Aura Energy Ltd · ASX:AEE
Aura Energy — Investor Presentation (March 2015)
28 slides from Aura Energy's investor presentation, Mar 26, 2015
Slide 1: Developing High Margin Uranium Projects
For personal use only Developing High Margin Uranium Projects Peter Reeve – Executive Chairman March 2015 ASX: AEE
Slide 2: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement For personal use only This presentation has been prepared to provide information on Aura Energy Limited’s projects. It is not intended as an offer, invitation solicitation or recommendation with respect to the purchase or sale of any securities. This pres
Slide 3: Uranium & Nuclear – What is Happening?
Uranium & Nuclear – What is Happening? For personal use only Base load Chinese growth and Japanese reactor restarts have driven recent sentiment around uranium price However more subtle change is taking hold in the broad uranium/ nuclear sector: Mine supply issues not abating; Cigar guidance,
Slide 4: Aura Energy Summary
Aura Energy Summary For personal use only Aura Energy - prepared for uranium recovery with two development projects Aura’s 100% owned uranium resource base is globally significant: Tiris : 50 Mlbs – Mauritania Häggån : 800 Mlbs – Sweden Scoping Studies completed on both projects Tiris Fe
Slide 5: Aura C1 Cash Costs Vs Contract and Spot Pricing (US$/lb)
Aura C1 Cash Costs Vs Contract and Spot Pricing (US$/lb) US$/lb For personal use only U₃O₈ 70 60 Contract U₃O₈ Price - US$50/lb* 50 Spot U₃O₈ Price - US$40/lb* 40 30 $30/lb 20 $25/lb 10 $13.5/lb 0 Tiris Häggån 1 Häggån 2 * Trade Tech Report
Slide 6: Aura's Strategy – Moving to Cashflow
Aura’s Strategy – Moving to Cashflow Aura’s development strategy as follows: For personal use only Complete the Tiris Feasibility Study within18 mths Continue financing and project partner discussions Commence Tiris construction late 2016 (finance?) Progress consultation, baseline studies an
Slide 7: Tiris Uranium Project
Tiris Uranium Project Low Capex , Low Opex - Near Term Production and Cash Flow For personal use only Located in North-East Mauritania Production profile up to 1mlbs per annum for 15 years Key project attributes creating the low cash cost: 1. Very shallow only 1- 5 metres 2. Ore upgrades 500 -
Slide 8: Shallow Trenching Reveals Mineralisation
For personal use only Shallow Trenching Reveals Mineralisation Calcrete deposit with carnotite uranium in a weathered granite host Free dig truck and shovel mining Uranium Mineralisation High grade areas as Carnotite identified for starter pits 8
Slide 9: Tiris Simple Ore Upgrade Steps
Tiris Simple Ore Upgrade Steps For personal use only 9
Slide 10: Tiris Scoping Study - Completed October 2014
Tiris Scoping Study - Completed October 2014 For personal use only Shallow mining ~120 tph (1.0 Mtpa) @ 420ppm U₃O₈ for 15 years Simple wash and screen for ore upgrade 25 tph to small leach facility @ 2,500ppm U₃O₈ Produce 0.7-1.1 Mlbs U₃O₈ per year Key Financial Metrics Capital cost : US$
Slide 11: Current Tiris Drilling Program
Current Tiris Drilling Program For personal use only 4,000 metre drilling program ongoing 1. Inferred to Measured/Ind 2. Expand known Resources 3. New Exploration Targets 11
Slide 12: Sadi Deposit
Sadi Deposit Exploration Follow up drilling on For personal use only previous high grades Known mineralisation under sand – Sadi Sands Untested targets Untested known radiometric anomalies 12
Slide 13: New Untested Exploration Targets
New Untested Exploration Targets For personal use only
Slide 14: Tiris Process Flowsheet
Tiris Process Flowsheet For personal use only No Grinding Very small plant Wash & Screen Alkaline Leach Ion Exchange U₃O₈ Product Precipitation Tiris Capital Cost Cost (US$ Description million) Mining 1.12 Process Plant 22.07 Infrastructure 9.03 Engineering 3.19 Owners Cost 1.58 Continge
Slide 15: Project Water – Plentiful Supplies
