Ormonde Mining Plc · AQUIS:ORM
Ormonde Mining — Shareholder Meeting (September 2017)
18 slides from Ormonde Mining's shareholder meeting presentation, Sep 18, 2017
Slide 1: Barruecopardo Tungsten Mine - AGM 2017
BARRUECOPARDO TUNGSTEN MINE Putting a world class tungsten mine into operation ....at the right time AGM 2017 18 Sep 2017 1
Slide 2: Disclaimer
ORMONDE MINING Disclaimer The content of this document has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (as amended). Reliance on this document for the purpose of engaging in any investment activity may expose an individual to a signific
Slide 3: Key Points
Key Points • Permitted, funded & in construction – to become a leading European supplier of primary tungsten, a critical industrial metal • Simple mining, simple processing equals low risk, low cost mine • Ramping up construction & implementation against backdrop of rising tungsten prices & positive
Slide 4: Right Time to Build
Right Time to Build APT Price (European) - Jan 2016 to Date European APT Sep 2017 $350 US$323 per mtu $330 $310 $290 $270 2nd June announced go-ahead $250 $230 $210 $190 $170 Project stretch period Full implementation $150 Source: Metal Bulletin 4
Slide 5: Positive Outlook: Supply Tight
Supply Positiveand demand Outlook: Supply Tight China: ▪ Restrictions on new mine permits Primary tungsten supply by region ▪ Higher costs, lower grade, deeper mining 90,000 ▪ “The country is clamping down on 80,000 polluting mines & enforcing production 70,000 quotas” (Bloomberg, 11-Sep-17) 60,000
Slide 6: Positive Outlook: Demand Growing
Supply Positiveand demand Outlook: Demand Growing Tungsten consumption by region 120000 ▪ Tungsten demand correlates to global GDP growth (est 3.5% for 2017, 3.6% for 2018) (IMF) 100000 ▪ Automotive & Aerospace (larger consumers) both estimated to grow by 5% pa between 2017-19 (Argus Media) 80000 ▪
Slide 7: Low Risk, Low Cost
Low Risk, Low Cost ▪ Simple Mining: ▪ Initial open pit operation - 9 year mine life producing 260,000 mtu WO3 pa ▪ Contract mining, benefiting from experienced contractors in region ▪ Simple Processing: ▪ Simple gravity processing of scheelite ore provides for efficient plant (nominal 1.1mtpa) ▪ Pro
Slide 8: Capex and Opex Costs - Exceptional
Capex and Opex Costs - Exceptional PROJECT CAPEX EURm PROJECT OPEX USD/mtu EUR/mtu % Plant Engineering & Construction 32.5 Mining (Ore) 20.0 17.4 17% Project Services (land, power-line, etc.) 4.5 Mining (Waste)* 73.6 64.0 62% Water Management Scheme 9.9 Processing 19.6 17.0 16% Mining Preparation 4.
Slide 9: Project Outline - Construction Update
OnProject The MoveOutline – Construction Timeline Update ✓ Engineering: Detailed process plant engineering work– Well advanced ✓ Procurement: • Priority 1 & 2 equipment purchases In manufacture • Priority 3 equipment ordering Ongoing • Civils Contract Awarded ✓ Services • Water chlorination plant Un
Slide 10: On The Move - Construction Activities
OnProject The MoveOutline – Construction Timeline Activities Workshop construction Dam construction Dam construction 10 Dam construction
Slide 11: On The Move - Construction Activities
OnProject The MoveOutline – Construction Timeline Activities Demolition of old plant buildings First blast in fresh ore Foundations Environmental surveys 11 Machinery arrivals
Slide 12: Site Fly-Over Video
SiteProject Fly-Over Outline VideoTimeline 12
Slide 13: Project Timeline
Project Project Outline Outline Timeline Timeline H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 PLANT ENGINEERING AND CONSTRUCTION Detailed Engineering Procurement Construction and Installation Commissioning WATER MANAGEMENT Construction and Pit Dewatering MINING PREPARATION Mining and Fill for ROM, haula
Slide 14: Mineral Resources and Ore Reserves
Mineral Resources and Ore Reserves Total Mineral Resources Category Tonnes (millions) Grade (WO3%) Contained WO3 (mtu) Measured 5.47 0.34 1.86 million Indicated 12.33 0.26 3.20 million Inferred 9.59 0.23 2.20 million Total 27.39 0.26 7.12 million Ore Reserves within the Open Pit Category Tonnes (mil
Slide 15: Expansion Potential - Significant
Expansion Potential - Significant Barruecopardo resource in red and open pit shell in blue – view looking upwards ( and west) towards ground surface Significant potential to extend life of mine, increase production: ▪ Planned open pit captures only ~40% of current total Resources ▪ Deposit open alon
Slide 16: Expansion Potential – Underground (Stage 2)
Expansion Potential – Underground (Stage 2) Conceptual Underground Access & Development 16
Slide 17: Barruecopardo Growth Strategy
Barruecopardo Growth Barruecopardo Growth Strategy • Deliver stable production based on the Barruecopardo DFS • Increase production and mine life through the investigation and evaluation of depth extensions to current resource with objective of establishing an underground (Stage 2) mine • Potential
Slide 18: Ormonde Mining – Moving Forward
Ormonde Mining – Moving Forward Focused on ▪ Bringing Barruecopardo Project online – on budget, at right time ▪ Aggressively growing the value of the Barruecopardo asset ▪ Pursuing opportunities to enhance shareholder value 18
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