Slide 1: Investor Presentation: Kanyika Project Scoping Study Results
For personal use only Investor Presentation Kanyika Project - Scoping Study Results 30 June 2008
Slide 2: Disclaimer & Notice
Disclaimer & Notice For personal use only The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forw
Slide 3: Investor Highlights
Investor Highlights For personal use only The Kanyika Project has the potential to become a very profitable operation with at least a 20 year mine life • US$3B revenue and US$1.1B free cash flow over 20 year period • High operating margins – US$93M in yr 1, averaging US$77M for the life of mine • Mo
Slide 4: Corporate Overview
Corporate Overview For personal use only Issued Capital (30/6/08) ASX Code: GBE (listed Dec 05) Shares (GBE): 67.6M Director Options: 4M (30c: Oct 08; $1: June 2010) Employee Options: 1.8M Total Issued Securities: 73.4M Price & Capitalisation (25/6/08) Share Register Share Price: 45c Mark Sumich: 9.
Slide 5: Scoping Study
Scoping Study For personal use only • Scoping Study undertaken by Coffey Mining • Ferro-niobium (FeNb) for sale to two markets – steel and processor (into high-purity oxides) • Two throughput scenarios – 3,000t and 4,000t niobium (Nb) metal/year • Open-pit mining; on-site processing • 56Mt Inferred
Slide 6: Financial Summary
Financial Summary For personal use only Production 3,000t/year Nb 4,000t/year Nb Initial Capex. US$156M US$177M Year 1 Year 20 Year 1 Year 20 Mill Feed 1.7Mt 2.6Mt 2.2Mt 3.5Mt Strip Ratio (waste:ore) 0.5 0.9 0.5 0.9 Revenue US$112M US$114M US$150M US$152M Operating Expense US$41M US$63M US$52M US$80
Slide 7: Kanyika Resource
For personal use only Kanyika Resource 6
Slide 8: Kanyika Resource
Kanyika Resource For personal use only 56.4Mt Inferred Resource Incl. 14.1Mt High-Grade Resource (1,500ppm Nb2O5 cut-off) (3,000ppm Nb2O5 cut-off) Metal Metal Grade Metal Metal Grade (Mlbs) (tonnes) (ppm) (Mlbs) (tonnes) (ppm) Nb2O5 320.7 145,500 2,600 115.7 52,500 3,700 U3O8 8.9 4,000 70 3.0 1,400
Slide 9: Mining
For personal use only Mining 8
Slide 10: Processing/Metallurgy
Processing/Metallurgy For personal use only 9
Slide 11: Prices
Prices For personal use only Prices Scoping Study Current Spot FeNb US$35/kg Nb US$55/kg+ Nb2O5 US$10/lb Nb2O5 US$13/lb+ Ta2O5 US$45/lb Ta2O5 US$47/lb ZrSiO4 (zircon) US$600/tonne ~US$800/tonne The Nb2O5 and Ta2O5 prices are for raw concentrates. The FeNb sold as an intermediate product for further
Slide 12: Niobium Growth
For personal use only 19 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0 65 19 67 19 69 19 71 19 73 19 75 19 77 19 79 19 81 19 83 Niobium Growth 19 85 19 87 19 89 19 91 19 93 World Nb Production (tonnes) 19 95 19 97 19 99 20 01 20 03 20 05 20 07 11
Slide 13: Sources of Growth
Sources of Growth For personal use only 1,400,000 60 1,200,000 50 Crude Steel Production (tonnes) grams FeNb/tonne Crude Steel 1,000,000 40 800,000 30 600,000 20 400,000 10 200,000 0 0 2000 2001 2002 2003 2004 2005 2006 World Crude Steel Production (tonnes) "Consumption Intensity": grams FeNb/t Crud
Slide 14: Upside Potential
Upside Potential For personal use only • Metallurgy – improved recovery rates • Uranium revenue stream • Further exploration success • Metal prices • Domestic power in Malawi/SADC • Downstream processing 13
Slide 15: Capital Expenditure
Capital Expenditure For personal use only Initial Capital Expenditure 3,000t/year Nb 4,000t/year Nb Processing Plant US$86m US$104m Downstream (smelter) US$20m US$20m Mining US$12m US$12m General Infrastructure US$26m US$26m Working Capital & Other US$12m US$15m Total US$156m US$177m Ongoing capital
Slide 16: Production
Production For personal use only 3,000t/year Nb 4,000t/year Nb Strip Ratio (yrs 1-20) 0.5 – 0.9 0.5 – 0.9 Mill Feed (yrs 1-20) 1.7Mt – 2.6Mt 2.2Mt – 3.5Mt Metal Recovery (to concentrate): - Nb2O5 72.9% 72.9% -Ta2O5 65.9% 65.9% -U3O8 72.9% 72.9% -ZrSiO4 85% 85% Concentrate Mass Recovery 1.22% 1.22% M
Slide 17: Costs
Costs For personal use only Operating Costs – 1.7Mtpa (Yr 1 @ 3,000t/year Nb) Unit $M Processing ($/t milled) 16.00 $26.6 Downstream Processing ($/t conc) 100.00 $2.00 Infrastructure Maintenance ($/t milled) 0.74 $1.2 G&A ($M/year) 3.00 $3.00 Mining ($/t mined) ($/t milled) 2.40 $6.10 Grade Control
Slide 18: Work Continues…
Work Continues… For personal use only • Drilling (upgrade resource) and exploration for more high-grade underway • Metallurgical work ongoing to validate the process flow chart • Product samples required for potential customers • Market acceptance of product specifications can then be tested • Off-t