Terramin Australia Limited · ASX:TZN

Terramin Australia — Shareholder Meeting (May 2013)

31 slides from Terramin Australia's shareholder meeting presentation, May 31, 2013

  1. Slide 1: ASX cover letter: Annual General Meeting 2013

    Level 3, 70 Hindmarsh Square, Adelaide, South Australia 5000 t +61 8 8213 1415 f +61 8 8213 1416 e info@terramin.com.au w www.terramin.com.au For personal use only The Manager Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 31 May 2013 Dear Sir/Madam Annual General Meeting

  2. Slide 2: Chairman's Address - Annual General Meeting

    TERRAMIN AUSTRALIA LIMITED For personal use only ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS 31 May 2013 Welcome Good morning, my name is Michael Kennedy and I am the Chairman of Terramin Australia Limited. On behalf of the Board of Directors, I warmly welcome you to the 2013 Terramin Annual General M

  3. Slide 3: Chairman's Address

     First, I will provide a short address highlighting key points for the year 2012;  Secondly, Nic will review the operations of Terramin for the past year and will talk about our future plans; For personal use only  Then shareholders will have the opportunity to ask questions about the Company, my

  4. Slide 4: Chairman's Address: Angas Zinc Mine results

    In respect of the Angas Zinc Mine, a series of measures was taken to lift production and net revenue without reducing focus on improving the health and safety of our employees and contractors. This resulted in the mine achieving some strong results: For personal use only  The mine continued to impr

  5. Slide 5: Chairman's Address: China and Asipac

    industry, and Terramin is no exception. As we all know, China is the dominant market, and the only growth market for our mineral resources. Almost 50% of the world’s zinc metal is now refined in China, in new, technologically advanced plants that mostly have been constructed within the last 10 For p

  6. Slide 6: Managing Director's Presentation

    TERRAMIN AUSTRALIA Terramin LIMITED Australia Limited For personal use only Annual General Meeting 2013 Managing Director’s Presentation 31 May 2013

  7. Slide 7: Disclaimer

    Disclaimer For personal use only No representation or warranty is or will be made by any person (including Terramin Australia Limited ACN 062 576238 (Terramin) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document (th

  8. Slide 8: Managing Director's Address

    Managing Director’s Address For personal use only 1. 2012 Performance in Review 2. 2013 Objectives 3. Value Proposition 4. Summary 5. Questions TERRAMIN AUSTRALIA LIMITED SLIDE No. 3

  9. Slide 9: Things have changed…

    Things have changed… For personal use only 2011 Today  A company with an underperforming operation –  Operational performance significantly turned Angas Zinc Mine; around – generating strong cash flow;  An overwhelming amount of secured debt and  Secured debt balance effectively halved and conve

  10. Slide 10: 2012 Strategic Review

    2012 Strategic Review For personal use only Three distinct objectives: Development Optimisation Exploration Increasing Progressing Unlock value in output and net the Tala the Company’s revenue at the Hamza Project. SA exploration Angas Zinc tenements Mine. whilst conserving cash. TERRAMIN AUSTRALIA

  11. Slide 11: 2012 Objective #1 - Optimisation

    2012 Objective #1 - Optimisation Increasing output and net revenue at Angas For personal use only Context  Adverse A$ commodity prices impacting on mine profitability Objective  Increasing output and net revenue at Angas  Internal, systematic improvement and optimisation programme (Net Revenue Ma

  12. Slide 12: Objective #1 - Optimisation

    Objective #1 - Optimisation Increasing output and net revenue at Angas For personal use only +22.8% -1.9% 15 TERRAMIN AUSTRALIA LIMITED SLIDE No. 7 7

  13. Slide 13: Objective #1 - Optimisation

    Objective #1 - Optimisation Increasing output and net revenue at Angas For personal use only +5.3% +10.1% TERRAMIN AUSTRALIA LIMITED SLIDE No. 8 8

  14. Slide 14: Angas Zinc Mine - EBITDA Analysis

    Objective #1 - Optimisation Increasing output and net revenue at Angas For personal use only Angas Zinc Mine – EBITDA Analysis A$m; 2011 to 2012 EBITDA on par with 2011 despite market driven impacts TERRAMIN AUSTRALIA LIMITED SLIDE No. 9 9

  15. Slide 15: Angas Zinc Mine - Cash Flow Analysis

    Objective #1 - Optimisation Increasing output and net revenue at Angas For personal use only Angas Zinc Mine – Cash Flow Analysis A$m; 2011 to 2012 Lower overall costs of A$2.2m A$14.3m cash generated by Angas Mine Cash receipts A$12.5m higher TERRAMIN AUSTRALIA LIMITED SLIDE No. 10 10

