Aspire Mining Limited · ASX:AKM
Aspire Mining — Investor Presentation (January 2012)
36 slides from Aspire Mining's investor presentation, Jan 23, 2012
Slide 1: Investor Presentation
Aspire Mining Limited For personal use only Investor Presentation ABN: 46 122 417 243 January 2012
Slide 2: Important notices
Important notices For personal use only Nature of this document: This document has been prepared by Aspire Mining Limited (“Aspire”, “AKM”, or the “Company”) and contains summary information about the Company and its subsidiaries as at January 2012. The information in this document does not summaris
Slide 3: Company Snapshot – Corporate Structure
Company Snapshot – Corporate Structure For personal use only Capital Structure (ASX:AKM) Share Price (LTM) Undiluted Diluted 1.20 16.0 Share Price (3 January 12) $ 0.360 0.360 6 Apr 2011 Shares Outstanding m 620.5 929.12 Final quality data confirms high Market Capitalisation $m 223.4 334.4 quality c
Slide 4: Aspire's Strategic Investor Interest
Aspire’s Strategic Investor Interest For personal use only 19.9% 10.1% Interest Interest At 31 Dec 2011 4
Slide 5: Projects
PROJECTS For personal use only Project Locations Project Interests Ovoot Coking Coal Project (100%) Jilchigbulag Coal Project (100%) Nuramt Coal Project (100%) Zavkhan Iron Ore Project (Earning 70%) 5
Slide 6: Ovoot – Geology and Tenement Plan
Ovoot – Geology and Tenement Plan For personal use only Project Tenement and Geology +500sqkm project area. 25,000m drilling programme for 2011/2012. Comprehensive Magnetics Programme. Numerous targets within host Jurassic sediments. 6
Slide 7: New Coal Seams Identified
New Coal Seams Identified For personal use only New area identified starting 4km from the edge of the existing resource. Extends for 2km x 1km. OPEN Drilled only 20% of the Ovoot Basin but have identified two coal resource areas. OPEN Both areas: • May link up • Opportunity for repeats in Basi
Slide 8: Ovoot JORC Resource & Coal Seam Stratigraphy
Ovoot JORC Resource & Coal Seam Stratigraphy For personal use only 93% of Resource Tonnes are located in the Upper and three plies of the Lower Seam JORC Resource (October 2010) Above 250m Below 250m Total Depth Depth Measured 70.4 22.9 93.3 Indicated 135.0 47.4 182.4 Inferred 41.9 13.1 55.0 Total 2
Slide 9: Indicative Ovoot Cross Section Showing Upper and Lower Seams
Indicative Ovoot Cross Section Showing Upper and Lower Seams For personal use only 9
Slide 10: Mongolian Peer Comparison
Mongolian Peer Comparison For personal use only +6,500 900 843.5 833.8 800 Thermal Coking 700 600 538.9 500 400 330.7 322 300 220 200 149 100 0 1 2 3 4 5 6 7 Typical Coking Hard and Semi Premium Coking Semi Soft Hard and Semi Soft Semi Soft Semi Soft Semi Soft Coking coal Quality Soft Coal No. Proje
Slide 11: Exceptional Deposit – Nearest to Surface and Highest % Coking
Exceptional Deposit – Nearest to Surface and Highest % Coking For personal use only 11
Slide 12: Exceptional Deposit – Highest Washing Yields and % Coking
Exceptional Deposit – Highest Washing Yields and % Coking = Highest In-Situ Value For personal use only 12
Slide 13: Ovoot Indicative Product Quality & Fluidity Properties
Ovoot Indicative Product Quality & Fluidity Properties For personal use only Yield % IM % Ash % Volatiles CSN Sulphur % % Indicative Washed Coal 80% 0.6% 8% 25 - 28% 8-9 1% Quality • Air dried basis • Above table based on R.D. 1.4 cut for all 7 sample batches from the 2010 Exploration Programme • IS
Slide 14: An Attractive, High Quality, Globally Competitive Product
An Attractive, High Quality, Globally Competitive Product For personal use only Coal marketing experts Wood Mackenzie describe Ovoot coal as: • A strongly caking coking coal with superior blend carrying capacity • Within the ideal range for mid volatile hard coking coal and fat coal classifications
Slide 15: Ovoot Coal Quality Comparison with Listed Mongolian Coking Coals
Ovoot Coal Quality Comparison with Listed Mongolian Coking Coals For personal use only 15
Slide 16: Ideal Rank for Blending
Ideal Rank for Blending For personal use only Ovoot Coal Rank (Ro Max %) 1.2 • Target average for many blends • Highest available vitrinite coal on market 16
Slide 17: Noble Alliance Agreement
Noble Alliance Agreement For personal use only Noble Alliance Agreement (announced 30 November 2011) Strategic Alliance Logistics Marketing Services • Supply Chain Logistics • Establish suitable • Market at least 50% of the first through to seaborne trade logistic paths to end 5 million tonnes of co
Slide 18: Strong Medium to Long Term Coking Coal Market Outlook
Strong Medium to Long Term Coking Coal Market Outlook For personal use only …coking coal demand was expected to grow from 942 million tonnes last year to 1.425 billion tonnes in 2025, representing a compound annual growth rate of 3%. Source: Australian Financial Review, “BHP will struggle to meet de
Slide 19: Large New Coking Coal Deposits Need to be Developed
Large New Coking Coal Deposits Need to be Developed For personal use only Source: BHP Billiton, Metallurgical Coal briefing Presentation 30 September 2011 19
Slide 20: Chinese Coke Consumption in Crude Steel Production
Chinese Coke Consumption in Crude Steel Production For personal use only Source: China Coal Resource, Shanxi Fenwei Energy Consulting, and Wood MacKenzie 20
Slide 21: Lower Quality Coking Coal = Lower Quality Coke
Lower Quality Coking Coal = Lower Quality Coke For personal use only Higher HCC prices appear to have driven Coke manufacturers to lower quality coals Chinese Coke Consumption in Crude Steel Production Coke/t steel HCC price Source: China Coal Resource, Shanxi Fenwei Energy Consulting, and Wood Ma
Slide 22: Mongolian Coking Coal now the Dominant Source
Mongolian Coking Coal now the Dominant Source For personal use only 9,000 Chinese Coking Coal Imports Australia 8,000 Mongolia Canada & US 7,000 6,000 Quantity 000' Tonnes 5,000 4,000 3,000 2,000 1,000 0 Mar Qtr June Qtr Sept Qtr Dec Qtr Mar Qtr June Qtr Sept Qtr Dec Qtr Mar Qtr Jun Qtr Sept Qtr 200
Slide 23: Rail Critical to Development of Northern Mongolia
Rail Critical to Development of Northern Mongolia For personal use only Commentary Potential Rail Route Calibre Rail has reviewed a number of rail options to connect Ovoot to coal export markets Multiple potential users of rail between Moron and Erdenet Rail path analysis identified a preferre
Slide 24: Northern Railways LLC
Northern Railways LLC For personal use only • Focused on Erdenet to Moron rail line • Initial shareholdings reflect major users of rail • Stand alone Special Purpose Vehicle to: - Apply for BOOT (Build Own Operate Transfer) rail licence - Manage EPC contractors - Raise required funds through issuing
Slide 25: Structure of Northern Railways
Structure of Northern Railways For personal use only Shareholders Aspire Crown Phosphate Xanadu (Ovoot coal) (Burenhaan (Nuurstei coal) Phosphate) Northern Railways LLC USERS MTPA FINANCING SOURCES • Aspire up to 12 • Multi lateral groups • Xanadu/Noble Group up to 4 • Commercial/Development Banks •
Slide 26: Burenkhaan Phosphate Project
Burenkhaan Phosphate Project For personal use only Source: Crown Phosphate Presentation “Near term phosphate production with a world class asset” dated November 2011 26
Slide 27: Catalyst for Development of Northern Mongolia
Catalyst for Development of Northern Mongolia For personal use only Rail Connection to Moron will Provide Enormous Benefits for Northern Mongolia: • Will utilise underused rail capacity on the TMR heading north • Provide additional tourist transport options to Northern Mongolia • Increase wealth of
Slide 28: Catalyst for Development of Northern Mongolia cont.
Catalyst for Development of Northern Mongolia cont. For personal use only Social • Provide job opportunities - 125,000 people in the Khuvsgul province (>65% under 35years of age) - Well educated but high unemployment • Retain Communities and Family Groups - Majority of new jobs now generated in sout
Slide 29: Mongolian Investment is Geographically Unbalanced
Mongolian Investment is Geographically Unbalanced For personal use only Northern Mongolia Ovoot = $500m US$ Nil Burenhaan = $500m Nuurstei = +$100m Rail: Erdenet – Moron = $1,200m Rail: Moron – Ovoot = $500m = $1,800m Investment dependant on Northern Khushuut Ukhaa Ukudag Railways LLC US$652M5 US$57
Slide 30: Russian Coal Railway Routes
Russian Coal Railway Routes For personal use only Mongolian Mining Corp. trialled a rail shipment west to Poland in July 2011 Tavan Tolgoi trialled a rail shipment east to Vostochny in October 2010 Mongolian coal is an important new source of revenue for Russian Rail 30
Slide 31: Potential Routes to Coal Markets – rail access
Potential Routes to Coal Markets – rail access For personal use only Asian Importers of Coking Coal: Japan 53.6Mt1 Korea 19.2Mt1 Taiwan 5.3Mt1 78.1Mt Russian total Coking Coal Exports to Asian markets: 3.15Mt1 1. Source: Wood Mackenzie 2010 data 31
Slide 32: Ovoot Development Timeframe
Ovoot Development Timeframe For personal use only Note: In order for any development to proceed, a mining license needs to be received from the Mongolian Government, economic studies need to be completed and demonstrate positive returns, capital expenditure financed as well as receive approvals and
Slide 33: Ovoot: Major New Quality Coking Coal Supply Source
Ovoot: Major New Quality Coking Coal Supply Source For personal use only Pre-Feasibility Study Development of a 15 million tonne per annum ROM open pit mine at Ovoot ROM 15mtpa, indicative wash yields of 80% = 12 mtpa saleable coking coal* All infill drilling required has been completed Pre-Feas
Slide 34: Summary
Summary For personal use only Ovoot … Is independent, strategic and 100% owned coking coal deposit located in Northern Mongolia Has a maiden 330 mt resource with strong exploration potential and resource growth from recent drill results Is a premium, high vitrinite, high fluidity coking coal
Slide 35: Competent Person Statement
Competent Person Statement For personal use only In accordance with the Australian Securities Exchange requirements, the technical information contained in this announcement in relation to the Ovoot Coking Coal Project in Mongolia has been reviewed by Mr Neil Lithgow – Non Executive Director for Asp
Slide 36: Contact details
Contact details For personal use only Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Level 2, Suite 20, 22 Railway Road Subiaco, Western Australia, 6008 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave-8 Social Insurance Department Building A