Develop Global Limited · ASX:DVP
Develop Global — Venturex Resources — RRS Gold Coast 2019
24 slides from Develop Global's conference presentation, Jun 5, 2019
Slide 1: Building an Australian Base Metals Business
ASX: VXR Building an Australian Base Metals Business A J SAVERIMUTTO | Managing Director | RRS Gold Coast, 4-5 June 2019 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Cautionary Statement The information contained in this document (“Presentation”) has been prepared by Venturex Resources Limited (“Company”). This Presentation is being used as a presenter’s aid with summarised information. See Venturex’s other and periodic discl
Slide 3: Corporate Snapshot – Leadership and Key Financials
Corporate Snapshot – Leadership and Key Financials Board Key Metrics Anthony (Tony) Kiernan Share Price $0.17 Non-Executive Chairman Shares on Issue 280M Ajanth (A J) Saverimutto Market Capitalisation $48M Managing Director P-NAV (MC/Project NPV) 0.12 Anthony Reilly Non-Executive Director Cash at Ba
Slide 4: Venturex – Building a mid-tier Australian base metal company
Venturex – Building a mid-tier Australian base metal company Northern Star On Path Australian High-Grade Excellent Major to Project Deposit Financials Shareholder Construction 4
Slide 5: Project Snapshot – Sulphur Springs
Project Snapshot – Sulphur Springs Strategically located in world-class Pilbara district Access to port facilities, via haul road and sealed highways 13.8Mt Cu-Zn deposit (~3.5% Cu Eq*) +10-year mine life, producing Cu & Zn concentrate Low CAPEX and rapid payback Funding strategy well advanced Subst
Slide 6: Market Timing
ventuReXx | Market Timing
Slide 7: Diminishing Supply – Market Timing
Diminishing Supply – Market Timing Supply shortfall expected by 2020 Resource depletion on current projects Grade decline in large copper projects Lack of investment in new projects Falling copper inventories 7
Slide 8: Strong Demand from EV’s – Market Timing
Strong Demand from EV’s – Market Timing Electric Vehicles (EV’s) Electric Vehicles (EVs) are a major growth market An average EV needs 4 x the copper of a conventional medium-sized car The EV fleet forecast to be 230 million in 2035 and 750 million by 2050, equivalent to half the global fleet1 SOURC
Slide 9: Project Update
VEnTUne Project Update
Slide 10: Project Update – Progress & Successes
Project Update – Progress & Successes Funding and Finalise EPA Share Construction DFS Permitting Camp Consolidation Resource Metallurgy Complete Purchased 3 2 Drilling Testwork1 1. Refer ASX Release 06 Aug 2018 2. Refer ASX Release 13 Aug 2018 3. Refer ASX Release 10 Oct 2018 10
Slide 11: Australian Mines & Metal Endowment – A Standout Asset
Australian Mines & Metal Endowment – A Standout Asset 12 Australian VMS Underground Project Australian VMS Open Pit Project 10 Sulphur Springs Project Cu Eq Grade (%) 8 6 4 2 Sulphur Springs Project 0 0 2 4 6 8 10 12 14 16 18 20 Resource (Mt) SOURCE : VXR, MMG, SLR, MLS, ERL, MRP, SYV, HRR, RVR, IGO
Slide 12: Project Design – An Economy of Scale Project
Project Design – An Economy of Scale Project Open Pit Design o Optimised open pit design o Low strip ratio Underground Design o Bulk mining method (Stoping – SLC) o Low capital development requirement Metallurgy o 1.25Mtpa plant throughput (Designed for 2Mtpa) o Simple crush, grind, float process In
Slide 13: DFS – Financial Results – A Financially Attractive Project
DFS – Financial Results – A Financially Attractive Project ➢ Excellent project financials ➢ NPV8 = AUD 472 M NPV8 ➢ IRR = 51% ➢ Free Cash Flow = AUD 818 M AUD 472 ➢ Average cash flow of ~AUD 80 M per year Million1 ➢ Plant capacity 1.2Mt/annum – designed to allow easy expansion to 2.0Mt/annum concent
Slide 14: Operating Costs – Strong Margins & Cash Flow
Operating Costs – Strong Margins & Cash Flow A Cornerstone Asset with Width, Grade and Scale LOM COSTS Output Unit Value Revenue AUD/t 209 Operating Cost Per Tonne AUD/t 122 Capital Cost per Tonne AUD/t 22 Total Cost per Tonne AUD/t 144 Margin AUD/t 65 Tonnes Cu Cu Metal Zn Zn (Metal METAL SOLD (Con
Slide 15: Funding – Potential Paths to Production
Funding – Potential Paths to Production BANKS & PRIVATE DEBT BONDS NAIF EQUITY FUNDING CONCENTRATE OFF-TAKES ASSET EQUITY MARKETS LEVEL 15
Slide 16: Project Update – Ready for Development
Project Update – Ready for Development CONTROLS Identify / Shortlist Scope Tender / EOI Award / Contract Plant Contract In progress Open Pit Contract In Progress Infrastructure & Earthworks In Progress WORK IN PROGRESS Gas Supply Power Capital Deferral Key Personnel 16
Slide 17: Schedule to Production – Making It Happen
Schedule to Production – Making It Happen MILESTONE Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Mining EPA Approval Water Licence & Works Approvals Financing Plant Site Earthworks & Pre Strip Process Plant Construction Process Plant Commissioning Open Pit Development Production Ramp-up Full Production 17
Slide 18: Poised For Growth
eo” VENTURE Poised For 18
Slide 19: Panorama Exploration – Multiple Local Targets
Panorama Exploration – Multiple Local Targets +27km VMS belt Potential for further look- alike deposits Surface gossan identified at numerous prospects Drill program imminent Refer ASX announcements 22 September 2015 and 21 March 2018 19
Slide 20: Realising Our Potential – Under-explored VMS District
Realising Our Potential – Under-explored VMS District
Slide 21: Panorama Trend – Sulphur Springs / Breakers
Panorama Trend – Sulphur Springs / Breakers Sulphur Springs Breakers 21
Slide 22: Value Proposition – Why Invest in us?
Value Proposition – Why Invest in us? Value Markets Shareholders Exploration Strong Team Cornerstone Northern Star 27km exploration Robust asset Strong markets potential strategy major shareholder Excellent Diminishing Few ASX-listed Multiple VMS Strong economics supply copper companies targets visi
Slide 23: Thank you
Thank you A J SAVERIMUTTO | Managing Director Building an Australian Base Metals business. Registered Office: Level 2, 91 Havelock Street, West Perth, WA 6005 T: + 61 8 6389 7400 F: + 61 8 9463 7836 ASX: VXR admin@venturexresources.com Media: Nicholas Read / Read Corporate www.venturexresources.com
Slide 24: Appendix – Mineral Resources
Appendix 1 – Mineral Resources Indicated Mt Cu % Zn % Ag g/t Sulphur Total Springs 11.7 1.4 4.2 17 Mt Cu % Zn % Ag g/t Resources (2019)1 Inferred 17.4 1.3 4.2 17 Mt Cu % Zn % Ag g/t 5.7 1.2 4.4 18 Grand Total Measured Mt Cu % Zn % Pb % Ag g/t Au g/t 25.9 1.24 3.47 0.18 19 0.1 Mt Cu % Zn % Pb % Ag g/