Slide 1: Annual General Meeting, Sydney 16 May 2013
For personal use only ANNUAL GENERAL MEETING Sydney 16 May 2013 2012 FINANCIAL RESULTS Revenue A$96.7M Profit A$66.5M Earnings $0.19 per share Net Assets A236.4M 1
Slide 2: Corporate Profile
Corporate Profile For personal use only • Listed on ASX since 1969, also listed on OTCQX • Market cap $200M • 6,100 shareholders (85% Australian) • Multi commodity explorer, miner and developer focused on Central West of NSW • Active in region for more than 20 years • Developed Peak Hill Gold Mine i
Slide 3: Alkane Today
Alkane Today For personal use only • Two advanced projects o Dubbo Zirconia Project (DZP) o Tomingley Gold Project (TGP) • World supplier of zirconium, niobium and rare earths elements • MOUs and agreements for planned production from DZP • DZP to commence production Q1 2016 • Gold production from T
Slide 4: Tomingley Gold Project
Tomingley Gold Project Base case statistics For personal use only Project approval by NSW Department of Planning and Infrastructure late July 2012. Mining Lease approved February 2013 Resource – 12.6 Mt @ 2.0g/t (812,000oz) CAPEX – A$107M Throughput – 1.0Mtpa Head Grade – 2.00g/t Recover
Slide 5: TGP Construction Images
TGP Construction Images For personal use only Concrete footings for central plant systems Thickener foundations Water pipeline trencher Pipeline welding station 5
Slide 6: TGP Resource Expansion
TGP Resource Expansion Geological Summary – Wyoming / Caloma For personal use only Pelitic Sediments Feldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc schist Andesitic volcanics Mineralisation Additional Resource Potenti
Slide 7: TGP Caloma Two Drilling
TGP Caloma Two Drilling For personal use only Drill out on a 20x20m basis to define resources 159 RC holes 22,782m 11 core holes 2,145m 7
Slide 8: TGP Caloma Two Section
TGP Caloma Two Section For personal use only Recent Drill Results 9m @ 110g/t Au incl 1m @ 821g/t Au 13m @ 12.0g/t Au 39m @ 4.52g/t Au incl 5m @ 14.8g/t Au 8m @ 6.46g/t Au 18m @ 3.18g/t Au incl 9m @ 5.52g/t Au 16m @ 5.99g/t Au 70m @ 1.89g/t Au incl 42m @ 3.77g/t Au 7
Slide 9: Dubbo Zirconia Project
Dubbo Zirconia Project For personal use only • Located 30 km south of Dubbo • World class resource of zirconium, hafnium, niobium, tantalum, yttrium and light and heavy rare earths elements • DFS April 2013, DZP “technically and financially robust project” • Base case of 20 year mine life and 1Mtpa
Slide 10: DZP Process Flow Sheet
DZP Process Flow Sheet For personal use only Demonstration Pilot Plant – established 2008 ANSTO – Aust. Nuclear Science & Technology Organisation Process – unique & advanced Optimization – ongoing Simple open cut mining operation Crushing and grinding Sulphuric acid leach whole of ore
Slide 11: Rare Earths
Rare Earths REEs a group of 17 elements in periodic table in two distinctive groups, LREEs and HREEs For personal use only • • Variable magnetic and chemical properties give rise to many applications • Used for energy efficiency, new energy sources and emissions minimisation • China currently produc
Slide 12: Niobium
Niobium • Niobium (Nb) is a soft, rare metal which strengthens alloys, superalloys For personal use only and steel • Used in pipeline construction, jet engines, heat-resistant and combustion equipment • Makes vehicle chassis lighter, reducing overall vehicle weight by 10%, lower fuel consumption and
Slide 13: Zirconium
Zirconium • Zirconium is a corrosion and heat resistant metal, many common uses For personal use only • Multiple ceramic applications • Used in a range of components for vehicles, such as car exhausts • Many chemical applications eg Replaced lead as drying agent in paints Zirconium Price Trends US$/
Slide 14: DZP on the world stage
DZP on the world stage For personal use only • Competitive advantage with unique flow sheet developed and proved at ANSTO • Production of light and heavy rare earths concentrates, value added processing by partner Shin-Etsu in Japan • 25% of resource is high value HREE, less common and more valuable
