Australian Silica Quartz Group Limited · ASX:ASQ
Australian Silica Quartz — Bauxite Resources — Non-Deal Roadshow (September 2009)
33 slides from Australian Silica Quartz's roadshow presentation, September 2009
Slide 1: BRL Marketing Presentation ASX/Media Release
BAUXITE RESOURCES LIMITED ACN 119 699 982 ASX/MEDIA RELEASE 8 SEPTEMBER 2008 BRL MARKETING PRESENTATION Please find attached the marketing information for a series of Sydney and Melbourne presentations being conducted by Bauxite Resources Ltd Managing Director, Mr Daniel Tenardi, and Mr Paul Fromson
Slide 2: Bauxite Resources Ltd Corporate Presentation – September 2009
BAUXITE RESOURCES LTD Corporate Presentation – September 2009 The New Force in Bauxite Bauxite-Alumina Alumina A rare investment opportunity
Slide 3: Disclaimer
Disclaimer Forward Looking Statements No representation or warranty, express or implied, is made by Bauxite Resources Ltd that the material contained in this p presentation will be achieved or p prove to be correct. Except p for statutory liability which cannot be excluded, each of Bauxite Resources
Slide 4: Corporate
Corporate ASX Code BAU Ordinary shares 151.7m Unlisted options 31 8m 31.8m Market Cap. circa $100 m Share price 12Mth High/low 9.5c‐70c Cash Balance $16.5m Debt Nil Debt Nil Shareholding HD Mining Mi i 13 0% 13.0% Big Fish Nom 12.8% Dilkara Noms 11.2% Tailrain Pty Ltd 11.2% Top 20 64.8%
Slide 5: Management Philosophy
Management Philosophy “To be a sustainable generator of economic and Our Vision social prosperity to all stakeholders through the responsible development of resources” To be the bauxite supplier of choice, providing consistent quality and value in use to our customers T To be b a low l costt sup
Slide 6: Highly Experienced Leadership team
Highly Experienced Leadership team Daniel Tenardi – Luke Atkins – Paul Fromson‐ Managing Director E Executive ti Ch Chairman i CFO/Company • Experienced mining • Substantial public Secretary executive (40 years), company experience • Over 25 years Rio Tinto, CITIC • Lawyer, corporate experience in P
Slide 7: Value proposition – DSO Operations
Value proposition Direct Shipping Ore (DSO) Operations (early cash flow) Extensive resource in world’s premier Bauxite region Experienced p and capable p Board and Leadership p Team Proximity to major growth markets Strong market fundamentals– customer demand /supply side issues
Slide 8: Value proposition – Refinery
Value proposition Refinery (Bringing the customer to the Resource) MOU with Yankuang Group for 50/50 JV 25% free carried interest in a A$1.5B Project (value ca. $375m) and bauxite supply at cost plus 15% Supportive State Government & strong facilitative relationships with all stakeholders
Slide 9: Significant Achievements
Significant Achievements • Mining commenced in less than 21 months since ASX listing • Sustained 300% share price growth • Maiden 18.2Mt 18 2Mt JORC compliant inferred bauxite resource • Multiple MOUs with potential strategic off-take partners/investors • Comprehensive tenement holdings securing dom
Slide 10: Strategy
Strategy 1 B 1. Bauxite i DSO 2 V 2. Value l Addi Adding Long L term DSO O Ops Trial spot shipments Drive value through process Long term DSO off-take improvements, beneficiation Increase production to >3mtpa Shareholder and stakeholder wealth creation 3. Downstream growth 3 4. Drive value 4
Slide 11: It all starts with ore
It all starts with ore MINE REFINERY SMELTER ALUMINA BAUXITE 2 tonnes of ALUMINIUM 1 ttonne off Approximately 7 tonnes alumina aluminium of bauxite ore produces which produces • 7 tonnes of Darling Range refinery grade bauxite required for every tonne of Aluminium • M Measured d in i either ith quan
Slide 12: Substantial Resources and Upside
Substantial Resources and Upside • Extensive resource and holdings g in world’s premier Bauxite region (16,600km2) o Gibsitic ore – low reactive silica – easy to liberate • Maiden 18.2Mt JORC compliant inferred bauxite resource @ 43.1% defined (Jan 09) o Hosted in 140 km2 area out of 16 600 km2 proj
Slide 13: The market opportunity
The market opportunity • China’s domestic Bauxite supplies exhausted within 9 years o “A matter of life or death” for China to secure off-shore bauxite resources1 o Shangdong province 100% reliant on imports and imported 24mt in 2008 supplying 5 major Shandong refineries o Shandong Provincial Bureau
Slide 14: DSO Project Milestones
DSO Project j Milestones Event Date Sample Trial Spot Shipments Q4 2009 1 mtpa Bauxite DSO to commence Q1 2010 > 3 mtpa Bauxite 2011 DSO S - Early y Cash Flow
Slide 15: Refinery Project (800ktpa) Milestones
Refinery Project (800ktpa) Milestones Event Date JV partner (50/50) Q4 2009 Refinery Feasibility Study Q3 2011 Define min. 150 mt JORC resource (50yr refinery feedstock) Q3 2011 C Commence R fi Refinery C t ti Construction 2012 Commissioning Refinery (50/50 JV with 25% free carried interest) 2013 Re
Slide 16: Market Guidance
