Vrx Silica Ltd. · ASX:VRX
Vrx Silica — Investor Presentation (January 2020)
22 slides from Vrx Silica's investor presentation, Jan 29, 2020
Slide 1: Silica Sand: Essential to world growth - Market Update
For personal use only Silica Sand Essential to world growth Market Update January 2020
Slide 2: Disclaimer
Disclaimer For personal use only This document has been prepared by VRX Silica Limited (VRX). The information contained in this document is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. The information contai
Slide 3: Competent Persons Statements
Competent Persons Statements For personal use only The information in this report that relates to Exploration Results is based on data collected and compiled under the supervision of Mr David Reid, who is a full time employee of VRX Silica. Mr Reid, BSc (Geology), is a registered member of the Austr
Slide 4: Sand is the main material that modern cities are made of
For personal use only “Sand is the main material that modern cities are made of” Vince Beiser “The World in a Grain” 2018 The story of sand and how it transformed Civilisation
Slide 5: Silica Sand
Silica Sand For personal use only Silica sand has continued to support human progress throughout history, being a key raw material in the industrial development of the world, especially in the glass, metal casting and ceramics industries. Supplies of sand are running out!
Slide 6: The world is facing a global sand crisis
The world is facing For personal use only a global sand crisis 6
Slide 7: Silica Sand Use
Silica Sand Use For personal use only Construction Sand Concrete Glassmaking Flat, Containers, Architectural, Thin Film Metal Casting/Foundry Automobile parts Target market Oil/Gas Well Stimulation Frac sand/proppant Metallurgical Ferrous and Non-ferrous Alloys Paint and Coatings Brightness and dura
Slide 8: Sand is the essential ingredient that makes modern life possible
For personal use only “Sand is the essential ingredient that makes modern life possible” Vince Beiser “The World in a Grain” 2018
Slide 9: Construction Market
Construction Market For personal use only China and India will remain major markets for construction materials, mainly due to the growth of the building sector in these two countries. City construction needs glass!
Slide 10: Construction Market: Total Investment in Infrastructure in Asia Pacific
Construction Market For personal use only Total Investment in Infrastructure in Asia Pacific Source: Avid Infomatics 2019
Slide 11: Flat Glass Market Outlook
Flat Glass Market Outlook For personal use only Source: Avid Infomatics 2019
Slide 12: Flat Glass Market Outlook - China
Flat Glass Market Outlook - China For personal use only The APAC flat glass market is experiencing high growth because of increased demand from the construction and automotive sectors. The glass industry is a major driver for the global silica sand mining market Source: Avid Infomatics 2019
Slide 13: Chinese Automobile Production
Chinese Automobile Production For personal use only China produced 27 million vehicles in 2018! Source: Avid Infomatics 2019
Slide 14: Humans consume billions of tons of sand and gravel every year
For personal use only “Humans are estimated to consume nearly 50 billion tons of sand and gravel every year” “World Construction Aggregates”, 2016
Slide 15: Glass Innovation
Glass Innovation For personal use only Gorilla Glass Corning is manufacturing proprietary Gorilla Glass primarily for automobile applications. This glass enables weight reduction in more than 50% of glazing, compared to traditional soda lime glass. This is essential to reduce the weight of an automo
Slide 16: VRX's three advanced WA Silica Sand Projects
VRX’s three advanced WA Silica Sand Projects For personal use only Muchea (100%) • Very high-grade product with outstanding financial metrics • Well located to key port and rail infrastructure • Specialist glass products • Potential +100 year mine life: - JORC Resource 208Mt @ 99.6% SiO2 - (Ind 29Mt
Slide 17: Processing Plant Design
Processing Plant Design For personal use only No dust No chemicals
Slide 18: Silica Sand Development Timeline
Silica Sand Development Timeline For personal use only Approvals / Permitting Construction Production ARROWSMITH Arrowsmith Production BFS Commence Commences Construction Dec June Dec June Dec 2019 2020 2020 2021 2021 MUCHEA BFS Commence Construction Muchea Production Commences Approvals / Permittin
Slide 19: BFS's Demonstrate Exceptional Economics
BFS’s Demonstrate Exceptional Economics* For personal use only Arrowsmith North Arrowsmith Central Muchea Total Post Tax, ungeared NPV10 $242.3m $147.6m $337.9m $727.8m Post Tax, ungeared IRR 79% 60% 96% 83% Payback period (yrs) (post tax) (ramp up rate) 2.4 2.8 2.3 2.4 Exchange Rate US$/A$ $0.70 Li
Slide 20: Investment Highlights
Investment For personal use only Highlights 1. Emerging Australian strategic silica sand producer 2. Outstanding project economics and logistics 3. Combined NPV10 after tax $727m 4. Ideally placed to capitalise on robust market outlook and demand 5. Rapid pathway to financing and production
Slide 21: Corporate & Capital Summary
Corporate & Capital Summary For personal use only Capital Structure Directors Shares On Issue (m) 445 Paul Boyatzis Non-Executive Chairman Options on Issue1 (m) 69.5 Bruce Maluish Managing Director Share Price cents 9 Peter Pawlowitsch Non-Executive Director Cash (30 Dec) A$m 3.9 Debt A$m Nil Market
Slide 22: Thank you
For personal use only Thank you Bruce Maluish Managing Director Level 1, 6 Thelma Street West Perth WA 6005 Phone: 08 9226 3780 Email: brucem@vrxsilica.com.au