Australian Mines Limited · ASX:AUZ
Australian Mines — Investor Presentation (February 2017)
38 slides from Australian Mines's investor presentation, Feb 23, 2017
Slide 1: Developing World Class Scandium and Cobalt Assets
For personal use only DEVELOPING WORLD CLASS SCANDIUM AND COBALT ASSETS February 2017
Slide 2: Important note on these slides
Important note on these slides For personal use only This document is a visual aid accompanying a presentation to investors by the Managing Director from 23 February 2017. It is not intended to be read as a stand-alone document. It contains select information, in abbreviated or summary form, and doe
Slide 3: Unique Opportunity
UNIQUE OPPORTUNITY For personal use only “With scandium and cobalt set to play pivotal roles in the rapidly developing electric vehicle industry, Australian Mines finds itself uniquely positioned with two high-quality scandium-cobalt ore bodies in the low-risk ON THE ROAD TO mining jurisdiction of A
Slide 4: Unique Opportunity
UNIQUE OPPORTUNITY For personal use only • The Sconi Scandium-Cobalt Project in northern Queensland is considered a world-class deposit, where a Definitive Feasibility Study is presently under way • The Flemington Scandium-Cobalt Project in central New South Wales is one of the highest grade scandiu
Slide 5: Investment Highlights: Sconi Scandium Cobalt Project
INVESTMENT HIGHLIGHTS For personal use only Joint Venture agreement to acquire up to 75% of Sconi, located in northern Queensland Sconi Scandium 54,500 tonnes of contained cobalt currently in resource Cobalt Project 1 Annual production of 700 tonnes of cobalt plus 5,250 tonnes of nickel and 68 tonne
Slide 6: Investment Highlights: Flemington Scandium Cobalt Project
INVESTMENT HIGHLIGHTS For personal use only Option Agreement to acquire 100% interest of Flemington Scandium-Cobalt Project in central NSW Flemington Scandium Scoping Study nearing completion by SRK Consulting to Cobalt Project define economics and technical feasibility One of the highest grade scan
Slide 7: Strong Investor Interest
STRONG INVESTOR INTEREST For personal use only Professional investors introduced by UK-based $4.3M Arlington Group Asset Management • $4.3 million raised via the placement of fully paid ordinary shares and the issue of unsecured convertible notes with the assistance of Arlington Group Asset Manageme
Slide 8: Funding Priorities
FUNDING PRIORITIES For personal use only 1. Completion of the Definitive Feasibility Study at Sconi 2. Finalise Scoping Study and start Pre-Feasibility Study at Flemington 3. Completion of a significant drill program at Flemington to define cobalt resource and, upgrade and extend the existing scandi
Slide 9: The Commodities
For personal use only THE COMMODITIES
Slide 10: Scandium Demand
SCANDIUM DEMAND For personal use only • Scandium, or Scandium Oxide (Sc2O3) as it is commonly marketed, is a relatively scarce, high-value mineral used to produce aluminium alloys • Scandium-reinforced alloys suitable for the manufacture of weldable aluminium products such as: Car chassis and body
Slide 11: Cobalt Demand
COBALT DEMAND For personal use only • Cobalt is commonly produced as a by-product of other metals, like nickel, with global supply from primary cobalt operations only representing 6% of the market • Demand for cobalt is being predominantly driven by the electric vehicle industry. Common uses of coba
Slide 12: Cobalt Demand
COBALT DEMAND For personal use only • Cobalt price on the London Metals’ Exchange has doubled over the past 12 months , 7 and could be heading to replicate its peak of US$110,000 per tonne back in 1977 www.australianmines.com.au
Slide 13: Current Users of Sc & Co
CURRENT USERS OF Sc & Co For personal use only • Existing demand for Scandium across multiple civilian and military applications, including: automotive and aircraft manufacturing solid oxide fuel cells Lightweight, high strength sporting equipment • Existing demand for cobalt across multiple h
Slide 14: Growth Potential for Sc & Co
GROWTH POTENTIAL FOR Sc & Co For personal use only • Annual demand for scandium is anticipated to increase by 800% over the next decade 8 The largest and most likely future growth market for scandium will be the automotive manufacturing sector, with aluminium alloys already used by leading global
Slide 15: The Projects
For personal use only THE PROJECTS
Slide 16: Satisfying Growing Demand
SATISFYING GROWING DEMAND For personal use only • Acquiring 100% interest in the Flemington Scandium-Cobalt Project in New South Wales Scoping Study due to be released in coming weeks one of the highest-grade scandium deposits in the world continuation of Clean TeQ’s Syerston ore body • Acquir
Slide 17: Flemington Project
FLEMINGTON PROJECT For personal use only • Located near the town of Fifield in central New South Wales, 370 kilometres west of Sydney • Australia’s premier scandium-cobalt province, being the Northern continuation of Clean TeQ’s (ASX: CLQ) Syerston ore body • Favourable metallurgy • Mining Lease and
Slide 18: Flemington Project
FLEMINGTON PROJECT For personal use only • One of the highest-grade scandium deposits in the world and mineralisation remains open potential to significantly increase the current Mineral Resource • Flemington tenement also covers western section of Owendale Ultramafic Complex – host of Platina Res
Slide 19: Sconi Project
