Slide 1: Astron Corporation Limited Investor Presentation June 2012
For personal use only Astron Corporation Limited Investor Presentation June 2012 Hayden Stockdale, CEO Mark Nielsen, CFO ASX Code: ATR 1
Slide 2: Disclaimer, Forward Looking Statements and Competent Person's Statement
Disclaimer, Forward Looking Statements and Competent Person’s Statement For personal use only This presentation has been prepared by Astron Corporation Limited (the “Company or Astron”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company
Slide 3: Presentation Agenda
Presentation Agenda For personal use only Introducing Astron Global Zircon and TiO2 Markets Donald Mineral Sands Project, Murray Basin, Australia Niafarang Project, Senegal, West Africa Marketing and Customers Conclusion 3
Slide 4: Introducing Astron
For personal use only Introducing Astron 4
Slide 5: A Corporate Snapshot
A Corporate Snapshot For personal use only ASX listed since Dedicated focus Tier 1 Donald Near-term 1983 – holding on mineral Project in production company ‘Astron sands mining Murray Basin, project in Corporation and processing Australia Niafarang, Limited’ Senegal domiciled in HK Approx. ~$125m 25
Slide 6: Location of Operations
Location of Operations For personal use only Astron Shenyang Astron Yingkou Niafarang Astron Senegal Corporation Limited Hong Kong Astron Corporate Office Donald Sydney Mineral Sands Minyip Astron Head Office Melbourne 6
Slide 7: Astron Corporation Limited - Overview
Astron Corporation Limited - Overview For personal use only Share Price Performance Financials A$ '000 1.60 70 ASX Code ATR 1.50 60 1.40 50 Market Cap A$170m 1.30 40 1.20 Ordinary Shares 123m 30 1.10 1.00 20 Enterprise Value A$42m 0.90 10 0.80 0 Net Asset Value A$201m Trading at a ~15% discount to n
Slide 8: Experienced Team – Proven Track Record
Experienced Team – Proven Track Record For personal use only Project Team: Simon Peters Project Executive Donald Mark Coetzee Alex Brown Gerry King Ron McCullough Bob Flew Project Executive Niafarang President Non-Executive Non-Executive Non-Executive Chairman Director Director Boris Matveev Chief G
Slide 9: Global Zircon and TiO2 Markets
For personal use only Global Zircon and TiO2 Markets 9
Slide 10: Demand Overview
Demand Overview For personal use only Comments End Uses Zircon TiO2 • Demand for zircon and titanium, is driven primarily by end uses and is leveraged to global GDP growth • The World Bank is expecting global growth of 2.5% and 3.1% in 2012 and 2013, respectively; with 8.4% and 8.5% for China Zircon
Slide 11: Supply Overview
Supply Overview For personal use only Comments Major Suppliers • No significant discoveries since 2004 TiO2 units (6.5Mt) Zircon (1.5Mt) India Others Iluka • No substitutes for industry mainstays QIT (Rio 80%) 2% 2% 9% 13% Iluka Kenmare 3% QIT BeMax 4% Zircon 43% 16% (Rio 80%) Indonesia 5% 39% • Som
Slide 12: Market Outlook
Market Outlook For personal use only Comments • Opaque demand coupled with majority of supply controlled by a few major suppliers • Pricing is usually done through long-term contracts • Significant shortages expected; favourable long-term dynamics Zircon Supply/Demand Balance* TiO2 Feedstock Supply/
Slide 13: Donald Mineral Sands Project
Taylors Lake (water source) For personal use only Donald Mineral Sands Project 13
Slide 14: Donald Mineral Sands Project
Donald Mineral Sands Project For personal use only One of the Tier 1 largest resource – undeveloped sufficient to deposits in mine for over the world 100 years Darwin Legend DMS Project Murray Basin 4 billion Low tonnes of sovereign NORTHERN Capital City TERRITORY resource at risk 4.8% THM QUEENSLAN
Slide 15: World Class Location
World Class Location For personal use only Murray Basin – ‘The Pilbara of Mineral Sands’ 500,000 mE 550,000 mE 600,000 mE 650,000 mE 700,000 mE 70kms to rail hub EL3346 EL3346 6,150,000 mN 6,150,000 mN We me n EL4598 EL3875 MIN5497 MIN5458 Ku 300kms to Port of Melbourne lw in EL5399 Wo EL5397 MIN552
Slide 16: Geology
Geology For personal use only 4,039Mt Mineral Resource (JORC) in Project Area RESOURCE STRIP TONNES RATIO** AREA HM% (MT) (AVERAGE) 452Mt Mineral Resource (JORC) in Mining Licence Area 1 5.2 4* 5.5 2 4.5 407 1.6 All values are based on a 1% HM cut-off without allowance for dilution and mining recove
Slide 17: Flow Diagram
Flow Diagram For personal use only Forecast product numbers are based on 15 mtpa 17
