Slide 1: Premium Mongolian metallurgical coal
Premium Mongolian metallurgical coal Aspire Mining Corporate Presentation August 2022 ASX: AKM
Slide 2: Disclaimer
Disclaimer NATURE OF THIS DOCUMENT needs of each investor or shareholder. You may wish to seek independent financial and taxation advice before making any decision in respect of this presentation. Neither Aspire nor any of its related bodies corporate is licensed This presentation has been prepared
Slide 3: About us
About us.
Slide 4: We are a premium grade metallurgical coal development company
We are a premium grade metallurgical coal development company focused on the delivery of our wholly owned Ovoot Coking Coal Project (OCCP). OCCP is the subject of a fully funded Definitive Feasibility Study (DFS) which is expected to confirm robust financial outcomes for a high-quality, washed fat c
Slide 5: Asset overview
Asset overview Two world class metallurgical coal discoveries in Northern Mongolia Ovoot Coking Coal Project High quality metallurgical coal Ownership 100% Aspire Mining Product Premium fat metallurgical coal Mineral Resource estimate 281.1 Mt Tenement area 51.4 km2 30 year – granted 2012. Extendabl
Slide 6: Progressively advancing toward production
Progressively advancing toward production Systematic project de-risking – the time is right for development OCCP ORE RESERVE TO 255MT TAVAN TOLGOI COOPERATION STRATEGIC PLACEMENT FEED COMPLETE MINERAL RESOURCE ESTIMATE TO 281MT ON BLENDING ACTIVITIES A$33.5M MR TSERENPUNTSAG ERDENET RAIL TERMINAL Q3
Slide 7: Corporate snapshot
Corporate snapshot Strong cash position, incredible value upside Capital structure Major shareholders Share price (30 August 2022) A$0.087 30% TIGHTLY HELD REGISTER AND HIGHLY SUPPORTIVE Shares on issue (07 July 2022) 508M 52% SHAREHOLDER BASE 5% Performance Rights (07 July 2022) 6M 13% Mr Tserenpun
Slide 8: Board of Directors and Senior Management
Board of Directors and Senior Management Deep Mongolian business experience and strong technical credentials David Achit-Erdene Boldbaatar Neil Hannah Sam Phil Paull Darambazar Bat-Amgalan Lithgow Badenach Bowles Rundell Non-Executive Managing Non-Executive Non-Executive Non-Executive Chief Operatin
Slide 9: The opportunity
Cool picture The opportunity.
Slide 10: Company highlights
Company highlights A rare high quality, global scale, undeveloped metallurgical coal opportunity Outstanding PFS results for up to 4Mtpa saleable product, single open pit operation 1. Permitting progressing for near-term delivery of a fully funded OCCP DFS Highly desirable product properties and pre
Slide 11: 1. Outstanding PFS results
1. Outstanding PFS results Technically sound, highly economic single open pit operation ▪ Updated extended case (53.8Mt Ore Reserve carve out) HIGH US$878M highlights the attractive economics associated with a 12.5yr LOM INVESTMENT PRE TAX NPV10% ~49% ▪ Up to 4Mtpa mine production of low ash, low st
Slide 12: 1. Outstanding PFS results
1. Outstanding PFS results Ovoot to Erdenet road haul provides accelerated route to early development PFD key outcomes Ovoot Coking Coal Project UoM Extended Updated Total ROM coal mined Mt 53.8 53.8 Initial life-of-mine years 12.5 12.5 Average strip ratio (ROM) (including pre strip) BCM/t 4.7 4.7 P
Slide 13: Attractive leverage to coking coal price upside
1. Outstanding PFS results Attractive leverage to coking coal price upside UPDATED NPV10% SENSITIVITY US$878M Coking coal price (DAP Erlian) (-10%/+10%) US$564 US$1,174 INDEPENDENTLY VARYING THE DAP ERLIAN COKING COAL INPUT PRICE PARAMETER TO Yield (10% moisture) (-5%/+5%) US$737 US$977 APPROXIMATE
Slide 14: Pathway to rapidly progress OCCP now clear
1. Outstanding PFS results Pathway to rapidly progress OCCP now clear ▪ All FEED study work complete Key milestone Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 Sep 24 Dec 24 Mar 25 Jun 25 Sep 25 Dec 25 ▪ DEIA and Environmental Management Plan (EMP) FEED studies complete ✓ approval expecte
Slide 15: Product specification and pricing
2. Product specification and pricing1 Ovoot product comfortably within the highest category of fat coking coals OVOOT COAL TEST CHINESE COAL CLASSIFICATION (GB/T 5751-2009) ▪ Coal sample reflective of Ovoot’s Upper Seam tested by SGS in ▪ Ovoot coal classified as FM 36# Metabituminous Coal Tianjin C
Slide 16: High quality fat coking coals are critical to the Chinese steel industry
