Slide 1: Aspire Mining Limited Investor Presentation
For personal use only Aspire Mining Limited Investor Presentation 11 September 2014 1
Slide 2: Important information
For personal use only Important information •Nature of this document: This document has been prepared by Aspire Mining Limited (“Aspire”, “AKM”, or the “Company”) and contains summary information about the Company and its subsidiaries as at the date of release of this document. The information in th
Slide 3: Important information cont.
For personal use only Important information cont. •Production Target Assumptions: The following are key assumptions used to achieve the ODP first year target of 5Mtpa of marketable coking coal. 1) In the eight months prior to commencement of first year ODP production, a 23 million BCM waste removal
Slide 4: Corporate structure
Corporate structure For personal use only Ownership (Fully Diluted) AKM Directors (ex Turbat) 10.8% SouthGobi Resources Ltd 26.73% 30.97% Noble Group Mongolian Shareholders 17.82% Others 13.67% 100% 90% 10%* 10.81% Ovoot Coking Northern Railways Capital Structure (ASX:AKM) Coal Project LLC Undiluted
Slide 5: Aspire is a junior, well placed to benefit from renewed interest in Mongolia's resources growth
Aspire is a junior, well placed to benefit from renewed interest in For personal use only Mongolia’s resources growth The location, size and quality of the Ovoot Coking Coal Project offers: Close proximity to access both European and Asian markets Sits along a proposed international rail corrido
Slide 6: An emerging Mongolia coking coal developer
An emerging Mongolia coking coal developer For personal use only Company Focus: “To develop World Class Coking Coal Projects” • Northern location provides opportunity for Ovoot to access European and seaborne coking coal markets • Noble Group/Aspire Joint Venture “ECJV” to explore and develop coal a
Slide 7: Developing the railway network will help Mongolia open up deposits
“Developing the railway network will help Mongolia to open up rich, but for now, hard to access deposits and make broader and more effective use of its For personal use only potential as a transit country” President V. Putin Mongolian, Chinese and Russian Governments have recently signed agreements
Slide 8: Gazprom, CNPC to decide on gas pipeline to China via Mongolia
Gazprom, CNPC to decide on gas pipeline to China via Mongolia For personal use only Mongolia is now part of deliberations for a gas pipeline transiting its territory for future supply from Russia to reach China • Kyzyl – Arts Suuri – Northern Rail Line is a direct route for a gas pipeline, given exi
Slide 9: Mongolia – a major trade and transit route
Mongolia – a major trade and transit route For personal use only • Mongolia’s rail network is being extended to provide for additional capacity and proposed railway to facilitate increased Mongolian exports and Russian transit freight to China • Recent years have seen significant amount of rail cons
Slide 10: Large potential rail users to the north
Large potential rail users to the north For personal use only • Rail provides a direct route to China for “Elegest” coal • Shorter distance from Russia (Kyzyl) to China by approximately 1,253km • Freight from Kyzyl may form a part of the targeted 20mtpa “transit freight” set by Russia to achieve by
Slide 11: Northern rail line
Northern rail line For personal use only • Part of an international rail corridor between Russia‐ Mongolia‐China • Connects the Ovoot Project and Northern Mongolia directly onto the Trans‐Mongolian Railway and Trans‐Siberian Railway • Negotiate for BOOT (Build Own Operate Transfer) rail agreement •
Slide 12: Potential rail financing structure
Potential rail financing structure For personal use only Equity Financing Situation Preliminary Stages: • Non‐binding Expressions of Interest 10.8% received totalling US$1,300m • Indicates broad level of interest in 10% financing railway • Definitive discussions can commence 90%* Strategic Investor/
Slide 13: Ovoot is a simple development plan with low capex, low opex