  16. Slide 16: Angas Zinc Mine - C1 Cash Cost Analysis

    Objective #1 - Optimisation Increasing output and net revenue at Angas For personal use only Angas Zinc Mine – C1 Cash Cost Analysis USc/lb; 2011 to 2012 Significant improvement translated into reduced C1 Cash Cost TERRAMIN AUSTRALIA LIMITED SLIDE No. 11 11

  17. Slide 17: 2012 Objective #2 - Development: Tala Hamza Project

    2012 Objective #2 - Development Progressing the Tala Hamza Project For personal use only  Project stalled for reasons that remain non-transparent Context  Algerian minority partner dictating direction of the Project; firmly opposed to the mining method Objective  Maximise value from the Tala Hamz

  18. Slide 18: 2012 Objective #3 - Exploration

    2012 Objective #3 - Exploration Unlock value in SA exploration tenements For personal use only Context  Shortage of funds  Unlock value in SA exploration tenements Objective  Ongoing Angas “deeps” exploration  Extensive discussions with external parties  Heads of Agreement executed with Musgrav

  19. Slide 19: Dealing with the Debt

    Dealing with the Debt For personal use only  In a difficult environment Terramin achieved:  A placement and underwritten renounceable rights Secured Debt Balance issue which raised $10m; A$m; End of 2011 to Current  The restructure of secured debt due in 2013; and  The restructure of unsecured c

  20. Slide 20: Managing Director's Address

    Managing Director’s Address For personal use only 1. 2012 Performance in Review 2. 2013 Objectives 3. Value Proposition 4. Summary 5. Questions TERRAMIN AUSTRALIA LIMITED SLIDE No. 15

  21. Slide 21: 2013 Objectives

    2013 Objectives For personal use only Four objectives underpin Terramin’s development agenda in 2013: Development Optimisation Exploration Growth Progressing Continuing Continuing Evaluating the Tala Angas Mine exploration and Hamza production at Fleurieu progressing Project. optimisation and merger

  22. Slide 22: 2013 Objective #1 - Development: Tala Hamza Project

    2013 Objective #1 - Development Progressing the Tala Hamza Project For personal use only 2013 Context  Arbitration just launched 2013  Maximise value from the Tala Hamza Project Objective  Continue dialogue in parallel to arbitration process  Progress arbitration 2013 Action  Bring a resolution

  23. Slide 23: Competitive Advantage for Future Growth

    Competitive Advantage for Future Growth For personal use only Business Climate  Significant debt position;  Impending end of mine life at Angas;  Secured debt due in September;  Continuing lower metal prices. Value Proposition  Pool of expertise and demonstrated capability;  New ambitious corn

  24. Slide 24: 2013 Objective #2 - Optimisation

    2013 Objective #2 - Optimisation Continuing Angas optimisation and exploration For personal use only  End of known reserves looming 2013 Context  Angas represents a key pool of capability 2013  Maximise the value of the Angas Zinc Mine site and associated resources Objective  Key focus on perfor

  25. Slide 25: 2013 Objective #3 - Exploration

    2013 Objective #3 - Exploration Continuing exploration at Fleurieu & Menninnie For personal use only  Significant opportunities represented by extensive exploration tenements 2013 Context  JV in place for Musgrave Menninnie tenements 2013  Grow the value of exploration tenements Objective  Furth

  26. Slide 26: 2013 Objective #4 - Growth

    2013 Objective #4 - Growth Evaluating and progressing M&A opportunities For personal use only  Ambitious cornerstone shareholder 2013 Context  Established process for developing M&A opportunities  Current market conditions provide undervalued prospects 2013  Develop M&A opportunities to grow val

  27. Slide 27: Managing Director's Address

    Managing Director’s Address For personal use only 1. 2012 Performance and Review 2. 2013 Objectives 3. Value Proposition 4. Summary 5. Questions TERRAMIN AUSTRALIA LIMITED SLIDE No. 22

  28. Slide 28: Value Proposition

    Value Proposition For personal use only Value Proposition Skills & Access to Existing Tax Shield and Expertise funding Infrastructure Market Conditions  Experienced and  New cornerstone  Operational  Terramin has capable operations investors committed treatment plant A$111m in unused and managem

  29. Slide 29: Managing Director's Address

    Managing Director’s Address For personal use only 1. 2012 Performance and Review 2. 2013 Objectives 3. Value Proposition 4. Summary 5. Questions TERRAMIN AUSTRALIA LIMITED SLIDE No. 24

  30. Slide 30: Gaining momentum…

    Gaining momentum… For personal use only 2013 and 2011 2012 Beyond Essentially stalled Progressive with very limited Stabilisation and realisation of options and creation of options options to generate severely cash value constrained TERRAMIN AUSTRALIA LIMITED SLIDE No. 25 25

  31. Slide 31: Questions

    TERRAMIN AUSTRALIA LIMITED Questions For personal use only Terramin Australia Limited

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