Almonty Industries Inc. · NASDAQ:ALM
Almonty Industries — Investor Presentation (July 2016)
35 slides from Almonty Industries's investor presentation, July 2016
Slide 1: Corporate Presentation July 2016
Corporate Presentation July 2016 TSX-V: AII
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation includes certain statements that may be considered “forward-looking information” within the meaning of applicable Canadian securities regulations and “forwarding-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of
Slide 3: Building the Leading Global Tungsten Producer
Building the Leading Global Tungsten Producer Valtreixal Location: Spain Acquisition 2013 Almonty Korea Date: Tungsten Ownership: 25.0% (with option to acquire remaining 75.0%) Location: South Korea Stage of Acquisition Pre-Feasibility 2015 Development: Date: NI 43-101 P&P: 2,549kt @ 0.34% WO3 Owner
Slide 4: Recent Key Milestones Achieved
Recent Key Milestones Achieved MILESTONES STATUS Closed acquisition of Wolfram Camp September 2014 Delineated NI 43-101 compliant resource at Valtriexal October 2014 Increased ownership interest in Valtriexal January 2015 Acquired 100% ownership interest in Woulfe Mining September 2015 Update resour
Slide 5: Why Tungsten?
Why Tungsten? • Supply / Demand balance in near-term but expected to tighten over Tungsten Price Forecast – US$ (1) next five years $450 – China is the dominant producer of tungsten raw material (82% of primary supply in $388 2013), ~95% of which is controlled by MinMetals $400 $364 $357 $350 $350 $
Slide 6: Why Almonty?
Why Almonty? Leading Tungsten Producer on the TSX – strong leverage to Tungsten Los Santos is a fully operational, profitable mine in commercial production Wolfram Camp has begun initial production and currently being optimized Begun operational improvements at the recently acquired Panasqueira tung
Slide 7: Case Study: Primary Metals Turnaround…
Case Study: Primary Metals Turnaround… • Acquisition: ~55% interest in the Panasqueira Mine, a Portuguese Optimization Strategy tungsten mine owned by Primary Metals in March 2005 for ~$0.20/share Streamlined all processes to increase output by 25% and reduce unit costs by 28% • Exit: Sold in Octobe
Slide 8: …And on Track to Do it Again
…And on Track to Do it Again Los Santos Growth Highlights Mineral Resource Estimate (1) Tungsten recovery rate expected to exceed 65% going forward; achieved increasing recovery rate of 59.6% with an average feed grade Los Santos June 30, 2015 of 0.36% for nine months ended June 30, 2015 Tonnes Avg
Slide 9: …And on Track to Do it Again
…And on Track to Do it Again Wolfram Camp Acquisition Mineral Resource Estimate (1) • September 22, 2014 closed the acquisition on 100%-ownership of the Wolfram Camp August 31, 2015 operating Wolfram Camp tungsten and molybdenum mine in Tonnes Avg Grade Contained WO3 Queensland, Australia for $18 mi
Slide 10: …And on Track to Do it Again
…And on Track to Do it Again Panasqueira Acquisition Mineral Resource Estimate (1) • January 6, 2016 closed the acquisition on 100%-ownership of the Panasqueira June 30, 2015 operating Panasqueira tungsten mine in Portugal for $2.3 million Tonnes Avg Grade Contained WO3 – $1.56 million in cash – $0.
