Slide 1: Kibaran Resources Corporate Update & Mining Indaba 2016 Presentation
ASX Announcement 4 February 2016 KIBARAN RESOURCES CORPORATE UPDATE & MINING INDABA 2016 PRESENTATION Kibaran Resources Limited (ASX: KNL), is pleased to make available its latest presentation. Managing Director, Andrew Spinks will be presenting at Mining Indaba 2016 in Cape Town, South Africa to be
Slide 2: Developing Premium Quality Graphite in Tanzania
DEVELOPING PREMIUM QUALITY GRAPHITE IN TANZANIA February 2016 Development of the Epanko Graphite Project and the Emerging Lithium-Ion Battery Market Presented by: Mr Andrew Spinks, Managing Director Mr Christoph Frey, Technical Graphite Specialist ASX: KNL
Slide 3: Disclaimer
D I S C L A I M E R Securities Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, or solicit to purchase, any securities. Such offer can be made only through proper subscription documentation and only to investors meeting strict suitability requ
Slide 4: Company Overview
C O M P A N Y O V E R V I E W Capital Structure KNL:ASX Shares on Issue 167.6m Share Price (31 December 2015) $0.165 Market Capitalisation $27.7m Net Cash (31 December 2015) $1.4m Enterprise Value $26.3m Options Unlisted Options Various Exp, Various Ex Prices 12m TOTAL 12m Shareholders Directors & M
Slide 5: Epanko Project Highlights
E P A N K O P R O J E C T H I G H L I G H T S Epanko World-class Graphite Assets • Debt financing supported by in-principle German Government Loan Guarantee (UFK) up to $US40m • German KfW-Bank Bank mandate letter signed for debt financing • African Development Bank, Nedbank - EOI of up to US$30m
Slide 6: Board & Management Team
B O A R D & M A N A G E M E N T T E A M Robert Pett – Non-Executive Chairman Minerals Economist with over 30 years experience working in mining and exploration Involved with listed companies at all levels in the resources sector at senior levels from grass-roots exploration through to mine devel
Slide 7: Management & Technical Team
M A N A G E M E N T & T E C H N I C A L T E A M Robert Hodby - CFO/Company Secretary Bachelor of Commerce, Member of CPA Australia and Governance Institute of Australia Over 20 years industry experience in financing and administration of public and listed companies gathered at both operational a
Slide 8: Strategic Long Term Partnerships
S T R A T E G I C L O N G T E R M P A R T N E R S H I P S Major Supply Chain to the current and high growth Battery Markets Sojitz Assistant General Manager, Mr Togo Teruhiko commented: “We are delighted to partner Kibaran, given our testwork has shown Epanko’s graphite to have superior qualities to
Slide 9: Why Tanzania
W H Y T A N Z A N I A Mining-friendly Country Stable democratic Government committed to mining sector growth and development English speaking Common law system Friendly tax regime (30%) and low royalties (3%) Existing and developed mining activity in place Access to skilled and educated lo
Slide 10: About Graphite
A B O U T G R A P H I T E An industrial mineral with unique Lithium Ion Battery (LiB) physical properties: Graphite and essential component in lithium ion batteries Superior thermal/electrical conductivity (Electric Vehicle and Energy Storage Systems) Stable wide temperature range High melti
Slide 11: Epanko Bankable Feasibility Study
E P A N K O B A N K A B L E F E A S I B I L I T Y S T U D Y Key BFS Results Parameters Conventional open cut mine and conventional Items (LOM) flotation processing plant. Plant Throughput (tpa) 434,000 Plant Recovery (%) 93.3 Annual EBITDA of US$33.6m for 15 years with 40,000tpa Feed Grade (%) 8.6
Slide 12: Epanko Metallurgy and Flowsheet
E P A N K O M E T A L L U R G Y A N D F L O W S H E E T Metallurgical Results 85.7% of distribution > than 106 micron EPANKO FLAKE SIZE DISTRIBUTION Microns Portion Retained Carbon Grade Final carbon conc. of 96.3% TGC Name (µm) Mesh Size (%) (%) Flowsheet Jumbo >300 >48 20.0 97.1 Large >180 >80
Slide 13: Timeline to Production
