Stellar Resources Limited · ASX:SRZ
Stellar Resources — Investor Presentation (February 2012)
21 slides from Stellar Resources's investor presentation, Feb 15, 2012
Slide 1: Heemskirk Tin Project - Tasmania
For personal use only Heemskirk Tin Project - Tasmania CEO Peter Blight February 2012
Slide 2: Corporate
For personal use only Corporate ASX Code: SRZ (listed April 2005) Shares on Issue: 191.5M Share Price: 8.3c (12 month range: 4-24c) Market Capitalisation: $16M Cash: $4.0M (Feb 12) Investment: $0.6M (USA shareholding) Ownership Structure Board & Management Top 20 67% Phil Harman – Non-Executive Chai
Slide 3: Focused on tin
For personal use only Focused on tin Rapidly advancing Heemskirk Tin near Zeehan, Tasmania – single commodity - single project focus Established mining region Good historical drilling data base Potential to discover blind deposits Mining and environmental scoping are positive Project tar
Slide 4: Simplifying Ownership Structure
For personal use only Simplifying Ownership Structure Historical JV – 60% Stellar, 40% Gippsland with Stellar as operator Stellar acquired Gippsland’s 40% for 43.5 m Stellar shares and a royalty Simple share transaction with no changes to Stellar board or focus 100% ownership allows Stellar
Slide 5: Tin prices recover strongly
For personal use only 5 1/ 0 1/ 9/2 1 0 10,000 15,000 20,000 25,000 30,000 35,000 5,000 0 2/ 0/2 09 1 0 2/ 1/2 09 1 0 6/ 2/2 09 0 0 5/ 1/2 09 0 0 Tonnes 9/ 2/2 10 12 03 0 1 /2 0 13 /04 / 0 1 2 0 15 /05 / 01 2 0 15 /06 01 /2 0 16 /07 / 01 2 0 LME Price LME Stocks 16 /08 / 01 2 0 18 /09 / 01 2 0 17
Slide 6: Growth dominated by solder
For personal use only Growth dominated by solder Source: ITRI Tin recycling is becoming more important, particularly in China, and now represents 22% of global demand 6
Slide 7: Where is tin mined?
For personal use only Where is tin mined?
Slide 8: Not enough in ITRI project list
For personal use only Not enough in ITRI project list Compa ny Proje ct Country Ca pa city Minsur San Rafael tailings Peru 7,500 Syrymbet Syrymbet Kazakhs tan 6,500 Kasbah Resources Achmmach Morocco 5,600 Amerilangui Ujin Narsiin Khundlen Mongolia 5,200 TMR Ltd Offshore dredges Indonesia 5,000 Metal
Slide 9: Great location - multiple deposits
For personal use only Great location - multiple deposits Heemskirk tin project and St Dizier tin deposit 100% owned Significant mining district Easy access to water & power Sealed road between both deposits Rail & road connect to Burnie port 18 km from Australia’s largest tin mine Reniso
Slide 10: High Grade Resource
For personal use only High Grade Resource Heemskirk Mineral Resource 4.4mt grading 1.1% tin 48kt of contained tin in 3 nearby deposits Queen Hill, 1.6Mt @1.2% tin as indicated resource All deposits open at depth Highest grade tin project with JORC resource Heemskirk Mineral Resource Deposit
Slide 11: Positive Metallurgy
For personal use only Positive Metallurgy Traditional high-sulphide tin ore processing circuit proposed – comparable with Renison Bell circuit Tin present as cassiterite rather than more difficult to treat stannite Pre-concentration works well Mineral characterisation shows potential to prod
Slide 12: Scoping study greenlight
For personal use only Scoping study greenlight Internal rate of return of 21% & 3.5yr payback advance project to pre-feasibility stage US$12,780/t cash cost positions project competitively on the industry cost curve Life of mine revenue of $673 million net of smelter charges 600,000 tpa thro
Slide 13: Conservative project assumptions
For personal use only Conservative project assumptions Parameter Units Assumption Comment Mine life years 7.6 minimum life typical for underground Mining dilution % 15 mines average resource grade is ROM grade % 0.93 1.1% drawing from all three Treatment rate tpa 600,000 deposits Recovery % 70 targe
Slide 14: Competitive cost structure
For personal use only Competitive cost structure Current tin price & marginal cost of production US$25,000/t Heemskirk US$12,780/t Existing production Major new projects 14 Cash cost estimates are provisional and used with permission from ITRI.
Slide 15: Excellent exploration potential
For personal use only Excellent exploration potential 15
Slide 16: Severn Long Section
For personal use only Severn Long Section ZS107A shows that high grade continues at depth 16
Slide 17: Feasibility Program
For personal use only Feasibility Program Indicative Timing 2012 2013 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Drilling Severn Extension RL Exploration Queen Hill Extension Montana Extension Infill Drilling Metallurgy Environmental Prefeasibility Feasib
Slide 18: How does Heemskirk compare?
For personal use only How does Heemskirk compare? Advanced tin project Positive scoping study adds momentum Highest grade tin project with JORC resource Excellent exploration potential on tenement Project located near mining infrastructure Well positioned to smelters in SE Asia & China 1
Slide 19: Low Cost Opportunity
Low Cost Opportunity Enterprise Value per Tonne Tin in Resources ($/T) For personal use only 3000 2500 2000 1500 1000 500 0 CSD SRZ VMS KAS MLX Opportunity for re‐rating & share price upside 19
Slide 20: Disclaimer
For personal use only Disclaimer Forward Looking Statement This presentation contains only a brief overview of Stellar Resources Limited (“Stellar") and its activities and operations. The contents of this presentation, including matters relating to the geology of Stellar’s projects, may rely on vari
Slide 21: Stellar Resources Limited
Stellar Resources Limited Level 17, 530 Collins Street Melbourne VIC 3000 For personal use only Phone +61 3 9618 2540 Fax +61 3 9649 7200 www.stellarresources.com.au
Stellar Resources — Investor Presentation (February 2012) on 6ix