Elementos Limited · ASX:ELT
Elementos — Investor Presentation (April 2014)
24 slides from Elementos's investor presentation, May 7, 2014
Slide 1: Cleveland PFS and Project Update
elementos.com.au For personal use only APRIL 2014 ASX Code: ELT Cleveland PFS and Project Update
Slide 2: Investment Drivers
Investment Drivers elementos.com.au Cleveland is a differentiating project For personal use only Attractive NPV and IRR for both the tailings retreatment project and the underground mine Tailings retreatment project provides short-lead time to first production and cash flows (due 2016) Both pr
Slide 3: Corporate Summary
Corporate Summary elementos.com.au Diversified metals company focused on the Cleveland advanced stage tin- For personal use only copper project, with a number of prospective assets in South America and Australia, with an engaged and supportive shareholder base 551M ordinary shares at 2.0c for a mark
Slide 4: Cleveland Project – PFS Highlights
Cleveland Project – PFS Highlights elementos.com.au Stage 1 - Tailings Retreatment Project For personal use only Short lead-time to first production and earnings, with no further exploration drilling required; Mill capacity of 650ktpa to produce 1,000tpa of tin and 300tpa of copper in concentrat
Slide 5: PFS Key Numbers
PFS Key Numbers elementos.com.au Average of Stage One – Stage Two – ELT For personal use only KAS, SRZ and Kasbah* Stellar# AusTin^ Retreatment Underground Combined ANW Mine Life 6 years 10 years 13 years 9 years 7 years 9.3 years 650ktpa 360ktpa 1Mtpa 600ktpa 2.5Mtpa Mining Method Open Underground
Slide 6: Cleveland Development Plan
Cleveland Development Plan elementos.com.au For personal use only 2014 2015 2016 • Tailings reprocessing • Tailings project finance • Tailings first production • Tailings storage • Tailings project development • Mine dewatering • Dewatering environmental • DFS for underground permitting • Tailings D
Slide 7: Tin Supply and Demand Outlook
elementos.com.au For personal use only Tin Supply and Demand Outlook 7
Slide 8: Tin Prices – Current Prices Sustainable
Tin Prices – Current Prices Sustainable elementos.com.au Supply constrained and global mine production declining For personal use only Chinese and Indonesian production in long-term structural decline San Rafael mine closure in 2018 to reduce global production by ~10% Few new, sustainable proj
Slide 9: Tin Uses – Lead Free Solder Key Driver
Tin Uses – Lead Free Solder Key Driver elementos.com.au 2012 Tin Consumption by Usage# For personal use only Float Glass Brass and 2% Other Bronze 9% 5% Solder 53% Tinplate Chemicals 17% 14% Lead free solder has transformed the tin market Non toxic – replaces lead and other toxic metals Excellen
Slide 10: Tin Supply – Structural Changes
Tin Supply – Structural Changes elementos.com.au Indonesian Supply Declining1 For personal use only Issues affecting global tin supply Tin grades are declining and mines are getting deeper Costs of production are rising Capital costs are too high - current prices do not justify investment Re
Slide 11: Tin Demand - Steady Growth
Tin Demand - Steady Growth elementos.com.au Sustainable growth New markets For personal use only China accounts for nearly half of global New product development in the modern demand consumer electronics market key driver Lead free solder demand growing – the Lithium ion batteries – graphite
Slide 12: Cleveland - Technical Project Details
elementos.com.au For personal use only Cleveland - Technical Project Details 12
Slide 13: Cleveland Project - Differentiators
Cleveland Project - Differentiators elementos.com.au For personal use only Technical Excellent ground conditions Large scale stoping Large carbonate replacement system likely to continue at depth and along strike Known metallurgy with most tin recoverable using a modern gravity circuit Imp
Slide 14: Infrastructure
Infrastructure elementos.com.au Port – Container port at Burnie, 80 kilometres by road to the north-east For personal use only Roads - Adjacent to an all weather sealed road with access to Burnie Labour - Mining and industrial-savvy workforces in the region Power – High tension transmission
Slide 15: Tin-Copper JORC Mineral Resource
Tin-Copper JORC Mineral Resource elementos.com.au For personal use only Cleveland Tin and Copper Mineral Resource (0.6% Tin Cut-Off Grade) Copper Tin Metal % % Tin Tin Eq Metal Category Tonnage % Tin Metal (tonnes) Copper Eq (tonnes) (tonnes) Indicated+ 3,732,000 0.82 30,600 0.31 11,400 0.91 34,000
Slide 16: Tailings Retreatment
Tailings Retreatment elementos.com.au For personal use only Tin Recovery Concentrate Grade Gravity Circuit 20% 50% tin Tin Flotation Circuit 30% 35% tin Total Tin Recovery 50% 40% Copper Recovery Concentrate Grade Copper Flotation 40% 20% 16
Slide 17: Geology
Geology elementos.com.au At Cleveland, tin-copper mineralisation occurs as stratiform lenses within a series of sedimentary. These For personal use only sedimentary rocks are of Cambrian age and, while they were originally deposited horizontally, they have been tilted and are now more or less vertic
Slide 18: Mining Method
Mining Method elementos.com.au For personal use only The traditional mining methods previously adopted at Cleveland were proven to be successful and ground conditions were good throughout the mine. The underground method for the development and operation will be based on the historically proven meth
Slide 19: Mineral Processing
Mineral Processing elementos.com.au For personal use only Tin Recovery Concentrate Grade Gravity Circuit 52% 55% tin Tin Flotation Circuit 19% 40% tin Total Tin Recovery 71% 50% tin Copper Recovery Concentrate Grade Copper Flotation 75% 20% 19
Slide 20: PFS Details
PFS Details elementos.com.au Tailings Underground Integrated Project For personal use only Mine Life 6 years 10 years 13 years Mining Method Open Underground Mill Throughput 650ktpa 360ktpa 3.85Mt 2.9Mt Mining Inventory 0.3% tin 0.73% tin (Mining recovery and dilution factors 0.13% copper 0.27% copp
Slide 21: PFS Sensitivity
PFS Sensitivity elementos.com.au To understand the affect of changing inputs on the model, the inputs For personal use only below were each flexed ±10% and the resultant change to base NPV is shown. NPV (Millions AUD) $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 AUD/USD Exchange R
Slide 22: Optimisation Potential
Optimisation Potential elementos.com.au For personal use only Operating costs reduced by 10% to 20% by increasing the underground production rate from 360ktpa to 500ktpa# Increasing the tailings retreatment rate from 650ktpa to 1,000ktpa improves the tailings project NPV with only a small increa
Slide 23: Contacts
Contacts elementos.com.au For personal use only Elementos Limited ACN 138 468 756 Level 8, 26 Wharf Street tel: +617 3221 7770 Brisbane, Queensland, Australia fax: +617 3221 7773 www.elementos.com.au For enquiries regarding this presentation please contact: Calvin Treacy – Managing Director email: a
Slide 24: Disclaimer
Disclaimer elementos.com.au # TIN EQUIVALENT CALCULATIONS - The tin equivalency is calculated by the formula: Sn_Eq % = Sn% + Cu% / (Sn price US$22,560 per tonne for tin and For personal use only US$7,155 per tonne of copper). No metallurgical assumptions have been built into the resource estimate,