Stellar Resources Limited · ASX:SRZ
Stellar Resources — Shareholder Meeting (October 2015)
22 slides from Stellar Resources's shareholder meeting presentation, Oct 20, 2015
Slide 1: Heemskirk Tin Project – Annual General Meeting
For personal use only Heemskirk Tin Project Highest grade undeveloped ASX-listed tin project Annual General Meeting October 2015 ASX: SRZ www.stellarresources.com.au
Slide 2: Agenda
Agenda For personal use only Investment case for Stellar Record of achievement over the last 12 months Optimisation has increased NPV by 62% to A$99m over the 2013 Prefeasibility Study (PFS) outcome of A$61m Opportunities to add value in a Definitive Feasibility Study (DFS) Conclusion
Slide 3: Corporate overview
Corporate overview For personal use only 100% owner of the highest grade undeveloped ASX-listed tin project Company overview Daily trading Share price (A$) volume (m) 100% owner of Heemskirk Tin Project, 150km 0.09 0.9 south of Burnie, Tasmania Stand-out high grade resource (1.1% Sn) with vision
Slide 4: Investment case
Investment case For personal use only Premier position in Australia’s most productive tin field 100% owned Heemskirk Tin Project is the highest grade undeveloped tin resource on the ASX Heemskirk is an unencumbered project with no offtake agreements yet in place; thus allowing for the devel
Slide 5: ASX junior tin developers
ASX junior tin developers For personal use only Heemskirk is the premier pre-production tin opportunity on the ASX Resource grade (% Sn) Very high Sn grade 1.1% Lower per unit costs 0.9% Superior shareholder returns 0.7% 0.4% 0.2% 0.2% Heemskirk Achmmach Cleveland Tin Mt Garnet Mt Lindsay Tarong
Slide 6: Favourable project location
Favourable project location For personal use only North-west Tasmania is a world-class tin jurisdiction Significant mining district Many historical and current operating mines across various commodities Supportive local community and skilled workforce Experienced workforce available with oth
Slide 7: Record of achievement in updates
Record of achievement in updates For personal use only Operational achievements in 2015 have set the platform for a definitive feasibility study in 2016 February 2015 Environmental Protection Authority guidelines received Exploration licence granted to the south of Heemskirk March 2015 Metallu
Slide 8: Simplified plant design
Simplified plant design For personal use only Metallurgical optimisation led to smaller primary grind and elimination of heavy media separation and silica float circuits saving A$5m from capex 8
Slide 9: High grade geological focus
High grade geological focus For personal use only Geological review has uncovered a number of additional high grade tin areas within structures and dilation zones Dilation zones Structures (includes 2m @ 1.4% Sn) (includes 8m @ 1.8% Sn) cassiterite 9
Slide 10: St Dizier scoping study completed
St Dizier scoping study completed For personal use only Low cost open pit (capital and operating) - source of blending ore for processing in the Heemskirk plant Low capital development cost of A$3.8m Mining inventory of 424,000 tonnes @ 0.86% tin Initial mine life of 30 months Annual ore pro
Slide 11: Quality tailings dam site secured
Quality tailings dam site secured For personal use only Tailings dam site in plan and oblique view Capacity 3x initial mine life Low capital containment Initial cost A$1.4m wall plus A$3.4m pipeline No observed geological flaws Concealed valley Crown land No competing land use No obs
Slide 12: Optimisation increased NPV by 62%
Optimisation increased NPV by 62% For personal use only The 2013 PFS NPV has increased by A$38m to A$99m following an optimisation program that increased recovery and lowered capital cost Recovery increase to 72.5% added $18m to NPV Lower mining cost offset by higher processing cost Paste fill
Slide 13: Competitive cost structure
Competitive cost structure For personal use only At 0.70USD/AUD the Heemskirk project has moved down the international tin industry cost curve towards the 40th percentile position 13
Slide 14: Heemskirk DFS
Heemskirk DFS For personal use only DFS timeline for the Heemskirk project – 15 month program Diamond drilling to commence once funding secured Metallurgical testing to commence as sample becomes available DFS timeline from commencement T+3 T+6 T+9 T + 12 T + 15 T months months months months mon
Slide 15: DFS - opportunity to add value
DFS - opportunity to add value For personal use only The DFS provides an opportunity to further improve grade, tonnes and mine life Conversion resources to reserves 24,250m of diamond drilling Test high grade geological model Upgrade deeper inferred resource Metallurgical testing of all or
Slide 16: Substantial leverage to tin price
Substantial leverage to tin price For personal use only Significant upside for the Heemskirk NPV as the spot tin price increases over the next 3 years (production expected 2018) A$m NPV 300 Spot price Spot price Sep 2015 Mar 2011 250 200 150 100 improvement with optimisation 50 improvement with exch
Slide 17: Concluding remarks
Concluding remarks For personal use only Stellar is in a sound position with a high quality tin asset Significant progress over the last 12 months - project momentum maintained despite difficult market conditions NPV increased by 62% to A$99m – through a number of positive outcomes from the
Slide 18: Appendix
For personal use only Appendix Heemskirk PFS mine plan Board of Directors ASX: SRZ www.stellarresources.com.au 16
Slide 19: Heemskirk 2013 PFS mine plan
Heemskirk 2013 PFS mine plan For personal use only Surface Queen Hill Long Hole Stoping Montana Long Hole Stoping Severn Drift & Fill Severn Long Hole Stoping Open at depth 500m 19
Slide 20: Board of Directors
Board of Directors For personal use only Experienced and multi-disciplinary Board with strong global connections Phil Harman Miguel Lopez de Letona Non-Executive Chairman Non-Executive Director Geophysicist Management Consultant Over 30 years experience in BHP Billiton Experience as a management
Slide 21: Disclaimer
Disclaimer For personal use only Forward Looking Statement This presentation was prepared by Stellar Resources Limited ( the “company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the company or as an offer or invitation with respect to those
Slide 22: Stellar Resources Limited
Stellar Resources Limited Level 17, 530 Collins Street For personal use only Melbourne VIC 3000 Phone +61 3 9618 2540 Fax +61 3 9649 7200 www.stellarresources.com.au 22
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