Skylark Minerals Limited · ASX:SKM
Skylark Minerals — Ironbark Zinc — Investor Presentation (May 2013)
15 slides from Skylark Minerals's investor presentation, May 2013
Slide 1: Zinc Market Outlook – May 2013
Zinc Market Outlook – May 2013 Presented by Jonathan Downes Managing Director Ironbark Zinc Limited
Slide 2: Disclaimer
Disclaimer • The following information is not intended to guide any investment decisions in Ironbark Zinc Limited. • This material contains certain forecasts and forward-looking information, including possible or assumed future performance, costs, production levels or rates, reserves and resources,
Slide 3: Why Zinc Now?
Why Zinc Now? Zinc recovery underway • Anticipation of zinc shortage – Constant and growing zinc demand – Limited future new development – Forecast mine closures – Declining head grades • Zinc poised for a break-out? 3
Slide 4: Zinc – Global Usage
Zinc – Global Usage • 4th most globally used metal: (1) Fe (2) Cu (3) Al (4) Zn • Zinc usage breakdown*: 50% used for galvanising metals used widely in the construction, roofing and vehicle industries *Source: China International Lead and Zinc Conference 2012, International Lead & Zinc Study Group 4
Slide 5: Demand Fundamentals
Demand Fundamentals China continues to drive growth • China uses only ¼ of the quantity of zinc used by Western brands to galvanise a unit of steel* • China galvanises 4% of the steel it produces vs the Western World which galvanises 18% of the steel it produces** • Inevitably, China will increase t
Slide 6: Global Zinc Demand
Global Zinc Demand Trend showing constant global zinc demand • Not just a Chinese story *Source: Wood Mackenzie 6
Slide 7: Future Demand Drivers
Future Demand Drivers The commodity boom is not over For example: Chinese vehicle ownership is still in its infancy • China’s level of vehicle ownership relative to its population is currently less than the United States’ during the 1920’s – China’s growth has just started. Source: Nyrstar, Zinc Mar
Slide 8: Supply Fundamentals
Supply Fundamentals* Looming Major Zinc Mine Closures • Mine closures will result in a fall in production at a time when demand is increasing • Likely to drive upward pressure on the zinc price which will support new mines Major Zinc Mine Closures (within 4 years) Mine Zinc Production (‘000t) Centur
Slide 9: Supply Fundamentals
Supply Fundamentals Mined Grades in Rapid Decline = Additional pressure increasing on metal prices Graph source: China International Lead and Zinc Conference 2012, International Lead & Zinc Study Group 9
Slide 10: Summary
Summary Zinc Fundamentals – Poised to Run • Constant and growing zinc demand • Looming shortage of zinc mine supply/limited new discoveries • Rapidly falling mine head grades • The next generation of zinc miners are at an early, pre-funding stage and are mostly located in countries with high soverei
Slide 11: Ironbark Zinc Limited
Ironbark Zinc Limited Largest Wholly Owned ASX Listed Zinc Company* • Tough zinc climate over the past few years; Ironbark has no peers • Market capitalisation of ~$22M** • Strong financial position- $3M with no debt • Major investors and strategic partners include – Glencore International AG - worl
Slide 12: Citronen Zinc Project, Greenland
Ironbark Zinc Limited Citronen Zinc Project, Greenland • Over $50M expended on the Citronen Project to date • Greenland has a zinc mining history • Feasibility Study work to date confirms the world class scale of Citronen Project – potential for long life base metal mining operations – excellent rec
Slide 13: Citronen Feasibility Summary
Ironbark Zinc Limited Citronen Feasibility Summary* Profitable Today (inc. interest and royalties**) NPV US$609 million (post tax US$354 million) IRR 32% (post tax 22%) Capital Cost US$429.3 million (contingency included) Operating Cost1 (payable US$) - Site 48c / pound zinc - Shipping Logistics 11c
Slide 14: Citronen Feasibility Summary
Ironbark Zinc Limited Citronen Feasibility Summary* Resource 71Mt @ 5.7% zinc + lead (Zn + Pb) based on 2012 resource Underground 16.5 Mt @ ~6.0% - 8.4% Zn + Pb, upgrading to mill First 5 Years Mining feed grade ~8.8% - 14.7% Zn + Pb @ a production rate of 3.3 Mtpa Production Rate 3.3Mtpa ROM Ore Li
Slide 15: ASX: IBG
ASX: IBG Telephone: +61 (8) 6461 6350 E-mail: info@ironbark.gl Address: Level 1, 350 Hay St. Subiaco WA 6008 Postal Address: PO Box 8187 Subiaco East WA 6008 Web Site: www.ironbark.gl