Ovoot is a simple development plan with low capex, low opex For personal use only Mine CAPEX and OPEX Estimates Estimated Capex to produce 5mtpaNote 5 US$ 144m Initial Production up to 5 Mtpa ‐ Mine pre strip $60m CAPEX US$144m (incl. contingency and working ‐ Mobilisation $ 8m capital)Note2 Commenc
Slide 14: Ovoot coking coal will have a long term cost advantage
Ovoot coking coal will have a long term cost advantage For personal use only Metallurgical Coal (HCC + PCI + SSCC) 30% of Seaborne metallurgical coal production is uneconomic Ovoot and Mongolian coking coal has a significant geographical advantage that requires rail development to secure Source: Asp
Slide 15: Significant interest in Ovoot coking coal exceeds development plan production
Significant interest in Ovoot coking coal exceeds For personal use only Ovoot development plan production Offtake Customers Potential Offtake under Non‐Binding MOU’s Chinese up to 6.1 Mtpa Russian up to 1.3 Mtpa ODP Production 5 Mtpa Excess MOU interest 2.4 Mtpa (+48%) Additional Chinese, Russian, J
Slide 16: Strong long term demand from China market inevitable
Strong long term demand from China market inevitable For personal use only • Needs greater proportion of Chinese Coking Coal Reserves Typical Chinese Coke Blend hard coking coal for use in Unamed coal, 2% larger BFs to maintain Meagre Other, productivity 5% lean, Gas coal, • Lack of “hard coking coa
Slide 17: Ovoot a key input source for Mongolia's largest industrial complex
Ovoot is considered one of the key input sources for For personal use only Mongolia’s largest industrial complex development Sainshand Industrial Complex • Intended to include coke and steel plants and other industry • Non‐binding MOU signed for the supply of Ovoot coking coal to Sainshand • Ovoot r
Slide 18: Oxidised and low quality coking coals can be upgraded when blended with Ovoot
Oxidised and low quality coking coals can be For personal use only upgraded when blended with Ovoot coking coal Non‐coking, Thermal Coals, and Semi‐Soft Coking Coals • Coke oven blend tests conducted on 50/50 blend and 75/25 blend (oxidised coal/Ovoot) • Used alone, low coking, thermal and oxidised
Slide 19: JORC resource & reserve confirm Ovoot as second largest coking coal reserve
JORC resource & reserve confirm Ovoot as second For personal use only largest coking coal reserve in country JORC Reserve Probable Total Marketable (31 July 2013) (Mt) (Mt) (Mt) (arb 2% (arb, 9.5% moisture) moisture) Ovoot Open Pit 247 247 182 Ovoot 8 8 6 Underground Total 255 255 188 JORC Ovoot Ope
Slide 20: Ovoot could grow larger on additional exploration
Ovoot could grow larger on additional exploration For personal use only 20
Slide 21: Aspire/Noble group Mongolian joint venture – Nuurstei coal project
Aspire/Noble group Mongolian joint venture For personal use only Nuurstei coal project Ekhgoviin Chuluu Joint Venture “ECJV”: • Aspire (50%) and Noble Group (50%) • Purpose to explore and develop coal assets in Mongolia • ECJV currently owns 60% of Nuurstei Coal Project, with ability to increase to
Slide 22: Nuurstei potential for road based operation (pre-rail)
Nuurstei potential for road based operation (pre‐rail) For personal use only • Located close to infrastructure ~10km from Khuvsgul province capital of Moron • ~ 317 km from railway (at Erdenet), along the proposed Northern Rail Line • Sealed road completion between Erdenet and Moron expected 2015 •
Slide 23: Infrastructure solution is the catalyst for future Ovoot development
Infrastructure solution is the catalyst for future Ovoot development For personal use only 1. The Ovoot project will produce a quality coking coal product required in Mongolia and export markets 2. Recent progressive legislative and policy changes shows GOM support of minerals sector and infrastruct
Slide 24: Contact details
Contact details For personal use only Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Level 2, Suite 20, 22 Railway Road Subiaco, Western Australia, 6008 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave‐8 Social Insurance Department Building A