano Huoi Ridge Central Baroi FEZ Lakapoi Exploration Project Pipeline Beruang Tengah Rinjin Focus BKW BKS Mamuring Ketambung BKM Fe
Slide 29: Next Steps
Next Steps A multi-faceted approach including: KSK Assessing value enhancement opportunities and incorporate where applicable; Advancing near mine exploration targets to add mine life and increase value; Progressing all remaining permits required for mine construction and operation; Commenci
Slide 30: Why Invest in Asiamet Resources?
Why invest in Asiamet Resources? Why Invest in Asiamet Resources?? Quality Assets & People Value Timing Focussed team with a proven track Copper market is projected to Rare near-term development- record - Indonesia, discovery, mine enter a supply constrained phase ready copper project developm
Slide 31: Contact Information
Contact Information AIM | ARS Peter Bird Chief Executive Officer E: info@asiametresources.com W: www.asiametresources.com Sasha Sethi Investor Relations M: +44 (0)7891 677 441 E: sasha@flowcomms.com 31
Slide 32: Appendix
Why invest in Asiamet Resources? Appendix? 32
Slide 33: Regulatory Framework
Regulatory Framework Summary KSK Project Mineral and coal mining activities are governed under the Law on Mineral and Coal Mining No. 4 of 2009 (the “Mining Law”). This law replaced the previous Mining Law 11/1967, which provided the framework for all of Indonesia’s pre-2009 mining concessions inc
Slide 34: Regulatory Framework
Regulatory Framework Summary Beutong IUP The Beutong project is held under a Mining Business License (Izin Usaha Pertambangan – “IUP”). Asiamet owns 80% of the Beutong Project The IUP is granted for two separate phases of mining activities: Exploration IUP- for performance of general surveys,
Slide 35: BKM – Mineral Resources
BKM – Mineral Resources Measured Mineral Resources (JORC, 2012) Reporting Cut-off Tonnes Cu Grade Contained Copper Contained Copper Cu % M % kt Mlbs 0.2 20.6 0.7 148.5 327.3 0.5 14.9 0.8 124.9 275.3 0.7 8.6 1.0 87.6 193.0 Indicated Mineral Resources (JORC, 2012) Reporting Cut-off Tonnes Cu Grade Con
Slide 36: BKM – Ore Reserves
BKM – Ore Reserves Volume Tonnes Total Soluble Contained Copper Ore Reserve Category Copper Copper Total Soluble Mbcm Mt % % kt kt Proved Ore Chalcocite Dominant 5.2 14.9 0.7 0.5 103 77 Covellite/Bornite Dominant 1.6 4.4 0.5 0.5 24 20 Chalcopyrite Dominant 0.6 1.9 0.6 0.2 11 3 Total Proved Ore 7.4 2
Slide 37: Appendix 1. Beutong Project – Mineral Resource
Appendix 1. Beutong Project – Mineral Resource Large Cu-Au-Mo deposit with higher grade core from surface Beutong 2019 Resource Estimate - Report at 0.3% Cu Lower Cut Classification Grade Metal Mineralisation Tonnes (Mt) (JORC 2012) Cu (%) Au (ppm) Ag (ppm) Mo (ppm) Cu (Kt) Au (kOz) Ag (kOz) Mo (Kt)
Slide 38: Indonesia: A Mining Country
Indonesia A Mining Country Population of 261.9 million The Mining Industry’s Contribution to Indonesian GDP 600,000 7.00% Strong economy – GDP of 5.07% in 2017 6.14% Indonesian GDP (Billions of Rupiah) 6.01% 5.89% 5.56% 5.23% 5.21% 4.98% 6.00% PwC predicts Indonesia to have the World’s 4th 500
Slide 39: KSK Project
KSK Project Regional Scale Tenement – Potential for multiple discoveries Copper-rich polymetallic vein systems over 4km² at Far East Zone (FEZ). Approximately 10km² of potential interest at Baroi Central and South FEZ defined by outcropping massive bornite – chalcopyrite copper mineralisation wi
Slide 40: Community Development
Community Development Active social development programmes Asiamet and its predecessor Companies have been closely involved in community and social development in Central Kalimantan since commencing exploration work in 1981. Company established Yayasan Tambuhak Sinta (YTS) foundation in 1997 and h
Slide 41: Asiamet Resources
Ky ASIAMET RESOURCES 41
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