Aspire Mining Limited · ASX:AKM
Aspire Mining — Investor Presentation (May 2015)
34 slides from Aspire Mining's investor presentation, May 19, 2015
Slide 1: Aspire Mining Limited – The Met Coal Company
For personal use only Aspire Mining Limited The Met Coal Company World Class Coking Coal Mine & Rail Opportunity May 2015 1
Slide 2: Contents
Contents For personal use only 1. Corporate & Situation Overview 2. Nuurstei Coking Coal Project 3. Ovoot Coking Coal Project 4. Northern Railways LLC 5. Conclusions 2
Slide 3: 1. Corporate & Situation Overview
For personal use only 1. Corporate & Situation Overview
Slide 4: Corporate Overview
Corporate Overview Capital Structure Asset Locations For personal use only Diluted Current Share Price $ 0.021 No. of Shares Outstanding M 708.5 Market Capitalisation $m 15.5 1 Cash $m 1.1 1 Debt $m 6.1 Net Debt $m 5.0 Enterprise Value $m 20.7 Shareholding (Diluted1) AKM Directors 15.2% Quam Securit
Slide 5: Capital Raising
Capital Raising Raising of Minimum $2.75 million and Maximum of $6.0 million For personal use only Use of Funds The funds raised will be used to further explore the Nuurstei and Ovoot Coking Coal projects, progress Northern Railways LLC, debt servicing costs and general working capital. Offer Summar
Slide 6: Experienced Leadership Team
Experienced Leadership Team David McSweeney LLB - Non-Executive Chairman For personal use only Over 20 years resources sector experience across exploration to project management, project finance and corporate development Founder and Managing Director (from 1998 until December 2006) of Gindalbie
Slide 7: Strategic Partners
Strategic Partners Aspire Relationship For personal use only 13.9% shareholding and a Board representative Marketing and logistics alliance partner with ~40% marketing rights of Ovoot coal Option to fund 10% of the Northern Railway capital for an additional 10% Ovoot coal marketing right JV
Slide 8: The Journey to Date
The Journey to Date ~$60m invested to date advancing the Ovoot Project and Erdenet – Ovoot Railway For personal use only 2010 2011 2012 2013 2014 2015 Acquired Ovoot Raised overA$33m to Completed Mine PFS Received Mongolian Northern Rail Line Exploration target Project advance the Ovoot
Slide 9: Sino-Russo-Mongolian Trade Co-operation
Sino-Russo-Mongolian Trade Co-operation Historic trilateral leaders summit results in shared vision for a new “Silk Road” economic corridor For personal use only Chinese and Mongolian Co-operation Russian and Mongolian Co-operation Mongolia hosted Chinese President Xi’s state visit in August 2014
Slide 10: Map of UBT2 Development Plan
Map of UBT2 Development Plan For personal use only 10
Slide 11: Coking Coal Market Outlook
Coking Coal Market Outlook Aspire’s development timing corresponds with the improving coking coal market outlook For personal use only Seaborne Coking Coal Price (Historical & Forecast) 2012-2013 2014 2015 Supply cuts Ovoot Project Supply cuts Western ~40mt* ~25mt* Canadian expected to met coal comm
Slide 12: 2. Nuurstei Coking Coal Project
For personal use only 2. Nuurstei Coking Coal Project
Slide 13: Nuurstei Coking Coal Project
Nuurstei Coking Coal Project Nuurstei Project represents a near term potentially low capex, trucking opportunity For personal use only Ekhgoviin Chuluu Joint Venture (“ECJV”) JV comprises Aspire (50% and operator) and Noble Group (50%) Option for Aspire to acquire Noble’s 50% interest in ECJV
Slide 14: Nuurstei Project Development Scenario
Nuurstei Project Development Scenario Nuurstei Project represents a low capex, trucking opportunity For personal use only Potential Development Scenario Located close to infrastructure ~10km from Khuvsgul province capital of Moron ~317km from the Erdenet railhead Sealed road between Erdenet an
Slide 15: Nuurstei Indicative Washed Coal Quality
Nuurstei Indicative Washed Coal Quality Bituminous Mid Volatile Coal – a premium quality hard coking coal present at Nuurstei For personal use only Moisture Ash Volatile Fixed Total Phosphorus Free Caking Max Max RoMax Y Index Matter Carbon Sulphur Swelling Index (G) Fluidity Dilation Index DDPM (FS
Slide 16: 3. Ovoot Coking Coal Project
For personal use only 3. Ovoot Coking Coal Project
Slide 17: Ovoot Project Overview
Ovoot Project Overview Large scale tenement position covering the highly prospective basin For personal use only Project Map Key Points 100% owned by Aspire Mining 430km2 of mining and exploration licences Drilled over 39 kilometres at Ovoot (exploration, geotechnical, water) 30 year Mining
Slide 18: High Value Open Pit Deposit
High Value Open Pit Deposit Mongolia’s second largest coking coal Reserve with the highest in situ value For personal use only Largest Mongolian Coal Reserves1 Mongolian Largest Mongolian Coking Coking Coal Coal Deposits Reserves (Ranked by JORC Reserve) +1.6 Bt 400 350 300 255 Mt* 250 236 Mt Mt 200