SCONI PROJECT For personal use only The Sconi Project is “uniquely positioned to deliver unprecedented tonnages of scandium and to be instrumental in the growth of a whole new market for this remarkable metal” Richard Karn, Streetwise Report, August 2011 • Located near the mining centre of Greenvale
Slide 20: Sconi Project
SCONI PROJECT For personal use only Sconi already ticks a lot of boxes and is almost ready to go: Mining Lease granted Plant design identified Electricity source confirmed Proposed water supply on site Commonwealth environmental assessment completed 13 www.australianmines.com.au
Slide 21: Emerging Market: Scandium
EMERGING MARKET: SCANDIUM For personal use only • In 2015 alone, more than 68 million new vehicles rolled off production lines around the world14 • Australian Mines sees a huge future for scandium in automotive manufacturing, due to economic and environmental benefits of weight reduction as well as
Slide 22: Scandium Market: Significant Demand
SCANDIUM MARKET: SIGNIFICANT DEMAND For personal use only Dr. Matthias Miermeister, manager of global aerospace, Aleris, Germany . 16 AM&D: What are the properties of Aleris’ new aluminum-magnesium-scandium alloy? Matthias Miermeister: When Boeing introduced the 787 Dreamliner and Airbus the A350, e
Slide 23: Scandium Market: Limited Supply
SCANDIUM MARKET: LIMITED SUPPLY For personal use only • Scandium oxide is currently produced as a by-product of titanium dioxide waste treatment • Only small scale production of scandium oxide exists at a given waste treatment site • Results in supply of scandium oxide being highly fragmented with o
Slide 24: Economic Addition: Cobalt
ECONOMIC ADDITION: COBALT For personal use only • Cobalt and Nickel are co-products of the scandium mineralisation at both the Flemington and Sconi projects • Sconi has 54,500 tonnes of contained Cobalt metal in Resource and 514,000 tonnes of contained Nickel metal in Resource 17 • Cobalt and Nickel
Slide 25: The Potential Opportunity
The YourPotential Opportunity For personal use only
Slide 26: What's Possible
WHAT’S POSSIBLE For personal use only • Clean TeQ’s share price has increased 600% over the last 12 months solely on the back of its Syerston project, next door to Australian Mines www.australianmines.com.au
Slide 27: Peer Comparison
PEER COMPARISON For personal use only Flemington Sconi Syerston Company Australian Mines Australian Mines Clean TeQ (ASX: AUZ) (ASX: AUZ) (ASX: CLQ) Market cap - $15 million $356 million (as at 21 Feb. 2017) Resource Measured + Indicated Measured + Indicated Proved + Probable (from economic study) 3
Slide 28: The Next Steps
For personal use only THE NEXT STEPS
Slide 29: Sconi: DFS & Approval Process
SCONI: DFS & APPROVAL PROCESS For personal use only • Definitive (or Bankable) Feasibility Study currently in progress by independent, international mine consulting company • Infill drill program to start in April to upgrade existing Mineral Resource and potential Ore Reserve • Off-take negotiations
Slide 30: Flemington: Scoping Study & Drilling
FLEMINGTON: SCOPING STUDY & DRILLING For personal use only • Economic and Technical Scoping Study commenced by SRK Consulting and expected to be completed in coming weeks • Significant drilling program planned at Flemington as a priority following release of Scoping Study and leading into Pre-Feasib
Slide 31: Take-Away Points
TAKE-AWAY POINTS For personal use only • Commercial scale, mineable deposits of scandium are rare globally • Worldwide demand for technology enabling metals of scandium and cobalt to grow significantly in next 10 years, driven by automotive sector • Scandium resources and grades recorded at Sconi an
Slide 32: Thank You
For personal use only Thank You Level 1,83 Havelock St West Perth WA 6005 +61 8 9481 5811 +61 4 6777 0016 bbell@australianmines.com.au www.australianmines.com.au
Slide 33: Mineral Resource Estimate: Sconi Project
Mineral Resource Estimate: Sconi Project For personal use only Measured Resource: 17 million tonnes 0.80% Nickel 0.07% Cobalt Indicated Resource: 48 million tonnes 0.58% Nickel 0.07% Cobalt Inferred Resource: 24 million tonnes: 0.41% Nickel 0.04% Cobalt Total Resource: 89 million tonnes 0.58% Nickel
Slide 34: Competent Persons' Statements
Competent Persons’ Statements For personal use only Flemington Scandium-Cobalt Project The Mineral Resource for the Flemington Scandium-Cobalt Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource was first reported by Jervois Mining Limited on 20 Augus
Slide 35: Footnotes
Footnotes For personal use only 1 Metallica Minerals Limited, Nornico scoping study yields positive results, released 4 July 2012 2 Metallica Minerals Limited, Nornico scoping study yields positive results, released 4 July 2012 3 Metallica Minerals Limited, Successful Scandium Pilot Plant Test Work
Slide 36: Footnotes
Footnotes 11 Jervois Mining Limited, EL7805 scandium project – May 2015 drill results, released 17 June 2015 For personal use only 12 Metallica Minerals Limited, Nornico scoping study yields positive results, released 4 July 2012 13 Within a current resource of 89 million tonnes at 0.06% Cobalt as s
Slide 37: Footnotes
Footnotes For personal use only 18 The Mineral Resource Estimate for the Flemington Scandium-Cobalt Project is reported under JORC 2012 Guidelines and was first reported by Australian Mines’ partner, Jervois Mining Limited on 20 August 2015. There has been no Material Change or Re-estimation of the
Slide 38: Footnotes
Footnotes For personal use only www.australianmines.com.au
Australian Mines — Investor Presentation (February 2017) on 6ix