Australian Mines Limited · ASX:AUZ
Australian Mines — Austrade Critical Minerals Business Delegation, June 2019
33 slides from Australian Mines's conference presentation, Jun 20, 2019
Slide 1: Austrade Critical Minerals Business Delegation Presentation
For personal use only 20 June 2019 Austrade Critical Minerals Business Delegation Presentation This document is released to accompany presentations by Australian Mines as part of the Company’s participation in Austrade’s Critical Minerals trade delegation to Europe from 21 to 28 June 2019. The Austr
Slide 2: Austrade Critical Minerals Business Delegation
For personal use only Austrade Critical Minerals Business Delegation June 2019
Slide 3: Disclaimer
Disclaimer For personal use only Forward Looking Statements This document may contain forward looking statements. Forward looking statements can generally be identified by the use of forward looking words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan
Slide 4: Previously Reported Information
Previously Reported Information This document does not contain any new data, results or information, with all references clearly stated. Any exploration and/or resource data, or statements referenced within this document have previously been lodged by Australian Mines Limited with the ASX via announ
Slide 5: Australian Mines - Investing in an electric future
For personal use only Australian Mines - Investing in an electric future Australian Mines is an Australian-listed public company pursuing a dominant position in the production and supply of ethically sourced battery (cobalt and nickel) chemicals to the global electric vehicle market. Australian Mine
Slide 6: Company Objective
COMPANY OBJECTIVE For personal use only Production of cobalt sulphate and nickel sulphate battery precursor chemicals with a fully auditable supply chain for the electric vehicle sector Owner of cobalt-nickel assets in stable jurisdiction Reliable supply anticipated for at least the next 30 years Pl
Slide 7: Proposition
PROPOSITION For personal use only ✓ 100% owner of multiple battery chemical projects in Australia ✓ Advanced project pipeline with a development-ready flagship project ✓ Australian Mines plans to own and operate the entire process: from mining its own ore through to producing the final battery-grade
Slide 8: Company Assets
COMPANY ASSETS The information outlined on this page relating For personal use only to Sconi was previously released to the SCONI market by Australian Mines via the ASX platform on 13 June 2019. Australian Mines Greenvale, Queensland confirms in the subsequent public report that Cobalt-Nickel-Scandi
Slide 9: Nickel Market Fundamentals
NICKEL MARKET FUNDAMENTALS Significant supply growth required to meet rising ongoing demand For personal use only • Majority of current nickel production is not geared towards supplying the battery industry • Nickel sulphate production needed to significantly increase over the next few years in orde
Slide 10: Cobalt Market Fundamentals
COBALT MARKET FUNDAMENTALS Constrained supply with high-risk geographical concentration For personal use only • Demand for cobalt forecast to increase substantially reflecting continued global uptake in lithium-ion batteries and pursuit of higher performing batteries • Increasing focus by end-users
Slide 11: Activity from Downstream Participants
ACTIVITY FROM DOWNSTREAM PARTICIPANTS Increasingly targeting direct investments to secure long-term supply of battery metals For personal use only Ford says carmakers may need to invest in cobalt mines soon China battery firms set up $700 million nickel joint venture in Indonesia Mining.com, Februar
Slide 12: Sconi Project
For personal use only SCONI PROJECT
Slide 13: Sconi Project location and key features
Located 250 kilometres inland from Townsville, Queensland SCONI For personal use only Approved exporting port with excess capacity located within easy trucking distance along existing sealed roads Large scale, fully-integrated production plant planned Utilising industry standard technology capable o
Slide 14: Converting raw cobalt and nickel ore into high-purity battery chemicals
SCONI For personal use only Converting raw cobalt and nickel ore into high-purity battery chemicals Ensures full value-add is captured on site (no further purification of the exported product is required for use by in electric vehicle sector once the product leaves the Sconi site) Utilising a proven
Slide 15: Proven Processing Flowsheet
PROVEN PROCESSING FLOWSHEET Comprehensively tested via Australian Mines’ demonstration-scale processing plant For personal use only H2SO4 MINED ORE FROM CRUSHING AND HIGH PRESSURE SCANDIUM SCANDIUM Scandium Oxide SCONI GRINDING OF ORE ACID LEACH SOLVENT PRECIPITATION (Sc203) (HPAL) EXTRACTION (ScSX)
Slide 16: Sconi Processing Plant
SCONI PROCESSING PLANT Indicative design of 2 million tonnes per annum processing plant For personal use only COBALT SULPHATE CRYSTALLISATION NICKEL SULPHATE CRYSTALLISATION SOLVENT EXTRACTION (SCANDIUM) PRESSURE ACID LEACH LEACH RESIDUE VESSELS FILTRATION CRUSHING AND MILLING 8 kilometres to Greenv
