Globe Metals & Mining Limited · ASX:GBE
Globe Metals & Mining — Africa Down Under Conference 2011
23 slides from Globe Metals & Mining's conference presentation, Sep 1, 2011
Slide 1: Investor Update
For personal use only Investor Update Mark Sumich – Managing Director Africa Down Under Conference, 1 September 2011
Slide 2: Disclaimer and Competent Person
For personal use only Disclaimer and Competent Person Disclaimer: The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of t
Slide 3: Globe – who are we?
Globe – who are we? For personal use only Snapshot Capital Structure (as at 30 Jun 2011) Emerging ASX listed company Market cap A$47m Major shareholder – ECE 52.8% Shares on issue 222.9m Well developed pipeline of projects in Options and performance rights 7.35m Africa Cash position A$44m Ex
Slide 4: Our partnership with ECE
Our partnership with ECE For personal use only Quick facts ECE joined Globe as a strategic partner in April 2011 A Chinese State Owned Enterprise and major exploration, development and mining group based in Nanjing Provide access to Chinese capital markets, partners and end users Discovered
Slide 5: Corporate structure
Corporate structure For personal use only Management Team Board of Directors Mark Sumich Managing Director Mr Yi Shao Chairman Bradley Wynne CFO and Company Secretary Mr Mark Sumich Managing Director Les Middleditch Project Manager – Kanyika Dr Julian Stephens Non-Executive Director David Tullberg C
Slide 6: Project pipeline
6 For personal use only Project pipeline
Slide 7: Project locations
Project locations For personal use only Malawi Population: 15.6 million (UN, 2010) Capital: Lilongwe President: Bingu wa Mutharika Major languages: English, Chichewa Main exports: Tobacco, tea, sugar, cotton Mining: Proven region for economic REE deposits, Kayelekera Uranium Mine (Paladin) Mozambiqu
Slide 8: Exploration strategy
Exploration strategy For personal use only Globe’s exploration strategy targets niobium, REEs, tantalum and fluorite – all classified by the EU as “critical”, based upon a combination of supply risk and economic importance. Source: European Commission, “Critical Raw Material for the EU”, June 2010:
Slide 9: Kanyika Niobium Project, Malawi
Kanyika Niobium Project, Malawi For personal use only Snapshot JORC resource: 60 Mt @ 2,900ppm Nb2O5 (1,500ppm Nb2O5 cut-off) Incl. high grade component: 21 Mt @ 4,100ppm Nb2O5 (3,000ppm Nb2O5 cut-off) Definitive Feasibility Study (DFS) due for completion in Q3 of 2012 Production on track fo
Slide 10: Kanyika Niobium Project: Financial model and project economics
Kanyika Niobium Project, Malawi For personal use only Financial model and project economics US$187 NPV (@ 10% discount rate),IRR 27% Capex. US$155m (+ US$31m contingency) Capital payback period 3 years (including yr.1 production ramp-up to name plate capacity) Annual revenue US$170m Signif
Slide 11: Kanyika mineralised wireframes incorporating high grade zones
For personal use only Kanyika mineralised wireframes incorporating high grade mineralised zones: view is to the NW 11
Slide 12: Niobium facts
Niobium facts For personal use only >90% niobium consumed by steel industry as ferro- niobium (FeNb) A micro-alloyer, grain refiner, encourages formation of micro-structures, corrosion resistant, tensile strength Market size approx. 60,000tpa (metal); >10%p.a. projected growth Growth in cons
Slide 13: Niobium facts
Niobium facts For personal use only For the last 20 years, niobium consumption has grown at 2x the rate of steel consumption, despite niobium being used almost entirely in steel. 13
Slide 14: Mount Muambe Fluorite-REE Project
Mount Muambe Fluorite-REE Project For personal use only Snapshot 12,000m drilling program underway; exploration budget of A$3m for 2011 JORC resource estimate (fluorite, possibly REE credits) target early 2012 2011 drilling has encountered intercepts of up to 40m of visual fluorite mineralisat
Slide 15: Exploration success to date
Exploration success to date For personal use only HREO-enriched rock chip samples with significant dysprosium and europium values: • 1.09% TREO with 20.4% HREO:TREO ratio and 230ppm Dy2O3 and 169ppm Eu2O3 • 1.06% TREO with 20.5% HREO:TREO ratio and 233ppm Dy2O3 and 173ppm Eu2O3 Substantial zones
Slide 16: Mount Muambe, Mozambique
Mount Muambe, Mozambique For personal use only 16
Slide 17: Rare earth elements
Rare earth elements For personal use only Quick facts Current market size - 115,000tpa total rare earth oxide (TREO) production Forecast market growth of 60% through to 2015 Primary demand drivers include growth in advanced and green-related technologies (e.g. hybrid cars, electronics, wind tu
Slide 18: Fluorite
Fluorite For personal use only Quick facts Current market size approx. 5.5 – 6Mtpa China >50% production, largest consumer Acid grade fluorite (>97% purity) accounts for 65-70% production; balance metallurgical grade (<97%) Current acid grade China spot price approx. US$600/tonne, up from US
Slide 19: Machinga REE Project, Malawi
Machinga REE Project, Malawi For personal use only Snapshot Project highly prospective for high-grade HREOs and Nb-Ta-Zr Highly sought after heavy rare earth element Dysprosium (Dy) occurs in high grades 5,000m drilling program planned for 2011 7km radiometric anomaly registering a 2.7 by 0.
Slide 20: Exploration success to date
Exploration success to date For personal use only Machinga Main Zone highlights include: • MARC005: 11m @ 1.0% TREO with 330ppm Dy2O3 (from 12m) o Inc.: 4m @ 1.4% TREO with 492ppm Dy2O3(from 19m) • MARC015: 5m @ 1.5% TREO with 596ppm Dy2O3 (from 26m) o Inc.: 1m @ 2.5% TREO with 971ppm Dy2O3 (from
Slide 21: Project timeline
For personal use only 21 Project timeline
Slide 22: Globe investment highlights
Globe investment highlights For personal use only Strategic partnership with ECE = access to Chinese capital markets, partners and end users Cash backing of A$44m to secure additional projects Kanyika Niobium Project on track to commence production in 2014 Highly prospective REE, fluorite an
Slide 23: For further information contact
For personal use only For further information contact: Mark Sumich t: +61 8 9486 1779 e: mark.sumich@globemetalsandmining.com.au
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