Slide 1: Barruecopardo Tungsten Mine, Spain – Corporate presentation
BARRUECOPARDO TUNGSTEN MINE, SPAIN Corporate presentation August 2018 1
Slide 2: Disclaimer
ORMONDE MINING Disclaimer The content of this document has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (as amended). Reliance on this document for the purpose of engaging in any investment activity may expose an individual to a signific
Slide 3: Company Snapshot
Company Snapshot Ormonde in Brief Significant Shareholders Aug-18 ▪ Mineral resource company currently developing a world class tungsten Thomas Anderson 10.87% mining project in Spain M&G Investment Management 8.97% ▪ Developing the Barruecopardo Tungsten Mine (30% interest), with Directors & Famili
Slide 4: About Tungsten
ABOUT TUNGSTEN 4
Slide 5: About Tungsten
About Tungsten ▪ A metal with outstanding properties and limited substitution capability makes tungsten a critical metal for industry: ▪ Highest melting point of all metals at 3,422°C ▪ Highest tensile strength and highest modulus of elasticity of all metals ▪ Second hardest material after diamond –
Slide 6: Tungsten Applications
Tungsten Applications Cemented Carbides (53%) Cutting Tools Oil & Gas Mining & Wear-Resistant Parts Carbide-tipped blades, Tungsten carbide is Construction Used throughout saws, drills, reamers used in drill bit Rock-cutting tools used manufacturing and mills are used components for in drilling, tun
Slide 7: Supply and demand Outlook: Supply Tight
Supply Positiveand demand Outlook: Supply Tight China: ▪ Restrictions on new mine permits Primary tungsten supply by region ▪ Higher costs, lower grade, deeper mining ▪ “The country is clamping down on polluting mines & enforcing production quotas” (Bloomberg, 11-Sep-17) Rest of World: ▪ Many projec
Slide 8: Supply and demand Outlook: Demand Growing
Supply Positiveand demand Outlook: Demand Growing Tungsten consumption by region ▪ Tungsten demand correlates closely with global GDP growth (3.9% for 2018 & 2019) (IMF) ▪ Demand increasing generally in Steels & Alloys, with growth of 4.4% pa during 2008-2016 ▪ Tungsten market was in slight deficit
Slide 9: Tungsten Price History
Tungsten Price History Positive market factors result in forecasts of positive price environment over coming years Macroeconomic recovery from 2008- Spot: $323 2009 economic crisis $295 Global uncertainty and general weakening of the commodity price environment and falling oil prices 2nd June 2017 M
Slide 10: Barruecopardo: Globally Significant
Supply and demand Barruecopardo: Globally Significant Barruecopardo will account for 13% of non-Chinese global supply of tungsten concentrates, making it a significant producer 10
Slide 11: The Barruecopardo Tungsten Project: Fully Permitted, Funded and in Construction
THE BARRUECOPARDO TUNGSTEN PROJECT Fully Permitted, Funded and in Construction 11
Slide 12: Barruecopardo – Investment Highlights
Barruecopardo – Investment Highlights 1 ▪ Accelerated construction schedule since June 2017 – plant commissioning due to commence around end Sep 2018 Mine Construction ▪ Definitive Feasibility Study by Jacobs in 2012 confirmed a technically and economically viable project Well Advanced ▪ Initial, 1.
Slide 13: Project Location – Good Infrastructure
Location PROJECT – Good LOCATION Infrastructure Castilla y León Autonomous Community Barruecopardo Project Salamanca Province Madrid 13
Slide 14: Current Mineral Resources and Ore Reserves
Current Mineral Resources and Ore Reserves Total Mineral Resources Category Tonnes (millions) Grade (WO3%) Contained WO3 (mtu) Measured 5.47 0.34 1.86 million Indicated 12.33 0.26 3.20 million Inferred 9.59 0.23 2.20 million Total 27.39 0.26 7.12 million Ore Reserves within the Open Pit Category Ton
Slide 15: Expansion Potential - Significant
Expansion Potential - Significant Barruecopardo resource in red and open pit shell in blue – view looking upwards ( and west) towards ground surface Significant potential to extend life of mine, increase production: ▪ Planned open pit captures only ~40% of current total Resources ▪ Deposit open alon
Slide 16: Processing Operations – Low Risk, Low Cost
Processing Operations – Low Risk, Low Cost Simple Mining: ▪ Initial open pit - 9 year mine life at strip ratio 6.3:1. ▪ Mining by conventional open pit methods; experienced Spanish mining contractor ▪ Traditional drill and blast mining with shovel and truck operations Simple Processing: ▪ Simple gra
Slide 17: Simple Operation = Low Cost
Simple Operation = Low Cost PROJECT CAPEX EURm PROJECT OPEX USD/mtu EUR/mtu % Plant Engineering & Construction 32.5 Mining (Ore) 20.0 17.4 17% Project Services (land, power-line, etc.) 4.5 Mining (Waste)* 73.6 64.0 62% Water Management Scheme 9.9 Processing 19.6 17.0 16% Mining Preparation 4.3 G&A 5
Slide 18: Oaktree Project Financing
Oaktree Project Financing Comprehensive Funding Package ▪ USD 99.7 million package, split favourably between o Equity US$ 44.2 million o Debt US$ 55.5 million ▪ Ormonde retains 30% of a fully funded project, Oaktree 70% Flexible Debt Facility ▪ Flexible repayment terms allow for: o cash to be retain
Slide 19: On Project – Construction Activities
OnProject The MoveOutline – Construction Timeline Activities Crush & Screen Plant Crush & Screen Plant Process Plant Workshop & Site Office19
Slide 20: On Project – Installed Equipment
OnProject The MoveOutline – Installed Timeline Equipment Fines Thickener– Andritz Primary Crusher - Metso Jigs – IHC 20
Slide 21: On Project – Recent Achievements
OnProject The MoveOutline – Recent Timeline Achievements Key Achievements up to Q2 2018 ✓ Permissions: Mining Concession and all required permissions for mine construction - received ✓ Land: Access to and rights over all land required for mine development - completed ✓ Engineering: Detailed process
Slide 22: Project Timeline Outline
Project Project Outline Outline Timeline Timeline TASK Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 PLANT ENGINEERING AND CONSTRUCTION Detailed engineering Major procurement Construction and installation Plant commissioning WATER MANAGEMENT Dam construction and lining MINING PREPARATION Establish
Slide 23: Project on Track and on Budget
On track and on budget….. • Project is advancing in line with agreed construction schedule timelines; commissioning due to commence around end Sep 2018 • High quality equipment supplied by the likes of Metso and Veolia currently being installed • >80% of Project Capex costs now committed or expended
Slide 24: Further Information
Further Information ▪ Website – www.ormondemining.com ▪ Mine site flyover video - http://ormondemining.com/barruecopardo-drone-fly/ ▪ Photo gallery of site - http://ormondemining.com/timeline-in-pictures/ 24