Bell Copper Corporation · TSXV:BCU
Bell Copper — Investor Presentation (March 2008)
38 slides from Bell Copper's investor presentation, March 2008
Slide 1: Copper Market & Corporate Overview
Copper Market & Corporate Overview Bell Copper Corporation March 2008 TSXV: BCU 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This Presentation includes and is based, inter alia, on forward looking information and statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Such forward-looking infor
Slide 3: Management Team and Board
Management Team and Board • W.Glen Zinn, B.Sc. President & C.E.O., Director Senior mining executive with 35 years experience. Formerly VP Corporate Development and Exploration of Hecla Mining Company. Michigan College of Mining Technology degree in geological engineering. • Timothy Marsh Ph.D., P.En
Slide 4: Further Board Members
Further Board Members • Gordon Fretwell, B.Comm., LL.B., Director: Mr. Fretwell has been a practicing solicitor since 1979 specializing in resource and securities law. Director or Officer of various publicly traded companies. • Dr Geoff Snow, Ph.D., Director: Dr. Snow's mining career has spanned alm
Slide 5: Summary
Summary • Favorable Global Copper Mkt. • Exceptional Technical Team • Extensive Copper Asset Base • Two-Tier Asset Strategy • Near-term Cash Flow TSXV: BCU 5
Slide 6: Global Copper Market Demand Factors
Global Copper Market Demand Factors Unprecedented change in global growth driven by demographics, urbanization and wealth creation will continue to lead to a global infrastructure boom on a massive scale TSXV: BCU 6
Slide 7: Forecast Populations (2050)
Billions 1.6 Forecast Populations (2050) 1.2 0.8 0.4 0.0 s a h a ia n a na l zi te si si es di ta er ra hi ta ne us In is ad ig B C S ak do R N gl d P te In an ni B U Increase in population 2003 to 2050 Source: The Economist TSXV: BCU 7
Slide 8: Projected China Growth for 2008
Projected China Growth for 2008 Selected Forecasts GDP Industrial CPI Consensus GDP Production HSBC Economics 11.0 16.5 4.1 Growth for 2008 Oxford Economics 11.0 16.3 4.0 is 10.3% even as ING 10.5 17.0 4.0 external demand Citigroup 10.5 16.8 5.0 slows and the JP Morgan Chase 10.5 16.5 4.8 government
Slide 9: Direct Trade Effects on China of US Slowdown
Direct Trade Effects on China of US Slowdown 0% US GDP US Imports Chinese Exports Chinese GDP -1% …which would account for 0.7% of GDP -2% The drop in US imports Percentage Change is the equivalent of 1.6% of total Chinese -3% A 2.5% fall in US GDP exports… could lead to a 6% reduction in US imports
Slide 10: Consumption of Metals Increases With Rising Incomes
Consumption of Metals Increases With Rising Incomes 2007 population distribution Expenditure per capita US$ (2007 terms) World average income per capita 30% 60 2007 2022 25% 50 Aluminium 20% 40 15% 30 Copper 10% 20 Iron ore 5% 10 Hard coking coal Nickel 0% 0 0 5,000 10,000 15,000 20,000 25,000 30,00
Slide 11: Historical & Projected Consumption of Copper in China vs. World
Historical & Projected Consumption of Copper in China vs. World TSXV: BCU 11
Slide 12: Infrastructure Dominates Historical Global Copper Use
Infrastructure Dominates Historical Global Copper Use TSXV: BCU 12
Slide 13: Projected Cumulative Global Infrastructure Spending 2005-2030
Projected Cumulative Global Infrastructure Spending 2005-2030: $41 Trillion Source: US Global Investors TSXV: BCU 13
Slide 14: World copper demand
World copper demand (‘000 tonnes refined copper) 40,000 - 35,000 - 2007-2032 Total = 680 mt 30,000 - 25,000 - 1900-2007 Total = 608 mt 20,000 + 9007 = 18,084 15,000 10,000 5,000 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 p.8,, based on a projection af similar growth patt
Slide 15: Global Copper - Supply Factors
Global Copper - Supply Factors Copper is becoming harder to find and mine • Deeper ore bodies with complex metallurgy and lower grades • Lead time between exploration and production • Movement from OECD countries • Social and environmental license to operate • High up front capital costs • Increasin
Slide 16: Historical Copper Industry Ore Grade
Historical Copper Industry Ore Grade TSXV: BCU 16
Slide 17: Acute Shortages Constrain Supply
Acute Shortages Constrain Supply Year 1 Year 2 Year 3 Year 4 Grinding mills Draglines Barges Current Locomotives delivery time Power generators Wagons Rope Shovels Reclaimers Normal Tyres delivery time Large haul trucks Crushers Ship loaders Source: Rio Tinto estimates TSXV: BCU 17
Slide 18: Copper Mine Output Disruptions
Copper Mine Output Disruptions 8 6.6 built in disruption allowance gain/loss from adjusted forecast net forecast error 5.8 5.8 6 4 2.5 1.9 2 1.0 1.1 0 -0.2 -2 -2.0 -1.8 -4 -6 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: Brook Hunt; company reports; press searches TSXV: BCU 18
Slide 19: Project Portfolio & Asset Strategy
