AustSino Resources Group Limited
AustSino Resources — Padbury Mining — Shareholder Meeting (November 2011)
24 slides from AustSino Resources's shareholder meeting presentation, Nov 28, 2011
Slide 1: 2011 Annual General Meeting Company Presentation
Building value in Western Australia’s Mid West 2011 Annual General Meeting Company Presentation 28 November 2011
Slide 2: Disclaimer and Competent Person Statement
Disclaimer and Competent Person Statement This document contains general information about the activities of Padbury Mining Ltd (‘Padbury” or the “Company”) current as at the date of this presentation. It is information in a summary form only and does not contain all the information necessary to ful
Slide 3: Corporate Structure
Corporate Structure Issued Capital $2.4 B 665M Options Market Capitalisation $31M @ 0.013 Cash in Bank +7M ASX code: PDY Debt Nil Top 20 Shareholders 37.7% padburymining.com.au
Slide 4: Top 20 Shareholders
Top 20 Shareholders As at December 5, 2011 Rank Name Units % of units 1 Jamora Nominees Pty Ltd 254,500,000 10.61 2 Woolmaton Pty Ltd 86,150,000 3.59 3 Kelro Pty Ltd 79,000,000 3.29 4 Whitehorse (Australia) Holdings Pty Ltd 65,968,421 2.75 5 Mr Tony Peter Caldaroni + Mrs Julie Annette 65,750,000 2.7
Slide 5: Board and Management
Board and Management Dr John Saunders Chairman Gary Stokes Managing Director Garret Dixon Non-Executive Director David Southam Non-Executive Director padburymining.com.au
Slide 6: The Global Economy
The Global Economy Don’t believe the doom merchants… Big economies underpinned by Third Wave of SE Asian resources ~ 4% growth economies ~ 6% growth Canada, Russia, Australia; First wave, China; Brazil; South Africa ~ 440M Second wave India; people, 10% of world GDP Third wave Malaysia, Indonesia, C
Slide 7: China Iron Ore Demand
China Iron Ore Demand China plans to: – Build up to 10 million low income housing units in 2011, up 72.4% – Invest around $106 billion in railroad construction projects in 2011 – Build 20 million new motor vehicles Urbanisation will continue especially in the west Relatively high cost of China’s dom
Slide 8: Iron Ore – Hematite vs Magnetite
Iron Ore – Hematite vs Magnetite Hematite (Direct Shipping Ore – DSO) 96% of Australia’s iron ore production, largely from the Pilbara – quality is declining Historic base for Australian iron ore industry Mined and beneficiated using a relatively simple crushing, screening and blending before export
Slide 9: Peak Hill Iron JV - Project Overview
Peak Hill Iron JV - Project Overview Flagship project, 450km north east of Geraldton 2500sqkm area - targeting hematite (Direct Shipping Ore – DSO) and magnetite Strong project vision – targeting early cashflow from DSO to support major magnetite project, serviced by heavy haul railway and the Oakaj
Slide 10: Peak Hill Iron JV - DSO
Peak Hill Iron JV - DSO Hematite (DSO) exploration target of 10- 55Mt at 55-60% Fe' Drilling program underway at Telecom Hill Drilling to commence at Mt Padbury very soon Aiming for a hematite JORC Resource in 2012 The potential quantity and grade of the Peak Hill Iron JV project is conceptual in na
Slide 11: Peak Hill Iron JV - Magnetite
Peak Hill Iron JV - Magnetite 850Mt Maiden Inferred JORC resource @ 27.3% Fe from 4km of potential 10km strike length Davis Tube Recovery (DTR) test work demonstrates potential high-grade concentrate of 66%Fe' plus Extended drill program underway to upgrade and expand resource at Telecom Hill 1The p
Slide 12: Program of Work – Y1 Milestones Achieved
Program of Work – Y1 Milestones Achieved Review of project Geology and potential Confirmation of iron ore resource potential Delineate maiden JORC resource of >500Mt (850Mt defined) Commence baseline studies (heritage, environment, hydrogeology) Conceptual mining and infrastructure studies in progre
Slide 13: Program of Work – Current Activity
Program of Work – Current Activity Major new drilling program underway at Telecom Hill with five key components: Hematite (Direct Shipping Ore - DSO) at Telecom Hill east; DSO at Mt Padbury; Diamond drilling for metallurgical testwork at Telecom Hill West; Extension drilling from Telecom Hil
Slide 14: Project Targets 2012-2014
Project Targets 2012-2014 2011 2012 – 2014 Start EIS; negotiate project construction Start Prefeasibility Study funding Detailed evaluation for Definitive Feasibility Study Complete Prefeasibility Study padburymining.com.au
Slide 15: Infrastructure – a port in a storm
Infrastructure – a port in a storm $700M committed by State/Federal governments for the Oakajee Port and Rail Project OPR conditional sale to Mitsubishi 6 months late with BFS No customer agreements negotiated Foundation customer Sinosteel Midwest halted work on Weld Range project, citing delays to
Slide 16: Why are we waiting?.....
Why are we waiting?..... Limited capacity at Geraldton Port, cannot cater for emerging mines Without access to a deepwater port and rail network, most of the Mid West’s proposed mining projects – including Padbury - cannot be developed to production padburymining.com.au
Slide 17: Midwest Infrastructure Ltd
Midwest Infrastructure Ltd Purchase of Oakajee Port and Mid West rail IP developed by Yilgarn Infrastructure ratified by shareholders at the General Meeting of 13 June 2011 IP vested in a wholly owned Padbury subsidiary ‘Midwest Infrastructure Pty Ltd’ Data includes detailed engineering studies, pro
Slide 18: Mid West Infrastructure Pty Ltd The value proposition
Mid West Infrastructure Pty Ltd The value proposition Review and update of the Yilgarn feasibility work, CAPEX and OPEX estimates undertaken by international consulting group INDEC Consulting INDEC estimates reflect Padbury-specific technical designs and operational concepts for rail and material ha
Slide 19: Mid West Infrastructure Ltd Next Steps
Mid West Infrastructure Ltd Next Steps Oakajee Port and Rail has until December 31 to deliver implementation agreement or lose its mandate Mid West Infrastructure offers all stakeholders a viable alternative. Pacific Capital summarised the value proposition of the IP: “…. the Yilgarn IP Padbury has
Slide 20: The Past 12 Months Obstacles to Success
The Past 12 Months Obstacles to Success Success ultimately judged by share price Hostile takeover attempt by FE ltd and 249D requisitions caused instability, distraction and brand/reputation damage European debt crisis and US economy Option conversions Share price impacted by this uncertainty padbur
Slide 21: Moving Forward: The Corporate Strategy
Moving Forward: The Corporate Strategy Three-year strategic plan in place Mid West New Strategic iron ore experienced M&A producer Board 2015/16 Secure cornerstone investor padburymining.com.au
Slide 22: The Corporate Strategy 2012 Objectives
The Corporate Strategy 2012 Objectives Stakeholder engagement re Infrastructure Regain 100% of the Peak Hill project into Padbury Conclude successful negotiations for project investment and infrastructure development Secure cornerstone investment Share consolidation padburymining.com.au
Slide 23: Conclusion
Conclusion Emerging iron ore junior with 850Mt JORC compliant resource and promising DSO target in the emerging Mid West iron ore region of Western Australia Compelling valuation vs. peers over medium term Strong project vision – significant magnetite concentrate production underpinned by early DSO
Slide 24: Thank You
© FARBUAY Ww MINING LIMITED Thank You