Marvel Gold Ltd · ASX:MVL
Marvel Gold — Investor Presentation (January 2020)
20 slides from Marvel Gold's investor presentation, Jan 29, 2020
Slide 1: DFS Confirms Chilalo as High Margin Graphite Project
DFS CONFIRMS CHILALO AS HIGH MARGIN GRAPHITE PROJECT Corporate Presentation - January 2020
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) has been prepared by Graphex Mining Limited (“Graphex”). No party other than Graphex may change without notice). To the maximum extent permitted by law, Graphex and its professional advisers and their has authorised or caused the issue of this docume
Slide 3: Poised for Production
POISED FOR PRODUCTION Completion of DFS clears another funding hurdle Robust DFS confirms strong economics that improve during product qualification Graphex well-placed to realise enhanced margins as a vertically integrated manufacturer of high-value graphite products Unique and market-leading produ
Slide 4: Chilalo Project
UGANDA CHILALO PROJECT KE High-grade, coarse flake deposit RWANDA NY A WORLD-CLASS LOCATION BURUNDI south-east Tanzania is the global region for coarse flake graphite DFS COMPLETED significant condition to unlocking senior funding package TANZANIA 20.1MT GRAPHITE @ 9.9% TGC1 Dar es Salaam Ore Reserv
Slide 5: DFS Economic Outcomes
DFS ECONOMIC OUTCOMES Strong economics to a bankable standard1 Physicals Unit Life of mine NPV8 (POST-TAX) IRR (POST-TAX) US$ 331M 36% Mine life years 18 Total plant feed Mt 8.9 Annual plant feed ktpa 500 Average head grade % TGC 10.1% Average graphite concentrate production2 ktpa 50 Steady state ex
Slide 6: Vertically Integrated Manufacturer of High-Value Graphite Products
VERTICALLY INTEGRATED MANUFACTURER OF HIGH-VALUE GRAPHITE PRODUCTS NOT JUST A MINING COMPANY FLAKE FEEDSTOCK TO FEEDSTOCK TO PRODUCT ADDITIONS TO TOTAL GRAPHITE MICRONISED EXPANDABLE (000’s) INVENTORY PRODUCTION CONCENTRATE GRAPHITE GRAPHITE YEAR 1 43 - - 3 46 YEAR 2 56 1 - 2 59 YEAR 3 50 2 3 - 55 Y
Slide 7: Graphite Concentrate Marketing Strategy
GRAPHITE CONCENTRATE MARKETING STRATEGY Multi-faceted strategy focused on maximising revenue GEOGRAPHICAL DIVERSIFICATION FLAKE VS VALUE-ADD enhanced focus on Europe, USA and Japan complementing pursuing a low-risk, low capital-intensive strategy to diversify risk strong historical Chinese focus and
Slide 8: Expandable Graphite Strategy - Years in the Making
EXPANDABLE GRAPHITE STRATEGY - 4 YEARS IN THE MAKING Term sheet with world’s largest expandable graphite manufacturer demonstrates Chilalo credentials PROCESSING FLOW Expandable Graphite Processing Plant NATURAL FLAKE GRAPHITE GPX Proprietary Chemistry Feedstock - MIN 95% LOI Purity Purification / In
Slide 9: Micronised Graphite Strategy
MICRONISED GRAPHITE STRATEGY Enhancing margins from lower value fines PROCESSING FLOW STD PURITY MICRONISED FEEDSTOCK Fine milling Lab and ISO Bagging / FLAKE GRAPHITE POWDER MIN 95% LOI micronisation 9001 Certification Weigh Station Five Different Products (-100 or -200 Mesh) equipment (Standard Pur
Slide 10: Poised to Deliver on Graphite Strategies
POISED TO DELIVER ON GRAPHITE STRATEGIES Key boxes have been ticked Graphite Concentrate Expandable Graphite Micronised Graphite Suitability DFS testwork, downstream analytical Several independent labs confirm suitability Suitability confirmed by micronisation tests performed my independent for foil