2. Product specification and pricing High quality fat coking coals are critical to the Chinese steel industry ▪ Metallurgical coal was first used to make steel in China Internationally traded metallurgical coal market balance (Mt, wet) in the 11th Century 10 ▪ High quality coking coals remain essent
Slide 17: Continued strength in realised fat washed coking coal prices
2. Product specification and pricing Continued strength in realised fat washed coking coal prices Metallurgical coal price indices (US$/t) ▪ China not self sufficient in sourcing hard coking coals and have relied on imports since 2009 700 Tianjin Mongolia Price Kailuan Fat Price (ex Mine) ▪ Ovoot st
Slide 18: Social value and environmental stewardship
3. Social value and environmental stewardship Guided by a deep respect for Mongolia RESPECT For the environment, with investment in sustainable energy sources for a secure future For the local culture, with support initiatives to enable herders to maintain their lifestyle For the land and water, whe
Slide 19: Strong local community project support
3. Social value and environmental stewardship Strong local community project support OCCP IS GROWING THE LOCAL ECONOMY 420 300 >400 ▪ Expected to provide up to 1,200 direct and indirect jobs MINE SITE JOBS TO DRIVERS REQUIRED ADDITIONAL BE CREATED FOR TRUCKING INDIRECT JOBS ▪ US$262M capital expendi
Slide 20: Committed to UN Sustainable Development Goals
3. Social value and environmental stewardship Committed to UN Sustainable Development Goals REDUCING CLIMATE CHANGE ▪ Mongolian President Mr Ukhnaagiin Khurelsukh announced a national campaign to plant a billion trees ▪ Aspire committed to 10 million tree plantings by 2030 ▪ Agri-scientist engaged t
Slide 21: Large residual Ore Reserve for future expansion
4. Growth potential Large residual Ore Reserve for future expansion 78% ▪ Updated extended case PFS carved out of very small portion of original OCCP Probable Coal Ore Reserve OF ORIGINAL COAL ORE ▪ Study work demonstrated attractive economic leverage that Extended RESERVE INVENTORY can be achieved
Slide 22: Provincial Chinese blast furnace capacity
4. Growth potential Provincial Chinese blast furnace capacity Highly concentrated around Hebei, Beijing and Tianjin OCCP is perfectly positioned to provide high quality metallurgical coal overland via direct truck and rail connection to >300 Mt pa blast furnace capacity READY MARKET FOR HIGH QUALITY
Slide 23: Severe underinvestment in new metallurgical coal supply
4. Growth potential Severe underinvestment in new and expansionary metallurgical coal supply ▪ Despite long term demand for high-grade coking coal remaining robust, Australian investment has stalled ▪ BHP has cut all investment in the Queensland Blackwall South coal business1 ▪ South32 is no longer
Slide 24: Investment summary
Investment summary A rare high quality, global scale, undeveloped metallurgical coal opportunity Outstanding PFS results for up to 4Mtpa 1. saleable product, single open pit operation CURRENT LOW ENTERPRISE $ VALUE PROVIDES ATTRACTIVE ENTRY POINT FOR INVESTMENT Highly desirable product properties an
Slide 25: Appendix
Appendix.
Slide 26: Compliance Statement
Compliance Statement 1. OVOOT EARLY DEVELOPMENT PLAN (OEDP) PRE-FEASIBILITY STUDY (PFS) EXTENDED CASE The information contained in this presentation in respect to the Ovoot Early Development Plan (OEDP) Extended Case Update to Pre-Feasibility Study (PFS) Mine Plan and Costs, is reported in the ASX a
Slide 27: Compliance Statement continued
Compliance Statement continued 2. JORC (2012) COAL RESOURCES & COAL RESERVES CONTINUED OEDP Coal Reserves ROM ROM Reserve Marketable ROM Ash Product Ash Aad Product CSN Category Reserve (Mt) (Mar = ROM CSN (#) Category Reserve (Mt) (Mar Aad (%) (%) (#) (Mt) (Mad) 2.0%) = 10.0%) Probable Ore Reserve
Slide 28: Recent Mongolian rail developments
Recent Mongolian rail developments Meaningfully enhanced export capacity to China KEY CONSTRUCTION ▪ Zuunbayan to Tavan Tolgoi Railway (416km) in commissioning phase ▪ Zuunbayan to Khangi\Mandal (281km) to remove Sainshand to Zamyn -Uud\Erlian bottleneck – underconstruction ▪ Erlian border checkpoin
Slide 29: Contact us
Contact us. DAVID PAULL Chairman +61 407 225 291 ACHIT DARAMBAZAR Managing Director +97 6 7011 6828 ASPIRE MINING LIMITED Corporate Office Address: Level 9, 190 St Georges Tce Perth, WA 6000 Postal address: PO Box 1918 Subiaco WA 6904 Mongolian Office Address: Chingeltei District, 1st Khoroo, Baga T
Slide 30: Thank you
Thank you.