Slide 1: Aspire Mining Limited Investor Presentation
Aspire Mining Limited For personal use only Investor Presentation March 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 1 March 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 (2 March 12) $ 0.390 0.390 6 Apr 2011 Shares Outstanding m 620.5 929.12 Final quality data confirms high Market Capitalisation $m 242.0 362.3 quality cok
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 – Room to Grow to Tier Resource
Ovoot – Room to Grow to Tier 1 Resource For personal use only Project Tenement and Geology +500sqkm project area. 25,000m drilling programme for 2011/2012. Comprehensive airborne magnetics programme clearly defines extensive basin. 5 exploration target areas. 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 3km x 1km. Drilled only 20% of the Ovoot Basin but have identified two coal resource areas. Both areas: • May link up • Opportunity for repeats in Basin • Drilli
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: 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 10: Exceptional Deposit – Highest Washing Yields and % Coking
Exceptional Deposit – Highest Washing Yields and % Coking = Highest In-Situ Value For personal use only 10
Slide 11: 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 12: 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 13: 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. Vitrinite: A maceral group that is rich in oxygen and composed of humic material associated with peat formation and has a shiny appearance resem
Slide 14: 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 15: 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 15
Slide 16: Chinese Coke Consumption in Crude Steel Production
Chinese Coke Consumption in Crude Steel Production For personal use only Lower Quality Coking Coal = Lower Quality Coke = More Coke/T of Steel Produced Ovoot’s superior blending properties should enhance coke quality while using lower quality coals Source: China Coal Resource, Shanxi Fenwei Energy
Slide 17: Mongolian Coking Coal now the Dominant Source
Mongolian Coking Coal now the Dominant Source For personal use only 9,000 Chinese Coking Coal Imports 8,000 7,000 Quantity 000' Tonnes 6,000 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 Dec Qtr 2009 2009 2009 2009 2010 2
Slide 18: Rail Critical to Development of Ovoot Coking Coal Project
Rail Critical to Development of Ovoot Coking Coal Project For personal use only Commentary Potential Rail Route Ovoot Coking Coal Project is 550kms from Trans-Mongolian rail terminus Users include coking coal, phosphate, freight and passenger “Erdenet to Moron line” • 400km, +20 Mtpa capacity
Slide 19: Northern Railways LLC
Northern Railways LLC For personal use only • Focused on Erdenet to Moron rail line • Stand alone Special Purpose Vehicle to: - Apply for BOOT (Build Own Operate Transfer) rail licence - Manage EPC contractors - Raise required funds through issuing debt and equity securities • Open access to rail –
Slide 20: Northern Railways LLC – Developer of Multiuser Rail
Northern Railways LLC – Developer of Multiuser Rail For personal use only Currently a subsidiary of Aspire Mining Applying for Rail Construction and Operating licenses Sole focus – funding, building and operating the Erdenet to Moron Multiuser Rail Northern Railways LLC USERS MTPA FINANCING SO
Slide 21: 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 21
Slide 22: Erdenet – Moron Rail line: Catalyst for Development of Northern Mongolia
Erdenet – Moron Rail line: Catalyst for Development of Northern Mongolia For personal use only Rail Connection to Moron will Provide Enormous Benefits for Northern Mongolia: • Stimulus to Non-Resource related Industries • Provide additional tourist transport options to Northern Mongolia • Increase w
Slide 23: Erdenet – Moron Rail line: Catalyst for Development (continued)
Erdenet – Moron Rail line: Catalyst for Development of Northern Mongolia (continued) 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 - Majorit
Slide 24: Erdenet – Moron Rail line: Catalyst for Development (continued)
Erdenet – Moron Rail line: Catalyst for Development of Northern Mongolia (continued) For personal use only • Northern Mongolian coal miners looking at exports through Russia • Rebalance exports to Russia and other seaborne markets (refer to below charts)* China Dominates Mongolian Exports *Source: U
Slide 25: 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: Ovoot – Moron = $500m = $2,800m Investment dependant on Northern Khushuut Ukhaa Ukudag Railways LLC US$652M5 US$57
Slide 26: 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 26
Slide 27: 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 28: Ovoot: Major New Quality Coking Coal Supply Source
Ovoot: Major New Quality Coking Coal Supply Source For personal use only Pre-Feasibility Study Targeting the 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* 2 x Wash Plant facilities Initial Wash
Slide 29: 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 future resource growth Is a premium, high vitrinite, high fluidity coking coal Fully funded explo
Slide 30: Creating Employment Opportunities in Northern Mongolia
Creating Employment Opportunities in Northern Mongolia For personal use only 30
Slide 31: 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 32: 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