Slide 18: Peer Comparison – Highly Competitive
Peer Comparison – Highly Competitive For personal use only Mineral Commodities 13.4 EV / Zircon Eq ($A/t) 4.50 Revenue / Cost (times) Diatreme Resources 12.6 4.00 Gunson Resources 8.1 Miatilda Zircon 32.2 3.50 Image Resources 70.2 3.00 Pathfinder Minerals 1.6 Sheffield Resources 4.7 2.50 World Titan
Slide 19: Milestones
Milestones For personal use only Environmental approval of mine/MUP/WCP/CUP ü Key Achievements Mining licence ü Purchase of high security water rights ü Proven processing of fine grade material ü Appointment of Project Manager (ex Jacinth Ambrosia PM) ü Proven washing process to reduce U/Th imp
Slide 20: Niafarang Project, Senegal
For personal use only Niafarang Project, Senegal 20
Slide 21: Senegal, West Africa
Senegal, West Africa For personal use only • Political and social stability o Firm commitment from Government for development of project Grand Cote o Elections have been consistently Project smooth and democratic, including recent election of new President • Good infrastructure • Dakar Port – second
Slide 22: Niafarang Project
Niafarang Project For personal use only Large coastal High grade, area – known no mineral sands overburden deposits and low slimes Sand 75km along the Produce Strand tonnes Grade Mineral Assemblage % of THM coast – only 6 15ktpa of Zr, km explored 80ktpa of (1st stage – 5 ilmenite Mt % THM Ilmenite
Slide 23: Milestones
Milestones For personal use only Exploration licence ü Achievements GM appointed ü Key Prefeasibility study complete ü Resource announced ü Finalise reserve Obtain EIA Complete DFS To Do Obtain mining licence Construction of plant Production 23
Slide 24: Marketing and Customers
For personal use only Marketing and Customers 24
Slide 25: Future Marketing and Customers
Future Marketing and Customers For personal use only Extensive history Built from scratch Retain an active in Chinese the dominant mineral sands marketing and marketplace – import and distribution 25 year record trading business business in China (sold 2008) in China Products sold Understand key Ret
Slide 26: Conclusion
For personal use only Conclusion 26
Slide 27: The Astron Value Proposition
The Astron Value Proposition For personal use only Attractive ‘late Massive Well advanced cycle’ industry resource base with clear path to production Potential to Robust balance Experienced dominate sheet management the industry team 27
Slide 28: For further information please contact
For further information please contact For personal use only Hayden Stockdale Mark Nielsen CEO CFO Email: hayden.stockdale@astronlimited.com Email: mark.nielsen@astronlimited.com Tel: +61 4 3546 1630 Tel: +61 2 9375 2361 Website: www.astronlimited.com 28
Slide 29: Appendix
For personal use only Appendix 29
Slide 30: History
For personal use only History 30
Slide 31: Why hasn't the Donald resource been developed?
Why hasn’t the Donald resource been developed? For personal use only • Originally owned by CRA • Became available after the Rio Tinto-CRA merger as greenfields zircon-skewed Donald had low priority • Zircon prices were low (in 1994 ~US$200/t; in 2004 ~US$500/t) • Lack of available water • Underdevel
Slide 32: Board and Senior Management
Board and Senior Management For personal use only NAME POSITION EXPERIENCE Non-executive Chairman since 1985. Formerly a partner of law firm Philips Fox. Over 30 years experience in corporate Gerry King* and business advising including acting as a director of a number of Australian public companies.
Slide 33: Project Team
Project Team For personal use only EXECUTIVE POSITION EXPERIENCE Allen has over 23 years project management experience in Australia and Africa. Prior to joining Astron, Executive General Allen Cauvin he was responsible for the successful construction of Iluka’s Jacinth Ambrosia mineral sands project
Slide 34: Consultants – Donald
Consultants – Donald For personal use only AREA CONSULTANT Mine Design & Resource Geology Australian Mining Consultants (AMC) Exploration Geology Exploration Management Services (EMS) Geology & Hydro Geology Mr John Smart (ex Rio Tinto) Environmental Coffey Natural Systems Tenement Management Ellets
Slide 35: Group Structure
Group Structure For personal use only ASTRON CORPORATION LIMITED ASTRON LIMITED Donald Mineral Sands Niafarang Technical Trading Mineral Sands R&D Business Project Project (Yingkou, (Shenyang, (Victoria, (Senegal) China) China) Australia) 35