Slide 15: DZP Marketing
DZP Marketing For personal use only Off-take Memorandums of Understandings (MOU’s) / Agreements MOU Product Details 1 Zirconium Leading Chemical Company to develop applications for zirconia produced by DZP 2 Zirconium Australian Mintech Chemical Industries to produce zirconium oxychloride 3 Zirconiu
Slide 16: DZP Product Output
DZP Product Output For personal use only 100% 4% 911t $149.4M 90% 18% 3,997t 30% 80% 9% 1,967t 70% $118.7M 60% 24% 50% 15,827t 40% $81.5M 16% 70% 30% 20% $153.9M 31% 10% 0% Production 22,702T Revenue A$503.5M ZrO2 Nb metal LREO concentrate HREO concentrate 11
Slide 17: DZP Feasibility Study
DZP Feasibility Study For personal use only DUBBO ZIRCONIA PROJECT Financial Summary for 20 year life in A$ Project Capacity 1,000,000 tonnes pa Capex – Plant $396.8M Sulphuric Acid Plant $116.6M Infrastructure + Owners $253.4M SUB TOTAL $766.8M EPCM $63.5M Contingency (20%) $166.1M TOTAL $996.4M An
Slide 18: Environmental Impact
Environmental Impact For personal use only Environmental Impact Statement – key areas of focus Existing land use (agriculture) Socio-economic Air quality Noise and vibration Surface and ground water Soil stability Flora and fauna Biodiversity Visibility Rail freight movements R
Slide 19: Financing
Financing For personal use only • $1 billion DZP finance package being arranged by: o Credit Suisse (Australia) o Sumitomo Mitsui Banking Corporation o Petra Capital • Finance sources: o Possible sale of a strategic minority stake in DZP o International Government funding (ECA) o Commercial debt fac
Slide 20: Exploration
Exploration For personal use only • Bodangora gold‐copper prospect o Alkane 100%, near Wellington, NSW o Exploration and drilling over 12 km² o Similarities to Newcrest’ nearby Cadia-Ridgeway gold‐copper mine • Galwadgere gold copper prospect o Alkane 100%, near Wellington, NSW o Estimated resource
Slide 21: Outlook
Outlook For personal use only Dubbo Zirconia Project • Global strategic significance – a long term project in the zirconium and heavy rare earth industries • Substantial cash flows – based on 20 year DFS – ~A$250Mpa • Actual mine life – DFS + 50 years • Production costs – spread across four products
Slide 22: Conclusion
Conclusion For personal use only • Alkane transformation underway – long term investment opportunity • Development strategy of multi-commodity operations • Substantial emerging cash flow – ~A$275Mpa after 2016 • Aspects of upside o Longer mine life at TGP and DZP o Higher recoveries o Potential reco
Slide 23: Board & Management
Board & Management Board Senior Management For personal use only John Stuart Ferguson Dunlop (Chairman). BE(Min), Karen Brown (Joint Company Secretary) BEc MEngSc(Min). Mining engineer with 40 years surface and Lindsay Colless (Joint Company Secretary) CA underground mining experience in Austr
Slide 24: DPP Video
DPP Video For personal use only Y and HREE refiningand recovery DPP Filtration, PLS, SX, Zr and Nb recovery Zirconium refiningand precipitation Reverse osmosis and water recycle Operating at ANSTO since 2008 24
Slide 25: Disclaimer
Disclaimer For personal use only Disclaimer This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth o
Slide 26: Resource & Reserves: Dubbo + Galwadgere
Resource & Reserves: Dubbo + Galwadgere Dubbo Zirconia Project – Mineral Resources For personal use only Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO U3O8 Deposit (Mt) (%) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 0.014 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 0.014 T
Slide 27: Resource & Reserves: Tomingley + Peak Hill
Resource & Reserves: Tomingley + Peak Hill Tomingley (TGP) – Mineral Resources For personal use only DEPOSIT MEASURED INDICATED INFERRED TOTAL Top Cut Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Gold 2.5x2.5x5.0m model (t) (g/t) (t) (g/t) (t) (g/t) (t) (g/t) (koz) Wyoming One 2,316,550 2