Cauldron Energy Limited · ASX:CXU
Cauldron Energy — Investor Presentation (April 2013)
23 slides from Cauldron Energy's investor presentation, Apr 16, 2013
Slide 1: Company Presentation April 2013
For personal use only COMPANY PRESENTATION April 2013
Slide 2: Disclosure Statements
Disclosure Statements Forward Looking Statements This presentation may include forward-looking statements with respect to achieving corporate objectives, developing additional project opportunities, the Company’s For personal use only analysis of opportunities and the development of these and certai
Slide 3: Corporate Overview
Corporate Overview For personal use only Capital Structure* 6 Month Share Trajectory: Sept ‘12 – Feb ‘13 Ordinary shares 159.6M Listed options 12.8 M Unlisted options 4.3 M Market cap. (AUD$0.16) A$25.5M Cash (31 Dec 2012) A$3.07M Major Shareholders** Mr D. Qiu & Mr D.Qiu 26.25% Cape L
Slide 4: CXU Team: Board of Directors
CXU Team For personal use only Board of Directors Mr Tony Sage, Executive Chairman • Over 25 years’ experience in the fields of corporate advisory services, funds management and capital raising; has been involved in the management and financing of multiple ASX-listed companies. • A founding director
Slide 5: CXU Team: Management
CXU Team Management For personal use only Mr Simon Youds, Head of Operations • Simon is a professional mining engineer who has worked extensively in project development and mine management in Africa, Papua New Guinea and Australia. • Has held senior positions with many companies in the project and p
Slide 6: Quality Global Assets
Quality Global Assets For personal use only CXU: Top-Shelf Assets Distilled from Two Uranium & Base Metals Explorers Uranium Yanrey Project (WA) Potential ISR Opportunity Lake Frome Project, South Australia Amadeus Project, Northern Territory Esperanza Project, Argentina Las Marias Project
Slide 7: Recent CXU News
Recent CXU News For personal use only Oct. 2012: 3rd High-Grade Uranium Channel Discovered at Yanrey, W.A. 10-12km long x 500m wide channel with potential for 3-4km of high grade uranium bearing sediments discovered at Bennet Well south Prospect 10,000ppm (1%) Uranium high grade interception Nov
Slide 8: World Uranium Temperature
World Uranium Temperature For personal use only Aug. 2012: BHP sells Yeelirrie Deposit to Cameco for USD $430M Yeelirrie size (139Mlb high mining cost Ur lb sold in Aug12 for US$430 million with price Ur at $49/lb) - make comparisons with the $$ paid to BHP for this asset Aug. 2012: Toro Energy ha
Slide 9: China's Nuclear Energy Build-up
China’s Nuclear Energy Build-up For personal use only The Facts Uranium prices plummeted post Great Recession and Japan’s 2011 Fukushima incident In 2007 a pound of U3O8 was valued at up to US$136; current value of same is ~US$44 Global demand for uranium and nuclear energy is higher now that
Slide 10: World Nuclear Energy Market
World Nuclear Energy Market For personal use only Emerging economies banking on nuclear power to meet electricity demands Nuclear power is the only clean energy fuel option for developing nations Global Reactors Under Construction Lowest social and economic cost power option China’s electricity d
Slide 11: Socially Responsible Power
Socially Responsible Power For personal use only Next generation nuclear power has lowest intrinsic cost: Social, Capex, Opex Renewables are realistically 50 – 100 years away as baseload option Low emission power is key; nuclear is the only carbon free baseload source of electricity 1t uranium
Slide 12: Demand Growth & Supply
Demand Growth & Supply Forecast Nuclear Power Growth ~34% by 2030 v. Demand Increase/ Supply Decrease For personal use only 2011 mine production of ~54,000 tons uranium fulfilled 85% global demand Mt to MW program ending in 2013: how will this supply gap be filled? Supply remains constrained: $85
Slide 13: Production Cost Step Change
Production Cost Step Change For personal use only Commodity Price biggest impediment to supply growth Uranium Price vs. C3 Costs (US$/lb) Supply growth dependent on Commodity Price increase Current spot price ~$50/lb – trigger price is $85/lb For supply growth to match demand growth, commodity
Slide 14: 300% Growth in Uranium Resource
300% Growth in Uranium Resource For personal use only Exploration Potential2 at Yanrey Project Expanded from 25-30Mlb to 30-115Mlb Recently completed 7,146m drilling program delivers two new uranium resources – Bennet Well East and Bennet Well South Outstanding success in +50% holes drilled - po
Slide 15: Yanrey Project: Western Australia
Yanrey Project: Western Australia Potential In-Situ Leach (ISR) Mining Opportunity For personal use only Inferred Uranium Resource1 increased 300% 15.7Mlb @ 270ppm eU3O8 @150ppm cut-off Studies indicated grades above 250ppm eU3O8 (over 1m) are economic for a potential in-situ recovery mining opera
Slide 16: Yeelirrie Vs Yanrey
Yeelirrie Vs Yanrey Yeelirrie Deposit For personal use only Acquired by BHP in 2005 and sold to Cameco in Open Pit Footprint August 2012 for US $430M Extends over 9km, is up to 1.5km wide, up to 7m thick and has an average depth of about 7m of overburden A historic estimate of Yeelirrie’s minera
Slide 17: Potential Yanrey Production
Potential Yanrey Production For personal use only 2013 2014 2015 2016 2017 Met drilling Resource Geology Growth Measured Final Reserve Resource Prelim EPA/ISL EPA EPA Approval & Approvals Mining Application DIA Approval (SAWA) Technical & Pre feasibility Feasibility Board Approval financial Scoping
Slide 18: Social Engagement Important
Social Engagement Important For personal use only ISR: Most Cost Effective + Safe Uranium Mining Method Land: upon decommissioning, land readily reverts to its previous use Water: quality reverts to original condition over time once oxygen input + leaching discontinued, Radiation safeguards ap
Slide 19: Global Base Metals Projects
Global Base Metals Projects Australia: Marree Project JV: KORES earning 50% For personal use only KORES, Daewoo, LG International (40% current Best Assays holding) 17 oz/t Ag* 3.73% Cu $6.2M over 3 years - 1 & 2 completed May 2011 2,451 ppm U3O8 Mapping and soil sampling underway to define drill
Slide 20: Marree Base Metals Update
Marree Base Metals Update Large alteration area with poly metallic and multiple deposit types For personal use only Intensive data analysis both historical & recent identifies multiple deposit potential 1. Carbonate hosted breccia Pb‐Ag‐Cu (Billy Springs) 2. Carbonate altered fractures Pb‐Ag‐Zn 3.
Slide 21: EMX ASX Takeover
EMX ASX Takeover Offer For personal use only Cash at Bank $2.7million Resource at 16.7Mlb 3-4 times valuation multiple at $1-1.5/U3O8 Resource lb Offer 8 EMX for 1 CXU values EMX at ~20% premium to market Regional Uranium camp consolidation showing confidence in the whole region Opportunities I
Slide 22: Investment Highlights
Investment Highlights For personal use only Predicted Upsurge in Uranium Price Potential for Significant Return on Investment Outstanding cash margin at low commodity prices Commodity prices expected to more than double to meet world demand Undervaluation of quality uranium miners creates cred
Slide 23: Contact Us
For personal use only CONTACT US Simon Youds David Tasker/ Colin Jacoby Cauldron Energy Limited Professional Public Relations 32 Harrogate Street Tel: +61 (8) 9388 0944 West Leederville WA 6007 M: +61 (0) 433 112 936 Tel: +61 (8) 6181 9796 E: david.tasker@ppr.com.au E: info@cauldronernergy.com.au ww