Market Guidance Bauxite 2009 2010 2011 Planned Production mtpa Trial Spot Shipments 2‐3,000,000 2 3,000,000 3,000,000 Increase in bauxite price and demand China Bauxite Imports and Price (CIF to Chinese Port) Source: Antaike Sept 09
Slide 17: Priorities and Focus – next 12 months
Priorities and Focus – next 12 months Sustainable earnings growth Negotiating N ti ti long-term l t B Bauxite it DSO off-take ff t k agreements t Finalising critical infrastructure and logistics arrangements (rail, port, t handling h dli operators)t ) Leveraging strategic relationshi
Slide 18: Capital Requirements
Capital Requirements Infrastructure investment to drive costs down Range* Activity $ million Port Infrastructure 15 ‐ 20 Rail Infrastructure 10 ‐ 15 Mining Infrastructure 5 ‐ 10 Bankable Feasibilityy Studyy for 150mt Resources and 10 ‐ 15 Refinery Engineering 40 ‐ 60 * Range depends upon a number
Slide 19: Summary
Summary y • Extensive world class resource with exploration upside • Experienced and capable Board and Leadership Team • Proximity to major growth markets • Trial bauxite shipments commencing in Q4 2009 • Finalising long term DSO off off-take take – early cash flow • Bauxite market strengthening – s
Slide 20: Appendices
BAUXITE RESOURCES LTD Corporate Presentation – September 2009 APPENDICES
Slide 21: Dan Tenardi, Managing Director
Dan Tenardi M Managing i DiDirector t 40 Years experience in Mining Operations Extensive experience in: • Dealing with Chinese Corporations • Hands on Management • Port/Shipping P t/Shi i FFacilities iliti • Refineries R fi i • Mining • Managing Large Workforces • Strategic g Planningg • Capex p & P
Slide 22: Top 20 Shareholders as at 30 September 2009
Top 20 Shareholders as at 30 September 2009 Holder Name Current Units % of issued Comments HD Mining & Investment P/L 19,700,000 12.98 SDGM strategic alliance partner Big Fish Nominees Pty Ltd 17,666,666 11.64 Related interest of Director, Neil Lithgow Tailrain Pty Ltd 17,016,667 11.21 Related inter
Slide 23: DSO Grade Bauxite Specifications
DSO Grade Bauxite Specifications El Element t I di ti % Indicative Total Alumina 48 Silica 7 Reactive Silica 3 Iron (III) Oxide 17 Loss On Ignition 23
Slide 24: Mining Methodology
MINING METHODOLOGY BRL will utilise surface mining machines thereby eliminating drill and blast operations significantly reducing costs and environmental impacts and fixed plant processing. Not only is the surface miner environmentally friendly, but creates a flat mining floor that requires minimal
Slide 25: Bauxite Metallurgy
BAUXITE METALLURGY High silica zone 22% SiO2 • Observed grades better than historical information due to improved grade delineation in BRL drilling programs (10% diamond core) • Grades of 50% alumina can be extracted for Direct Shipping ORE (DSO) with 40% available alumina. • Reactive silica is low
Slide 26: DSO has 3 logistical supply chains for the Ports
DSO has 3 logistical supply chains for the P Ports off Kwinana, K i B b Bunbury and d Albany Alb For example Kwinana DSO consists of: 1. Truck to Mooliabeenie Siding in Bindoon ‐ Consists of 15 kilometers to rail siding secured by BRL ‐ Interim arrangement involves utilizing existing rail siding ‐ L
Slide 27: Proven Region of Low Cost Refineries
PROVEN REGION OF LOW COST REFINERIES Darling Range Refineries produce ~20% 20% of total world alumina production Potential to support fifth refinery Alcoa ‐ Kwinana Refinery Alcoa ‐ Wagerup Refinery Potential P t ti l tot supportt first smelter BHP – Worsley Refinery Alcoa ‐ Pinjarra Refinery
Slide 28: Collie Coal Mine
COLLIE COAL MINE
Slide 29: Kemerton Industrial Park
BAUXITE RESOURCES LTD Kemerton K t IIndustrial d t i lP Parkk Preferred site for BRL refinery and smelter Location – 17km Northeast of Bunbury, 140 km South of capital city Perth Land – 5,400 5 400 hectares with expansion to 7 7,500 500 hectares hectares, zoned specifically for alumina smelter o
Slide 30: Kemerton Industrial Park
KEMERTON INDUSTRIAL PARK
Slide 31: Refining in Western Australia
REFINING IN WESTERN AUSTRALIA Lowest quartile alumina refinery cost producers in the world. Home to 3 Alcoa and 1 BHP refineries Largest bauxite producing region in the world. world Huntley largest bauxite mine in the world 3 of the Darling Range refineries are in the world’s top 10 most cost
Slide 32: Refinery Production Cost Comparison
REFINERY PRODUCTION COST COMPARISON 500 er Tonne (US$) 450 400 350 300 on Cost pe 250 200 150 Productio 100 50 0 P Darling Range Refineries S l t d Refineries Selected R fi i
Slide 33: Our Sustainability Commitment
Our Sustainability Commitment • A sustainable generator of economic and social p p y prosperity. • A valued partner to our communities. • Best practice rehabilitation and improvement to maximise environmental and economic outcomes. • Innovative environmental programs to create safe habitats for crit
Bauxite Resources — Non-Deal Roadshow (September 2009) on 6ix