Abx Group Limited · ASX:ABX
Abx — Seed Pitch Deck (May 2018)
26 slides from Abx's pitch deck, May 28, 2018
Slide 1: ALCORE Limited Seed Capital Presentation
ASX ANNOUNCEMENT 28 May 2018 AUSTRALIAN BAUXITE LIMITED ASX: ABX AlF3 for Aluminium smelters & Lithium ion batteries. Corethane: clean as gas, cheap as coal ALCORE Limited Seed Capital Presentation to fund ALCORE Stage 1 refining bauxite into Aluminium Fluoride In accordance with the requirements of
Slide 2: CEO comments and About Australian Bauxite Limited
Page 2 ASX: ABX “At current product sale prices, ALCORE has the potential to produce 50,000 tonnes per year of Aluminium Fluoride and deliver a significant annual EBITDA. This is why The ALCORE Project must be pursued without delay to be ready to supply existing Australasian aluminium smelters and n
Slide 3: Refining bauxite into high value products
1 AlF3 for Al-smelters & Lithium ion batteries & Corethane: clean as gas, cheap as coal Refining bauxite into high value products Mine Refine To invest, call June 2018 Ian Levy, CEO ALCORE Limited L2 131 Macquarie St Sydney 2000 Mobile/Cellphone: +61 (0)407 189 122 Email: ilevy@australianbauxite.com
Slide 4: Disclaimer
Disclaimer 2 This presentation has been prepared by ALCORE Limited (“ALCORE” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agr
Slide 5: Investment Highlights
ALCORE Investment Highlights 3 • ALCORE Limited (“ALCORE”) will be a subsidiary of Australian Bauxite Limited (ASX code “ABX”) which owns the patent pending exclusive global licence to refine bauxite worth ~US$50 per tonne into products worth over US$1,000 per tonne bauxite • Economic studies indica
Slide 6: Investment Structure
ALCORE Investment Structure 4 Subject to adjustments by brokers/advisers • Seed investors are issued convertible notes that convert into ALCORE shares at IPO at a 30% discount (eg. if listing is at 50 cents, seed investors pay 35 cents per share) • ALCORE designed to give seed investors an entitleme
Slide 7: Patented “CORE” Technology
Patented “CORE” Technology 5 • ABx has acquired a global exclusive licence for a bauxite refining technology from Refined Ore Industries Limited (ROIL) via its Intellectual Property subsidiary, Berkeley Process Technologies Pty Ltd • ABx will provide ALCORE access to this technology and will supply
Slide 8: ALCORE Business Strategy
ALCORE Business Strategy 6 Low grade bauxite Refinery AlF3 electrolyte for more efficient Aluminium Smelters Low grade coal (black or brown) AlF3 AlF3 electrolyte for Lithium-ion batteries Fluorosilic Acid “FSA” By-product from fertiliser plants, used Corethane for electricity, to fluoridate drinkin
Slide 9: Refining Co-products
ALCORE Refining Co-products 7 Bauxite &/or coal ash = 36% Al2O3 + Fe2O3 + SiO2 + TiO2 Reagents: 2 Fluorine acids & water (mainly “FSA” a waste acid from fertiliser plants and used for water fluoridation). Grind Bauxite &/or coal Process 1. All minerals except hydrocarbon dissolved by reagents 2. Hyd
Slide 10: Why Invest in ALCORE?
