Aspire Mining Limited · ASX:AKM
Aspire Mining — Investor Presentation (November 2017)
37 slides from Aspire Mining's investor presentation, Nov 3, 2017
Slide 1: How to Wake a Sleeping Giant
For personal use only ASPIRE MINING LIMITED How to Wake a Sleeping Giant …Marching Down China’s One Belt One Road Transformational Transaction & Equity Raising Presentation 3 November 2017
Slide 2: Disclaimer | Important Information
Disclaimer | Important Information NATURE OF THIS DOCUMENT For personal use only This presentation has been prepared by Aspire Mining Limited (Aspire or the Company). This presentation has been prepared in relation to [a proposed underwritten renounceable pro-rata entitlement offer of new fully paid
Slide 3: Disclaimer | Important Information
Disclaimer | Important Information Assumptions have been made by the Company regarding, among other things: the price of coking coal, the timely receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the completion of a feasibility study for the Nuurstei Pr
Slide 4: Introduction
Introduction Listed in early 2007 as Windy Knob Resources Limited, Perth Aspire Historical Share Price Performance and Volume For personal use only based Aspire Mining Limited (ASX: AKM) spent over $40m acquiring, exploring and consolidating the high grade coking coal deposit Ovoot in northern Mon
Slide 5: Company Snapshot
Company Snapshot Capital Structure 12 Month Share Price For personal use only Performance and Volume Ordinary Shares on Issue 1,138,128,421(1) 20,000 0.05 Share Price (ASX: AKM) 1.9¢ Market Cap (undiluted) $21.6m 0.04 15,000 Performance Rights 48.5m 0.03 Options (2.5¢ strike, Aug ‘18 expiry) 187.1m
Slide 6: Board and Management
Board and Management Aspire will look to enhance its mix of corporate, development and marketing experience to get Nuurstei into production For personal use only Board Experience +25 years resources sector experience. Founder of Gindalbie Metals - oversaw commissioning of David McSweeney (LLB) two g
Slide 7: Asset Overview and Locations
Asset Overview and Locations Nuurstei Coking Coal Project For personal use only ▪ 12.9Mt(1) HCC (4.7Mt Indicated, 8.1Mt Inferred JORC Resource) ▪ Planned wash plant, strategic location ▪ Near-term production asset via Northern trucking to Erdenet rail Railway Northern Railways ▪ 90% of the Erden
Slide 8: Securing a Holistic Solution
Securing a Holistic Solution Reduce Liabilities and Set a Path Towards Profitable Coking Coal Production For personal use only Liabilities Reduced: US$6.65m in debt owing to Noble Group – debt restructure whereby Noble increases its ownership in Aspire to 19.9% and takes a position in Northern Rai
Slide 9: Three Transformational Transactions
Three Transformational Transactions For personal use only Agreement with China Gezhouba Corp Int’l Ltd – 12 October 2017 Rail Gezhouba to complete Erdenet – Ovoot Railway Feasibility study by 31 March 2018 1 Development Agreed framework for Gezhouba to elect to acquire a 51% interest in NR thr
Slide 10: Aspire Anew
Aspire Anew Capital Structure | Current Capital Structure | Post Offer | Raise $16.5m For personal use only Market Capitalisation $21.8m Market Capitalisation @ 1.2¢ $30.2m Cash ~$0.4m Cash ~$11.5m Debt ~$8.5m Debt - Structured ~$2.3m Enterprise Value ~$30.0m Enterprise Value ~$21.0m Aspire | Post O
Slide 11: Timeline to Production: Months
Timeline to Production: 18 Months November Rights issue to raise For personal use only ~$16.5m, Noble debt 2017 reduced December $2m Nuurstei drilling and Nuurstei Feasibility Study 2017 sampling program begins commences 1st QTR Results of Nuurstei drilling Resource re-estimation Updated Nuurstei 20
Slide 12: Sequentially Putting the Assets to Work
Sequentially Putting the Assets to Work 1 | Nuurstei Coking Coal Project 2 | Erdenet – Ovoot Railway 3 | Ovoot Coking Coal Project For personal use only Ownership: 90% Ownership: 90%, potentially diluting to 34% Ownership: 100% Part of One Belt One Road Globally significant high quality Conceptual M
Slide 13: Nuurstei Project
Nuurstei Project Conceptual Mining Study demonstrates a Nuurstei Project Highlights For personal use only competitive delivered cost for HCC into northern Chinese markets based on trucking of Ownership 90% approximately ~430km to Erdenet. JORC Resources 4.7Mt Indicated(2) Mining license granted
Slide 14: Northern Rail Project (Northern Railways LLC)
