Australian Strategic Materials Ltd · ASX:ASM
Australian Strategic Materials — Investor Presentation (March 2021)
34 slides from Australian Strategic Materials's investor presentation, Mar 26, 2021
Slide 1: From mine to manufacturing: Equity Raising Presentation
“From mine to manufacturing” Equity Raising Presentation 26 March 2021 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES © 2021©ASM 2021Ltd ASM Ltd
Slide 2: Disclaimer
DISCLAIMER NOT FOR RELEASE TO US WIRE SERVICES OR DISTRIBUTION IN THE UNITED STATES This investor presentation (Presentation) has been prepared by Australian Strategic Materials Limited (ABN 90 168 368 Not an offer 401) (ASM or the Company) and is dated at 26 March 2021. This Presentation has been p
Slide 3: Disclaimer
DISCLAIMER NOT FOR RELEASE TO US WIRE SERVICES OR DISTRIBUTION IN THE UNITED STATES Not investment or financial advice Past performance This Presentation, and the information provided in it, does not constitute, and is not intended to constitute, investment or Investors should note that past perform
Slide 4: From mine to manufacturing
From mine to manufacturing Building a unique position across the critical metals value chain • A long-life, quality, polymetallic project in a tier one mining jurisdiction • Environmental approvals and ready for construction Dubbo Project • Attractive economics (100% ASM) • Sustainable source of zir
Slide 5: Well positioned in the critical metals value chain
Well positioned in the critical metals value chain Concentrates Electric Electric Oxide Metal Powders Magnets & Carbonates Motor Vehicle Opportunity for ASM to produce products direct to end users US$90/kg2 Neodymium (US$) US$3/kg1 less discount US$110/kg3 US$150/kg4 US$330/kg5 Non-Chinese producers
Slide 6: Advancing the strategy for sustainable growth
Advancing the strategy for sustainable growth ASM is positioned to become a global, independent and integrated metals producer by 2025 Dubbo Project METALLISATION PLANTS • Optimisation study to be completed May 2021, followed by FEED Europe Korea • Metal offtake and financing agreements targeted Tar
Slide 7: Equity Raising Overview
Equity Raising Overview © 2021©ASM 2021Ltd ASM Ltd
Slide 8: Accelerating Development
Accelerating Development • ASM is targeting a maximum equity raising of approximately $106m through an institutional placement of $65m and a 1 for 14 non-underwritten non- renounceable entitlement offer to raise up to approximately $41m Equity Raising • Key shareholders (including Abbotsleigh) repre
Slide 9: Progressing the Mine to Manufacturing Model
Progressing the Mine to Manufacturing Model ü Allows ASM to finalise engineering and offtake for KMP with development funding in place Acceleration ü Dubbo Project timetable is retained with accelerated design work funded ü Positions ASM to recruit key executives with confidence Source of Funds Use
Slide 10: Equity Raising Timetable
Equity Raising Timetable Event Dates (2021) Announcement of Offer Friday 26 March Trading in ASM shares resumes Friday 26 March Entitlement Offer ‘Ex’ Date Tuesday 30 March Record Date for Entitlement Offer Wednesday 31 March Settlement of Placement Thursday 1 April Issue of Placement Shares and Nor
Slide 11: Corporate Profile
Corporate Profile $8.00 Share Price and Volume (6 Months) 5.0 $7.00 4.0 Closing Share Price (A$/share) $6.00 Daily Volume (m shares) Capital Structure $5.00 Ordinary Shares 120.36 million 3.0 Share Price (22 March 2021) A$4.99 $4.00 Market Capitalisation A$600.6M 2.0 $3.00 52 week low/high A$0.84/$6
Slide 12: The Rare Earths Market
The Rare Earths Market © 2021©ASM 2021Ltd ASM Ltd
Slide 13: Rare Earths: Building blocks of the New Economy
Rare Earths: Building blocks of the New Economy • Rare earths and other critical metals are central to the electrification of the global economy. • Rare earths are recognised by governments as a strategic resource, given their use in making permanent magnets. • Permanent magnet applications are esse
Slide 14: Critical Metals: Essential for New Technology
Critical Metals: Essential for New Technology Electric Vehicles (EV) Wind Turbines Defence / Aerospace ~5kg Rare Earth Permanent Magnets ~195kg of Nd/MW Telecommunications Growth: 3.4M to 25.3M EV Forecast 7.9% annual growth Jet turbines, GPS, defence Telecommunications systems, cars globally by 203
Slide 15: Electric Vehicles: Driving Global Growth
Electric Vehicles: Driving Global Growth Rare Earth Permanent Magnets Electric Vehicles (EV) Growth to 2030 Set to consume 25% of permanent magnets globally by 2030 46.8% 25.7% 14.9% Commercial EV Passenger EV Electric Mobility Traction Motors Traction Motors Vehicles Source: Adamas Intelligence © 2
Slide 16: Critical Materials Supply
Critical Materials Supply Projected Regional Production Projected Regional Manufacturing of Rare Earth Oxides (2030) of Permanent Magnets (2030) 3% 0.80% 0.60% 3.40% 2.60% 0.90% 0.50% 5.90% 3.50% China (legal) China 6.20% New LREO Mines Australia Japan 10.10% US Other Myanmar New HREO Mines Europe 1
