Slide 1: Annual General Meeting
For personal use only ANNUAL GENERAL MEETING 26 November 2009
Slide 2: Agenda
Agenda For personal use only • Chairman’s Introduction Gerry King • Financial Highlights Mark Nielsen • Donald Update & Plan Simon Peters • The Way Forward Alex Brown • Questions Forward looking statements This presentation contains forward looking statements and information. These statements are ba
Slide 3: Chairman's introduction
For personal use only Chairman’s introduction Gerry King
Slide 4: Chairman's introduction
Chairman’s introduction For personal use only • Infrastructure sold in Imerys in 2008 • 2009 a year for consolidating and redefining our strategic direction • Improved reporting and governance structures • Survived GFC with cash intact • Donald EES approved • Downstream technologies progressing well
Slide 5: 2009 Delivery vs 2008 benchmarks
Chairman’s introduction For personal use only 2009 Delivery vs 2008 benchmarks Rebuilt management structure ✓ Rebuilt systems and controls ✓ ERP in planning phase Product trading and market development ✓ Commercial opportunities been evaluated ✓ On-going Current assets realised ✓ Transfer of busines
Slide 6: 2009 Delivery
Chairman’s introduction For personal use only 2009 Delivery Treasury function established ✓ Enhanced control and reporting environment ✓ Donald Environmental Effects Statement approved ✓ Commenced discussions with Chinese partners ✓ to meet funding requirements Senegal Information memorandum complet
Slide 7: Financials
For personal use only Financials Mark Nielsen
Slide 8: 2009 Financials: Balance sheet
2009 Financials: Balance sheet For personal use only 2009 2008 As at 30 June Rm Rm PPE including MSP (WIP) 9.0 6.6 Donald and intangibles 20.4 19.9 Land - use rights 10.7 9.0 Current assets (excluding cash) 6.5 11.8 Cash 168.9 185.7 Total Assets 215.5 233.0 Liabilities 4.3 21.1 Net Assets 211.2 211.
Slide 9: 2009 Financials: Commentary
2009 Financials: Commentary For personal use only Property, Plant & Equipment • Construction of MSP • Foreign currency translation Intangibles • Donald – Expenditure capitalised in terms of AASB6 Land Use Rights • Land in Yingkou - China • 50 years lease
Slide 10: 2009 Financials: Commentary (Cash)
2009 Financials: Commentary CASH For personal use only • Cash is retained for investment and project development • Given recent turbulence invested cash conservatively – Mainly with CBA and Bank of China – Interest yield 3.5% • Formalised treasury function to identify better returns at similar risk
Slide 11: 2009 Financials: Commentary (Cash utilisation)
2009 Financials: Commentary • Cash utilised as follows: For personal use only Expenditure $m Payments relating to creditors - Imerys 8.3 Cash portion of dividends paid to shareholders 5.7 Listed investments and share buy back 2.4 PPE and WIP 2.0 Development expenditure 1.2 Operating activities (0.8)
Slide 12: 2009 Financials: Net asset value
2009 Financials: Net asset value For personal use only Year ended 30 June 2009 Cps Cash 261
Slide 13: 2009 Financials: Net asset value
2009 Financials: Net asset value For personal use only Year ended 30 June 2009 Cps Cash 261 Net current assets 3
Slide 14: 2009 Financials: Net asset value
2009 Financials: Net asset value For personal use only Year ended 30 June 2009 Cps Cash 261 Net current assets 3 Land use rights 17
Slide 15: 2009 Financials: Net asset value
2009 Financials: Net asset value For personal use only Year ended 30 June 2009 Cps Cash 261 Net current assets 3 Land use rights 17 PPE 14 Tangible NAV per share of 295 cps (excluding Donald)
Slide 16: 2009 Financials: Net asset value
2009 Financials: Net asset value For personal use only Year ended 30 June 2009 Cps Cash 261 Net current assets 3 Land use rights 17 PPE 14 Donald 31 NAV per share of 326 cps
Slide 17: Donald Project
For personal use only Donald Project Simon Peters
Slide 18: Donald Project – 2009 Delivery
Donald Project – 2009 Delivery For personal use only • Immediate mine start was deferred • Decision made to build pilot plant for mine and all processes • Pre-feasibility study updated • Plan prepared to complete a revised definitive feasibility study • Approvals on-going • EES approval obtained • D
Slide 19: Donald Project – Mineral Resource
Donald Project – Mineral Resource For personal use only Donald Project Area Mineral Resource 1) All resources have been classified as Indicated under the 2004 JORC code. 2) All resources have been rounded to the nearest 10 million tonnes and one decimal place in grade. 3) Donald resources are report
Slide 20: Donald Project - Update