Northern Rail Project (Northern Railways LLC) A One Belt One Road Initiative Northern Rail Project Highlights For personal use only The Erdenet – Ovoot railway is the rail project of Ownership Aspire Noble CGGC Mongolian registered Northern Railways LLC, a 90% owned subsidiary of Aspire. Now 90% 1
Slide 15: One Belt One Road (OBOR)
One Belt One Road (“OBOR”) The One Belt One Road project For personal use only is arguably the single largest investment initiative globally. OBOR is the “crown jewel” of Chinese Gov’t Policy designed to boost trade, connectivity and take advantage of latent industrial capacity. Mongolia in a pr
Slide 16: Ovoot Project
Ovoot Project Aspire’s Ovoot Coking Coal Project in Northern Mongolia is the country’s second largest coking coal Reserve, after Ovoot Project Highlights For personal use only the Government owned Tavan Tolgoi Mine. Ownership 100% Aspire Mining Limited A Mining License (MV 017098) over the Ovoot
Slide 17: Key Value Drivers
Key Value Drivers With a funding path to production at Nuurstei, Aspire will at last be able to transition itself towards profitable producer status For personal use only in an expedited timeframe. Aspire’s resource base of circa 300Mt in high quality coking coal provides enormous value leverage
Slide 18: What Turns Coking Coal Stories Around?
What Turns Coking Coal Stories Around? Cokal Limited (ASX:CKA) Bathurst Resources Limited (ASX:BRL) 12 Month Share Price Performance and Volume 12 Month Share Price Performance and Volume For personal use only 60,000 0.12 14,000 0.20 0.18 12,000 50,000 Up to +473% return from lows 0.10 Up to +429% r
Slide 19: Noble Debt Restructure
Noble Debt Restructure US$6.65m Debt Repayable 17 August 2019 - Reduced to US$1.8m For personal use only Conditional on raising a minimum $9m. Noble has agreed to participate in the Renounceable Rights Issue by: ▪ Pre-committing to take up its entitlement of 18.2% or circa $2.96m. ▪ Priority Sub
Slide 20: Rights Issue Terms
Rights Issue Terms Offer For personal use only ▪ Pro-rata renounceable Rights Issue of six (6) new shares for every five (5) shares held. ▪ Issue price of 1.2¢ per new share together with a one (1) for four (4) Attaching Option. Options are exercisable at 1.8¢ with a two year expiry from the date
Slide 21: Pro-forma Capital Structure
Pro-forma Capital Structure With the operational momentum For personal use only Post-Offer Capital Structure Amount generated from a successful completion of the Rights Issue, Shares on Issue 2.52b several funding sources to finalise development at Nuurstei Options on Issue (includes 344m Underwri
Slide 22: Proposed Performance Share Scheme
Proposed Performance Share Scheme Subject to shareholder approval and completion of the rights issue, the Company intends to issue ~229m new performance For personal use only rights to Directors and management.(1) The new performance rights are all about delivery as opposed to arrival designed t
Slide 23: Indicative Transaction Timetable (TBC)
Indicative Transaction Timetable (TBC) For personal use only Event 2017 Trading Halt lifted Friday 3 November Announce terms of Offer and Capital Raise Lodge Prospectus with ASIC and ASX Friday 10 November Trading of Rights Commences Tuesday 14 November Record Date Wednesday 15 November Opening Date
Slide 24: Aspire Transformed
Aspire Transformed “Through this transformational transaction we will look to become a profitable miner with the market capitalisation to For personal use only facilitate the development of the world class Ovoot Project – thereby opening the prospect of creating a world scale coking coal miner” As
Slide 25: Appendices
For personal use only Appendices Aspire Mining Limited Investor Presentation
Slide 26: Appendix - Mongolia
Appendix 1 - Mongolia Resource-rich, strategically located and outward- Country Comparison for the Protection of Investors looking, Mongolia’s economy is heavily reliant on For personal use only East Asia United Mongolia Germany mineral resource development and exports for its & Pacific States Ind
Slide 27: Appendix - Outlook For Mongolian Coal
Appendix 2 - Outlook For Mongolian Coal Coal products (thermal and coking) were Coking Coal Prices Tianjin (RMB) For personal use only second only to cobalt in terms of price performance in the FY16/17, up 54% year- 2500 on-year to June 30 2017. China’s coal industry is reportedly restructuring.
