Strike Resources Limited · ASX:SRK
Strike Resources — Investor Presentation (May 2020)
32 slides from Strike Resources's investor presentation, May 15, 2020
Slide 1: ASX Market Announcement
Friday, 15 May 2020 ASX Code: SRK ASX MARKET ANNOUNCEMENT Investor Presentation – May 2020 Strike Resources Limited (ASX:SRK) (Strike) is pleased to attach a copy of an Investor Presentation. AUTHORISED FOR RELEASE - FOR FURTHER INFORMATION: William Johnson T | 0419 047 460 Managing Director E | wjo
Slide 2: Strike Resources Limited Investor Presentation May 2020
AS STRIKE RESOURCES LIMITED INVESTOR PRESENTATION MAY 2020 ASX:SRK
Slide 3: Strike Resources – Overview
Strike Resources – Overview § Strike Resources Limited (ASX:SRK. Market capitalisation $8.0 Million @ 4.8c per share) holds a diversified portfolio of quality Iron Ore and Battery Minerals projects in Australia and South America § Current focus is development of Paulsens East Iron Ore Project in Pil
Slide 4: Board and Management Team
Strike has the leadership, technical resources and experience to deliver Managing Director - William Johnson Director - Malcolm Richmond MA (Oxon), MBA,MAICD BSc Hons (Metallurgy) and B. Comm. Merit (Econs) (UNSW) Mr Johnson holds a Masters degree in Engineering Science Richmond has 30+ years’ exper
Slide 5: Paulsens East Iron Ore
PAULSENS EAST IRON ORE 4
Slide 6: Paulsens East – Overview
Paulsens East – Overview § Strike is advancing its 100% owned Paulsens East Iron Ore Project (Paulsens East) located in the Pilbara Region of WA, circa 140kms west of Tom Price and 8kms from the Paulsens Gold Mine (owned by Northern Star:NST) § Paulsens East has a high grade JORC 2012 Indicated Mine
Slide 7: Paulsens East is favourably located in the Pilbara
Paulsens East is favourably located in the Pilbara Paulsens East is Located in the Pilbara close to excellent infrastructure and other mining operations: § Circa 18kms from the sealed Nanutarra Road § 8km from Paulsens Gold Mine (Northern Star Resources - ASX:NST) § 560kms from Port Hedland (circa 5
Slide 8: Paulsens East consists of a 3km outcropping ridge of high-grade hematite
Paulsens East consists of a 3km outcropping ridge of high-grade hematite iron ore mineralisation rising to 60 metres Paulsens East Ridge, facing South-West Paulsens East Ridge, facing East 7
Slide 9: A JORC Indicated Resource of 9.6 Million tonnes @ 61% Fe has been defined
A JORC Indicated Resource of 9.6 Million tonnes @ 61% Fe has been defined, with further exploration upside § Hematite Iron ore mineralisation § Of the 9.6Mt Resource, 3Mt @ 61% Fe occur as an outcropping ridge rising circa 60m above surface, meaning: o Minimal overburden in first two years mining o
Slide 10: The proposed mine has a very small physical footprint
The proposed mine has a very small physical footprint and the deposit will be simple to mine and process Conceptual image of pit 9
Slide 11: The proposed Production Schedule takes advantage of low strip-ratio
The proposed Production Schedule is designed to take maximum advantage of low strip-ratio within the first two years Mining Schedule Total / Avg. Pre-Prod Year 1 Year 2 Year 3 Year 4 Material Moved (tonnes) 21,481,416 148,409 3,930,321 4,385,065 7,825,198 5,192,422 Waste (tonnes) 15,337,798 40,491 2
Slide 12: Mined ore will be simply crushed and screened before loading as DSO
Mined ore will be simply crushed and screened before being loaded as Direct Shipping Ore (DSO) onto 4–trailer (Quad) roadtrains 1 2 3 Iron ore collected from the mine.. ..crushed and screened… ..loaded into roadtrains. 11
Slide 13: Lump and Fines ore will be transported direct to Port Hedland
Lump and Fines ore will be transported from the mine direct to Port Hedland (Utah Point) - predominantly on good quality sealed roads Haulage route to Port Hedland 12
Slide 14: Scoping Study Results
Scoping Study demonstrates that with current A$/US$ exchange rate and iron ore price, Paulsens East will generate significant cashflows Financial Metrics Unit Scoping Study Outcome Low Base High Life of Mine Revenue A$M 724 803 904 Scoping Study Results (shipping out of Utah Point) Operating Net Cas
Slide 15: Project economics are most sensitive to iron ore prices and A$/US$
Project economics are most sensitive to iron ore prices and A$/US$ NPV A$ Paulsens East Sensitivity Analysis Shipping from Utah Point: US$85/T benchmark Price: 0.63 A$/US$ 14
Slide 16: Breakeven for the first two years forecast below US$65/t
Breakeven for the first two years of production is forecast to be below US$65/t – which provides good margin protection considering recent iron ore pricing Scoping Study forecast US$87/t average price received across Lump and Fines. Scoping Study forecast breakeven price for first two years of produ
Slide 17: Capex Overview
Capex Overview A$ Million Mining Camp 2.0 Haul and Access Roads 2.4 Other mine infrastructure 0.5 Pre- Strip 0.8 Mobilisation 1.1 Contingency 1.4 Total 8.2 16
