Aura Energy Ltd · ASX:AEE
Aura Energy — Investor Presentation (May 2012)
27 slides from Aura Energy's investor presentation, May 29, 2012
Slide 1: Developing Uranium Projects – Energy & Resources Roadshow May 2012
For personal use only “developing uranium projects” Energy & Resources Roadshow May 2012
Slide 2: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement For personal use only This presentation has been prepared to provide information on Aura Energy Limited’s projects. It is not intended as an offer, invitation solicitation or recommendation with respect to the purchase or sale of any securities. This pres
Slide 3: Advanced uranium projects – 688 Mlbs U3O8
Advanced uranium projects – 688 Mlbs U308 For personal use only 631 Mlbs U308 50.2 Mlbs U308 7 Mlbs U308 Market capitalisation: A$22.4 M 3 “rapidly advancing uranium projects”
Slide 4: Uranium sector heating up again
Uranium sector heating up again For personal use only global uranium demand to rise by 42% between 2013-17 (source: Bureau of Resources and Energy Economics) Japan restarting two off-line nuclear reactors recent takeover bids - uranium valuations around $8-10/lb Internal views of a nuclear rea
Slide 5: Sweden – a top mining destination
Sweden – a top mining destination For personal use only historic culture of mining - legislation & regulations very supportive Europe’s largest copper mine & biggest iron ore producer low sovereign risk mining destination – tops Fraser Institute survey low corporate tax rate & royalties nu
Slide 6: Excellent location & infrastructure
Excellent location & infrastructure For personal use only “rapidly advancing uranium projects”
Slide 7: Häggån: $1.9 billion NPV project
Häggån: $1.9 billion NPV project For personal use only recently revised independent scoping study by RMDSTEM completed on back of exceptional metallurgical results: confirms economic viability for bioheap leach project mean NPV US$1.85B (pre-tax, 10% discount rate, $65/lb uranium price) IRR of
Slide 8: Low operating & capital costs for large sized project
Low operating & capital costs for large sized project For personal use only operating costs $9.30/t Häggån operating costs US$13/lb uranium based on by-product credits using mining industry conventions large bioheap leach project analogue; Barrick's Zaldivar copper project in Chile $8-9/t op
Slide 9: 631Mlbs U3O8 resource underpins viability
631Mlbs U₃O₈ resource underpins viability For personal use only giant multi-metal deposit underpinned by huge uranium resource - 631Mlbs U₃O₈ inferred resource with 1.79Bn tonnes @ grade – 160 ppm U₃O₈ enhanced value with co-products: nickel - 1277Mlbs zinc - 1790Mlbs molybdenum - 84Mlbs
Slide 10: Cross section
Cross section For personal use only “rapidly advancing uranium projects”
Slide 11: Häggån project 3D uranium
Häggån project 3D uranium For personal use only 11 “rapidly advancing uranium projects”
Slide 12: Proven recovery method selected
Proven recovery method selected For personal use only Conventional Bacterial Bacterial acid tank leach heap leach high OPEX & high CAPEX low CAPEX CAPEX lower OPEX low OPEX negative NPV negative NPV positive NPV robust uranium recovered for Cameco at Talvivaara “rapidly advancing
Slide 13: Bacterial leaching overview
Bacterial leaching overview For personal use only bacterial leaching identified as a method to obtain similar high U recovery as conventional acid leaching insoluble metal sulphides converted into water-soluble metal sulfates micro-organisms produce leaching chemicals through oxidation of ferrou
Slide 14: Low cost, low risk, large mining project
Low cost, low risk, large mining project For personal use only initial pit shells contain >741 Mt inferred resource – most of project undrilled planned nominal 30 Mtpa operation with 25 year initial mine life - scope to expand low mining costs - strip ratio of 0.75:1 target initial annual pr
