Metals X Limited · ASX:MLX
Metals X — Merger or Acquisition (September 2012)
31 slides from Metals X's merger presentation, Sep 7, 2012
Slide 1: Westgold and Metals X: Creation of a Diversified Mining House, Well Funded to Pursue Growth
For personal use only Westgold and Metals X: Creation of a Diversified Mining House, Well Funded to Pursue Growth 6 September 2012
Slide 2: Transaction Highlights
TRANSACTION HIGHLIGHTS For personal use only #1 Creation of a larger, diversified mining house with exposure to gold, tin, nickel and copper Portfolio including one producing and three development assets, providing immediate cash flow as well #2 as an enhanced growth profile The Independent Expert,
Slide 3: Snapshot of Merged Group
SNAPSHOT OF MERGED GROUP For personal use only Diversified portfolio with exposure to gold, tin and nickel and strategic global investments. +A$34.6m Liquid Investments 15% An Entry Into Mongolia Au 25.0% An Entry Into Madagascar Au, Al 2.8% Low Cost, High Grade Ni, Au, Ag, Zn 5.2% Murchison Au Proj
Slide 4: Transaction Summary
TRANSACTION SUMMARY For personal use only Structure • Merger by Scheme of Arrangement • Subject to customary Westgold Shareholder and Court approvals • Merged group to retain Metals X company name and ASX ticker and listing • Metals X does not vote Consideration • 11 Metals X shares for every 10 Wes
Slide 5: Independent Experts Conclusion
INDEPENDENT EXPERTS CONCLUSION For personal use only “Fair and reasonable and in the best interests of shareholders” – Independent Expert, BDO Corporate Finance “In our opinion, the position of WGR shareholders if the Share Scheme is approved is more advantageous than the position if the Share Schem
Slide 6: Valuation Scorecard
VALUATION SCORECARD For personal use only Metrics Metals X Westgold Resources Pro Forma Merged Entity Ordinary Shares 1,316.6M 417.1M 1,651.8M Mineral Asset Value* $420.3M $142.9M $563.2M Cash and Working Capital $61.6M $3.3M $60.8 Listed Investments $50.0 - $34.2M** Total Asset Value $531.9M $146.2
Slide 7: Well Funded to Pursue Growth
WELL FUNDED TO PURSUE GROWTH For personal use only Strong pro forma balance sheet: +A$95m cash, working capital and listed investments Lowered risk of dilutive equity raising for Westgold Potential for the merged group to renegotiate more favourable terms on any debt funding options Capable
Slide 8: Growth Project Pipeline
GROWTH PROJECT PIPELINE For personal use only Merged Group will be: • Australia’s largest tin producer holding the highest grade and largest resource • A rapidly advancing gold producer targeting 120-180KOz per annum • An emerging nickel major with the globally significant Wingellina Project EXPLORA
Slide 9: Australia's Largest Tin Producer
AUSTRALIA’S LARGEST TIN PRODUCER Renison (50%) Renison Expansion (50%) For personal use only Resources 9.69Mt @ 1.58% Sn 20Mt @ 0.45% Sn; 0.21% Cu 7.16Mt @ 0.36% Cu Target Annual Production 7-8Kt Sn 5Kt Sn 1-2Kt Cu 2Kt Cu Renison Project Australia’s only producing tin mine, located on the west c
Slide 10: Australia's Largest Tin Producer
AUSTRALIA’S LARGEST TIN PRODUCER For personal use only The Renison and Renison Expansion Projects have the highest grade and some of the largest resources in Australia with circa A$300M of established processing and mine infrastructure 1.75 Renison 1.50 Outback 1.25 Collingwood Stellar Grade (%) 1.0
Slide 11: Central Murchison Gold Project (CMGP)
CENTRAL MURCHISON GOLD PROJECT (CMGP) For personal use only CMGP Resources 2.7Moz Au Target Production (per annum) 60-120,000oz Au Integrated underground/open pit mining operation with a plan for a centralised processing facility Holds tenements which have historically produced +5Moz of gold C
Slide 12: Central Murchison Gold Project (CMGP)
CENTRAL MURCHISON GOLD PROJECT (CMGP) For personal use only Jewels of the Murchison- 1.6Moz historic production at 17g/t Au 12
Slide 13: Wingellina Project
WINGELLINA PROJECT For personal use only Wingellina Resources 183Mt @ 1% Ni; 0.08% Co Target Production (per annum) 40Kt Ni; 3Kt Co One of the largest undeveloped nickel projects in the world MOU With Samsung C&T, MLX 30% free carried to commercial production Hosts 183Mt of ore at 1% nickel an
Slide 14: Wingellina Project
WINGELLINA PROJECT For personal use only Wingellina (Tropical Limonite) Typical Australian Laterites Strip Ratio 1:1 (0.5:1 for 20 years) 3-5:1 Ore Thickness (avg) 80 m 5-15 m Tonnes/km2 50-60 Mt 5-15 Mt Iron/MgO High/Low Low/Moderate-High Acid Consumption < 300 Kg/t (~20% of Op Cost) > 500 Kg/t (Si
Slide 15: Rover Project
ROVER PROJECT For personal use only Rover 1 Resources 1.2Moz AuEq Target Production (per annum) 60,000oz AuEq New undercover south-western extension (14,000km2) to the prolific Tennant Creek Goldfield which has produced +5.0Moz of gold to date and represents one of Australia’s top five goldfields.
