Eq Resources Limited · ASX:EQR
Eq Resources — Investor Presentation (May 2022)
37 slides from Eq Resources's investor presentation, May 9, 2022
Slide 1: For personal use only
For personal use only
Slide 2: Disclaimer
Disclaimer For personal use only Competent Person's Statement • The information in this presentation partly relates to the outcomes of the Mt Carbine Bankable Feasibility Study, made available through the Company’s website www.eqresources.com.au/. • The Company confirms that it is not aware of any n
Slide 3: EQ Resources: Australia's only operational primary producer
EQ RESOURCES: For personal use only Australia’s only operational primary producer WO3 Fully Funded De-Risked Currently in production Positive Established Growing life On Track Market Infrastructure of mine & Conditions Credible
Slide 4: Mt Carbine Open-cut & Modernisation Project
For personal use only Mt Carbine Open-cut & Modernisation Project Australia’s Only Primary Tungsten Producer Areal imagery of the Mt Carbine crushing site 4
Slide 5: Corporate Snapshot
Corporate Snapshot For personal use only Value Proposition Australia’s only High-grade Multiple Low-cost Experienced primary producer of resource revenue expansion Board & tungsten (expandable) streams Leadership Team Oliver Kleinhempel Non-exec Chairman Stephen Layton Non-exec Director Zhui Pei Yeo
Slide 6: Mt Carbine Open-cut & Modernisation Project Overview
Mt Carbine Open-cut & Modernisation Project Overview For personal use only • Located 130 km north of the city of Cairns in Far North Queensland, Australia Project Location Map • Situated within the Far North Queensland critical mineral province • Operating tungsten mine and rock quarry resulting in
Slide 7: Our Values & Culture
Our Values & Culture For personal use only Act Safe. Feel Safe. Act safe at work. Care and respect each other. Feel safe to be yourself. Embrace Difference Diversity of thinking, skills and background creates value and drives innovation. Tread Lightly Embed resource efficiency to minimise environmen
Slide 8: Stakeholder ESG Sentiments
Stakeholder ESG Sentiments For personal use only ESG Organisational Performance Current Aspiration Stakeholders were asked to rate whether the organisation was perceived to Materiality 1 2 3 be leading or lagging across each of the 12 ESG themes. They were asked to do this for current state, as well
Slide 9: Strategic, Social and Economic Benefits
Strategic, Social and Economic Benefits A critical minerals project of national significance For personal use only Embracing the concept of the Circular Economy, using innovation to identify suitable ore for treatment and the use of ‘by-products’ to supply road base and aggregate materials to build
Slide 10: Tungsten: A Critical Mineral
For personal use only Tungsten: A Critical Mineral Tungsten Concentrate from Mt Carbine 10
Slide 11: Tungsten Market Analysis
Tungsten Market Analysis For personal use only USES AND SCARCITY GLOBAL TUNGSTEN MARKET FUTURE OUTLOOK • Unique properties - difficult to substitute • Western Critical Mineral list • Steady demand growth of 1.5% • Military & Defense • 2x Tungsten Mines recently closed CAGR projected (2021-2030) • Me
Slide 12: Mt Carbine Production Expansion & Development Plan
For personal use only Mt Carbine Production Expansion & Development Plan 100%-owned by EQ Resources Imagery of the Mt Carbine process plant 12
Slide 13: CAPEX Funding for Mt Carbine Expansion & Early Works Program
CAPEX Funding for Mt Carbine Expansion & Early Works Program For personal use only Facility Amount ($, up to) Interest p.a. / Cost CMAI Grant (Federal Government) $6 million Government Grant support Sandvik Supply & Finance $4.8 million 5.75% interest p.a.; 30% deposit Interest free; Extension of CR
Slide 14: Development Timeline
Development Timeline Phased approach for early cash flow For personal use only Early Works Secure UG Funding & Internal Bankable Expansion Environmental Facilitation Engineering Study Feasibility Funding Full Scale Approval Doc Approval Complete Complete UG Study & Drawdown Operation I I I I I I 202
Slide 15: Phase (Early Works) & Processing
Phase 1 (Early Works) & 2 Processing Processing improvements identified through operational performance analysis For personal use only Phase 1 Crushing and Screening Circuit Existing dry and wet processing facilities currently in operation Processing facilities are designed for steady-state producti
Slide 16: Early Works Design & Delivery
Early Works Design & Delivery Processing improvements identified through operational performance analysis For personal use only Phase 1 Crushing and Screening Circuit Design 1Phase 1 Crushing and Screening Circuit Installed 1 Wet screening circuit at primary crushing station 1 Installation of pipeli
Slide 17: 'Early Works' Implementation
‘Early Works’ Implementation For personal use only ✓ Upgrade of power supply line and new substation ✓ Installation of new substation 17
Slide 18: 'Early Works' Implementation
‘Early Works’ Implementation For personal use only ✓ Local Fabrication of new conveying systems ✓Addition of 2 Tomra XRT Sorter nd to cope with higher throughput 18
Slide 19: Early Works Construction
Early Works Construction For personal use only 19
Slide 20: Early Works Construction cont.
