Eq Resources Limited · ASX:EQR
Eq Resources — Sydney Mining Club (July 2022)
50 slides from Eq Resources's conference presentation, Jul 7, 2022
Slide 1: EQ Resources Limited: Mt Carbine Tungsten
For personal use only EQ RESOURCES LIMITED Mt Carbine Tungsten July 7th, 2022 ASX : EQR
Slide 2: Disclaimer
Disclaimer For personal use only Competent Person's Statement • The information in this presentation partly relates to the outcomes of the Mt Carbine Bankable Feasibility Study, made available through the Company’s website www.eqresources.com.au/. • The Company confirms that it is not aware of any n
Slide 3: Mt Carbine Open-cut & Modernisation Project Overview
Mt Carbine Open-cut & Modernisation Project Overview Australia’s Only Primary Tungsten Producer For personal use only Project Location Map • Situated in Far North Queensland’s critical mineral province • Located 130 km north of the city of Cairns 3
Slide 4: Tungsten: A Critical Mineral
For personal use only Tungsten: A Critical Mineral Tungsten Concentrate from Mt Carbine 4
Slide 5: Have you considered a world without tungsten?
For personal use only HAVE YOU CONSIDERED A WORLD WITHOUT TUNGSTEN? @tenor.com 5
Slide 6: A World Without Tungsten
A WORLD WITHOUT TUNGSTEN For personal use only @tenor.com 6
Slide 7: A World Without Tungsten
A WORLD WITHOUT TUNGSTEN For personal use only @tenor.com 7
Slide 8: A World Without Tungsten
A WORLD WITHOUT TUNGSTEN For personal use only @tenor.com 8
Slide 9: A World Without Tungsten
A WORLD WITHOUT TUNGSTEN For personal use only @tenor.com 9
Slide 10: A World Without Tungsten
A WORLD WITHOUT TUNGSTEN For personal use only @tenor.com 10
Slide 11: A World Without Tungsten
A WORLD WITHOUT TUNGSTEN For personal use only @tenor.com 11
Slide 12: A World Without Tungsten
A WORLD WITHOUT TUNGSTEN For personal use only @tenor.com 12
Slide 13: A World Without Tungsten
A WORLD WITHOUT TUNGSTEN For personal use only @tenor.com 13
Slide 14: A World Without Tungsten
A WORLD WITHOUT TUNGSTEN For personal use only @tenor.com 14
Slide 15: A World Without Tungsten
A WORLD WITHOUT TUNGSTEN For personal use only @tenor.com 15
Slide 16: Tungsten Market Analysis
Tungsten Market Analysis For personal use only 1 China mine output 2 declining Russia Sanctions 1 20kt W of new 2 supply needed 3 Solid floor pricing 3 Source: ITIA (2019); Roskill – ‘The data and information provided by Roskill should not be interpreted as advice and you should not rely on it for a
Slide 17: Future Demand
Future Demand For personal use only END USE CONSUMPTION (2020) Positive results in the research process of H.C. Starck Tungsten Powders on batteries come amid strong demand for electric vehicles. Research project with ZSW on tungsten cathode coating in lithium-ion batteries. Photo: Masan 17
Slide 18: Mt Carbine Production, Expansion & Development Plan
For personal use only 6 Mt Carbine Production, Expansion & Development Plan 100%-owned by EQ Resources Mt Carbine Mine 18
Slide 19: Mt Carbine Gravity Processing plant
For personal use only Mt Carbine Gravity Processing plant
Slide 20: Mt Carbine Gravity Processing plant
For personal use only Mt Carbine Gravity Processing plant
Slide 21: Mt Carbine Quarry Operations
For personal use only Mt Carbine Quarry Operations 21
Slide 22: Mt Carbine Wet Screen Early Works
For personal use only Mt Carbine Wet Screen Early Works 22
Slide 23: Strong JV Partnership
Strong JV Partnership For personal use only CRONIMET is a multi-national, privately owned business Mt Carbine Retreatment Management which has 103 branches, subsidiaries & representations at 72 Joint Venture (unincorporated) locations on 6 continents with over 5,400 employees • 50% CRONIMET Australi
Slide 24: Compelling Economics
Compelling Economics BFS1 confirms high margins, low capital intensity & operating cost and speed to market For personal use only Summary of BFS Results Parameter Unit BFS Production Rate (LoM Avg) mtu 2,200 Life of Mine years 12 Total Cash Cost (FCA) A$/mtu 159 Capital Cost A$m 21 Pre-tax NPV8, rea
Slide 25: Compelling Economics
Compelling Economics BFS1 confirms high margins, low capital intensity & operating cost and speed to market For personal use only Global tungsten Cash Cost Curve (US$/mtu) 25
Slide 26: Pre-tax Cashflow Generation: OC + UG Potential
Pre-tax Cashflow Generation : OC + UG Potential For personal use only Open Pit currently defined is +/-15% of resource Significant underground potential exists to drive economics for several more years Western Extension Lower Grade Halo in open pit where Scoping Study completed on UG Sorter Benefici
Slide 27: Technology driven Economics
Technology driven Economics For personal use only TOMRA’s XRT sorter gives us a significant cost saving and upgrade in material grade 27
Slide 28: Technology Driven Economics
Technology Driven Economics For personal use only PlotLogic’s technology informs decision making through core sample scanning 28
Slide 29: Mt Carbine Geology & Mining Plan
For personal use only Mt Carbine Geology & Mining Plan Drilling and Expansion Imagery of Mt Carbine drill core 29
Slide 30: Phase & Mine Plan
Phase 1 & 2 Mine Plan Mine plan is designed to extract ore from the open-cut pit extension and low grade ore stockpile For personal use only BFS mine plan is designed to deliver a constant feed of 1Mtpa of ore to the ROM for a 12 year mine life Mine plan is supported by the Mineral Resource of 21.2M
Slide 31: Geology and Resources
Geology and Resources Completed Workplan For personal use only Phase 1 – Define Resources for Open Cut Mine Phase 2 – Drill & Expand • Detailed Drilling allowed high grade zones • Drill out additional shallow open cut ✓ to be linked, around the Andy White pit resources • Measured Group prepared Stat
Slide 32: Review of BFS Model is underway
Review of BFS Model is underway For personal use only Dyke West Area - Leads to Longer pit life Latest Drilling Extension Phase 2 ‘Dyke West’ drilling completed • 10 holes for 2,121.9m 150M • High Grade Zone continues to the west and remains open • Lower cut-off's expand the resource significantly.
