Alkane Resources Ltd · ASX:ALK

Alkane Resources — Investor Presentation (April 2015)

22 slides from Alkane Resources's investor presentation, April 2015

  1. Slide 1: Dubbo Zirconia Project ICN (Dubbo Local)

    Dubbo Zirconia Project ICN (Dubbo Local) Nic Earner, Mike Sutherland – Alkane Resources Ken Raymond, Ian Hudson – ICN April 2015

  2. Slide 2: Focused on NSW Central West

    GX ALKAN RESOURCES Lto Focused on NSW Central West Alkane hat Strategy ‘ Multi-commodity company vy a Community & environmentally responsible Strategic relationships © 2015 Alkane Resources Ltd N

  3. Slide 3: Central West NSW

    Central West NSW Peak Hill Gold Mine 1996 -­‐ 2005 Tomingley Gold OperaSons ProducSon commenced 2014 – cash flow Dubbo Zirconia Project Pre-­‐construcSon Ac#ve in region for more than 20 years Successful ongoing explora#on program World-­‐class strategic polymetallic development © 2015 Alkane Resourc

  4. Slide 4: The periodic table

    The periodic table © 2015 Alkane Resources Ltd 4

  5. Slide 5: Rare earth Industry

    Rare earth Industry REE Demand 2016 by ApplicaSon • US$3-­‐5B Global market Other Catalysts • 115,000t Annual ConsumpHon 2013 8% 18% • 5-­‐10% Annual growth esHmates Ceramics REE Demand 2013 by Country 5% Glass 6% Other Phosphors 6% 5% US 14% Japan 15% China Polishing 65% 12% Magnets 27% Metal Alloy

  6. Slide 6: Zirconium Industry

    Zirconium Industry Zircon Demand by End Use (2013 ~ 1 million tonnes) Other 3% Foundry 12% Ceramics 47% Chemicals 21% Refractory 17% • Global market US$2-­‐3B • 2014 consumer zircon inventories running down • Market expected to stabilise through 2015 -­‐ 2016 • CAGR anHcipated at 5% -­‐ 7% pa © 2015

  7. Slide 7: Niobium Industry

    Niobium Industry 90% of Nb used in standard grade ferroniobium for the producHon of high strength low alloy (HSLA) steels. World producHon esHmated at 80,000t Nb in 2012. CBMM in Brazil accounts for 85%. Global market US$3-­‐4B. Price stability since 2008, including GFC. CAGR anHcipated at 10%. Dema

  8. Slide 8: These products are everywhere..

    These products are everywhere.. Renewable energy Energy efficient lighSng Auto -­‐ emissions Auto – fuel efficiency Health Electronics Smart technologies Aerospace © 2015 Alkane Resources Ltd 8

  9. Slide 9: DZP Discovery and Development

    DZP Discovery and Development RecogniHon ExploraHon Resource Process • 1960’s • Drill holes 1990 • 1999-­‐2002 Development • IniHal drilling • Preliminary • Mini pilot plant • Metallurgy 2006 1983 for Cu-­‐Au metallurgical -­‐ present work • Feasibility study DemonstraHon EIS Obake Next steps… Pilot

  10. Slide 10: Process Flowsheet

    Process Flowsheet © 2015 Alkane Resources Ltd 10

  11. Slide 11: Demonstration Pilot Plant

    DemonstraSon Pilot Plant DPP FiltraHon, PLS, SX, Zr & Nb Zirconium refining & recovery precipitaHon Reverse osmosis & water Y and HREE refining & recovery recycle © 2015 Alkane Resources Ltd 11

  12. Slide 12: Funding Strategy

    Funding Strategy Government Commercial Bank Equity Capital Sale of Project Level Assistance Programs Debt Markets (ALK) • ECA Style Funding • Minority • Advisors: Credit • Advisors: Credit • Lead coordinator: Interest(s)~15% Suisse & SMBC Suisse & Petra Sumitomo Mitsui • Sale Advisors: Credit • Alra

  13. Slide 13: Front End Engineering Design

    Front End Engineering Design • Awarded to Hatch in 2014 • Engineering lead – Perth • ConstrucHon & procurement lead – NSW • Scope: • Confirm DFS and progress cost & schedule esHmates to ±10% • Develop construcHon strategy • Develop procurement strategy & produce preferred vendors list © 2015 Alkane R

  14. Slide 14: Front End Engineering Design

    Front End Engineering Design • Completed to date • Many packages have specificaHons complete • Commercial T&Cs completed to go out with packages • Packages displayed on ICN Gateway • From EOIs received on Gateway, AZL selects group of suppliers to then take to tender • Packages vary from EPC, to supp

  15. Slide 15: Front End Engineering Design

    Front End Engineering Design • Major packages included: • Acid plant • Crushing • Valves • Dry Grinding • Control & InstrumentaHon • Rotary Kiln • NF / RO • Thickeners • Heat Exchangers • Filters • Raw water & sewage treatment • Tanks / Agitators • Office & plant buildings • Pumps • Earthworks • SMP ©

  16. Slide 16: Opportunities going forward

    OpportuniSes going forward • Many other packages to be determined (over $100m worth) • Tenderers will be selected by Alkane from exisHng relaHonships and suppliers who have registered with ICN. • Other packages (some on ICN Gateway now) include: • Road construcHon(i) • Valve supply • Bulk earthworks

  17. Slide 17: Opportunities going forward

    OpportuniSes going forward • Large opex (over $200m worth, majority reagents) • OperaHons supply / service contracts, are generally not going to market unHl 2016. • Opex contracts will include: • Consumable supply • Temporary labour • Transport • Small equipment hire • Minor fabricaHon • Scaffolding

  18. Slide 18: Opportunities going forward

    OpportuniSes going forward • How will suppliers be selected? • Most things being equal, we will take a local supplier in preference • We look at a range of criteria including: • Past performance • Company capacity, including managing our risk and inventory • Value to us, including price and experHse

  19. Slide 19: Timetable

    Timetable EsHmates of Hmes are indicaHve only and are subject to change. Alkane reserves the right to vary the Hmetable without noHce. © 2015 Alkane Resources Ltd 19

  20. Slide 20: Next Steps for Suppliers

    Next Steps for Suppliers • Keep in contact with ICN via Gateway • gateway.icn.org.au • Q3 – Tender for minor projects – sign contracts • Q4 – Start Works • OperaHons supply / service contracts, are generally not going to market unHl 2016 © 2015 Alkane Resources Ltd 20

  21. Slide 21: Disclaimer

    Disclaimer This presentaHon contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, producHon levels and rates, costs, prices, future performance or potenHal growth of Alkane Resources Ltd, industry growth or other trend projecHons. Such state

  22. Slide 22: Resources and Reserves

    Resources and Reserves Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO Deposit (Mt) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 Total 73.20 1.96 0.04 0.46 0.03 0.14 0.75 These Mineral Resou

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