E PA N KO – B A N K A B L E F E A S I B I L I T Y S T U D Y ( B F S ) Timeline to Production Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Front End Engineering Detailed Design Procurement Construction Fabrication Delivery Construction Commissioning Operations Production “Strategic advantages
Slide 14: Project Location and Infrastructure
P R O J E C T L O C A T I O N A N D I N F R A S T R U C T U R E 13
Slide 15: Long Term Development Strategy
L O N G T E R M D E V E L O P M E N T S T R A T E G Y Graphite Endowment Largest flake sizes in East Africa Africa’s largest historical production centre Cost competitive with existing (Chinese) supply Considerable technical advantages compared with current supply Geological Reason High me
Slide 16: World Demand/Supply
W O R L D – D E M A N D / S U P P L Y Total market is 1.2Mtpa with China the largest producer and consumer Natural flake demand outside of China is 320ktpa and largely sourced from China Traders and end users seeking diversity away from Chinese supply China seeking to import Large Flake Grap
Slide 17: Epanko Graphite – Superior Quality
E P A N K O G R A P H I T E – S U P E R I O R Q U A L I T Y Commercial Advantage over Existing Supply Expansion Rates for Jumbo (+50 mesh) flake is 490 Extremely High percentage of large flake provides higher ml/g which is up to 30% higher than Chinese supply basket prices and increased saleabil
Slide 18: World's Gigafactories
W O R L D S G I G A F A C T O I E S Gigafactories to increase graphite demand in future Source: Benchmark Mineral Intelligence “Panasonic (Japan) and LG Chem (Korea) are developing the world’s largest gigafactories for the 17 growing EV battery market”
Slide 19: EVs: Current Market Situation
E V ’ S : C U R R E N T M A R K E T S I T U AT I O N Current growth driven by government subsidies US and China currently largest growth markets Short-Medium term growth expected by increased government subsidies Europe led by Germany is expected to introduce incentives Number of electric ca
Slide 20: Market Entry Strategy
M A R K E T E N T R Y S T R AT E G Y FUTURE MARKET PRESENT MARKET “It’s critical to secure present market demand to provide a foundation for entry into the growth battery market” 19
Slide 21: Production Growth Strategy
P R O D U C T I O N G R O W T H S T R A T E G Y Two Fold Growth via Diversity Expected relative growth rate in Natural Flake “Kibaran is leading Tanzania to become the 20 world’s second largest graphite producer”
Slide 22: Lithium Ion Battery – Supply Chain
L I T H I U M I O N B AT T E R Y – S U P P LY C H A I N Epanko Graphite Production of Spherical Project Graphite Production of Natural Flake Mechanical Shaping via Impact mills Graphite Purification via chemical treatments -100 mesh 94-97% Carbon Graphite 99.95% Carbon Production of Lithium Ion Prod
Slide 23: Battery Manufacturing Facility Study
B A T T E R Y M A N U F A C T U R I N G F A C I L I T Y S T U D Y Scoping Study Key Results Production of Spherical, Expanded Initial production to commence at 15,000tpa, Graphite and other purified graphite increasing to 50,000tpa products Key Study Results Pre-tax NPV10 of US$115m Pre-IRR of 5
Slide 24: Corporate Social Investment
C O R P O R AT E S O C I A L I N V E S T M E N T School Desk Donation to Local Community In August 2014 Kibaran donated 148 school desks to Epanko Primary School. His Excellency President Jakaya Kikwete was present to receive the donation on behalf of the school. Wheelchairs for Special Needs Childr
Slide 25: Kibaran's Key Drivers to Success
K I B A R A N ’ S K E Y D R I V E R S T O S U C C E S S Strategic Partners – ThyssenKrupp AG + Sojitz + EGT Debt Financing – KfW-IPEX Bank + UFK (German Gov’t) + Nedbank Epanko positioned to be one of the first graphite projects into production in Africa Maximise our significant cost competi
Slide 26: Kibaran Resources Limited
Kibaran Resources Limited 338 Hay Street, Subiaco WA 6008 Phone: + 61 8 6380 1003 Email: info@kibaranresources.com www.kibaranresources.com 25