Slide 33: Geology and Resources
Geology and Resources For personal use only Underground Resources Phase 1 and 2 (under Bankable Feasibility Study) • Low grade stockpile – 10.1Mt@0.075% • Preferred Pit - 15Mt Pit Extension contains 1.1Mt@0.83%WO3 Planned Decline • 14.4% of known in-situ resources Phase 3 (Scoping Study Completed) •
Slide 34: Development Timeline
Development Timeline Phased approach for early cash flow For personal use only Early Works Secure UG Facilitation Funding & Internal Bankable Expansion Environmental Doc Engineering Study Feasibility Funding & Full Scale Approval Approval Complete Complete UG Study Drawdown Operation ✓ ✓ ✓ ✓ ✓ ✓ 202
Slide 35: Mt Carbine Production Ramp-Up
Mt Carbine Production Ramp-Up OC Mine opening Tonnes installed capacity* subject to permitting 3000 – 8000** For personal use only 8000 4000 Production Guidance Power Upgrade XRT Sorter Upgrade 2021 Allowing 24/7 crush & subject to Early Works with current plant screen operation upgrades** arrangeme
Slide 36: Fully Funded: CAPEX Funding for Mt Carbine Expansion
Fully Funded: CAPEX Funding for Mt Carbine Expansion & Early Works Program For personal use only Facility Amount ($, up to) Interest p.a. / Cost CMAI Grant (Federal Government) $6 million Government Grant support Sandvik Supply & Finance $4.8 million 5.75% interest p.a.; 30% deposit Interest free; E
Slide 37: Phase 1- Early Works & 2- Processing
Phase 1- Early Works & 2- Processing Processing improvements identified through operational performance analysis For personal use only Phase 1 Crushing and Screening Circuit Phase 2 Crushing and Screening and Sorting Circuit 37
Slide 38: Early Works Design & Delivery
Early Works Design & Delivery Processing improvements identified through operational performance analysis For personal use only Phase 1 Crushing and Screening Circuit Design ✓ Phase 1 Crushing and Screening Circuit Installed 38
Slide 39: Mt Carbine Wet Screen implementation
For personal use only WO3 Currently in production Mt Carbine Open-cut & Modernisation Project Australia’s Only Primary Tungsten Producer Mt Carbine Wet Screen implementation 39
Slide 40: Concentrate Production Continues
Concentrate Production Continues For personal use only ✓ Existing dry and wet processing facilities currently in operation ✓ Processing facilities are designed for steady-state production of 1Mtpa with Early Works Expansion 40
Slide 41: Concentrate Production Continues
Concentrate Production Continues For personal use only ✓ Production process has a calculated overall Tungsten recovery of 79.5%, for the crushing/screening/sorting and gravity plant ✓ The tungsten concentrate produced at site is loaded into bulk bags, sealed and sold ex-gate at Mt Carbine 41
Slide 42: Quarry: A Circular Economy
Quarry: A Circular Economy For personal use only ✓ Clean Waste Rock ✓ Green / Recycled Quarry Products ✓ Additional Revenue Stream 42
Slide 43: Quarry: Circular Economy
Quarry: Circular Economy For personal use only ✓ Clean Waste Rock ✓ Green / Recycled Quarry Products ✓ Additional Revenue Stream 43
Slide 44: Corporate Snapshot
Corporate Snapshot Oliver Kleinhempel Non-exec Chairman For personal use only Experienced Stephen Layton Non-exec Director Board & Zhui Pei Yeo Non-exec Director Leadership Team Richard Morrow Non-exec Director Kevin MacNeill Chief Exec Officer Tony Bainbridge Chief Geologist Share Price* Issued Sha
Slide 45: Strategically Aligned With
Strategically Aligned With For personal use only 45
Slide 46: EQ Resources: Australia's only primary tungsten producer
EQ RESOURCES: For personal use only Australia’s only primary tungsten producer WO3 Currently in High Grades Increasing production Resource LOM 14yr +
Slide 47: EQ Resources: Australia's only primary tungsten producer
EQ RESOURCES: For personal use only Australia’s only primary tungsten producer Fully Funded De-Risked 2nd Revenue stream
Slide 48: EQ Resources: Australia's only primary tungsten producer
EQ RESOURCES: For personal use only Australia’s only primary tungsten producer Experience Staffing Safety & Teams in Management place
Slide 49: EQ Resources: Australia's only primary tungsten producer
EQ RESOURCES: For personal use only Australia’s only primary tungsten producer Positive Genuine On Track Market ESG & Conditions Commitment Credible
Slide 50: Contact
For personal use only Site Contact: Investor Relations: Kevin MacNeill Peter Taylor Chief Executive Officer NWR Communications T: +61 438 542 260 T: +61 412 036 231 E: kmacneill@eqresources.com.au E: peter@nwrcommunications.com.au Registered Office: Mt Carbine Office: Level 4, 100 Albert Road 6888 M