Slide 11: Improving Economics of the Chilalo Project
IMPROVING ECONOMICS OF THE CHILALO PROJECT Product qualifications drive six years of increasing EBITDA1 DRIVERS OUTCOMES EBITDA VALUE-ADDED PRODUCTS SALES RAMP-UP VALUE-ADDED PRODUCTS SALES RAMP-UP EBITDA STEADY STATE 120 AVG ANNUAL 14,000 Expandable EBITDA Micronised 100 US $85M 12,000 10,000 80 TO
Slide 12: Upside Opportunities
UPSIDE OPPORTUNITIES High-conviction opportunities to improve economics + extend project life Opportunity Impact Exploration (see image on right)1 Reducing mining costs, increase mine life, Faster Optimisation of flake size facilitate production expansions Optimisation of flake size Increase revenue
Slide 13: Chilalo Product Quality
CHILALO PRODUCT QUALITY Large flake graphite underpins average sales price Verified by 31% graphite Unique ability to Suitability for 6 independent labs product achieves achieve >99% LOI targeted high- + 5 independent premium price through flotation value applications research institutes GPX AVERAGE
Slide 14: Coarse Flake Market: Primed for New Entrants
COARSE FLAKE MARKET: PRIMED FOR NEW ENTRANTS Chilalo unable to meet incremental coarse flake demand COARSE FLAKE GRAPHITE MARKET STATE OF PLAY Fines 145 Coarse Historical dominant supplier (China) has NATURAL GRAPHITE DEMAND (KT) 202 451 diminished reserves of coarse flake graphite Intermittent/unre
Slide 15: Flammable Cladding Responsible for Fire Disasters
FLAMMABLE CLADDING RESPONSIBLE FOR FIRE DISASTERS Global response to drive demand for “graphite-heavy” fire retardants United Kingdom - 14 Jun 2017 GRENFELL TOWER FIRE INTERNATIONAL FIRE SAFETY STANDARDS COALITION - 12 JULY 2018 30 country response to flammable cladding issues raised by the Grenfell
Slide 16: Building In-Country Certainty
BUILDING IN-COUNTRY CERTAINTY Constructive dialogue continues Key assurances received from Tanzanian government 16% free- carry, export of graphite concentrate Conclusion of Barrick negotiations with Tanzanian government is a positive sign Continuing to engage in constructive dialogue with governmen
Slide 17: Chilalo's Production Timetable
CHILALO’S PRODUCTION TIMETABLE Potential production by Q4 2021 subject to final investment decision Q2 2020 2020 2021 2022 Task Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Project/ Construction Operations 1 Final Investment Decision 2 Relocation and compensation of displaced persons 3 Engineering and design 4 Pro
Slide 18: Growth Platform
GROWTH PLATFORM Graphex graphite market strategy a clear differentiator UNIQUE + MARKET LEADING HIGH-MARGIN GRAPHITE PRODUCT QUALITY Graphex targets high-value applications with Independant lab verifications justify suitability coarse product, whilst fine flake market remains for high-value applicat
Slide 19: Corporate Overview; JORC Table
CORPORATE OVERVIEW CAPITAL STRUCTURE MAJOR SHAREHOLDERS BOARD & MANAGEMENT Market Cap A$17M J P Morgan Nominees Australia Limited 8.3% Stephen Dennis Non-executive Chairman Shares on Issue 101M BNP Paribas Nominees <DRP> 6.5% Daniel Saint Don Non-executive Director Unlisted Options 5.9M Capital DI L
Slide 20: Level 1, Emerald House, 1202 Hay Street Telephone: +61 8 9200 4960 West Perth
Level 1, Emerald House, 1202 Hay Street Telephone: +61 8 9200 4960 West Perth WA 6005 Australia Facsimile: +61 8 9200 4961 Email: info@graphexmining.com.au