Early Works Construction cont. For personal use only 20
Slide 21: Construction
For personal use only Construction 21
Slide 22: Early Works Construction cont.
Early Works Construction cont. RESOURCES For personal use only
Slide 23: Construction
For personal use only Construction 23
Slide 24: Concentrate Production Continues
Concentrate Production Continues For personal use only 24
Slide 25: Mt Carbine Production Ramp-Up
Mt Carbine Production Ramp-Up OC Mine opening Tonnes installed capacity* subject to permitting 8000 3000 – 8000** For personal use only 4000 Production Guidance Power Upgrade XRT Sorter Upgrade 2021 Allowing 24/7 crush & subject to Early Works with current plant screen operation upgrades** arrangeme
Slide 26: Mt Carbine Production Overview
Mt Carbine Production Overview RESOURCES For personal use only WO3 Concentrate Production (Kg) Sorter Concentrate Production (t) 50 000 3,000 45,000 40,000 2,500 35,000 Kilograms (Kg) 2,000 30,000 on 25,000 1,500 20,000 0 15 000 10,000 1,000 WI 5,000 500 December January February March April • 50% W
Slide 27: Pre-tax Cashflow Generation – OC + UG Potential
Pre-tax Cashflow Generation – OC + UG Potential For personal use only Open Pit currently defined is +/- 15% of resource Significant underground potential exists to drive economics for several more years Western Extension Lower Grade Halo in open pit where Scoping Study completed on UG Sorter Benefic
Slide 28: Compelling Economics
Compelling Economics BFS1 confirms high margins, low capital intensity & operating cost and speed to market For personal use only Summary of BFS Results Global tungsten Cash Cost Curve (US$/mtu) Parameter Unit BFS Production Rate (LoM Avg) mtu 2,200 Life of Mine years 12 Total Cash Cost (FCA) A$/mtu
Slide 29: Mt Carbine Geology & Mining Plan
For personal use only Mt Carbine Geology & Mining Plan Drilling and Expansion Imagery of Mt Carbine drill core 29
Slide 30: Geology and Resources
Geology and Resources Completed 2022 Workplan For personal use only Stage 1 – Define Resources for Open Cut Mine Stage 2 – Drill & Expand • Detailed Drilling allowed high grade zones • Drill out additional shallow open cut to be linked, around the Andy White pit resources • Measured Group prepared S
Slide 31: Geology and Resources
Geology and Resources For personal use only Underground Resources Phase 1 and 2 (under Bankable Feasibility Study) • Low grade stockpile – 10.1Mt@0.075% • Preferred Pit - 15Mt Pit Extension contains 1.1Mt@0.83%WO3 Planned Decline • 14.4% of known in-situ resources Phase 3 (planned Scoping Study) • L
Slide 32: Q1/22 – Completed Phase I Western Drilling
Q1/22 – Completed Phase I Western Drilling For personal use only Drilling for Western Pit Extension Future Pit (BFS) Example of scheelite mineralization overprinting wolframite King Vein Intersections Insert showing tungsten EQ024 Intersections marked EQ023 as ‘Brown Disks’ and grouped in two lodes
Slide 33: Broader lower grade intervals occur around King Veins
Broader lower grade intervals occur around King Veins For personal use only Modelling of additional Mineralisation • 10 holes for 2,121m of additional drilling has highlighted shallow mineralization continuing westwards. • This image shows mineralization extension of >0.1% WO3 mineralization. • Mode
Slide 34: 2022 - Regional Extension Vein Drilling
2022 - Regional Extension Vein Drilling For personal use only Locating New Mt Carbine Sheeted Systems: • Target other key vein packages similar to Mt Carbine • Integrated Geophysics & Soils • Complete Plot-Logic Multi-frequency Scan Program • Extend Structural Mapping Q1 Targets 3-year pit 34
Slide 35: Phase & Mine Plan
Phase 1 & 2 Mine Plan Mine plan is designed to extract ore from the open-cut pit extension and low grade ore stockpile For personal use only BFS mine plan is designed to deliver a constant feed of 1Mtpa of ore to the ROM for a 12 year mine life Mine plan is supported by the Mineral Resource of 21.2M
Slide 36: Why EQ Resources
Why EQ For personal use only Resources 1 Australia’s only primary producer of tungsten, a critical mineral 4 BFS only focusses on the open pit only 14.4% of the resources (excl LGS) 5 Scoping study for UG completed for 2 Strong Economics of Open Pit & LGS (BFS Q1 2022, confirmed technical & scope) –
Slide 37: For personal use only
For personal use only Site Contact: Investor Relations: Kevin MacNeill Peter Taylor Chief Executive Officer NWR Communications T: +61 438 542 260 T: +61 412 036 231 E: kmacneill@eqresources.com.au E: peter@nwrcommunications.com.au Registered Office: Mt Carbine Office: Level 4, 100 Albert Road 6888 M