Astron Limited · ASX:ATR
Astron — Shareholder Meeting (November 2006)
49 slides from Astron's shareholder meeting presentation, Nov 29, 2006
Slide 1: Annual General Meeting
asm Astron Limited ACN 000 285 272 om nual General. | Meeting |
Slide 2: Introduction
¢ Introduction ¢ Highlights ¢ Operating Review ¢ Strategic Update ¢ 2007 Outlook ¢ Project Development eQandA i Gerry King Alex Brown Alan Guy Alan Guy/Arno Kruger
Slide 3: A year of achievement, change and challenge
- A year of achievement, change and challenge - Record sales revenue of $151M - After tax profit of $20.6M - $29M available for business expansion - Greater emphasis on organizational improvement - Exciting new projects - Future growth prospects are very good
Slide 4: Highlights
SRO RRR eacce ‘: Highlights
Slide 5: Total revenue
Total revenue Net Profit — Employees Earning/share Price/share Capitalization ASX Code Website penne < £ s A$ 151.2 million A$ 20.6 million — 580 A$ 0.35 A$ 3.1 A$ 181 million ATR www.astronchem.com
Slide 6: Sales growth in fused and chemical products
- Sales growth in fused and chemical products - 30% price increase in zircon supplies - Zircon availability at 2005 levels - 11% increase in export sales - Increased customers worldwide - Margins down on zircon materials - New waste treatment plant
Slide 7: Revenue growth of $10.7M
- Revenue growth of $10.7M - Net profit after tax $20.6M -R.O.N.A. of 19.3% - Net Assets increased by $23M - Cash and marketable securities of $29M - Debt : Equity = 4% - Current ratio =3.2
Slide 8: Operating Overview
SRO RRR eacce Operating Overview
Slide 9: Sales revenue by year
| A$m| 70.4 | 82.4 | 104.7/ 14 Sane Year| 2002 2003) 2004 eases CER RE SEER SSE EE
Slide 10: Sales by region
China 72% N.America 7.9% other 0.1% Europe 14.7% Asia 5.3% eases CER RE SEER SSE EE
Slide 11: 2005 Exchange Volumes Price/Mix
2005 Exchange Volumes _ Price/Mix sales rates eevee PERE E SEER S SEE
Slide 12: eases
LW \ x eases CER RE SEER SSE EE
Slide 13: Cash flow
A Flow pope son _so menses von a Ce ey boy La Lp Vp) "Year eases CER RE SEER SSE EE
Slide 14: Balance sheet summary
Cashimarketable securities (ASM) 29.1 18.4 58 Receivables (A$M) “215 16.7 28.7 Inventories (ASM) 28.6 25,9 10.4 Plant croperty & equioment (ASM) ot4 14.9 416 Other (ASM) 19.7 17.6 11.2 Total assets (ASM) 120.0 93.5 28 Payables (ASM) 20.6 20.3 0.02 Interest Bearing Liabilities (ASM) 3.5 0 ~ Tax liabi
Slide 15: Projects
Clee - Gambia Mine Development - Fused Zirconia plant expansions - Donald project - HMC processing plant in China - ZOC plant - Titanium pigment plant i eee CER RE SEER SSE EE
Slide 16: Strategic Update
SRO RRR eacce ‘: ited im ACN 000 285 272 g Astron L
Slide 17: Grow earnings by concentrating on
_ Grow earnings by concentrating on: _¢ Increased volumes of added value Zr products _¢ Focussed diversification (business areas closely related to our core competencies)
Slide 18: Forward-looking Statements
A$mi 4.5 Year 2002 2003 2004 2005, 2006 ASTFEN Forward-looking Statements This part of the presentation contains forward looking statements and information. Its basis is our current expectations along with certain assumptions and therefore such statements carry certain risks and uncertainties.
Slide 19: Revenue and expenses comparison
on arison (A$M) mp | Expenses fe) | Revenu
Slide 20: Product groups by sales value
ae Cae Materials ~ oes ed Zirconium - oe Chemicals oo coe | co ie) iG a 2 oo. *Shaded Area proportional to 2006 sales value
Slide 21: Product Growth
nt Growth : | | | | ASTFEN Chems/oxides Other products* * Includes Ti products and silicas ¢ Prices increases all segments ¢ Volumes up except zircon materials
Slide 22: Product strategy
¢ Push higher value products ¢ Be selective on markets ¢ Maintain other product categories ¢ Innovation to give new products i eee CER RE SEER SSE EE
Slide 23: Push and maintain products
nsw sjoyeU BUTyD sjoyrwul j10dxy Push Maintain *Shaded Area proportional to 2006 sales value eases CER RE SEER SSE EE
Slide 24: Product performance
uct performance SAIUIOJSNI MIN S.10UI10}SND SULSIXD China markets « GW, ZRO products eZPP « ZCOH Export markets
Slide 25: Growth in products of increased value
y | ° Growth in products of increased value | + Innovation continues to yield new products | e Targeted segment growth up 25% | | ° Constrained by zircon supply level & price
Slide 26: 2007 Outlook
SRO RRR eacce
Slide 27: Zirconium demand by end use
175 150 100 - ' ses Ceramics | == Refractory === TV Glass/Other wane 7rO2/Chemicals : amex FOUNCrY * . Normalised 15 | 2001 2002 2003 2004 I 2005 i >| | " 2006F
Slide 28: Global growth rates by segment
Global pswan: _AAGR % ¢ ZrO2/Chemicals 12.5 17.5 - Ceramics 7.9 42.1 ¢ Refractories 0.2 12.9 ¢ Foundry -0.3 11.7 * CRT glass -5.6 15.4
Slide 29: China GDP growth
“continuing an asset led GDP growth 10.6.4 10.4-4-- 10.2 4 10.0 7 98-5 9.6 17 94.5 Q2 Q3... 4 Qi... Q2 ma eX) 2005... 2005... 2005. 2006... 2006... 2006 Source: National Bureau of Statistics
