Waratah Minerals Limited · ASX:WTM
Waratah Minerals — Battery Minerals — Investor Presentation (May 2018)
25 slides from Waratah Minerals's investor presentation, May 2018
Slide 1: Fast-tracking Montepuez & Balama Projects
Fast-tracking Montepuez & Balama Projects BATTERY MINERALS LIMITED May 2018 Investor Presentation 1
Slide 2: Less than 15 mths to first sales and cashflow
Less than 15 mths to first sales and cashflow 1. Terms of US$30m debt & equity funding package agreed with RCF 2. Construction underway; commissioning in Q1 2019, First shipment Q2 2019 3. Key plant purchased/orders placed; crushing circuit, ball mill, camp, dryer, float cells 4. Mining licence gran
Slide 3: Corporate Overview
Corporate Overview Share Price Jeff Dowling Ben Van Roon Non-Exec Chairman Chief Operating Officer 0.12 160 Millions Daily Volume Traded On-Market 140 Daily Close Price - BAT 0.10 David Flanagan Tony Walsh 120 Daily VolumeTraded On-Market Managing Director Company Secretary & 0.08 Close Price (A$/sh
Slide 4: Montepuez an Exceptional first Project
Montepuez an Exceptional first Project Montepuez Graphite Project 2 VES (First Module) Annual graphite production 45,000 – 50,000pa Capex (pre-production) US$42.3 M Opex (concentrate/t)7 US$337/t Grade processed 12% TGC Plant Type and Scale Modular, ~500ktpa Projected Payback <2 years5 Net Operating
Slide 5: Next 20 Months plans
Next 20 Months plans1 • 3Q 2018 – Finalise debt and equity funding for Montepuez Stage 1 • 3Q 2018 – Complete early stage site works, camp, roads and civils • 4Q 2018 – Delivery of long lead items to site • 1Q 2019 – Commence commissioning • 2Q 2019 – Complete construction and complete commissioning
Slide 6: Montepuez on track for Q1 2019 commissioning
Montepuez on track for Q1 2019 commissioning • Mining Licence Granted • Terms of US$30m debt & equity package agreed with RCF • Temporary construction camp installed • Topsoil removal underway • Crushing circuit arrived in-country and on site • Site civil works underway • Camp under construction • C
Slide 7: Balama Scoping Study Outcomes
Balama Scoping Study Outcomes Balama Graphite Project 2 Scoping Study Annual graphite production 50,000 – 55,000pa Capex (pre-production) US$50 M Opex (concentrate/t)6 US$372/t Grade Processed 10.6% TGC Plant Type and Scale Modular, ~550ktpa Projected Payback <1.5 years5 Net Operating Cash Flow >US$
Slide 8: Montepuez Exploration Target – Additional Growth 300-400MT @ 5-10% TGC
Montepuez Exploration Target – Additional Growth 300-400MT @ 5-10 % TGC1 • 5 VTEM target areas • Only 15-20% of targets have been drilled • VTEM conductors remain largely untested • All deposits remain open at depth and along strike • Potential for 300- 400Mt @ 5-10% TGC1 • Buffalo deposit drilling
Slide 9: Montepuez Exploration Upside
Montepuez Exploration Upside Elephant deposit, comprised 240 holes for 4,968 metres drilled to refusal using blade RC aircore technique. The results include: ▪ EL028A, 37 metres at 13.49% TGC from surface, ▪ EL058A, 20 metres at 15.61%TGC from 2 metres, ▪ EL078A, 24 metres at 16.07% TGC from surface
Slide 10: Next 12 months targets
Next 12 months targets 1. Complete financing 2. Award remaining contracts for Montepuez Stage 1 3. M1 construction & commission by Q2 2019 4. Balama Feasibility Study H2 2018 5. First Concentrate shipment Q2 2019 6. Updated Resources/Reserves all projects 7. Additional offtake agreements for M2 10
Slide 11: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement Forward Looking Statements published data for which Competent Persons consents were periodic and continuous disclosure announcements lodged with obtained. Their consents remain in place for subsequent releases the ASX, which are available on the Battery Miner
Slide 12: APPENDICES
APPENDICES • Board and management biographies • Summary RCF Term Sheet • Summary Uses/Sources of Funds • Graphite Price Trend Jan 2016 to April 2018 - Montepuez • Graphite Price Trend Jan 2016 to April 2018 - Balama Central • Key Milestones for BAT • Graphite Price Forecast • Graphite Price drivers
Slide 13: US$30m debt/equity funding terms agreed RCF
