Wa Kaolin Limited · ASX:WAK
Wa Kaolin — Investor Presentation (November 2022)
18 slides from Wa Kaolin's investor presentation, November 2022
Slide 1: Investor Presentation: Equity Raising
Investor Presentation Equity Raising: Production Ramp Up and Advancing Stage 2 at the world class Wickepin Kaolin operation Production Delivering ultra of bright, High Purity high purity Kaolin Kaolin From into One aofglobal the market World’sforLargest decades to come Primary Resources
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by WA Kaolin Ltd (WAK). This document contains background To the fullest extent permitted by law, WAK and its related bodies corporate, its directors, officers, information about WAK current at the date of this presentation. The
Slide 3: Compelling Investment Proposition
Compelling Investment Proposition Long-life supply of superior quality Kaolin, with a global competitive advantage through proximity to the dominant Asian end user market WAK is now an Emerging Globally Significant Kaolin Producer One of the largest ultra bright high purity Kaolin deposits in the
Slide 4: WAK Ramping Up to 400,000tpa and beyond
WAK Ramping Up to 400,000tpa and beyond 2022 Stage 1 2024 Stage 2 Pilot Operations Future Scale Up Ramp Up Ramp Up K99 Proof of Concept Plant K99 Commercial Scale K99 Capacity Expansion Further K99 Expansion Kwinana, WA Wickepin, WA Wickepin, WA Wickepin, WA Pilot Plant Production 25t/hour 50t
Slide 5: 2022 Milestones
2022 Milestones Wickepin Plant Operational Stage 1 operations underway: First production in September 2022 Operational start up completed to budget despite challenging environment (COVID-19, supply chain, labour shortages) Accelerated early investment into portions of Stage 2 production ramp u
Slide 6: Corporate Snapshot
Corporate Snapshot Corporate Structure Shares on Issue 332,991,470 Market Capitalisation $56.6m @ 17.0c per share Unlisted Options1 167,232,813 Performance Rights 27,500,000 1 Weighted average option exercise price is $0.27 and expiring between Nov-23 to Nov-25 Cash at bank 30/09/2022 $2.9m Substant
Slide 7: Equity Raise Details
Equity Raise Details WA Kaolin is raising A$7.5 million (before costs) Offer Structure and Size Single tranche share placement of fully paid ordinary shares (“New Shares”) to sophisticated, professional and other institutional investors to raise approximately A$5.0 million (before costs) (“Placement
Slide 8: Use of Proceeds
Use of Proceeds Item A$ million Source of funds Placement (including Converting Loan) 6.0 SPP 1.5 Total 7.5 Stage 2 Works 20kg Bagging Filling and Palletising 1.5 Covered Ore Store Roof 0.5 Mine development and Traffic Management 0.5 Working Capital and R&D (inc. Costs of the Offer) 5.0 Total 7.5 8
Slide 9: Indicative Timetable
Indicative Timetable Event Date Trading halt Friday, 25 November 2022 Record date for the SPP 4pm (WST) Monday, 28 November 2022 ASX announcement Placement & SPP, Appendix 3B lodged with ASX Pre-open Tuesday, 29 November 2022 Trading halt lifted – trading resumed on the ASX 7am (WST) Tuesday, 29 Nov
Slide 10: Wickepin Kaolin Operation: Overview
Wickepin Kaolin Operation: Overview World Class Deposit Discovered by Rio Tinto in 1980’s (acquired by WA Kaolin in 1999) Ore Reserve: 30.5mt1 of ultra bright, high purity kaolinised granite Mineral Resource: 644.5 mt2 of ultra bright, high purity kaolinised granite (includes ore reserve) Th
Slide 11: Kaolin Market Growing Strongly
Kaolin Market Growing Strongly Market Size & Growth 2021: Over US$4.2 billion in global kaolin market sales Continued strong global Kaolin market growth, forecast 3.7% compound growth 2022-2030 Asia dominates end user demand (41% market 2021), primarily in China, India, Malaysia and South Kore
Slide 12: Conclusion
Conclusion WA Kaolin has successfully delivered construction of Stage 1 on budget with first production commencing on time at the end of September Full Stage 1 production rate of 200,000 tpa expected by the end of FY 23 Product Pricing premium achieved over initial projections Wickepin quali
Slide 13: Andrew Sorensen CEO
Andrew Sorensen CEO asorensen@wakaolin.com.au +61 8 9439 6300 wakaolin.com.au Investor Relations Victoria Humphries victoria@nwrcommunications.com.au 13
Slide 14: Reserves and Resources
Reserves and Resources Table 1. Ore Reserves by JORC Classification Reserves & Resources Yield (%) It is one of the largest known remaining kaolin resources in the JORC ISO In situ Kaolin Tonnes (Mt) (<45 µm in classification brightness (%) (Mt) world, and contains: size) Probable Ore Reserve of 3
Slide 15: Tenement Map
Tenement Map N l ~~ } sd s x WICKEPIN x a L370 000mN |: 6350000mN— Road Rail a Kaolin Pipeline _- Water Pipeline -~ 220kV Power Transmission MINE & KAOLIN \ PLANT SITE wa Kaolin
Slide 16: Risks
Risks Risks associated with WAK including, but not limited to: A key factor for WAK is the price of kaolin. Kaolin prices fluctuate due to a variety of factors including supply and demand fundamentals, international economic and political trends, expectations of inflation, currency exchange rate flu
Slide 17: Risks continued
Risks continued Risks associated with WAK including, but not limited to: WAK is currently negotiating offtake agreements for its intended expanded production. WAK has customers in place for current production and LOI’s for a certain quantity of the intended expanded production. However, there is a r
Slide 18: Risks continued
Risks continued General Risks The agreements entered into by WAK with its current customers / distributors outside Australia are in USD. Demand and supply of capital and currencies, forward trading activities, relative interest rates and exchange rates and relative economic conditions can impact for