Renascor Resources Ltd · ASX:RNU
Renascor Resources — Investor Presentation (May 2016)
31 slides from Renascor Resources's investor presentation, May 11, 2016
Slide 1: Developing Australia's largest High Grade Graphite Deposit
Renascor Resources Limited ASX code: RNU Renascor For personal use only Resources Limited Developing Australia’s largest High Grade Graphite Deposit Capital Raising Presentation – 11 May 2016
Slide 2: Important Notices
Important Notices For personal use only Forward Looking Statements This Presentation may include statements that could be deemed “forward-looking” statements. Although Renascor Resources Limited (the “Company”) believes the expectations expressed in such forward-looking statements are based on reaso
Slide 3: Investment Highlights
Investment Highlights For personal use only Australia’s largest graphite deposit • Siviour deposit is large, shallow and open along strike • Considerable scope to add to resource with follow-up drill program commencing this month High Quality Deposit • Renascor is targeting a coarse flake, high puri
Slide 4: Renascor corporate profile
Renascor corporate profile For personal use only Adelaide-based management team with track record of discovery and development in South Australia ASX code RNU Shares on issue 237.0m Options 42.7m* Cash (31 March 16) $495K Share price (6 May 16) $0.017 12 month range $0.009-$0.028 Market capitalisati
Slide 5: Experienced Board & Management team
Experienced Board & Management team Stephen Bizzell, Non-Executive Chairman For personal use only Stephen is highly experienced in the fields of corporate restructuring, debt and equity financing, mergers and acquisitions and has over 20 years corporate finance and public company management experien
Slide 6: Focused graphite strategy
Focused graphite strategy For personal use only Strategy To capitalise on the highly encouraging progress to date at Siviour with the establishment of Australia’s largest graphite resource, Renascor intends to continue to progress toward goal of becoming a low-cost producer of high-quality coarse fl
Slide 7: Siviour graphite deposit
Siviour graphite deposit For personal use only Siviour graphite deposit in South Australia has quickly emerged as a potential commercial graphite development with several key components already established Deposit size and quality Australia’s largest graphite resource with ample scope to grow Locati
Slide 8: Re-rating potential
Re-rating potential For personal use only Renascor currently trades at a significant discount to its peers on an enterprise value per tonne basis given the recent and rapid progress at Siviour. Triggers for share price re-rating: • Market recognition of new Siviour discovery • Expansion of Siviour r
Slide 9: Graphite market
Graphite market For personal use only High tech growth areas are adding to historical industrial uses and driving increased demand for flake graphite Lithium Ion batteries Graphene Expandable graphite Super capacitors Green technologies Pebble bed reactors Renascor Resources 9
Slide 10: Why graphite in Australia?
Why graphite in Australia? For personal use only Graphite market needs secure supply • China dominates current supply • Emerging production from Africa Renascor aims to provide secure supply from Australia Source: Company data, Macquarie Research, November 2015 Renascor Resources 10
Slide 11: Arno graphite project
Arno graphite project For personal use only Located centrally in Eyre Peninsula graphite corridor Arno graphite project, showing location and nearby graphite deposits Renascor Resources 11
Slide 12: Arno graphite project: location
Arno graphite project: location For personal use only Optimal location for development and production Favourable jurisdiction • South Australia • Supportive government • Freehold land Port, Road, Rail, Power • Established ports -- Port Lincoln, Whyalla • Highway - 10km • Railhead - 16km • Power - on
Slide 13: Arno graphite project
Arno graphite project For personal use only Multiple graphite prospects –first drill program (Jan 2016) leads to Siviour discovery Carpa prospect Mt Priscilla prospect Siviour Lipson Cove graphite prospect deposit Dominant land position ~1,400km2 Electromagnetic image showing Arno Graphite Project,
Slide 14: Siviour graphite deposit
Siviour graphite deposit For personal use only Australia’s largest graphite deposit JORC-compliant Mineral Resource of 16.8Mt @ 7.4% TGC for 1,243,200t of contained graphite High-grade portion: 5.9Mt @ 10.0% TGC for 590,000t of contained graphite JORC Mineral Resource Estimate by Optiro Pty Ltd – in
Slide 15: Siviour deposit – flat-lying and near-surface
Siviour deposit – flat-lying and near-surface For personal use only Siviour has shallow, flat-lying orientation Siviour prospect: Geological cross-section for north-south Section 631800E, showing graphite-mineralised zones Renascor Resources 15
Slide 16: Siviour deposit – flat-lying and near-surface
Siviour deposit – flat-lying and near-surface For personal use only Siviour offers lower- strip ratio, less waste, more efficient mining Siviour prospect: Geological cross-section for north-south Section 631800E, showing graphite-mineralised zones Renascor Resources 16