US$30m debt/equity funding terms agreed RCF • Term sheet signed for US$25m term loan and US$5m equity • US$25m term loan1 is for 3 years at an interest rate of 10%pa • RCF to subscribe for US$5m (~AUD$6.7m) in proposed placement1 • Proceeds will be used for construction of the Montepuez project • US
Slide 14: Expenditure planned for Montepuez Construction
Expenditure planned for Montepuez Construction Item AUDm USDm Balance of Montepuez construction capital $58.90 $44.183 Environmental bonds & Government Perf. Guarantee $3.27 $2.45 VAT provision4 (refundable post first exports) $8.36 $6.27 Balama Feasibility (testwork, reserves, design, scheduling) $
Slide 15: Graphite Price Trend Jan 2016 to April 2018
Graphite Price Trend Jan 2016 to April 2018 Graphite commodity price have steadily Montepuez Basket Price improved since March/April 2017 Flake Graphite Price Trend Jan 16 - April 18 USD, Metric tonnes Data source: Benchmark Mineral Intelligence Montepuez: Battery Minerals - Flake Graphite Concentra
Slide 16: Graphite Price Trend Jan 2016 to April 2018 (cont)
Graphite Price Trend Jan 2016 to April 2018(cont) Balama Central Basket Price Balama Central Graphite Project Flake Graphite Price Trend Jan 16 - April 18 USD, Metric tonnes ▪ Higher Jumbo and Large flake product Data source: Benchmark Mineral Intelligence $2,000 ▪ Higher basket price of circa US$1,
Slide 17: Flake Graphite Cost Curve
Flake Graphite Cost Curve Flake Graphite Price Trend Jan 16 - April 18 Flake Graphite Concentrate USD, Metric tonnes Cost curve Data source: Benchmark Mineral Intelligence $2,000 2017 (Opex cost FOB port of origin) 1000 $1,800 900 $1,600 800 $1,400 700 $1,200 Average Opex US$550 OPEX cost 600 $1,000
Slide 18: Key Milestones for BAT
Key Milestones for BAT Period Milestone Status • Environmental Impact Assessment ✓ Approved • Value Engineering Study ✓ Completed • Detailed engineering, early works & procurement ✓ Commenced – contracts signed, Ongoing 2H 2017 • Port Allocation from government for Pemba port ✓ 100,000tpa export cap
Slide 19: CRU – Graphite Demand (1)
CRU - Graphite Demand (1) Figure 5 Total graphite demand by market segment, kt 4500 5 4000 - 3500 3000 2500 ——— 2000 + 1500 1000 500 + 0 ’ ’ ’ ’ ' 2017 2018 2019 2020 2021 2022 2023 Electrodes ™ Carburisation Refractory & Foundry Lubricants Friction products Li-ion batteries Graphite shapes @ Expand
Slide 20: CRU – Graphite Demand (2)
CRU - Graphite Demand (2) Figure 8 Graphite demand by source, kt 4500 - 4000 5 3500 + 3000 + 2500 + 2000 + 1500 4 1000 500 0 2017 2018 2019 2020 2021 2022 2023 m Natural graphite m Synthetic graphite 20
Slide 21: CRU – Graphite Demand (3)
CRU - Graphite Demand (3 Figure 9 Natural graphite end use demand, kt 2500 5 1500 | mw a = 1000 + mma 500 + 0) r r r r r 1 2017 2018 2019 2020 2021 2022 2023 m Refractory & Foundry @ Carburisation Lubricants @ Friction products Li-ion batteries Graphite shapes m Expanded graphite Carbon brushes m Ot
Slide 22: Montepuez Ore Reserves and Mineral Resources
Montepuez Ore Reserves and Mineral Resources • Ore Reserve Estimate January 2017 for Buffalo and Elephant deposits is 41.4Mt @ 8.80% TGC for 3.64Mt of graphite reported at a cut-off grade of 4% TGC • Total Mineral Resource January 2017 for Buffalo and Elephant deposits is 105.9Mt @ 7.74% TGC for 8.2
Slide 23: Montepuez Mineral Resource Statement
Montepuez Mineral Resource Statement Total Mineral Resource January 2017 for Buffalo and Elephant deposits is 105.9Mt @ 7.74% TGC for 8.2Mt of graphite reported at a 2.5% TGC cut-off ELEPHANT RESOURCE @ 2.5% TGC cut-off - January 2017 Contained Contained Tonnes TGC V2O5 Classification Type Graphite
Slide 24: Balama Central Mineral Resource (1)
Balama Central Mineral Resource (1) Total Mineral Resource for Balama Central is 32.9 million tonnes at 10.2 per cent TGC for 3.36Mt of graphite reported at a 6.0% TGC cut-off and includes Indicated Resources of 26Mt @ 10.3% TGC for 2,733Kt of graphite reported at a 6.0% TGC cut-off BALAMA CENTRAL G
Slide 25: Balama Central Mineral Resource (2)
Balama Central Mineral Resource (2) Total Mineral Resource for Balama Central is 32.9 million tonnes at 10.2 per cent TGC for 3.36Mt of graphite reported at a 6.0% TGC cut-off and includes Indicated Resources of 26Mt @ 10.3% TGC1 for 2,733Kt of graphite reported at a 6.0% TGC cut-off Balama Central