Slide 16: Strategic Investments
STRATEGIC INVESTMENTS For personal use only The Merged Group will have exposure to a number of exploration and development projects which allows for both the flexibility to fund and finance the exploration 15% and development activities in a dedicated manner without the competition for capital from
Slide 17: Catalysts for Re-rating
CATALYSTS FOR RE-RATING For personal use only Raised profile (increased scale, market capitalisation, access to capital markets, research coverage, enhanced liquidity and removes the perceived funding risks associated with development of CMGP and Rover 1 The creation of a larger diversified mining
Slide 18: Indicative Timetable
INDICATIVE TIMETABLE For personal use only 31 August 2012 • Despatch of Scheme Booklet to Westgold shareholders 3 October 2012 • Scheme meeting to consider and approve the Scheme 4 October 2012 • Second Court hearing to approve Scheme 17 October 2012 • Implementation Date • Termination of official A
Slide 19: Westgold Resources and Metals X: Creation of a Diversified Mining House
For personal use only Westgold Resources and Metals X: Creation of a Diversified Mining House, Well Funded to Pursue Growth 6 September 2012
Slide 20: Appendix: WGR & MLX Reserves and Resources Statement
For personal use only APPENDIX: WGR & MLX RESERVES AND RESOURCES STATEMENT 20
Slide 21: Reserves – Central Murchison Gold Project
Reserves – Central Murchison Gold Project For personal use only Probable Total Ore Body Tonnes Grade Ounces Tonnes Grade Ounces Underground Big Bell 2,895,000 4.20 391,000 2,895,000 4.20 391,000 Great Fingall^/Golden Crown 878,000 8.00 224,000 878,000 8.00 224,000 Sub-total 3,772,000 5.08 616,000 3,
Slide 22: Resources – Central Murchison Gold Project
Resources – Central Murchison Gold Project Measured Indicated Inferred Total Resource Mining Centre/ Tonnes Au Au Tonnes Au Au Tonnes Au Au Tonnes Au Au For personal use only Deposit g/t Oz g/t Oz g/t Oz g/t Oz Big Bell 1600N / Shocker - - - 2,870,000 1.31 121,000 3,503,000 1.26 141,000 6,373,000 1.
Slide 23: Resources – Rover Gold and Copper Project
Resources – Rover 1 Gold and Copper Project For personal use only Table 1: Rover 1 – Total Mineral Resource Estimate (using 2.5 g/t Au cut-off) Rounding errors may occur Classification Tonnes AuEq g/t* Au g/t Ag g/t Bi % Co % Cu % AuEq Oz* Indicated 2,740,771 6.59 2.42 2.33 0.18 0.04 1.42 580,696 In
Slide 24: Resources – Rover Gold and Copper Project
Resources – Rover 1 Gold and Copper Project Table 2a: Rover 1 – High Grade Gold Zones (using 2.5 g/t Au cut-off) For personal use only Rounding errors may occur Classification Tonnes AuEq g/t^ Au g/t Cu % AuEq Oz^ Indicated 607,618 11.86 9.26 1.47 231,689 Inferred 717,118 5.54 5.1 0.25 127,729 Total
Slide 25: Resources – Explorer Lead Zinc Silver Project
Resources – Explorer 108 Lead Zinc Silver Project For personal use only Explorer 108 Identified Mineral Resource (using 2.5% Pb+Zn and 5% Pb+Zn cut-off) Total Inferred Resource Statement, at 2.5% Pb+Zn% Class Tonnes Pb+Zn Pb Zn Au Ag Cu Pb Metal Zn Metal Au Ag T % % % g/t g/t % T T Oz Oz Inferred 8,
Slide 26: Mineral Resources – MLX-Tin Division
Mineral Resources – MLX-Tin Division For personal use only TIN COPPER JORC CATEGORY Cut-off Sn Grade Tonnes (Kt) Grade (%Sn) Tonnes (Kt) Cu Metal (t) %Sn Metal (t) (%Cu) Measured Renison Bell 0.80% 972 2.00 19,400 778 0.35 2,700 Mt Bischoff 0.50% - - - - - - Rentails 0.00% 19,999 0.45 89,400 19,999
Slide 27: Mining Reserves – MLX-Tin Division
Mining Reserves– MLX-Tin Division For personal use only TIN COPPER PROJECT Cut-off Tonnes Grade Sn Tonnes Grade Cu % (Kt) (%Sn) Metal (t) (Kt) (%Cu) Metal (t) Proved Reserves Renison Bell 0.80% 372 1.44 5,300 372 0.32 1,200 Mt Bischoff 0.50% - - - - - = Rentails 0.00% - - - Collingwood 0.70% - - - S
Slide 28: Mineral Resources – MLX-Nickel Division
Mineral Resources – MLX-Nickel Division For personal use only Wingellina Cut Off (%Ni) Tonnes (Mt) Ni (%) Co (%) Fe203(%) Measured 0.5 68.8 1.00 0.078 48.7 Indicated 0.5 98.6 0.97 0.075 46.4 Inferred 0.5 15.7 0.97 0.069 42.7 Total I.M.R 0.5 183.2 0.98 0.076 47.0 Claude Hills* Cut-off (% Ni) Tonnes (
Slide 29: Mining Reserves – MLX-Nickel Division
Mining Reserves– MLX- Nickel Division For personal use only Mining Reserve Estimate as at 30 June 2012 Class Tonnes (Kt) Ni (%) Co (%) Fe203(%) Proven - - - - Probable 167,470 0.98 0.08 47.34 Total 167,470 0.98 0.08 47.34 29
Slide 30: Westgold Resources Disclaimer
WESTGOLD RESOURCES DISCLAIMER For personal use only Disclaimer This presentation has been prepared by Westgold Resources Limited (“Westgold” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This
Slide 31: Metals X Disclaimer
METALS X DISCLAIMER For personal use only General Disclaimer This presentation has been prepared by Metals X Limited (“Metals X” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation