Develop Global Limited · ASX:DVP
Develop Global — Venturex Resources — RRS Summer Series Presentation (February 2019)
23 slides from Develop Global's conference presentation, Feb 12, 2019
Slide 1: Building an Australian Base Metals Business
ASX: VXR Building an Australian Base Metals Business A J SAVERIMUTTO | Managing Director 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Cautionary Statement The information contained in this document (“Presentation”) has been prepared by Venturex Resources Limited (“Company”). This Presentation is being used as a presenter’s aid with summarised information. See Venturex’s other and periodic discl
Slide 3: We're Building an Australian Base Metals Business
Venturex Resources is a base metals developer based in the Pilbara, Western Australia. Venturex Resources has a large, quality asset base and is well positioned for production and growth in global copper and zinc markets. We’re Building an Australian Base Metals Business. 3
Slide 4: Investment Highlights - Timing, Profitability & Growth
Investment Highlights - Timing, Profitability & Growth MARKET TIMING PROJECT & PROFITABILITY POISED FOR GROWTH Low LME stockpiles High profit, low cost project DFS complete, funding progressing ASX listed Cu/Zn developer Economy of scale (production) Strong exploration potential Strong forward marke
Slide 5: Corporate Snapshot - Board
Corporate Snapshot - Board BOARD KEY METRICS Anthony (Tony) Kiernan Share price ($AUD) 0.22 Non-Executive Chairman Shares on Issue (M) 258 Former lawyer with 35 years listed company management experience Market Capitalisation (M$AUD) 56 P-NAV (MC/Project NPV) 12% Ajanth (A J) Saverimutto Managing Di
Slide 6: Project Snapshot – Sulphur Springs
Project Snapshot – Sulphur Springs Strategically located in world-class Pilbara district Access to port facilities, via haul road and sealed highways 13.8Mt Cu-Zn deposit (3.5% Cu Eq*) +10yr mine life, producing Cu & Zn concentrate Low CAPEX and rapid payback Funding strategy well advanced Substanti
Slide 7: Market Timing
ventuReXx | Market Timing
Slide 8: Diminishing Supply – Market Timing
Diminishing Supply – Market Timing Supply shortfall expected by 2020 Resource depletion on current projects Grade decline in large Cu projects Cu Demand Lack of investment in new projects Falling copper inventories Copper LME Warehouse Level – Zinc LME Warehouse Level Feb 1, 2018 – Feb 5, 2019 4Mt S
Slide 9: Strong Demand from EV's – Market Timing
Strong Demand from EV’s – Market Timing Electric Vehicles (EV’s) Electric Vehicles (EVs) are a major growth market An average EV needs 4 x the copper of a conventional medium sized car The EV fleet will be 230 million in 2035 and 750 million by 2050 equivalent to half the global fleet1 SOURCE: Visua
Slide 10: Project Update
VenTUune Project Update 10
Slide 11: Project Update – Progress & Successes
Project Update – Progress & Successes 1. DFS Completed NPV (8) – A$ 474M IRR – 51% Free Cash / annum – $80M LOM – 10 years 1. Mine Design + Metallurgy Testwork Construction 26% Cu Con. (90% + Recovery) Early works 45/55% Zn Con. (90% + Recovery) Construction Production VES Study Funding Proceed to D
Slide 12: Australian Mines & Metal Endowment – A Standout Asset
Australian Mines & Metal Endowment – A Standout Asset 12 Australian VMS Sulphur Springs Project 10 CuEq. Grade (%) 8 6 4 2 Sulphur Springs Project 0 0 2 4 6 8 10 12 14 16 18 20 Resource (Mt) SOURCE : VXR, MMG, SLR, MLS, ERL, MRP, SYV, HRR, RVR, IGO, NQ (NEX), THX, SFR, HOR, G1A Copper equivalent cal
Slide 13: Project Design – An Economy of Scale Project
Project Design – An Economy of Scale Project Open Pit Design o Optimised open pit design o Low strip ratio (8:1) o Optimised extraction sequence Underground Design o Bulk mining method (Modified – SLC) o Low capital development requirement o Low cost extraction methodology Metallurgy o 1.25Mtpa plan
Slide 14: DFS – Financial Results – A Financially Attractive Project
DFS – Financial Results – A Financially Attractive Project Excellent project financials ▪ NPV8 = AUD 472 M ▪ IRR = 51% NPV8 ▪ Free Cash Flow = AUD 818 M AUD 472 Average cash flow of ~AUD 80 M per year Infrastructure capital cost reduction to AUD146M Million1 (including contingency) Plant capacity 1.
Slide 15: Operating Costs – Strong Margins & Cash Flow
Operating Costs – Strong Margins & Cash Flow A Cornerstone Asset with Width, Grade and Scale LOM COSTS Output Unit Value Revenue AUD/t 209 Operating Cost Per Tonne AUD/t 122 Capital Cost per Tonne AUD/t 22 Total Cost per Tonne AUD/t 144 Margin AUD/t 65 Mining Area Tonnes (Mt) Cu (%) Cu Metal (kt)* Z
Slide 16: Schedule to Production – Making It Happen
Schedule to Production – Making It Happen Yr 1 Yr 2 MILESTONE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Mining EPA Approval Water License & Works Approvals Financing Plant Site Earthworks & Pre Strip Process Plant Construction Process Plant Commissioning Open Pit Development Production Ramp-up Full Production 16
Slide 17: Funding – Potential Paths to Production
Funding – Potential Paths to Production FUNDING DEBT EQUITY ASSET BANKS / BONDS NAIF MARKETS LEVEL PRIVATE EQUITY CONCENTRATE OFF-TAKERS 17
Slide 18: Project Update – Ready for Development
Project Update – Ready for Development CONTROLS Identify / Shortlist Scope Tender / EOI Award / Contract Plant Contract In progress Open Pit Contract In Progress Infrastructure & Earthworks OPPORTUNITIES Gas Supply Power Capital Deferral Key Personnel 18
Slide 19: Poised For Growth
eo” VENTURE Poised For 19
Slide 20: Panorama Exploration – Multiple Local Prospects
Panorama Exploration – Multiple Local Prospects Refer ASX Release 8 May 2018 +27km VMS belt Potential for further look alike deposits Surface gossan identified at numerous prospects Drill program to follow Refer ASX Release 27 Nov 2017 20
Slide 21: Realising Our Potential – Poised for Growth
Realising Our Potential – Poised for Growth 21
Slide 22: Value Proposition – Our Key Strengths
Value Proposition – Our Key Strengths Value Markets Shareholders Exploration Strong Team Cornerstone Northern Star 27km exploration Robust asset Strong markets potential strategy major shareholder Excellent Diminishing Few ASX listed Multiple VMS Strong economics supply copper companies targets visi
Slide 23: Thank you
Thank you A J SAVERIMUTTO | Managing Director Building an Australian Base Metals business. Registered Office: Level 2, 91 Havelock Street, West Perth, WA 6005 T: + 61 8 6389 7400 F: + 61 8 9463 7836 ASX: VXR admin@venturexresources.com Media: Nicholas Read / Read Corporate www.venturexresources.com
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