Develop Global Limited · ASX:DVP
Develop Global — Venturex Resources — Investor Presentation (October 2018)
25 slides from Develop Global's investor presentation, Oct 17, 2018
Slide 1: Building an Australian Base Metals Business
ASX: VXR Building an Australian Highlights NPV8 AUD 472 MM Base Metals Business Free Cash Flow AUD 818 MM Ore Reserve 42% Increase in Cu Metal Reduced Infrastructure Capex 146 MM Increased production rate to 1.25MMtpa Life of Mine 12 Years AJ SAVERIMUTTO | Managing Director
Slide 2: Important information & Disclaimer
Important information & 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 disclos
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: Corporate Snapshot | Board & Management Team
Corporate Snapshot | Board & Management Team Board Management Anthony (Tony) Kiernan Trevor Hart Non-Executive Chairman CFO & Company Secretary Former lawyer with 35 years listed company CPA with over 20 years senior experience in management experience listed companies Ajanth (AJ) Saverimutto Alex B
Slide 5: Corporate Snapshot | Metrics & Shareholders
Corporate Snapshot | Metrics & Shareholders Key Metrics Top 3 shareholders hold ~42% of shares on issue as of 1 Oct 2018 Share price ($AUD) 0.18 Shares on Issue (M) 240 Market capitalisation (M$AUD) 43 Top 5 Shareholders % Northern Star Resources Ltd 19.0 Regent Pacific Group Ltd 16.3 Precision Oppo
Slide 6: Investment Highlights | Timing, Profitability, Growth
Investment Highlights | Timing, Profitability, Growth Market Timing Project & Profitability Poised for Growth Copper and Zinc prices up over A robust and profitable project DFS Complete last 12 months High margin project with open pit Funding in Progress Low LME stockpiles and underground operations
Slide 7: Market Timing
Market Timing
Slide 8: Diminishing Supply | Market Timing
Diminishing Supply | Market Timing Supply shortfall expected by 2020 o Resource depletion on current projects o Grade decline o Lack of investment in new projects o Falling copper inventories o Chinas Belt and Road (~7% increase in Demand per year) 4Mt SOURCE: Wood Mackenzie SOURCE: Bloomberg, LME,
Slide 9: Strong Demand from EVs | Market Timing
Strong Demand from EVs | Market Timing Electric Vehicles (EVs) o Electric Vehicles (EVs) are a major growth market o An average EV needs 4 x the copper of a conventional medium sized car o The EV fleet will be 230 million in 2035 and 750 million Kg of Copper by 2050 equivalent to half the global fle
Slide 10: Project & Profitability
Project & Profitability
Slide 11: Australian Mines & Metal Endowment
Australian Mines & Metal Endowment | Project & Profitability CuEq. Grade (%) Resource (Mt) SOURCE : VXR, MMG, SLR, MLS, ERL, MRP, SYV, HRR, RVR, IGO, NQ (NEX), THX, SFR, HOR, G1A Copper equivalent calculated at metal price assumptions: Cu = USD6450/t, Zn = USD2,535/t, Pb = USD2,050/t, Au = USD1,200/
Slide 12: DFS – Financial Results
DFS – Financial Results | Project & Profitability o Excellent project financials o NPV8 = AUD 472 MM o IRR = 51% o Free Cash Flow = AUD 818 MM o Average cash flow of ~AUD 80 MM per year NPV8 o Infrastructure Capital cost reduction to AUD146MM (including contingency) o Increased plant capacity to 1.2
Slide 13: Project Design
Project Design | Project & Profitability Open Pit Design o Optimised open pit design o Strip ratio from 11:1 to 8:1 o Geotechnically optimised Underground Design o Bulk mining method (Modified – SLC) o Low capital development requirement o Low cost extraction methodology Metallurgy o 1.25Mtpa plant
Slide 14: DFS vs VES
DFS vs VES | Project & Profitability Definitive Feasibility Study (2018)1 Metric Value Engineering Study (2017)2 472 NPV8 (AUD M) 338 51 IRR (%) 52 2,625 Gross Revenue (AUD M) 2,400 818 Free Cash Flow (AUD M) 601 169 (15 months) Capex (AUD M) 167 (12 months) 12.6 Ore Inventory (Mt) 11.7 1.25 Product
Slide 15: Operating Costs
Operating Costs | Project & Profitability A Cornerstone Asset LOM Costs Output Unit Value NPV 8% AUD M 472 Free Cash Flow AUD M 818 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 Me
Slide 16: Production Profile
Production Profile | Project & Profitability Processing Schedule – Tonnes, Grades & Mining Location 16
Slide 17: Cash Flow
Cash Flow | Project & Profitability Project Undiscounted Cash Flow Waterfall 17
Slide 18: Payback
Cash Flow | Project & Profitability Project Cash Flow – Periodic & Cumulative Peak Cash Draw Payback 18
Slide 19: Schedule to Production
Schedule to Production | Project & Profitability 19
Slide 20: Poised For Growth
Poised For Growth
Slide 21: Panorama Exploration | Poised for Growth
Panorama Exploration | Poised for Growth o +27km VMS belt o Potential for further look alike deposits o Surface gossan identified at numerous prospects o Drill program to follow 21
Slide 22: Panorama Trend | Poised for Growth
Panorama Trend | Poised for Growth 22
Slide 23: Value Proposition | Poised for Growth
Value Proposition | Poised for Growth Value Markets Shareholders Exploration Strong Vision Cornerstone assets Strong projections Support of major 27 km of ground Robust strategy for Cu and Zn shareholders similar to Sulphur Excellent economics markets Northern Star Springs Strong vision Resources De
Slide 24: Building an Australian base metals business
Building an Australian base metals business
Slide 25: Thank you
Thank you AJ 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 admin@venturexresources.com Media: Nicholas Read / Read Corporate Ph: +61 8 9388 1474 Email: info@read
Venturex Resources — Investor Presentation (October 2018) on 6ix