Alma Metals Limited · ASX:ALM
Alma Metals — African Energy Resources — Investor Presentation (August 2018)
17 slides from Alma Metals's investor presentation, August 2018
Slide 1: Power Generation and Coal Export Project Developments
Power Generation and Coal Export Project Developments Investor Presentation August 2018
Slide 2: AFR is developing two principal businesses
AFR is developing two principal businesses 1. Power Generation 2. Coal Exports SESE • JV with First Quantum Minerals Ltd MMBW • High-quality thermal coal • Unit 1 is 225MW (gross) = 188MW net sales • Increasing global coal prices • Power sales to FQM (Zambia) = 100MW • Upgrade to measured resource i
Slide 3: Business development over the next 6 months
Business development over the next 6 months Sese JV Mmamabula West Finalise negotiations for: Upgrade portion of resource to Measured category PPA for 100MW sold to FQM, Commence marketing for coal exports MOU and Draft PPA to sell 88MW balance Secure South African project partner Use
Slide 4: Regional power supply-demand trends
Regional power supply-demand trends UTILITY OPERATING PEAK PEAK PLUS BALANCE Zambia (2,734MW) and Botswana (489MW) are CAPACITY DEMAND RESERVE (MW) the key markets relevant to Sese JV. Both (MW) (MW) MARGIN (MW) markets have steadily growing demand as more ESKOM 48,463 38,897 44,732 +3,731 of the
Slide 5: Key drivers supporting Sese development
Key drivers supporting Sese development 1. TARIFF INCREASES ARE INEVITABLE Country Current Tariff US c/kWh Current tariffs to residential and industrial users are not cost reflective, and must increase to make the utilities Botswana 8.5 financially independent from government bail-outs Zambia 9.3
Slide 6: Sese JV: project update
Sese JV: project update Approved 25-year Mining Licence covering 51km2 which contains enough coal to fuel multiple 450MW power projects Approved Manufacturing Development Approval Order sets fiscal regime for the power project Approved Environmental permits to allow up to 500MW of power genera
Slide 7: Sese JV Project Business Plan
Sese JV Project Business Plan Sese can provide reliable supply and very competitive power prices to meet the market opportunities highlighted in previous slides Sese is being developed by majority owner FQM, primarily to provide reliable and affordable power to its copper operations in Zambia
Slide 8: Coal exports: 12 months of energy price gains
Coal exports: 12 months of energy price gains Steady increase in global coal prices in three key markets: Australia (NEWC), South Africa (RB) and Europe (DES ARA) Coal price increases have generally matched the steady increase in global oil and gas prices 8
Slide 9: Coal export market opportunities
Coal export market opportunities Increased prices for coal exported from Richards Bay in RSA (see previous slide) Flow through impact on domestic sales price of coal in South Africa Eskom increasingly reliant on numerous small scale (inefficient) mines in South Africa, where costs are rising
Slide 10: Mmamabula West: export quality thermal coal
Mmamabula West: export quality thermal coal 10
Slide 11: Mmamabula West project summary
Mmamabula West project summary Significant resources of exportable coal within the overall 2,443Mt Indicated and Inferred resource (refer Appendix 3) 65km from rail with direct access to South African markets, including Eskom power stations Prefeasibility Study published in May 2015 for a conv
Slide 12: Mmamabula West development plan
Mmamabula West development plan Upgrade ~70Mt portion of the Indicated resource to Measured Resource to underpin bankable feasibility study Pursue EIA and Land Rights applications Apply for Mining Licence once EIA and Land Rights approved AFR seeking to market MMBW coal to South African mark
Slide 13: Cautionary Statements
Cautionary Statements This presentation has been prepared by and issued by African Energy Resources Limited (“African Energy”) to assist it in informing interested parties about the Company and its progress. It should not be considered as an offer or invitation to subscribe for or purchase any secur
Slide 14: Appendix 1: Eskom: the key regional utility
Appendix 1: Eskom: the key regional utility Generation capacity risks Cost drivers Coal supplies have moved away from tied supply Cost of coal increasing (see previous comments) to open market sourcing due to Eskom inability to Eskom staffing levels have increased by 46% recapitalise it’s capt
Slide 15: Appendix 2: Regional power tariff trends
Appendix 2: Regional power tariff trends South Africa Zambia Current tariff US ~7.0c per kWh (13R = 1USD) Current tariff US 9.35c per kWh Eskom requested a 19.9% increase for 2018/19 IMF/World Bank loans to Zambia linked to Zesco reform and financial sustainability NERSA approved 5.23% inc
Slide 16: Appendix 3: Global Coal Resource Statement
Appendix 3: Global Coal Resource Statement Global Coal Resources for AFR Limited Coal Projects in Botswana Sese Coal & Power Project: Resource Summary (Raw coal on an air‐dried basis), FQML 65%, AFR 35% Resource Zone In‐Situ Tonnes* CV (MJ/kg) CV (kcal/kg) Ash % IM% VM% FC% S% MEASURED (Block‐C) 333
Slide 17: Appendix 4: Corporate Summary
Appendix 4: Corporate Summary Directors and Senior Management ASX Code AFR Alasdair Cooke Executive Chairman, >25 years experience in project Shares on issue 623 million development, mining and resource sector Market Cap (@ $0.024) AUD $15M Frazer Tabeart Executive Director, >25 years experience in
African Energy Resources — Investor Presentation (August 2018) on 6ix