Project Portfolio & Asset Strategy “Medium to Major Copper Assets” TSXV: BCU 19
Slide 20: Technical Team
Technical Team Position Education Previous Experience VP Corporate W. Glen Zinn CEO B.Sc. 35 Years Development (Hecla) Chief Geologist – Dr. Timothy Marsh VP of Ex Ph.D. 25 Years Resolution (RTZ) Samuel Fernández Manager Eng/Ing GM – Volcan (Mittal) 20 Years Brian Jones Geologist M.Sc. Kennecott/BHP
Slide 21: Copper Projects
Copper Projects Location Target Stage La Balsa Mexico Breccia & Porphyry Feasibility Granduc NW BC VMS Definition Sombrero Arizona Breccia & Porphyry Discovery Kabba Arizona Porphyry Exploration Gryphon Nevada Porphyry (& Gold) Exploration Bronco (3) Arizona Various Copper Exploration Apachetta Chil
Slide 22: Project Hi-Lights
Project Hi-Lights • La Balsa - Measured and Indicated Resource of +190 million lbs. Cu (NI43-101 Technical Report of 01/2008) with feasibility in 2008 and production in 2009 (major exploration upside) • Granduc – established infrastructure with large exploration and development upside; • Exploration
Slide 23: Development Projects
Development Projects Definition 43-101 Pre- Feasibility Production Drilling Resource Feasibility La Balsa (Mexico) Granduc (NW BC) TSXV: BCU 23
Slide 24: Exploration Projects
Exploration Projects Exploration Discovery Development Feasibility Production Sombrero Kabba Gryphon Bronco (3) Apacheta TSXV: BCU 24
Slide 25: La Balsa - Mexico
La Balsa - Mexico • Breccias with Cu-Mo Porphyry Target • $13 million invested to date • Next Stage - Definitive Feasibility • Near-term Production (~ 2009) TSXV: BCU 25
Slide 26: La Balsa - Regional Infrastructure
La Balsa - Regional Infrastructure • Power – existing and quoted @ $0.08 per Kwh • Road – 14 km to major port of Lazaro Cardenas • Rail – borders property • Water – reservoir within 1 km of property TSXV: BCU 26
Slide 27: La Balsa Property
La Balsa Property El Colorado El Reyno Iguana Prieta La Virgen Los Mantos Las Higueras Playa Azul Railroad West TSXV: BCU 27
Slide 28: La Balsa - Status
La Balsa - Status • Approximately 300 holes drilled to date • SX-EW plant purchased • Surface rights purchased • Baseline environmental studies complete • Evaluating mine design and construction • Measured and Indicated +190 million lbs. Cu (NI-43-101 Technical Report) • Feasibility targeted for Sum
Slide 29: La Balsa – Internal Economics
La Balsa – Internal Economics • Projected Capital Cost SX-EW Phase 1: - approx. $25 million US • Current Resource is +190 mm lb Cu: - 3.5 years production of soluble Cu - 3.5 years production of sulfide Cu • All infrastructure in place • Low cost labor • Low stripping ratio • High recoveries TSXV: B
Slide 30: La Balsa - Production Timeline
La Balsa - Production Timeline • Phase 1: Soluble (SX-EW) Copper Production - + 15 MM pounds per year - Projected cost < $0.80 / lb • Phase 2: Sulfide (con) Copper Production - +20 mm lbs Cu / year - Projected Cost < $0.90 / lb • Phase 3: Potential Porphyry Production TSXV: BCU 30
Slide 31: Granduc Mine Project
Granduc Mine Project 1969 Newmont Invested Capital: $55 million Pre-Production Resource: 39.4 mt @ 1.7% Cu (pre NI43-101) 1971 – 1984 Newmont/Esso Production: 15.5 mt @ 1.2 % copper plus silver/gold credits (BC Minfile) 1984 Post-Production Historic Resource: 9.9 mt @ 1.8% Copper (Minfile/Esso - non
Slide 32: Granduc Potential
Granduc Potential • Plus 4 Km (2.5 Miles) of N potential strike length • Targeting 30 million etres tonnes 1.80% Cu (plus credits) ilom • Open to extension in +4 K north, south & down-dip directions • Tunnel Upgrade & S Delineation Drilling TSXV: BCU 32
Slide 33: S.W. USA & Chilean Copper Exploration
S.W. USA & Chilean Copper Exploration Sombrero – Arizona (Cu breccias with Cu/Mo porphyry target) Kabba – Arizona (Cu/Mo porphyry target – Major Size Potential) Bronco – Arizona (3) (3 Cu and Cu/Mo Porphyry targets) Gryphon Summit – Nevada (Cu/Mo/Gold - Bingham Analogue) Apacheta – Chile (Cu/Mo porp
Slide 34: Kabba Cross Section
BellCopper Bell Resources Corporation Kabba Cross Section 1000 m om -1000 m Timothy M. Marsh, PRD. PE Nowember 1, 2007 TSXV: BCU
Slide 35: Asset Strategy Increasing CF
Asset Strategy Increasing CF Funds via Internal New Asset Development Discoveries Medium Assets: Major Assets: Internal External Development Development TSXV: BCU 35
Slide 36: Capital Structure
Capital Structure Shares Outstanding(1) 71,035,395 Market Capitalization $ 56,828,316 Fully Diluted(2) 96,917,800 Fully Diluted Cash $ 30,693,620 (1) March 25, 2008 (2) allowing for conversion of outstanding convertible loans TSXV: BCU 36
Slide 37: Major Shareholdings
Major Shareholdings Management 26% Institutional 16% 42% TSXV: BCU 37
Slide 38: Summary
Summary • Favorable Global Copper Mkt. • Exceptional Technical Team • Extensive Copper Asset Base • Two-Tier Asset Strategy • Near-term Cash Flow TSXV: BCU 38