Minbos Resources Limited · ASX:MNB
Minbos Resources — Investor Presentation (2013)
32 slides from Minbos Resources's investor presentation, 2013
Slide 1: West African Focused Phosphate Developer
West African Focused Phosphate Developer The Next Generation: Preparing for Production
Slide 2: Disclaimer
Disclaimer Minbos Resources Limited (“Minbos”) has prepared this presenta8on (the “Presenta,on”) solely for the benefit of the Recipient. This Presenta8on is provided solely for the purpose of assis8ng the Recipient in its evalua8on of Minbos and its phosphate development project. The Presenta8on has
Slide 3: Highlights
Highlights § New Execu8ve and experienced board § Explora8on licences in Angola and the Western DRC – Minbos, through its JV, is the largest holder of phosphate explora8on ground in the Congo Basin § Two development projects, both high grade with strong economics and well defined routes to produc8
Slide 4: We have a world class tenement holding…
We have a world class tenement holding…
Slide 5: and rising global demand
and rising global demand § Demand for fer8lizer: q Rising world popula8on q Changing diets as incomes grow q Constraints on arable land q Government policies to enhance crop yields + encourage use of biofuels “Global phosphate consump1on is forecast to grow by 45% by 2030”
Slide 6: We are positioned to take advantage of market restructuring…
We are positioned to take advantage of market restructuring… § Supply being influenced by: q High Capex and Opex – mainly due to logis8cs q Lower grade ore and concentrates q Shim in market towards ver8cally integrated opera8ons “7.5% decrease in average grade of P2O5 concentrate supplied (1990-
Slide 7: and ideally located to serve growth markets
and ideally located to serve growth markets
Slide 8: Angola is moving forward…
Angola is moving forward… § Fastest growing economy in Africa § Between 2001 – 2010, Angola had the world’s highest annual average GDP growth @ 11.1% § Africa’s number 1 oil producer and 3rd largest producer of diamonds § China’s largest oil supplier § Well developed infrastructure § Resources
Slide 9: with a favorable political landscape
with a favorable political landscape § Recently concluded Presiden8al elec8ons. Jose Eduardo dos Santos re-‐elected for a second term § Mining Minister Mr Joaquim Duarte da costa David has a priori8zed agenda to promote junior scale explora8on and mining and diversify away from diamonds and oil §
Slide 10: The DRC is an emerging resource powerhouse…
The DRC is an emerging resource powerhouse… § 2nd largest country by area in Africa § World’s largest producer of cobalt ore § One of Africa’s largest mining countries § Has vast resources of copper, cobalt and diamonds § The Copper belt is one of the world’s greatest metallogenic provinces, co
Slide 11: with an improving political landscape
with an improving political landscape § Recently concluded Presiden8al elec8ons. President Joseph Kabila re-‐elected for second term § Licences are in the West of the country, some 3,500km’s from occasional border skirmishes § Foreign investment in the mining sector is the biggest driver of grow
Slide 12: We have high value target projects in a highly prospective basin…
We have high value target projects in a highly prospective basin…
Slide 13: and significant holdings…
and significant holdings… Concession area of 4000 km2 in the Congo Basin running from Cabinda, Angola to Western DRC. § Cabinda Phosphate (50% interest) q Cacata, Mongo Tando, Chibuete, Chivovo and Ueca deposits with historical and current explora8on data. § Western DRC Phosphate (49% interest wi
Slide 14: An exciting story continues to develop
An exciting story continues to develop Deposit Tonnes Grade COG Category Comments (Mt) (%P2O5) (%P2O5) Cabinda, Angola Cacata 30.4 17.2 5 Indicated Including 22.5Mt @ 21.4% P2O5 Chivovo 6.7 20.3 5 Inferred Mongo Tando 117.7 13.6 5 Inferred Chibute 150.0 8.3 5 Inferred Sub Total 304.8 11.5 Kanzi, DRC
Slide 15: Cacata in focus Angola
a Minbos Resources Limited Cacata in focus Angola
Slide 16: Where is it?