Why Invest in ALCORE? 8 This Australian CORE technology has operated successfully before 1. In Japan 1981-86 producing 200,000 tonnes of Corethane for US Military tests 2. In Cooma NSW 2001-07 refining graphite & other ores, including bauxite ALCORE Technology is a low-cost, low risk application of
Slide 11: AlF3 markets are very strong
AlF3 markets are very strong 9 Aluminium Fluoride AlF3 Prices $2,000 $1,800 Market prices Prices strong AlF3 Price US$/tonne FOB China $1,600 AlF3 prices positive $1,400 ALCORE’s target price trend since 2012. $1,200 $1,000 Recent price jump Target Margin $800 due to Lithium ion $600 battery demand
Slide 12: Economic Snapshot
ALCORE Economic Snapshot 10 Target economics of full-sized ALCORE production plant A$million Capital cost -$59 Operating costs Bauxite (t) Cost A$/t A$million Total Operating expenditure 105,000 $266 -$28 Tonnes Price A$/t Operating revenues A$million Produced Produced Aluminium Fluoride AlF3 50,000
Slide 13: Target Markets
ALCORE Target Markets 11 1. Aluminium Fluoride (AlF3) is a solid granular electrolyte: • Added 3% into aluminium smelters to allow more efficient smelting • Australasian smelters import 100% of their AlF3 • Major aluminium producer has agreed to test with a view to buying 50% of ALCORE production at
Slide 14: Target Markets (2)
ALCORE Target Markets (2) 12 1. All other co-products (pure bauxite, Al2O3, Fe2O3 & TiO2/TiF4) have strong markets in Australia and overseas for pigment applications and for electronics 2. Long-term growth may involve high-purity products that earn exponentially higher prices, such as 99.99% pure Al
Slide 15: Stage 1 Use of Funds: site ops
Stage 1 Use of Funds: site ops 13 1. To build & operate a pilot plant for refining batches of bauxite • Produce ~10 kg samples of aluminium fluoride for testing by customers • Produce samples of Silica Fume & other co-products for customers 2. Negotiate off-take agreements that will underwrite the c
Slide 16: ALCORE’s Refinery Tasmania as an example
ALCORE’s Refinery Tasmania as an example 14 Australian Bauxite Limited (ABx) to supply bauxite from its mines to an ALCORE bauxite refinery at Bell Bay, Tasmania for a fixed price. ABx has 125 million tonnes bauxite resources (12mt in Tasmania), sufficient for ALCORE for decades Bell Bay Port & Indu
Slide 17: Board and Advisory Committee
ALCORE Board 15 Paul Lennon AO Chairman, Australian Bauxite Limited (ABx) Company Secretary Premier of Tasmania 2004-2008 Henry Kinstlinger Specialist industry advisor Company Secretary of ABx & ROIL Derek Firth MNZM Chairman, Refined Ore Industries Limited (ROIL) Former Senior Partner Third directo
Slide 18: Management
ALCORE Management 16 Ian Levy - CEO CEO of ALCORE Limited & Australian Bauxite Limited Experienced mining geologist & senior company executive Phill Hall - COO CEO of Refined Ore Industries Limited Experienced project manager Dr. Robert O’Brien - CFO Head of research for Refined Ore Industries Limit
Slide 19: Stage 1 Budget and Schedule
ALCORE Stage 1 budget-schedule 17 Budget • 12 month $3.3 million budget for the Stage 1 pilot plant & production of AlF3 test samples program is $2.5m at site, $0.5m pre- IPO costs and $0.3m administration & overheads (which will be kept low under ABx administration & tight control) Schedule • 3 mon
Slide 20: R&D Rebate Status
ALCORE R&D Rebate Status 18 • The Stage 1 batch plant program qualifies under the Federal Government’s AusIndustry, Research & Development (R&D) incentive scheme which provides cash rebates of 41% of approved expenditure for approved R&D projects • Part of the funding for Stage 1 will be via advance
Slide 21: Funding Stage 1
ALCORE Funding Stage 1 19 • In addition to the $1 million advance R&D loan, a supportive ABx shareholder has contributed A$0.5 million existing seed capital • Others have pledged a further A$0.2 million for the seed raising and it is anticipated that the remaining A$1.6 million will be fully subscri
Slide 22: Corporate Directory
ALCORE corporate directory 20 Lawyers Piper Alderman Administration Managed by Australian Bauxite Limited Auditors K.S. Black & Co. Bankers ANZ Banking Corporation OHS&E A major engineering firm (contract pending) & Turnkey Innovative Engineering, Sydney R&D Advisors IMG Reperio IPO Management MMR C
Slide 23: Appendix: Pilot Plant Modules
Appendix: Pilot Plant Modules 21 Stage 1 pilot plant to be delivered as ready-for-use “skid-mounted” modules to ROIL’s approved research & development factory at Berkeley Vale, Central Coast of New South Wales. Pilot plant will also have support equipment, analytical laboratory, ore storage & admin
Slide 24: Production Cost Estimates
Production Cost Estimates 22 Full-sized 50,000tpa AlF3 Plant A$ million Labour A$m $2.62 Assumptions Energy A$m $3.33 Fluorine makeup A$m $8.85 No cost offsets from sales Capital maintenance A$m $3.53 of co-products 20% contingency & other A$m $3.66 No cost offsets from sales Subtotal processing A$m
Slide 25: Environmental benefits
ALCORE environmental benefits 23 Value adding with no smoke-stack, no emissions, no wastes 1. ALCORE Production Process uses waste acids from zinc refineries and fertiliser plants for reagent make-up 2. Reagents are recycled 3. No emissions, particulates or waste generated 4. AlF3 improves aluminium
Slide 26: Technology confirmation
ALCORE technology confirmation 24 Coal refinery at Maizaru Japan produced 200,000 tonnes of Corethane in 1981-86 to challenge OPEC oil price hike • Proved satisfactory for Mitsubishi gas turbines (~14 months operation) • Fuelled two gas turbine powered Cadillac El Dorado cars for 2 years in USA. Goo