Slide 30: Growth for 2007
i eevee PERE ESE EES SEE ing growth for 2007 ¢ Growth in manufactured products * Additional revenues from new products * Access to additional raw material supplies
Slide 31: 2007 key factors
° Continuing economic growth ¢ New product introduction timing» ° Target segment penetration rate _ ¢ Margins i eee CER RE SEER SSE EE
Slide 32: Project Development
SRO RRR eacce Project Development
Slide 33: Project status and feasibility
¢ Feasibility study completed e Detailed design complete by Jan 07 e Site selected and services under negotiation ° Capex requirement of A$180M e Implementation options under review: - JV with China partner - JV with International partner
Slide 34: Project design and decision timing
¢ Design on-going e Feasibility study complete ¢ Site selection being finalized ¢ Decision to proceed by mid 2007 i eee CER RE SEER SSE EE
Slide 35: Titanium project rationale
e Integrates with Zirconium business e Creates revenue from Ti minerals ¢ Fit with TiO, entry plan ¢ Business expansion opportunity i eee CER RE SEER SSE EE
Slide 36: Donald Mineral Sands Project Overview and Progress
| MS ‘ A Subsidiary of Astron Limited eases CER RE SEER SSE EE Donald Mineral Sands Project Overview and Progress
Slide 37: Location
cation Part of deposits discovered during early 1980’s by CRA Previously known as WIM 200 and WIM 250 240km Northwest of Melbourne - Victoria 66km Northeast of Horsham Deposit located within freehold agricultural land Limited remnant native vegetation MS ‘ A Subsidiary of Astron Limited iceoeeintt s
Slide 38: Regional Geology (Donald and Jackson)
Regional Geology (Donald and Jackson) *Deposits part of the Murray Basin which is a low- lying, ancient sea bed. *The Loxton-Parilla Sand the Heavy Mineral *Deposits are of two principal types; the coarser grained “strand-style” occurrences and the finer grained “WIM-style” accumulations *Donald and
Slide 39: Donald Project Area Mineral Resource
Mad Z As : CT (a ah sD MS A Subsidiary of Astron Limited Donald Project Area Mineral Resource eases Classification Tonnes HM Slimes Oversize Tonnes Tonnes Tonnes fers) (%) (%) (0%) HM Slimes | Oversize (My @D (Mf) Indicated 531 5.0 14.8 7A 27 78 40 Inferred 162 54 16.8 6.7 8 23 a Total 693 Sl 15.3 7
Slide 40: Mining Method Evaluation
Mining Method Evaluation Detailed mining method evaluation complete, indicating a conventional mining method consisting of a mixed fleet including: *Tractor and Bowl Scrapers *Dozers/Scrapers *Shovels/Moveable Mining Unit A Subsidiary of Astron Limited
Slide 41: Future Mining and Rehabilitated Farmland
EE Hae MMe Wy EM NIU Gaia LM EN - i ; Y ye Lea Diy ey iy ME th 4 ASO aa) ML LA Gey i LEANN y A Vy GM a MULL i WY TEI, Ya, y 7 LN LM OMEN, ily We Mh Tih Furure Mining Rehabiiteted Farmland Renabtitated Farmland tes
Slide 42: Wet Concentration and Mineral Separation
Australian Operation ~ Wet Concentration Feed preparation (Screening, De-sliming) Clay handling (Thickening, Disposal) Wet concentration to 90% HMC Separation into a Magnetic and Non-magnetic Concentrate Product preparation and handling Chinese Operation ~ Mineral Separation Product Manufacture Sepa
Slide 43: Technical Challenges
Technical Challenges High Clay Levels - Ore contains 15% clay (-38um) DMS has developed an efficient clay removal and water recovery circuit by: Performing extensive laboratory and pilot scale tests Utilizing new cyclone and thickening technologies Fine nature of heavy minerals (Mineral d50 < 65um)
Slide 44: Mineral Processing Plant
Slide 45: Australian and Chinese Operations
Australian Operation Mining (Ore) Magnetic Concentrate Non-Magnetic Concentrate Chinese Operation Zircon Production HiTi — Production IImenite Production 7 500 000 tpa 110 000 tpa 286 000 tpa 86 000 tpa 73 000 tpa 106 000 tpa .§ & Subsidiary of Astron Limited! IIlmenite eases CER RE SEER SSE EE
Slide 46: Water, Power and Transport
Water * Saline groundwater to be used for processing — focusing on Avon Deep Lead + Fresh Water for Amenities Power * 55km, 66kV Power line * Gas Fired Power Station Transport - Mine Site to Existing Rail Siding * Road Transport ~ Rail Siding to Port * Road — Viable for HMC <170 000tpa * Rail — Viab
Slide 47: Environmental obligations and EES studies
Astron Limited is aware of its obligations towards the environment, safety of its workers and nearby communities. Donald Mineral Sands project will be developed by completing an Environmental Effects Statement EES Studies * Technical Review Group Appointed + Assessment Guidelines Finalized + Special
Slide 48: Conclusion
ynclusion A Subsidiary of Astron Limited Donald Project Area contain sufficient mineral resource to sustain a large, low cost, long life mining operation, which can be processed into marketable mineral sands products using conventional mineral processing techniques. Pending regulatory approval and t
Slide 49: Astron Limited
Astron Limited ACN 000 285 272