Slide 17: Siviour – Ample scope to grow resource
Siviour – Ample scope to grow resource For personal use only Contained Mineralisatio Category TGC graphite n (Mt) (t) Indicated 6.8 8.1% 550,800 Inferred 10.0 6.9% 690,000 Total 16.8 7.4% 1,243,200 Siviour remains open at shallow depths Exploration Target defined to immediate east Open to north of I
Slide 18: Siviour – Exploration Target area
Siviour – Exploration Target area For personal use only 23m @ 12.9% TGC 21m @ 8.5% (Siv014) TGC (Siv012) 23m @ 7.8% TGC (Siv001) 36m @ 10.3% TGC (Siv018) High potential to immediately expand resource to the East Geological cross-sections for • Drilling expected to commence this quarter Section 62456
Slide 19: Siviour – Additional expansion area
Siviour – Additional expansion area For personal use only 23m @ 12.9% TGC 21m @ 8.5% (Siv014) TGC (Siv012) 23m @ 7.8% TGC (Siv001) 36m @ 10.3% TGC (Siv018) 27m @ 7.8% TGC (Siv031) 17.7m @ 6.5% TGC (CRD090) Geological cross-sections for . . . and to the South Section 6245600N (above) and Section 6245
Slide 20: Siviour versus other Australian graphite deposits
Siviour versus other Australian graphite deposits For personal use only Potential to reach globally competitive scale Renascor Resources 20
Slide 21: Arno Graphite Project – flake size
Arno Graphite Project – flake size For personal use only Petrological testing shows abundance of flake graphite at Siviour High proportion of coarse flake Siviour high-grade drill samples return: • 62% in super-jumbo (+500µm) category • Up to 1,600µm Strong basis for producing high quality concentra
Slide 22: Arno Graphite Project – metallurgy
Arno Graphite Project – metallurgy For personal use only Positive preliminary metallurgy tests at adjacent Paxtons prospect Simple bench flotation and gravity tests yield positive initial results • 87% recoveries • Up to 94.9% purity of concentrates • Super-jumbo (600µm) graphite Comprehensive miner
Slide 23: Arno Graphite Project - Conclusions
Arno Graphite Project - Conclusions For personal use only Siviour is large and growing Australia’s largest graphite deposit, with potential to be reach globally competitive scale High-quality coarse flake graphite High proportion of valuable jumbo and super-jumbo flake from petrological samples Pote
Slide 24: Munglinup Project – lithium and graphite
Munglinup Project – lithium and graphite For personal use only High upside potential from lithium and graphite prospects Young River lithium prospect – elevated lithium in Archean greenstone belt adjacent to Mt Cattlin lithium mine Drill-ready EM targets adjacent to high- grade Halbert’s graphite de
Slide 25: Other Projects
Other Projects For personal use only Project portfolio includes additional high-upside exploration projects Eastern Eyre -- Copper Advance large-scale copper prospect, with results including13m at 1.45% Cu, 66 ppm Ag and 0.17% Co Olary* – Lithium/Gold Elevated lithium in outcropping pegmatites Shall
Slide 26: Offer details
Offer details For personal use only Capital raising to raise a total of $1.1 million via a Placement and a Conditional Placement: Placement Placement Placement of approx. 47.4 million ordinary shares (New Shares) at an issue price of A$0.015 per New Share to raise approx. A$711,000 For every 4 New S
Slide 27: Use of funds through to September 2016
Use of funds through to September 2016 For personal use only Sources $AUD Available cash as at 31 March 2016 495,000 Placement offer proceeds 711,000 Conditional Placement offer proceeds 389,000 Total 1,595,000 Use of funds ($AUD) Exploration and drilling activities at Siviour 270,000 Broader explor
Slide 28: Forward Work Program
Forward Work Program For personal use only Funds from the Offer will be primarily be used to fast-track Siviour through development and into production High-grade graphite at Arno Renascor option to purchase Resource delineation drill program Flake size and purity Initial JORC resource Drilling to e
Slide 29: Proposed Offer Timetable
Proposed Offer Timetable For personal use only Event Timing Trading Halt 9 May 2016 Company announces Placement (Pre-market) 11 May 2016 Settlement of Placement Shares 5pm Fri 13 May 2016 Allotment and quotation of Placement Shares and 17 May 2016 Placement Options EGM to approve Conditional Placeme
Slide 30: Investment Risks
Investment Risks For personal use only An investment in Renascor has associated risks, some are general in nature and others are peculiar to Renascor’s business. The Company’s financial condition, operational results and share price (and thus the value of an investor’s holding) could be materially a
Slide 31: Investment Risks (continued)
Investment Risks (continued) For personal use only Financial Performance Renascor is a mineral explorer. The Company will not generate revenue until it can commercially mine its mineral deposits or enters into agreements with others to do so. Consequently, until Renascor is able to realise value for
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