Slide 17: ASM
ASM © 2021©ASM 2021Ltd ASM Ltd
Slide 18: The ASM Advantage
The ASM Advantage • Potential for Dubbo oxide product to be used in the Company’s metal Integrated mine to plants manufacture business model • Third party oxides, strategic plants provide further growth opportunities • Full value captured as metals, alloys and powders delivered direct to Full value
Slide 19: The Vision for ASM
The Vision for ASM Dubbo Project Rare earths to Oxides Integrated Metallisation • Development of the long-life Global Critical Oxides to Critical Metals/Alloys/Powders Dubbo Project in a tier one jurisdiction, to produce high- Metals Business • To produce high-purity metals quality oxides of zirconi
Slide 20: The Vision for ASM: 2021 to 2025
The Vision for ASM: 2021 to 2025 Dubbo Project ASM Integrated Global Metallisation Business High Purity Metal Products • Titanium • Titanium Powder Oxides Sourced Metal Alloy, • Titanium Alloy • Titanium Metal Production Powders • Permanent magnet alloy • Zirconium • Dysprosium metal • Rare Earth Me
Slide 21: Delivering the Strategy
Delivering the Strategy Delivered (since July 2020) Planned for 2021 ü Value accretive demerger from Alkane Resources • Optimisation of the Dubbo Project (June Qtr 2021) ü Acquired 95% of Ziron Technology Corporation (Ziron • Detailed Engineering of Korean Metal Plant has commenced Tech) • Commercia
Slide 22: Potential Timetable: Sustainable, Secure and Stable Supply
Potential Timetable: Sustainable, Secure and Stable Supply Optimisation of Dubbo Project FEED / Basic Engineering - Defined Scope, Capital and Timing Dubbo Project EPC Tender EPC - Dubbo Project Development Dubbo Project Commissioning Detailed Design of 5,200t Metal Plant Construction of Korean 5,20
Slide 23: Committed to Sustainability
Committed to Sustainability © 2021©ASM 2021Ltd ASM Ltd
Slide 24: A sustainable path from mine to manufacturing
A sustainable path from mine to manufacturing Dubbo Project Metallisation Targeting zero carbon emissions Commercialising a new metallisation process • Powered by large scale renewables, with energy co- • Ziron Tech innovation: generation from our plant • Titanium power consumption less than 30kW pe
Slide 25: Accelerating ASM’s Mine to manufacturing
Accelerating ASM’s Mine to manufacturing • This financing provides sufficient funds to commence metallisation and to take Dubbo Project through detailed design and to FID and awarding of major EPC / EPCM contracts • ASM will be positioned to commence revenue generation and earnings through: • Conver
Slide 26: Key Risks and Selling Restrictions
Key Risks and Selling Restrictions © 2021©ASM 2021Ltd ASM Ltd
Slide 27: Key Risks
Key Risks This section discusses some of the key risks associated with any investment in ASM together with risks relating to COMPANY SPECIFIC RISKS participation in the Offer which may affect the future operating and financial performance of ASM and the value of ASM COVID-19 risk shares. The risks s
Slide 28: Key Risks
Key Risks Legislative changes, government policy and approvals Taxation Changes in government, monetary policies, taxation and other laws in Australia, Korea or internationally may impact the In all places where ASM has operations, in addition to the normal level of income tax imposed on all industr
Slide 29: Key Risks
Key Risks Exploration risks It is possible that, in relation to tenements in which ASM has an interest or may acquire such an interest, there may be areas over which legitimate native title rights exist or which are subject to native title claims made under the Native Title Exploration is a high ris
Slide 30: Key Risks
Key Risks Liquidity Occupational health and safety There may be relatively few buyers or sellers of ASM Shares on ASX at any given time. This may affect the volatility of Exploration and production activities may expose ASM’s staff and contractors to potentially dangerous working the market price of
Slide 31: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in New Zealand which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may This document has no
Slide 32: International Offer Restrictions
International Offer Restrictions Switzerland United Kingdom The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any Neither this document nor any other document relating to the offer has been delivered for approval to the Financial other s
Slide 33: Dave Woodall
Dave Woodall ASM Managing Director asm-au.com ASM_aus © 2021 ASM Ltd © 2021 ASM Ltd
Slide 34: Dubbo Project Resources & Reserves
Dubbo Project Resources & Reserves Dubbo Project – Mineral Resources Tonnes ZrO2 HfO2 Nb2O5 Ta2O5 Y2 O 3 TREO* Resource Category (Mt) (%) (%) (%) (%) (%) (%) Measured 42.81 1.89 0.04 0.45 0.03 0.14 0.74 Inferred 32.37 1.90 0.04 0.44 0.03 0.14 0.74 Total 75.18 1.89 0.04 0.44 0.03 0.14 0.74 *TREO% is
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