Slide 11: …And on Track to Do it Again
…And on Track to Do it Again Woulfe Mining Corp Acquisition Mineral Resource Estimate (1) • September 10, 2015 closed the acquisition on 100%-ownership of the Sangdong October 31, 2015 Almonty Korea Tungsten Project in Gangwon Province, South Korea in Tonnes Avg Grade Contained WO3 exchange for issu
Slide 12: …And on Track to Do it Again
…And on Track to Do it Again Valtreixal Brownfield Development Mineral Resource Estimate (1) • A tin/tungsten exploration and evaluation project located in western Valtreixal October 31, 2015 Spain in close proximity to the Los Santos mine Tonnes Avg Grade Contained WO3 equivalent • 25% ownership wi
Slide 13: Operational Update
Operational Update Summary operating information for Daytal Three Months Three Months Three Months Year Ended Year Ended Ended Ended Ended September 30, September 30, December 31, December 31, September 30, 2015 2014 2015 2014 2015 Ore treated (tonnes) 133,293 125,827 135,956 518,765 488,110 WO3 pro
Slide 14: Operational Update
Operational Update Summary operating information for Wolfram Camp Three Months Three Months Three Months Year Ended Ended Dec 31, Ended Dec 31, Ended Sept Sept 30, 2015 2015 2014 30, 2015 Ore treated (tonnes) 48,078 82,857 74,634 332,530 WO3 produced (MTU) 4,436 11,069 6,450 36,200 WO3 sold (MTU) 6,
Slide 15: Key Management & Board
a = Key Management & Board + Lewis Black — Director, President and CEO - Over 10 years in the tungsten mining industry — Former Chairman and CEO of Primary Metals (tungsten mine ~250 km from Los Santos) — Former Vice President of the International Tungsten Industry Association + Dennis Logan, CPA, C
Slide 16: Market Facts (as at 2016/01/15)
Market Facts (as at 2016/01/15) Symbol AII (TSX-V) Shares outstanding1 97.5 mm Options 5.4 mm Warrants 10.3 mm Convertible Debenture 9.4 mm Shares fully diluted 122.6 mm 52 week high/low $0.86/0.225 Recent price (March 22, $0.30 2016) Market cap $36.8 mm Insider ownership 30.4% 16
Slide 17: Los Santos Mine
Los Santos Mine Overview Processing Optimization Plan • Acquired in September 2011 Increase production to >90,000 MTU per annum • Located in the western Iberian Peninsula in the province of – Plant process refinement expected to result in a 40% recovery Salamanca, Spain improvement and increased thr
Slide 18: Los Santos Infrastructure
Los Santos Infrastructure Crushing Facilities and Mill Feed Ball Mill Plant Building Mining Equipment Main Pit 18
Slide 19: Los Santos – Reserves/Resources
Los Santos – Reserves/Resources NI 43-101 Reserves/Resources of Los Santos (as at June 30, 2015) Tonnes Avg Grade Contained WO3 Reserves WO3 Tonnes MTU Proven & Probable 1,465,000 0.34% 4,951 495,100 Mineralized Tailings 2,062,000 0.15% 3,191 319,100 Stockpiles 55,289 0.33% 183 18,300 Total 3,582,28
Slide 20: Los Santos – Exploration Potentials
Los Santos – Exploration Potentials Recent Drilling Underground Development • Recent exploration campaigns have identified ore • Potential high grade underground resource (bottom of main pit) extensions beyond currently modeled zones – 15 m crown pillar to remain between open pit and underground dev
Slide 21: Wolfram Camp Mine
Wolfram Camp Mine Overview Processing Optimization Plan • Acquired in September 2014 Increase production to >90,000 MTU per annum • Located in north Queensland Australia – Plant process refinement expected to result in significant recovery – A historical molybdenum/scheelite/wolframite producing are
Slide 22: Wolfram Camp Mine Infrastructure
Wolfram Camp Mine Infrastructure Plant Building Mine Site Mining Equipment Ball Mill Crushing Facilities 22