Donald Project - Update • EES approved by State government For personal use only in November 2008 • Federal government approved the project under the Environmental Protection and Biodiversity Conservation Act 1999 on 13th March 2009. • Discussions held with state and federal governments regarding ex
Slide 21: Donald Project - Plan
Donald Project - Plan For personal use only • Review undertaken focusing on the viability of doubling project size to 15 Mt ore mined pa – Would allow for reduced operating costs due to economies of scale – Gas fired power plant feasible at this tonnage greatly reducing power cost – Lower transport
Slide 22: Donald Project
Donald Project For personal use only • Engineering studies undertaken on optimal size and configuration of Pilot Plant • Confirmation of Scope of Definitive Engineering Study Conceptual Wet Concentrator Layout
Slide 23: Donald Project - Plan
Donald Project - Plan For personal use only • Definitive Feasibility Study to be undertaken 2010 including: – Mining License – Pilot Plant and mine – Firm up Water supply – Detailed mine and plant design – Detailed costing and quotations – Land negotiation • Fully integrate downstream processing inc
Slide 24: Pre-feasibility study update – 15mtpa
Pre-feasibility study update – 15mtpa For personal use only Project Life 33yrs Project Payback Period <3yrs Internal Rate of Return 31% Steady state EBITDA (per annum) $130m Net Present Value – 8% (Base Case) $646m Capital Cost $282m Note : The project area contains approximately 18% of the total re
Slide 25: The way forward
For personal use only The way forward Alex Brown
Slide 26: China - Industrial output to grow 10.5% for 2009
China - Industrial output to grow 10.5% for 2009 For personal use only • China's industrial economy recovered in March this year • In October, China's industrial output rose 16% y-o-y the fastest pace since March 2008 and the sixth consecutive month with an acceleration of y-o-y growth • China's ind
Slide 27: Astron - The way forward
Astron - The way forward For personal use only Grow the value to stakeholders of Astron by adding value to titanium and zirconium mineral sands assets through developing an integrated supply chain from source to end user, including: • Creating value by moving Donald up the value curve to production
Slide 28: The way forward: integrated supply chain
The way forward: integrated supply chain Titanium and Zirconium materials For personal use only Mining and Downstream Manufacturing Marketing processing technologies and processing and selling Improved and new Donald technologies: Manufacturing: Outlook Acquisitions Titanium, ZOC, Astron Industrial
Slide 29: Mineral Sands – China processing
Mineral Sands – China processing For personal use only • Astron has at Yingkou, China, 132 hectares of industrial land for its manufacturing plant • Currently, this land is fully serviced and ready for construction • Two factories will be completed in March 2010 for use as chemical and metal process
Slide 30: Location of Astron Park - Yingkou
Location of Astron Park - Yingkou For personal use only • Yingkou is based in Liaoning province • It is a port city of the Bohai Sea. The Liao river goes to the sea at Yingkou • The city has a total area of 5,402 square kilometers, and a population of 2.2 million • Yingkou City is one of the rapides
Slide 31: Yingkou – Location of Astron Park
Yingkou – Location of Astron Park For personal use only Liaoning (Yingkou) Coastal Industrial Base Yingkou – Location of Astron Park Yingkou Industrial Base in the NE of Liaodong Bay
Slide 32: Yingkou – Location of Astron Park
Yingkou – Location of Astron Park For personal use only Coastal Industrial Base Astron Industrial Park About 160 km away from Shenyang and Dalian
Slide 33: Yingkou – Layout of Industrial Park
Yingkou – Layout of Industrial Park For personal use only Hi-tech Industry Equipment Manufacturing Light Chemical Industry industry Astron Industrial Park Foxconn Technology China Minmetals Industrial Park Corporation Industrial Park
Slide 34: New downstream technologies
New downstream technologies For personal use only Continue developing downstream applications Titanium and Zirconium Metal • Identified new furnace based process to possibly produce titanium metal more cost effectively • Test lab set up in China to test small trial furnace • Patents in process • Fur
Slide 35: Action plan 2010
Action plan 2010 For personal use only Mineral Sands • Complete bankable feasibility study – Integrate with technologies – Upgrading to proven reserves – Complete Demonstration Pilot plants • Titanium and Zirconium Metals – Patents – R&D and Pilot plants for new processes • Titanium and Zirconium ch
Slide 36: Questions
For personal use only Questions