Slide 15: Häggån would be 3rd largest producer on these assumptions
Häggån would be 3rd largest producer on these assumptions 18.00 For personal use only 16.00 14.00 Grey: Operating mines 12.00 Green: Selected planned operations Annual production Mlbs 10.00 8.00 6.00 4.00 2.00 0.00 “rapidly advancing uranium projects”
Slide 16: Development Timeline for Häggån
Development Timeline for Häggån For personal use only Scoping study results confirmed economic Complete pre- viability of >$1b feasibility project Begin study permitting Further review of applications scoping study Commence Uranium bankable production Next-stage feasibility metallurgical at Häggån s
Slide 17: Strong position in Mauritania
Strong position in Mauritania For personal use only greenfield discovery of significant new uranium field 100% properties plus 2 joint venture permits one of largest land holders - 11,000 km2 with 40% of known radiometric anomalies “rapidly advancing uranium projects”
Slide 18: Substantial first resource – 50 Mlbs
Substantial first resource – 50 Mlbs For personal use only major calcrete uranium resource initial JORC compliant resource: 50Mlbs U3O8 at average grade of 330ppm mineralisation in single flat-lying sheets from within 1m of surface mineralisation 1-10m thick potential to expand, many zones
Slide 19: Moving from explorer to developer
Moving from explorer to developer For personal use only big projects, low costs, heading to commercialisation 2 major Sweden, Häggån: major project moving forward projects >$1 billion project, top 5 global uranium mining operations Mauritania, Reguibat: major calcrete uranium resource establis
Slide 20: Appendices
For personal use only Appendices “rapidly advancing uranium projects”
Slide 21: Corporate Snapshot
Corporate Snapshot ASX: AEE For personal use only Share price: 14.5c (23 May 2012) Main shareholders: Market capitalisation: A$22.4M Yarandi Investments 3.5% Cash position: $3.3M (31 Mar 2012) Wisevest 3.2% Shares: 154,423,544 Drake Resources 3.0% Share price performance – Last 12 months 0.4 0.35 0.
Slide 22: Uranium market & energy demand
Uranium market & energy demand For personal use only Source: WNA “rapidly advancing uranium projects”
Slide 23: Swedish operating open-cut mines
Swedish operating open-cut mines For personal use only Project Company Mineral Established Gruvberget LKAB Iron Ore 2010 Aitik New Boliden Copper 1968 Maurliden New Boliden Iron Ore 2000 Svartliden Dragon Mining Gold 2004 Björkdal Björkdalsgruvan Gold 1989 Aitik Copper Pit Björkdal Gold Mine “rapidl
Slide 24: Heap leach case – model input financial assumptions
Heap leach – 30 Mtpa case For personal use only Model input financial assumptions (USD) Item Value Unit Commodities* U3O8 65 USD/lb Ni 7.9 USD/lb MoO3 16 USD/lb V2O5 8.5 USD/lb Others Electricity 0.50 kWh NaHS 450 USD/t Sulphuric Acid 250 USD/t * Long term prices from public sources “rapidly advanci
Slide 25: Management Team
Management Team For personal use only Dr. Bob Beeson – Managing Director Bob is a professional geologist with over 35 years of experience in mineral exploration and development. He has held senior management positions with Billiton Australia, Acacia Resources, North Limited and New Hampton Goldfield
Slide 26: Häggån Resource Statement
Häggån Resource Statement For personal use only Category Cutoff Size U3O8 MoO3 V2O5 Ni Zn U3O8 ppm U3O8 Bt ppm ppm ppm ppm ppm Inferred 100 1.791 160 214 1551 324 545 Competent Persons for Häggån Resource Mr. Simon Gatehouse takes responsibility for estimation of uranium and associated metals in the
Slide 27: Reguibat Resource Statement
Reguibat Resource Statement For personal use only Category Lower Cutoff Tonnes Grade Contained U308 ppm U3O8 Mt ppm U3O8 Mlb Inferred 100 68.7 330 50.2 150 67.3 340 49.9 200 60.7 350 47.3 250 48.8 380 41.3 300 35.8 420 33.4 Competent Persons for Reguibat Resource The Competent Person for the Requiba