Slide 17: Ideally located for a battery chemical processing plant
SCONI Ideally located for a battery chemical processing plant For personal use only ✓ Within 250 kilometres of the Port of Townsville, being an existing nickel and cobalt exporting port ✓ Sealed, all-weather roads from port and local communities to site (direct road transport) ✓ Existing grid power
Slide 18: Future low-cost producer of precursor battery chemicals
SCONI Future low-cost producer of precursor battery chemicals For personal use only • Positioned to be one of the most cost competitive cobalt-producing nickel operations in the world • 30+ years of future production • Planned production • 46,800 tonnes of nickel sulphate per annum plus • 7,000 tonn
Slide 19: Sconi project economics
For personal use only SCONI Pre-Tax IRR: 20% Pre-Tax NPV: $1.47 Billion 5.8 Year Payback Period 30+ Year Project Life Post-Tax IRR: 15% Post-Tax NPV: $817 million (post tax) (@ 8% discount rate) Strong Forecasted Financials Life-of-Mine Average Operating Costs: Capital Cost Estimate: Average Annual
Slide 20: Completed and upcoming milestones
SCONI For personal use only COMPLETED MILESTONES UPCOMING MILESTONES ✔ Built demonstration-scale plant Execute long form off-take agreement ✔ Confirmed processing flow sheet Finalise detailed engineering ✔ Produced battery chemicals Finalise project financing ✔ Delivered Bankable Feasibility Study C
Slide 21: Other Projects
For personal use only OTHER PROJECTS
Slide 22: Bell Creek
BELL CREEK For personal use only • Assessing low-cost satellite nickel-cobalt operation potential of Bell Creek • On-site beneficiation plant capable of producing a concentrated feed for trucking is currently being considered • Boosts the cobalt and nickel metal quantities contained within Australia
Slide 23: Flemington
FLEMINGTON For personal use only ▪ Recent drilling continuing to intersect thick zones of high-grade cobalt ▪ Significant potential to materially expand the current Mineral Resource ▪ Mining and processing plant approvals in progress ▪ Processing flow sheet being finalised Initial Mineral Resource o
Slide 24: Thackaringa
For personal use only ▪ ▪ THACKARINGA 23
Slide 25: Exceptional Opportunity
EXCEPTIONAL OPPORTUNITY Australian Mines: For personal use only Pursuing a dominant position in the production and supply of battery (cobalt and nickel) chemicals 1 On track to become one of the world’s lowest cost 2 cobalt-producing nickel operations 3 De-risked development–ready flagship project l
Slide 26: For Further Information
For personal use only FOR FURTHER INFORMATION: Please contact: Sophia Bolhassan Investor Relations Manager Australian Mines P +61 8 9481 5811 E investorrelations@australianmines.com.au 25
Slide 27: Board of directors and company secretary
For personal use only Michael Ramsden Mick Elias Dominic Marinelli Oliver Carton Chairman Non-Executive Director Non-Executive Director Company Secretary Lawyer (BEc, LLB, FFIN) Geologist (BSc (Hons), FAusIMM, CPGeo Financial Professional (MBA, BEng, PGD Sc) BJuris LLB 30 years experience as a Inter
Slide 28: Management team
Benjamin Bell Managing Director BSc, MMET, MBA For personal use only 25 years experience in the resources sector Stuart Peterson Marcus Hughes Tim Maclean Sophia Bolhassan Exploration Manager Chief Financial Officer Chief Operating Officer Investor Relations Manager BSc BCom CPA Metallurgist (MSc, M
Slide 29: Competent Persons' Statements - Sconi Project
Competent Persons’ Statements For personal use only Sconi Project, Queensland (Australia) The Mineral Resource for the Sconi Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource was first reported by Australian Mines Limited on 14 February 2019. There
Slide 30: Competent Persons' Statements - Bell Creek Project
Competent Persons’ Statements For personal use only Bell Creek Project, Queensland (Australia) The Mineral Resource for the Bell Creek Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource was first reported by Australian Mines Limited on 29 April 2019.
Slide 31: Competent Persons' Statements - Minnamoolka Project
Competent Persons’ Statements For personal use only Minnamoolka Project, Queensland (Australia) The Mineral Resource for the Minnamoolka Project is reported under JORC 2004 Guidelines and was reported by Metallica Minerals on 19 January 2009. This Resource, and the underlying data and assumptions we
Slide 32: Sconi Project - Mineral Resources
Sconi Project - Mineral Resources (effective 14 February 2019) Mineral Resources as per Australian Mines’ announcement released via the ASX platform on 14 February 2019. Greenvale Mineral Resource Prepared by CSA Global in accordance with the current 2012 JORC Code. There has been no Material Change
Slide 33: Sconi Project - Ore Reserve
Sconi Project – Ore Reserve (effective 13 June 2019) Ore Reserve as per Australian Mines’ announcement released via the ASX platform on 13 June 2019. Prepared by specialist mine planning consultants, Orelogy, in accordance with the current 2012 JORC Code. There has been no Material Change or Re-esti
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