Alkane Resources Ltd · ASX:ALK

Alkane Resources — Shareholder Meeting (November 2018)

23 slides from Alkane Resources's shareholder meeting presentation, Nov 21, 2018

  1. Slide 1: Corporate Presentation – AGM Presentation

    Corporate Presentation AGM Presentation November 2018 Nic Earner, Managing Director

  2. Slide 2: Corporate Overview

    Corporate Overview Capital Structure Ownership (31 Oct 18) Ordinary shares 506M Australian Hedge Funds, 2.4% Institutions, 5.5% Foreign Rights 15M Institutions, 6.3% Share price (14 November 2018) A$0.23 Directors & Market capitalisation A$116M Management, 23.5% 12 Month low/high A$0.18/$0.38 Retail

  3. Slide 3: FY2018 Snapshot

    FY2018 Snapshot FY2018 Financials Dubbo Project • Total revenue A$129.97 million • Dubbo Project Engineering and • Profit before income tax. A$31.3 million Financials Update released • Total equity A$190.4 million • High purity hafnium capability confirmed Tomingley Gold Operations (TGO) • Demand fo

  4. Slide 4: Highlights – Last 12 Months

    Highlights – Last 12 Months Tomingley • Excellent operational performance • Underground development has been approved and commenced Dubbo Project • Financing effort continues as global supply uncertainty remains: • The United States has imposed tariffs on Chinese zirconium chemicals and powders • Fe

  5. Slide 5: Highlights – Last 12 Months

    Highlights – Last 12 Months Regional Exploration – for additional ore feed to TGO • Continued grade and mineralised intercepts around TGO • Re-evaluation of the underground reserve potential for Peak Hill Gold Investments • Junior gold companies/projects meeting our investment criteria • Investment

  6. Slide 6: Highlights – Last 12 Months

    Highlights – Last 12 Months • Long corridor of mineralisation confirmed • Predominantly aircore holes, with follow up RC and some diamond holes • Open cut and underground targets • Drill spacing wider in many areas that strike length that exists at TGO • Three major target areas identified; Roswell,

  7. Slide 7: Tomingley Gold Operations FY18

    Tomingley Gold Operations FY18 • Resource – 437,000oz of gold (25 July 2018) • Reserve – 144,000oz (25 July 2018) • Open cut mining throughout FY18 • FY18 – production 78,533oz @AISC A$1,002 /oz • FY18 – revenue A$128.8m • Development of underground has commenced • Initial UG mine life of 40 months

  8. Slide 8: TGO Underground

    TGO Underground Proposed portal location Proposed vent drive location CIL Processing Plant 93,000 oz gold over 40 months @ cash costs ~A$1,100 - A$1,200 /oz Caloma open cut October 2015 © 2018 Alkane Resources Ltd 8

  9. Slide 9: TGO Underground Timeline

    TGO Underground Timeline January 2019 •Portal July 2019 •Development ore September 2019 •Stope ore October 2019 •Processing restart Caloma open cut October 2015 © 2018 Alkane Resources Ltd 9

  10. Slide 10: Regional Exploration – Peak Hill

    Regional Exploration – Peak Hill Caloma open cut October 2015 © 2018 Alkane Resources Ltd 10

  11. Slide 11: Increasing shareholder value

    Increasing shareholder value Gold Investment Strategy • Underground mining at Tomingley Gold Operations • Continued exploration of prospects in the Tomingley region • Feasibility of extending the Peak Hill Gold Mine • Investment in junior gold mining companies and projects with high potential Caloma

  12. Slide 12: About Calidus

    About Calidus • Calidus – ASX listed gold exploration company • Warrawoona Gold Project • 712,000 oz resource @2.11g/t Au1 • High exploration upside as • mineralisation outcrops at surface at all deposits • open along strike and down dip at all deposits • many identified targets not yet tested • Ini

  13. Slide 13: Calidus Investment Summary

    Calidus Investment Summary • Alkane subscribed for 125 million ord shares via placement @2.95c/share ($3,687,500) • Alkane holds ~9% of Calidus on undiluted basis • Alkane was also granted share options for 70 million shares @3.5c/share Caloma open cut October 2015 © 2018 Alkane Resources Ltd 13

  14. Slide 14: Toongi Pastoral Company (TPC)

    Toongi Pastoral Company (TPC) • Operates at agricultural excellence level, responsibly producing lamb, beef and wheat in a sustainable manner • Comprehensive water supply project improved water management distribution • TPC completed 32km of new fencing of biodiversity offset to manage impact of gra

  15. Slide 15: Dubbo Project Financials

    Dubbo Project Financials Dubbo Project Engineering and Financials Update (4 June 2018) 20 year Base case (1mptpa) Modular (4 June 2018) Stage 1 Stage 2  1.0Mtpa (base case)  0.5Mtpa  0.5Mtpa  CAPEX – A$1.3B  CAPEX – A$808m  CAPEX – A$692m  Revenue – A$663m  Revenue – A$397m  Revenue – A$663

  16. Slide 16: Products from Dubbo Project

    Products from Dubbo Project The Dubbo Project provides a strategic source of zirconium, rare earths, niobium and hafnium. REE REE 30% Hafnium Magnets 25% Non-Magnets  Superalloys  EV’s 5% Hf  Plasma cutting tips Revenue  Wind power  Catalysts  Nuclear control rods 30%  Robotics  Glass  Cata

  17. Slide 17: Key Product Pricing - 2018

    Key Product Pricing - 2018 Source: Asian Metal © 2018 Alkane Resources Ltd 17

  18. Slide 18: Why Invest in the Dubbo Project?

    Why Invest in the Dubbo Project? © 2018 Alkane Resources Ltd 18

  19. Slide 19: Next 12 Months

    Next 12 Months • Tomingley • Finish open cut • Commence underground • Dubbo Project • Hafnium and zirconium product work • Secure financing • Regional Exploration • TGO corridor results • Potential drilling at Bodangara • Investment • Calidus DFS • Await Explaurum decision © 2018 Alkane Resources Lt

  20. Slide 20: Disclaimer

    Disclaimer This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other trend projections. Such s

  21. Slide 21: Dubbo Project Resources & Reserves

    Dubbo Project Resources & Reserves Dubbo Project – Mineral Resources Resource Category Tonnes ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 TREO* (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 th

  22. Slide 22: TGO Resources and Reserves

    TGO Resources and Reserves TOMINGLEY GOLD PROJECT MINERAL RESERVES(as at 30 June 2018) PROVED PROBABLE TOTAL Total Gold DEPOSIT Tonnage Grade Tonnage Grade Tonnage Grade (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Koz) Open Pittable Reserves (cut off 0.50g/t Au) Wyoming One 193 1.7 4 2.3 197 1.7 11 W

  23. Slide 23: Peak Hill (PHGM) Resources

    Peak Hill (PHGM) Resources Proprietary Mineral Resource Resource Tonnes Gold Gold Metal Copper Project Category Cut-Off (Mt) Grade g/t (Koz) Metal (%) Proprietary Underground Inferred 2g/t Au 1.02 3.29 108 0.15 Total 1.02 3.29 108 0.15 Note: Full details including Competent Person Statements in ASX

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