Vital Metals Ltd · ASX:VML
Vital Metals — Shareholder Meeting (November 2014)
25 slides from Vital Metals's shareholder meeting presentation, Nov 26, 2014
Slide 1: Vital Metals Annual General Meeting
For personal use only VITAL METALS ANNUAL GENERAL MEETING ASX:VML 26 NOVEMBER 2014 Building a globally significant strategic metals company
Slide 2: 2014 Highlights
2014 Highlights For personal use only Watershed DFS – confirmed the viability of a long life 10 year 2.5Mtpa Tungsten Project Continued our strategic partnership with JOGMEC (30% interest in project) Secured extension of $3M convertible loan facility with Macquarie Bank Welcomed a strategic
Slide 3: Watershed Tungsten Project, Queensland: De-risked and Ready for Development
For personal use only VITAL METALS WATERSHED TUNGSTEN PROJECT, QUEENSLAND ASX:VML DE-RISKED AND READY FOR DEVELOPMENT Building a globally significant strategic metals company
Slide 4: Forward Looking and Cautionary Statements
Forward Looking and Cautionary Statements For personal use only Forward looking statements Certain written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute for
Slide 5: Investment Highlights
Investment Highlights For personal use only Watershed Tungsten Project: positive Feasibility Study completed (Sept 2014)* Annual EBITDA of A$50M from 2.5Mtpa project Pre-production capital of US$150M including contingencies World-class JORC resource: DFS considered 10-year open pit operation
Slide 6: Company Overview and Structure
Company Overview and Structure For personal use only Capital Structure Directors ASX Code: VML David Macoboy – Chairman Share price: A$0.025 Mark Strizek - Managing Director Shares on Issue: 303M Peter Cordin – Non-Exec Director Options on Issue: 66M Andrew Simpson - Non-Exec Director Market Cap (un
Slide 7: Watershed Project
Watershed Project For personal use only • Located 115km north west of Cairns • Access to international and domestic airport at Cairns • Well serviced with road, state grid power line (24km from site) • Creating employment for 300 people during construction • Employing 120 people when in operation •
Slide 8: Watershed Mineral Resources and Ore Reserves
Watershed Mineral Resources and Ore Reserves For personal use only Mineral Resources Tonnage Mt WO3% Measured 9.5 0.16 Indicated 28.4 0.14 Sub Total: Measured and Indicated 37.8 0.15 Inferred 11.5 0.15 Total: Measured, Indicated and Inferred 49.3 0.14 Ore Reserves Tonnage Mt WO3% Proved 6.4 0.16 Pro
Slide 9: Project Capital and Operating Costs
Project Capital and Operating Costs For personal use only Project Capital Cost Estimates A$M US$M Mining 2.2 2.0 Processing Plant 130.5 117.5 Site Infrastructure 36.2 32.6 Working Capital 3.4 3.1 Total 172.3 155.1 C1 Cash Cost Estimates – Life of Mine A$/ t ore A$/mtu US$/mtu Mining 14.1 130.4 117.3
Slide 10: Mine Plan and Production Schedule
Mine Plan and Production Schedule For personal use only 10 year mine life: 9 years mining, after which low grade stockpiles will be processed. Mine production scheduled to feed a 2.5Mtpa processing plant. Open cut mining using 200t hydraulic excavator and 5 x 100t dump trucks. Highly visible
Slide 11: Processing Flowsheet
Processing Flowsheet For personal use only High grade 65% WO3 clean concentrate produced at an average plant recovery of 73.6% WO3. Throughput of 2.5Mtpa for 2,500tpa WO3 in concentrate life of mine. Innovative flowsheet minimises power consumption. Ore sorters and spirals reject 80% of the fe
Slide 12: Watershed Financials
Watershed Financials For personal use only Project Capital Cost Estimates Units US$M Project NPV 8 real Pre Tax Ungeared A$M 178 Project NPV 8 real Post Tax Ungeared A$M 112 IRR Pre Tax Ungeared % 28 IRR Post Tax Ungeared % 22 Life of Mine Revenue A$M 1,080 Life of Mine EBITDA A$M 526 Free Cashflow
Slide 13: Watershed Financials - Sensitivities
Watershed Financials - Sensitivities For personal use only -5% on Equity Case Equity Case +5% on Equity Case Item NPV 8 A$M NPV 8 A$M NPV 8 A$M Tungsten Price 84 111.6 139 Exchange Rate 87 111.6 136 Tungsten Recovery 87 111.6 136 Ore Tonnes Mined 94 111.6 127 Project Capital 110 111.6 113 Admin Cost
Slide 14: Opportunities
Opportunities For personal use only Additional Project life: • Potential for an underground operation – ore body open at depth • Potential for satellite surface operations at Desailly and Watershed South – drill ready exploration targets • Pipeline of exploration prospects within trucking distance o
Slide 15: Why Invest in Tungsten?
Why Invest in Tungsten? For personal use only Market fundamentals for tungsten are strong with forecasters predicting that tungsten supply will decrease by around 3% over the period 2014-2016 Demand for tungsten is expected to grow at 6% per annum over the period 2015-2018 Tungsten is a critic
Slide 16: Summary
Summary For personal use only Watershed Tungsten Project is ready to go Strategic project level partnership with JOGMEC (30% interest in project) key to securing involvement of Japanese company that will provide off- take and assist with project financing Good opportunity to build on the 10-ye
Slide 17: Competent Person Statements
Competent Person Statements For personal use only Competent Person’s Statement The information that refers to Mineral Resources in this presentation was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the inform
Slide 18: For Further Information
For personal use only For Further Information Mark Strizek – Managing Director Ph: +61 8 9388 7742 ASX:VML Email: vital@vitalmetals.com.au Building a globally significant strategic metals company
Slide 19: Appendix
For personal use only APPENDIX Building a globally significant strategic metals company
Slide 20: Tungsten Demand Expected to Grow
Tungsten Demand Expected to Grow For personal use only World forecast demand by country (tonnes W) Market fundamentals for tungsten are strong with market forecasters predicting that tungsten supply will decrease by around 3% over the period 2014-2016. Demand on the other hand is expected to gro
Slide 21: Tungsten – a Vital Metal with Strategic Importance
Tungsten – a Vital Metal with Strategic Importance For personal use only other Tungsten (chemical symbol W) is a corrosion-resistant, dense Mill 6% material with the highest melting point of any metal and is products sought for both its mechanical and refractory properties. 18% Cemented o It is the
Slide 22: China – Focused on Domestic Needs First
China – Focused on Domestic Needs First For personal use only China is the largest consumer and producer of tungsten. Chinese Average Yearly Wages o China accounts for 85% of the world’s total output and 55% of the global demand. Chinese production is focused towards domestic supply and value added
Slide 23: Watershed – Well Placed to Meet Japan's Tungsten Needs
Watershed – Well Placed to Meet Japan’s Tungsten Needs For personal use only Japan has a world class tungsten industry that Switch, Special produces high technology tungsten metal Metal 2% Steels, 1% products for domestic and international Products, Others, consumption. 3% 1% Japan has no domest
Slide 24: Exciting Exploration Potential
Exciting Exploration Potential For personal use only Name Tenement Element of Interest Tonnage Range (kt) Grade Range Comments These Exploration Watershed Deeps* ML20536 W 10,500 – 14,000 0.14 - 0.25% Targets are conceptual in Watershed South* MDL127 W 830 - 1,000 0.06 - 0.15% nature, and there has
Slide 25: Exploration Pipeline to Drive Growth
Exploration Pipeline to Drive Growth For personal use only Watershed Deeps Slaty Range