Slide 28: Appendix - Coal Projects
Appendix 3 -Coal Projects Ovoot Coking Coal Project – JORC Coal Reserves and Resources Ovoot Project JORC Coal Reserves at 31 July 2013 (JORC 2012 Compliant)1, 2, 3 For personal use only Coal Reserve (arb, 2% moisture) Marketable Coal Reserve (arb, Reserves Coal Reserve (adb) ROM Mt ROM Mt 9.5% mois
Slide 29: Appendix - Coal Projects – Cont'd
Appendix 3 - Coal Projects – Cont’d For personal use only Ovoot Coking Coal Project – JORC Coal Reserves and Resources Notes: 1. For full JORC 2012 disclosure in relation to the Ovoot project JORC 2012 Coal Resources and Reserves, refer the Company’s Quarterly Report for the period ended 31 December
Slide 30: Appendix - Coal Projects – Cont'd
Appendix 3 - Coal Projects – Cont’d Nuurstei Coking Coal Project – JORC Coal Resources Nuurstei Project JORC Total Coal Resources at 31 December 2015 (JORC 2012 Compliant) 1, 2, 3 For personal use only Measured (A) Indicated (B) (A+B) Inferred Depth Potential Mining Quality Quality Quality Interval
Slide 31: Appendix – Key Risk Factors
Appendix 4 – Key Risk Factors 1. Introduction For personal use only Due to the nature of the Company’s business activities, increasing your investment in the Company carries with it risks reasonably expected of an investment in a business of this type. Accordingly, whilst the Directors recommend the
Slide 32: Appendix – Key Risk Factors (cont'd)
Appendix 4 – Key Risk Factors (cont’d) Risks associated with trading Entitlements For personal use only Prices obtainable for Entitlements may rise and fall over the Entitlement trading period. If you sell part or all of your Entitlement at one stage in the Entitlement trading period, you may receiv
Slide 33: Appendix – Key Risk Factors (cont'd)
Appendix 4 – Key Risk Factors (cont’d) The future exploration activities of the Company may be affected by a range of factors including geological conditions, limitations on activities due to seasonal weather patterns, unanticipated operational and technical difficulties, industrial and environmenta
Slide 34: Appendix – Key Risk Factors (cont'd)
Appendix 4 – Key Risk Factors (cont’d) (h) Environmental For personal use only The operations and proposed activities of the Licences are subject to Mongolian laws and regulation concerning the environment. As with most exploration projects and mining operations, the Company’s activities are expecte
Slide 35: Appendix – Key Risk Factors (cont'd)
Appendix 4 – Key Risk Factors (cont’d) Further, no guarantee can be given that the Share price will be greater than the exercise price of the Options during the period up to the expiry date. Accordingly, there is a risk that the Options will be out of the money during the exercise period, which woul
Slide 36: Appendix – Key Risk Factors (cont'd)
Appendix 4 – Key Risk Factors (cont’d) (j) Taxation For personal use only The acquisition and disposal of Shares will have tax consequences which will differ depending on the individual financial affairs of each investor. All potential investors in the Company are urged to obtain independent financi
Slide 37: Appendix – International Offer Restrictions
Appendix 5 – International Offer Restrictions For personal use only This document does not constitute an offer of entitlements ("Entitlements") or new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed
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