Korab Resources Limited · ASX:KOR

Korab Resources — Investor Presentation (October 2015)

21 slides from Korab Resources's investor presentation, Oct 22, 2015

  1. Slide 1: Korab Resources Limited – Winchester Magnesium Carbonate Mine

    KORAB RESOURCES LIMITED ASX: KOR Winchester Magnesium Carbonate Mine October 2015 Andrej K. Karpinski Executive Chairman KORAB RESOURCES LIMITED (ASX: KOR)

  2. Slide 2: Presentation content

    Presentation content  Magnesite market – who, where and why  Magnesite world consumption (1913-2013)  Main consumers in 2013  MgO pricing (1913-2013)  Magnesium-ion vs Lithium-ion  Magnesite, lithium, graphite consumption  Magnesium building materials  Winchester project key points  Mine di

  3. Slide 3: Magnesite market – who, where and why

    Magnesite market – who, where and why  Current key sectors  Refractory bricks (steel and iron furnaces)  Flame retardants  Building products – mag wall, MgO board, mag cement  Magnesium alloys – cars, airplanes, tanks, APC-s, other defence uses  Hydrometallurgy – nickel/cobalt production  Wat

  4. Slide 4: World consumption of MgO (1913 - 2013)

    World consumption of MgO (1913 - 2013) 45,000,000 40,000,000 R² = 0.9553 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 Tonnes per year 10,000,000 5,000,000 0 1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013 KORAB RESOURCES LIMITED (ASX: KOR) 3

  5. Slide 5: Main consumers by country/region in 2013

    Main consumers by country/region in 2013 KORAB RESOURCES LIMITED (ASX: KOR) 4

  6. Slide 6: MgO pricing (1913 - 2013)

    MgO pricing (1913 - 2013) 700 Fitted trend 600 R² = 0.9716 500 400 Price US$/T MgO 300 200 100 0 1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013 KORAB RESOURCES LIMITED (ASX: KOR) 5

  7. Slide 7: Magnesium batteries vs lithium-ion batteries

    Magnesium batteries vs lithium-ion batteries  Magnesium ions carry a double positive charge – vs- single positive charge carried by lithium ions  Magnesium battery's capacity is 8 to 12 times higher than a lithium battery  Magnesium battery's charge/discharge efficiency is 5 times higher than a l

  8. Slide 8: Magnesite, lithium, graphite consumption

    Magnesite, lithium, graphite consumption 100,000,000 Tonnes MgO 10,000,000 Tonnes Graphite 1,000,000 100,000 Tonnes Lithium Carbonate 10,000 1,000 100 1925 1935 1945 1955 1965 1975 1985 1995 2005 KORAB RESOURCES LIMITED (ASX: KOR) 7

  9. Slide 9: Magnesite building materials

    Magnesite building materials  MgO is used extensively in Canada, Asia and the USA to produce low-cost, high-strength building materials  MgO based materials do not expand or shrink when submerged in water or exposed to heat  MgO-based products are fire-resistant to 1200 C  MgO products are poten

  10. Slide 10: Magnesium oxide board vs plasterboard

    Magnesium oxide board vs plasterboard Source: Magnesium Oxide Board Corporation KORAB RESOURCES LIMITED (ASX: KOR) 9

  11. Slide 11: Why this project – costs & benefits

    Why this project – costs & benefits  Aggregate EBITDA of $395 mln over quarry life  Attractive long-run annual EBITDA of $32 mln/year (at 800kt/year sales)  Low projected operating cost in the lowest quartile of global magnesite projects  Mineral resource 16.6 MLN tonnes of magnesium carbonate 

  12. Slide 12: Why this project – costs & benefits (price sensitivity)

    Why this project – costs & benefits Table 2 EBITDA (in AU$ '000) Sensitivity to magnesite selling price at US$0.82 exchange rate Year/Volume YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEARS 5-14 TOTAL Mag price @200KT @400KT @800KT @800KT @800KT US$50/T 897 3,508 10,642 10,897 108,582 134,526 US$60/T 2,676 7,067 1

  13. Slide 13: Project CAPEX and location

    Project CAPEX and location  75km from port  2 km from Batchelor  Rail and road network access  Mains power access  Potable water access Table 3 Project estimated capital costs in AU$ SUMMARY WATER MANAGEMENT 626,810 SITE INFRASTRUCTURE 1,079,310 WASTE DUMPS 108,925 QUARRY 1,293,290 SUBTOTAL 3,1

  14. Slide 14: Mine layout

    Mine layout Conceptual layout at end of year 3 – bench-by-bench development variant KORAB RESOURCES LIMITED (ASX: KOR) 13

  15. Slide 15: Mine layout

    Mine layout Conceptual layout at end of mine life – bench-by-bench development variant KORAB RESOURCES LIMITED (ASX: KOR) 14

  16. Slide 16: Road access

    Road access Stuart Highway near Batchelor Road junction KORAB RESOURCES LIMITED (ASX: KOR) 15

  17. Slide 17: Location and topography

    Location and topography KORAB RESOURCES LIMITED (ASX: KOR) 16

  18. Slide 18: Darwin port

    Darwin port East Arm Wharf KORAB RESOURCES LIMITED (ASX: KOR) 17

  19. Slide 19: Korab Resources Information

    Korab Resources Information  Listed on ASX in 2005  Board of Directors  Andrej K. Karpinski (Chairman and executive director)  Daniel A. Smetana (non-executive director)  Rodney H. Skeet (non-executive director)  Anthony G. Wills (non-executive director)  Capital Structure  195 million share

  20. Slide 20: Winchester mineral resource estimate

    Winchester mineral resource estimate At 40% MgO Cut-Off MgCO Mass MgO grade ‘000 Tonnes % Indicated Resources 12,200 43.1 Inferred Resources 4,400 43.6 Total 16,600 43.2 There has been no change to the Winchester mineral resource estimate since it was last reported in the Annual Report 2014. This in

  21. Slide 21: Important Information

    Important Information This presentation has been prepared by Korab Resources Limited (“Korab” 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 s

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