—_—_—_ Sn Minbos Where is it? Reso es CACATA
Slide 17: Project Summary
Project Summary § Project Status: Located on the highly prospec8ve and high grade Eastern Limb. Commencing Bankable Feasibility Study. High grade resources defined, scoping study confirms robust project economics § JORC Resource: 30.4Mt total @ 17.2 % P2O5, including 22.5Mt @ 21.4% P2O5 § Mining: F
Slide 18: The financials are robust
The financials are robust Project Financials (800ktpa Phosphate Rock Concentrate) – 100% basis § Revenue US $180/t (excludes 12% premium as quoted by CRU Strategies) § Opex $54.4/t (Excludes Royal8es) § Capex US $157.1M (Excluding con8ngency) § NPV $311M (@ 10% discount) § IRR 40.2% (pre-‐tax)
Slide 19: Capital Expenditure
Capital Expenditure Cacata%Capital%Costs% Description%% Total%US%$M% Mining% 9.5% Process%Plant% 54.8% Tailings%Dam% 6.8% Storage%and%Transport%(Land)% 22.5% Storage%and%Loading%(Sea)% 57.5% Owners%Costs% 6.0% Contingency%(15%)% 23.6% TOTAL%CAPEX% 180.7% %
Slide 20: Operating costs are low
Operating costs are low Cacata%Operating%Costs Description%% Total%US$/t%FOB Mining% 5.72 Processing%Plant% 25.12 TSF% 0.50 Product%Transport%(Land)% 13.63 Product%Transport%(Sea)% 3.25 General%and%Admin% 6.20% OPEX%PER%TONNE%PRODUCT% 54.42 %
Slide 21: Proposed Development Path - Cacata
Proposed Development Path - Cacata 2013 2014 2015 2016 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 Define Scope of Bankable Feasibility Study Tender Bankable Feasibility Study Bankable Feasibility Study Project Financing Project Execution 20 months
Slide 22: Kanzi in focus DRC
a Minbos Resources Limited Kanzi in focus DRC
Slide 23: Where is it?
Where is it? FUNDU NZOBE KANZI
Slide 24: Project Summary
Project Summary § Project Status: Scoping Study for 1Mt concentrate produc8on completed. Drilling for BFS recently completed § JORC Resource: 66Mt total @ 15.3 % P2O5 including 44Mt @ 21.4 % P2O5. § ‘Pitable’ Resource Iden,fied: 26Mt § Mining: Free Dig, no drill and blast strip ra8o 7.1:1 § Bene
Slide 25: The financials are compelling
The financials are compelling Project Financials (1Mtpa Phosphate rock concentrate) – 100% basis § Revenue US $180/t § Opex $50.8/t (Excluding Royal8es) § Capex US $106M (excluding con8ngency and based on Owner Operated Mining) § NPV $626M (pre-‐tax @ 10% discount) § IRR 58% (pre-‐tax)
Slide 26: Capital Expenditure
Capital Expenditure Kanzi&Capital&Costs& Description&& Total&US&$M& Mining% 14.2% Process%Plant% 50.6% Tailings%Dam% 9.7% Project%Logistics% 17.6% Project%Management% 3.9% Relocation%of%Village% 10.0% Contingency% 15.9% TOTAL%CAPEX% 121.9% %
Slide 27: Operating costs are low
Operating costs are low Kanzi&Operating&Costs Description&& Total&US$/t&FOB Mining% 13.45 Project%Logistics% 3.25 Beneficiation% 24.59 Tailings%Dam% 0.50 G%and%A% 9.00 OPEX%PER%TONNE%PRODUCT% 50.79 %
Slide 28: There is opportunity for earlier cash flow...
There is opportunity for earlier cash flow... § A smaller opera8on of nominal 300Kt produc8on is being evaluated § This will provide cash flow for organic growth and to pursue the high regional explora8on poten8al § Phase 1 of a logis8cs study is complete q Likely path for concentrate to market i
Slide 29: Proposed Development Path - Kanzi
Proposed Development Path - Kanzi 2013 2014 2015 2016 2017 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 Mining Licence Application and EIA Logistics Study Stage 2 Phase 1 Feasibility Study Phase 1 Financing Phase 1 Execution Phase 1 Commissioning Jan 2015
Slide 30: Share Growth Catalysts
Share Growth Catalysts § Gran8ng of Mining Licenses (Exploita8on Permits) in the DRC in Q2 2013 § Upgraded resources at Cacata (Measured) and Kanzi (Indicated) in Q1 2013 § Securing a Strategic Partner with a global reputa8on in Q2 2013 § BFS for small Phase 1 Kanzi project completed by Q4 2013
Slide 31: Board and Management
Board and Management Peter Richards Non Execu,ve Chairman § Peter has over 30 years of business and interna8onal experience with global companies including BP plc, Wesfarmers Ltd and Dyno Nobel Limited. § Recently re8red as CEO of Dyno Nobel following its successful takeover. Sco` Sullivan Managin
Slide 32: Minbos presents a compelling investment proposition
Minbos presents a compelling investment proposition § Mul8ple projects with clear near-‐term development path § Well located with established infrastructure in place § Low OPEX, high grade resources resul8ng in excellent economics when compared to other projects globally § Experienced and credi