Project Water – Plentiful Supplies For personal use only Water source study completed by Golder Associates First target the shallow Reguibat Shield surrounding the Project Second target the Taoudeni Basin (Glencore, SNIM) Same source as the iron ore mines at Zouerate Shallow drill holes hi
Slide 16: Mauritania – Substantial Foreign Mining Investment
Mauritania – Substantial Foreign Mining Investment For personal use only Glencore : $1.0 billion Askaf Iron Ore – deferred First Quantum : ~$800 m Guelb Moghrein Cu-Au Kinross : $7-8 billion, Tasiast Gold Mine Arcelor Mittal : Iron Ore JV SNIM Minmetals : Tazadit Iron Ore 16
Slide 17: Häggån Project
Häggån Project Large scale, long life, low cost - 7.5mlbs pa U₃O₈ + by-product metals For personal use only Located in Sweden Inferred Resource of 803mlbs U3O8 Scoping study completed in 2012 Strong project economics with low operating costs; C1 cash costs of US$13.50/lb after by-product c
Slide 18: Häggån - Excellent Project Location
Häggån - Excellent Project Location For personal use only Häggån has power & water with good rail, air and road links Located in the Berg Commune, a strong rural community Häggån landscape is largely forest and swamp Berg Commune population is 7,500 Employment important factor for region a
Slide 19: Häggån Exploration
For personal use only Pyrite Häggån Exploration 19 Black Schist with Quartz
Slide 20: Bio Heap Leach Drives Low Capex
Bio Heap Leach Drives Low Capex For personal use only Bacterial heap leaching - low capital intensity Leaching process uses natural bacteria found in the ore 85% leach recovery on bench tests and multiple column tests Low acid consumption confirmed Unique material with pyrite and no calcit
Slide 21: Häggån – Low cost, Low risk, Mining Project
Häggån – Low cost, Low risk, Mining Project For personal use only C1 Cash Capital Produced Project Cost $/lb Cost U₃O₈ ~ Credits Mtpa $m Mlbs US$/lb 30 540 7.8 13.50 5.0 190 1.4 25-30 Drilling Site March 2015
Slide 22: Aura Energy News Flow
Aura Energy News Flow For personal use only Tiris Resource upgrade drilling results Tiris Resource expansion drilling results Tiris new exploration prospect results Tiris Revised Resource estimate Häggån drilling results Tiris Feasibility Study updates Beneficiation testwork results
Slide 23: Aura Energy - Corporate Snapshot
Aura Energy - Corporate Snapshot For personal use only Capital Structure Share Price & Volume 5 5 Share Price 3.3cps Cents Per Share Millions Daily Volume Share Price (cps) 4.5 4.5 Shares On Issue 274.5 m 4 4 3.5 3.5 Options On Issue 46.1m 3 3 (ave exercise 10.8c) 2.5 2.5 Market Capitalisation A$9.1
Slide 24: Aura Energy - Summary
Aura Energy - Summary For personal use only Aura is progressing low capex and low opex project developments High margin projects imply significant value Aura is well positioned for uranium price recovery Tiris Scoping Study successfully completed; Capex US$45m; Opex US$30/lb Tiris’ fine ca
Slide 25: Thank You
Thank You Contact : Peter Reeve For personal use only peter.reeve@auraenergy.com.au +613 9890 1744 25
Slide 26: Next Steps – Tiris Feasibility Study
Next Steps – Tiris Feasibility Study For personal use only Initial work in the Feasibility Studies Environmental baseline studies Social impact studies Upgrading first years of production to Measured and Indicated Resource status Confirming the beneficiation and leaching results Defining
Slide 27: Tiris and Häggån Resource Tables
Tiris and Häggån Resource Tables For personal use only Tiris Resource 100ppm cut-off Tonnes Grade (ppm) Mlbs U3O8 Indicated 2 300 2 Inferred 64 335 47 Total 66 334 49 * Using a 100ppm U3O8 cut-off grade Häggån Resource 100ppm U3O8 Tonnes U 3O 8 Mo V Ni Zn Cut-off (Bt) (ppm) (ppm) (ppm) (ppm) (ppm) I
Slide 28: Tiris Mine Permitting Process - Mauritania
Tiris Mine Permitting Process - Mauritania For personal use only 28