Australian Silica Quartz Group Limited · ASX:ASQ
Australian Silica Quartz — Bauxite Resources — Investor Presentation (October 2010)
24 slides from Australian Silica Quartz's investor presentation, October 2010
Slide 1: New Era in Bauxite-Alumina
BAUXITE RESOURCES LTD New Era in Bauxite-Alumina Investor Presentation - October 2010 Barry Carbon - Acting CEO & Chairman Paul Fromson - CFO & Company Secretary North Bindoon trial operation from bauxite extraction to rehabilitation
Slide 2: Disclaimer
Disclaimer Forward Looking Statements No representation or warranty, express or implied, is made by Bauxite Resources Ltd that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Bauxite Resources Ltd,
Slide 3: Darling Range tenements
Darling Range tenements • 24,600 km2 tenement area. • 13 ELs granted, 105 Pending • 213 Property Agreements signed
Slide 4: Yankuang HOA
Yankuang HOA A further Heads of Agreement signed between BRL and Yankuang on 24 September 2010 • Yankuang Corporation has total assets of AU$18 billion. • Yankuang owns or has controlling stakes in 37 subsidiaries with a staff of 94,000. Its Coal Mining Company (Yan Coal) is listed on New York, Hong
Slide 5: Yankuang HOA
Yankuang HOA HOA with Yankuang The BRL-Yankuang heads of agreement is binding but includes: a) Conditions precedent on Shareholder and regulatory approval b) Other conditions including Yankuang providing financing assistance for BRL’s share of construction costs
Slide 6: Yankuang HOA
Yankuang HOA • Subject to the Bankable Feasibility Study BRL and Yankuang, will design and build a state-of-the-art alumina refinery in the South West of Western Australia to refine Darling Range bauxite into alumina. • The refinery design capacity will be 1.1Mtpa of alumina requiring 3.5Mtpa of bau
Slide 7: Yankuang HOA
Yankuang HOA • We believe that other similar refineries have cost more than $1.5 billion • Yankuang will pay 91% of the refinery construction cost and receive 70% of the alumina product. • BRL will pay 9% of the refinery construction cost and will receive 30% of the alumina product. • Yankuang has a
Slide 8: Yankuang HOA
Yankuang HOA • A complete Bankable Feasibility Study and approvals process for a modern refinery project are to be carried out, with Yankuang contributing 90% to the cost and BRL contributing 10% of costs. • With the funds that Yankuang has supplied BRL is in an excellent position to conduct a BFS a
Slide 9: Yankuang HOA
Yankuang HOA • For planning purposes, subject to exploration success, the estimated expenditure for exploration for the next 3 to 5 years is $8 million per annum. • Yankuang will pay 70% of future bauxite exploration costs and BRL 30%. (30% $2.4 million pa cost for BRL) • Yankuang will refund 70% of
Slide 10: Yankuang HOA
Yankuang HOA • BRL has over $50 million in cash and $10 million of assets • With bank interest and Yankuang reimbursement the estimated cash outflow for planning purposes for the next year is $2 million. • For the four years after this the estimated outflow for planning purposes is $2-4 million per
Slide 11: DSO Approvals and Operations
DSO Approvals and Operations • BRL’s application for environmental approval for mining north of Bindoon is ongoing. EPA has set a PER level of assessment with public scoping. • Any direct shipping of bauxite ore or calcined bauxite operations commenced within the next 3 years will be subject to a BR
Slide 12: Exploration
Exploration Shandong No 1 Institute Agreement • BRL has commenced a new bauxite exploration program with Chinese partner, Shandong No.1 Institute of Geology and Minerals Exploration (”Shandong No.1 Institute”), on 1,000km² of BRL Darling Range tenements (which are excluded from this Yankuang agreeme
Slide 13: Bauxite prices
AU$ CIF 10 20 30 40 50 60 70 80 90 0 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Volumes recovering. Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 CIF to Chinese Ports in AU$ Dec-09 Bauxite prices Feb-10 Apr-10 Jun-10 Aug-10 • GFC – induced bauxite price collapse lingers. Pri…
Slide 14: Approvals
Approvals Mining approvals • 130,000 trial shipments completed. • Stage 2; Chittering Shire unable to approve, referred to EPA • 1.2mi tonne, six-month operation to start 1 July, 2010 given extended level of assessment as EPA wished to assess big picture, making 1 July, 2010 start impossible. Propos
Slide 15: Other issues
Other issues BRL has a well funded campaign against it. • The campaign has been environmental, commercial and quasi-legal. The campaign has featured repeated complaints to regulatory agencies. • BRL share price at less than cash value since end of last financial year.