Slide 23: Wolfram Camp Mine Reserves/Resources
Wolfram Camp Mine Reserves/Resources NI 43-101 Reserves/Resources of Wolfram Camp Mine (as at August 31, 2015) Tonnes Avg Grade Contained WO3 Reserves Tonnes MTU Proven & Probable 375,000 0.22% 825 82,500 Mineralized Tailings 0 0.00% 0 0 Stockpiles 0 0.00% 0 0 Total 375,000 0.22% 825 82,500 Resource
Slide 24: Panasqueira Tungsten Mine
Panasqueira Tungsten Mine Overview Optimization Plan •Acquired in January 2016 Enhancing current production profile •Located in Portugal in close proximity to Almonty’s Los Santos – Recently completed NI 43-101 compliant technical report expected Mine in Spain to be filed prior to the end of Februar
Slide 25: Panasqueira Tungsten Mine
Panasqueira Tungsten Mine NI 43-101 Resources of Panasqueira Tungsten Mine (as at November 2015) Panasqueira June 30, 2015 Tonnes Avg Grade Contained WO3 Reserves WO3 Tonnes MTU Proven 691,000 0.22% 1,544 154,439 Probable 970,000 0.19% 1,887 188,665 Total 1,661,000 0.21% 3,431 343,104 Resources ( in
Slide 26: Panasqueira Tungsten Mine
Panasqueira Tungsten Mine 26
Slide 27: Almonty Korea Tungsten
Almonty Korea Tungsten Overview Processing Optimization Plan •Acquired in September 2015 Transition to Development •Located in Gangwon Province, South Korea – Revising the Feasibility study with a view to having a bankable – A historical scheelite mine study that can be utilized to fund the project’
Slide 28: Almonty Korea Tungsten Resources
Almonty Korea Tungsten Resources NI 43-101 Resources of Almonty Korea Tungsten (as at June 2015) Tonnes Avg Grade Contained WO3 Reserves WO3 Tonnes MTU Proven & Probable 5,900,000 0.57% 33,630 3,363,000 Mineralized Tailings 0 0.00% 0 0 Stockpiles 0 0.00% 0 0 Total 5,900,000 0.57% 33,630 3,363,000 Re
Slide 29: Almonty Korea Tungsten
Almonty Korea Tungsten Mine Site Exploration Equipment Taebaek Level 29
Slide 30: Valtreixal Project
Valtreixal Project Overview Exploration and Evaluation • Acquired option in 2013 Increased resource and reserve estimates with additional • Located in the western Iberian Peninsula in north western exploration drilling during 2015 Spain – A past producing tin mine with significant scheelite deposits
Slide 31: Valtreixal Tin/Tungsten project
Valtreixal Tin/Tungsten project 31
Slide 32: Valtreixal – Reserves/Resources
Valtreixal – Reserves/Resources NI 43-101 Reserves/Resources of Valtreixal (as at October 31, 2015) Tonnes Avg Grade Contained WO3 equivalent (WO3 +Sn) Reserves Equivalent Tonnes MTU Proven & Probable 2,549,000 0.34% 8,667 866,660 Mineralized Tailings 0 0.00% 0 0 Stockpiles 0 0.00% 0 0 Total 2,549,0
Slide 33: Almonty Industries Inc.
Contact us: Almonty Industries Inc. 100 King Street West Office: +1 (647) 438-9766 Suite 5700, Fax: +1 (416) 628-2516 Toronto, ON Email: info@almontyindustries.com Canada M5X 1C7 Website: www.almonty.com 33
Slide 34: Appendix B. Financial Update
Appendix B. Financial Update Financial Highlights Three Months Three Months Three Months Ended Ended Ended 31-Dec-15 31-Dec-14 30-Sep-15 $'000 $'000 $'000 Gross Revenue 8,181 8,725 8,415 Mine production costs 8,683 6,336 17,481 Mine impairment - - 1,708 Depreciation and amortization 2,019 1,961 2,41
Slide 35: Appendix B. Financial Update (cont.)
Appendix B. Financial Update (cont.) Financial Highlights (cont.) 31-Dec-15 30-Sep-15 30-Sep-14 $'000 $'000 $'000 Cash 118 866 14,847 Restricted cash 1,313 1,223 956 Total assets 119,048 117,527 86,547 Bank indebtedness 3,069 1,794 1,041 Long-term debt 33,841 33,321 20,296 Capital lease obligations
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