Slide 18: Strike has made rapid progress to date
Strike has made rapid progress to date Milestones/Achievements to Date Mining Lease Application lodged ✓ Environmental Study – Level 1 Fauna and Flora Assessment completed ✓ Resource Upgraded from JORC Indicated to Inferred category ✓ Contract discussions underway with Pilbara Port Authority (Utah P
Slide 19: Focusing on securing approvals, permits, contractors and marketing plans
Strike is now focusing on securing all approvals and permits, negotiating with contractors, finalising marketing plans and transport options § Native Title negotiations with Traditional Owners in progress § Miscellaneous Licences applied for haulage and access roads § Mining Permit application being
Slide 20: Targeting First Ore on Ship Q4 2020
Strike is targeting is First Ore on Ship (FOOS) Q4 2020 (Subject to impact of COVID-19 restrictions) Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Approvals Native Title Feasibility Study FID Financing Contracts/Agreements Confirm long lead items Mobilisation/Construction Commissioning First Produ
Slide 21: Corporate Profile and Recent Share Price Performance
Strike – Corporate Profile and Recent Share Price Performance Capital Structure Issued Capital : 167.1 Million Recent Share Price Performance Market Capitalisation (@4.8c) $8.0 Million Cash and listed securities: $1.7 Million Directors Farooq Khan - Chairman William Johnson – Managing Director Malco
Slide 22: Paulsens East - Summary
Paulsens East - Summary Paulsens East has the potential to be a Low Capex, high return project – a hard to find combination! § Strong $150 Million cashflow over initial 4-year LOM, with plenty of upside potential § Low $8.2 Million capex with 3 month payback § Simple mining and dry processing – mini
Slide 23: Iron Ore - Peru, Lithium Brine - Argentina, Graphite - Queensland
Lithium Brine - Iron Ore - Peru Argentina Graphite - Queensland 22
Slide 24: Apurimac and Cusco Iron Ore Projects, Peru
Apurimac and Cusco Iron Ore Projects, Peru § Apurimac JORC Resource of 269.4Mt @ 57.3% Fe Magnetite ore with exploration upside § Peru Government plans a multi-user railway connecting Strike’s Apurimac Project to Port § Apurimac is one of the world’s highest grade, large scale magnetite deposits. §
Slide 25: Prefeasibility Studies confirmed potential for Apurimac
Prefeasibility Studies in 2008 /2010 confirmed clear potential for development of Apurimac as a world class iron ore project6 § Attractive life-of-mine operating expenses6 § Open cut mine, low strip ratio (1.2 to 1.8) Principal deposit at Apurimac delivers low mining costs § Ore is high grade, coars
Slide 26: Solaroz Lithium Brine, Argentina
Solaroz Lithium Brine, Argentina § Solaroz (SRK 90%7) is located in a highly prospective Location § 12,000 Hectares of concessions adjacent to Orocobre (ASX:ORE, Mkt.Cap. ~ A$550 Million) and Lithium Americas (TSX:LAC, Mkt.Cap ~ C$400 Million)8 § ORE (Salar de Jujuy JV with Toyota) is already a low
Slide 27: Conceptual Geological Model for Solaroz
Conceptual Geological Model for Solaroz Horizontal axes not to scale. The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of
Slide 28: Burke Graphite, Queensland
Burke Graphite, Queensland § JORC Resource 6.3 million tonnes @ 16.0% Total Graphitic Carbon (TGC) for 1,000,000 tonnes of contained graphite9 § Includes 2.3 million tonnes @ 20.6% TGC (with a TGC cut-off grade of 18%) for 464,000 tonnes of contained graphite § Mineralisation is wide and begins at s
Slide 29: Strike Resources – Summary
Strike Resources – Summary § Strike has a quality portfolio of assets with differing time horizons § Strike’s immediate focus is to bring the Paulsens East iron Ore project into production § Paulsens East has the potential to significantly change the valuation of Strike given the near term cash flow
Slide 30: JORC Code Competent Person's Statements
JORC CODE COMPETENT PERSON’S STATEMENTS JORC Code (2012) Competent Person Statement - Paulsens East Mineral Resources The information in this document that relates to Mineral Resources and related Exploration Results/Exploration Targets (as the case may be, as applicable) in relation to the Paulsens
Slide 31: JORC Code Competent Person Statement - Apurimac Project
JORC Code (2012) Competent Person Statement - Apurimac Project Mineral Resources The information in this document that relates to Mineral Resources in relation to the Apurimac Iron Ore Project (Peru) is extracted from the following ASX market announcement made by the Strike Resources Limited on: • 2
Slide 32: Disclaimer
This document has been prepared by Strike Resources Limited (the "Company” or “STRIKE”). No representation, expressed or implied, or warranty as to the accuracy or completeness of the information contained herein is made by any party and nothing contained herein shall be relied upon as a promise or