Slide 19: 100% Premium Coking Coal
100% Premium Coking Coal Ovoot and Nuurstei coking coal is mid vol and low ash For personal use only Indicative Ovoot and Nuurstei Coal Specifications1 Moisture Ash Volatiles Sulphur CSN Max Fluidity Log Max dilation Gray King G caking index Y index mm RoMax 9% 9% 25-28% 1.2 9 3.60 +300% G11 +95 +26
Slide 20: Large Scale & Low Cost Project
Large Scale & Low Cost Project Production of up to 10mtpa premium coking coal over a 21 year Reserve based mine life For personal use only Ovoot Mine Summary Global Coking Coal Cost Curve2 Description Product Type 100% Premium Coking Coal Total Saleable Product1 188Mt Life of Mine 21 years Average S
Slide 21: High Value In Use
High Value In Use Ovoot coal is capable of upgrading thermal, oxidised and low quality coking coals to saleable coking coal For personal use only Key Comments Ovoot Coal Blending to Upgrade Lower Ranking Coals D = 150% D = 220% Ovoot coal is classified as a Chinese (FM) “Premium Fat Coal” or FM FM
Slide 22: Proximity to Key End Markets
Proximity to Key End Markets Regional integration to provide long term cost advantage into China For personal use only Proximity to China’s Coke and Steel Industry Pathway to First Production Ovoot Mine Completed JORC 2012 Resources and Reserves Pre-Feasibility Studies Mining Licence MRAM Appr
Slide 23: Strong Long Term Demand From China for High Quality Coking Coals
Strong Long Term Demand From China for High Quality Coking Coals Strong long term demand from China market inevitable For personal use only Chinese Coking Coal Reserves Typical Chinese Coke Blend Primary “JM” Coking Coal (hard coking coal equivalent in Unamed coal, 2% China) and FM “Fat” Coking Co
Slide 24: 4. Northern Railways LLC
For personal use only 4. Northern Railways LLC
Slide 25: Erdenet to Ovoot Railway
Erdenet to Ovoot Railway Recent approvals pave the way for a rail solution connecting the Ovoot Project with international markets For personal use only Erdenet – Ovoot Railway Overview Recent Government Agreements & Approvals 547 km railway capable of transporting up to 30mtpa Date Event Connec
Slide 26: Northern Railways Overview
Northern Railways Overview Northern Railway is Aspire’s dedicated rail subsidiary in negotiations for the Erdenet – Ovoot railway concession For personal use only Key Points Corporate Structure 2012: Original pre feasibility study completed by Optimal Projects LLC, and rail path review conducted b
Slide 27: Medium Term Rail Network
Medium Term Rail Network Major transport corridor connecting Northern Mongolia with Russia and China For personal use only Key Rationale Rail Infrastructure Location Connecting Russia’s 20Bt (including 13.7Bt of coking coal) Ulug Khem Coal Basin – only 300km from Ovoot – into the Trans-Mongolian R
Slide 28: Long Term Competitive Advantage
Long Term Competitive Advantage The Northern Rail Line creates a long term competitive advantage for Russian and Mongolian coking coals For personal use only Proposed Rail Path Connecting Russia to China Indicative Rail Economics1 Indicative Rail Costs Elegest (USD/t) Ovoot (USD/t) Rail to Erdenet3
Slide 29: 5. Conclusions & Contacts
For personal use only 5. Conclusions & Contacts
Slide 30: Investment Highlights
Investment Highlights Highly strategic coal and rail projects positioned to unlock the Northern Mongolia mining province For personal use only Largest coal tenement holder in highly prospective Orkhon-Selenge Basin in northern Mongolia, and planning to increase project portfolio 1 Operator & 50%
Slide 31: Contact details
Contact details For personal use only Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Suite B3, 431 – 435 Roberts Road Subiaco, Western Australia, 6008 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave-8 Altai Tower, 3rd Floor, Room 302 Ulaanba
Slide 32: Important information
Important information For personal use only •Nature of this document: This document has been prepared by Aspire Mining Limited (“Aspire”, “AKM”, or the “Company”) and contains summary information about the Company and its subsidiaries as at the date of release of this document. The information in th
Slide 33: Important information cont.
Important information cont. Production Target Assumptions: The following are key assumptions used to achieve the ODP first year target of 5Mtpa of marketable coking coal. 1) In the eight months prior to commencement of first year ODP production, a For personal use only 23 million BCM waste removal p
Slide 34: Important information cont.
Important information cont. For personal use only Competent Persons Statement (continued): Nuurstei The information in this report that relates to Reporting of Exploration Results and the Exploration Target, is based on information compiled under the supervision of, and reviewed by, the Competent Pe