Slide 16: Tenements
Tenements • Other parties shed tenements during the Global Financial Crisis and BRL used the opportunity to expand tenements from 14,000 km2 just 18 months ago to 24,000 km2. • 6,400km2 of the tenements are laterite in Government reports. • 13 exploration tenements have been granted; 2 of these from
Slide 17: New approach
New approach • At “line-in-the-sand” time company reorganised and started reducing and refreshing senior staff levels. Cost saving is $2mi pa. • Reduce the risk for the company • Preservation of capital • Strong partnerships developed • Appointed PPR to assist with shareholder relations and GRA Ever
Slide 18: Corporate
Corporate ASX Code BAU Ordinary shares 234.1m Unlisted options 18.85m Market Cap. (18c) circa $42m Share price 12Mth High/Low 129c-15.5c Cash Balance as at 30 June 10 $54m Shareholding HD Mining 8.4% Nil Debt Nil Yankuang 8.4% Big Fish Nominees 7.5% Dilkara Nominees 6.2% Tailrain Pty Ltd 7.2% Nation
Slide 19: Top 20 Shareholders as at 18 February 2010
Top 20 Shareholders as at 18 February 2010 Listed ordinary shares Percentage of ordinary Shareholding Number of shares shares HD Mining & Inv Pty Ltd 19,700,000 8.41% Yankuang Resources Pty Ltd 19,700,000 8.41% National Nominees Ltd 19,059,566 8.13% Big Fish Nominees Pty Ltd (N Lithgow) 17,666,666 7
Slide 20: Refinery Production Cost Comparison
Refinery Production Cost Comparison 500 450 Production Cost per Tonne (US$) 400 350 300 250 200 150 100 50 0 Darling Range Refineries Selected Refineries
Slide 21: Yankuang Corporation
YANKUANG CORPORATION • Established in 1976, Yankuang Corporation is a Chinese state-owned conglomerate with coal mining, coal-based chemicals, machinery manufacturing, electricity generation and aluminium as its main businesses. • Yankuang has total assets of around AU$18 billion. The Company owns o
Slide 22: Shandong No 1 Institute of Geology & Mineral Exploration
SHANDONG NO 1 INSTITUTE OF GEOLOGY & MINERAL EXPLORATION • Shandong No.1 Institute of Geology & Minerals Exploration (NO.1 Institute) is an integrated geological exploration entity with the scope of business as follows: Geological prospecting, mining, engineering geophysical exploration, agricultura
Slide 23: Experienced Leadership team
Experienced Geoff Beros – Paul Fromson- Secondary Processing CFO/Company •25 years experience Secretary Leadership •Senior positions in process engineering, • Over 25 years experience in Taxation, Accounting team technical marketing, study management and and Finance, Private and Public Company opera
Slide 24: Successful trial bauxite shipments
Successful trial bauxite shipments Trial shipments totalling 128, 647 tonnes showed: Free dig trial site • 49% total alumina, • 40% available alumina, & • only 2.3% reactive silica. Road Rail Ship Darling Range bauxite ore unloading at Yantai Port, Shandong Province, China
Bauxite Resources — Investor Presentation (October 2010) on 6ix