Waratah Minerals Limited · ASX:WTM
Waratah Minerals — Battery Minerals — Investor Presentation (October 2017)
33 slides from Waratah Minerals's investor presentation, October 2017
Slide 1: Unveiling an Exceptional Project
Unveiling an Exceptional Project Montepuez Value Engineering Study October 2017 1
Slide 2: Corporate Overview
Corporate Overview Share Price David Flanagan Jeff Dawkins Executive Chairman Chief Financial Officer 0.14 10 Millions Daily Volume Traded On-Market 9 0.12 Daily Close Price - BAT Cherie Leeden Andy Cardoso 8 Exec Director Tech & BD Daily VolumeTraded On-Market Mozambique Country Director 0.10 7 (ba
Slide 3: Montepuez: Advanced Graphite Project
Montepuez: Advanced Graphite Project • Huge Mineral Inventory: o Probable Ore Reserve 41.4Mt @ 8.8% TGC @ 4% TGC cut-off1 o Indicated & Inferred Resource 105.9Mt @ 7.74% TGC @ 2.5% cut-off1 o Significant exploration potential • Fast Development Timetable: o Approvals expected in March Q 2018 o Const
Slide 4: VES Reveals an Exceptional Project
VES Reveals an Exceptional Project Achievable Capex – smaller Montepuez Graphite Project 2 VES Outcomes (First Module Only) plant with low technical risk Annual production of graphite concentrate 45,000 – 50,000pa Lowest Quartile of Cost Curve – Capex (pre-production) US$42.3 million a product of mo
Slide 5: What Has Changed from the Montepuez DFS?
What Has Changed from the Montepuez DFS? Battery Minerals management team have generated exceptional results from the Montepuez VES, as demonstrated below and shown as a comparison to the February 2017 DFS Plant Type Prod. Rate 45-50ktpa concentrate = down from 100ktpa Capex Capex US$42.3 million =
Slide 6: Montepuez Exploration Target – Additional Growth 300-400MT @ 5-10 % TGC
Montepuez Exploration Target – Additional Growth 300-400MT @ 5-10 % TGC • 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% TGC • Minimal drilling completed
Slide 7: Balama: Concept Study Justifies Move to DFS
Balama: Concept Study Justifies Move to DFS • Balama Total Resource of 16.3Mt at 10.4% TGC2 (6% TGC cut-off) made up of Indicated Resource – 8.9Mt @ 9.3% TGC & Inferred Resource – 7.3Mt @ 11.8% TGC • Additional resource potential down-dip, along strike • Concentrate recovery 93% and 63% plus 150 mic
Slide 8: Battery Minerals Production Profile
Battery Minerals Production Profile The staged delivery of growth across the Battery Minerals Project suite. Still targeting 100kpta production rate as defined in DFS and to match Pemba Port allocation. The current estimate for Montepuez expansion is US$26-28M. Subject to successful completion of a
Slide 9: Key Milestones for BAT
Key Milestones for BAT Period Milestone Status • Mozambique mining licence approval Application lodged • Environmental Impact Assessment Submitted for approval • Metallurgical process optimisation In progress • Value engineering Completed 2H 2017 • Detailed engineering & procurement commenci
Slide 10: Simple Steps
Simple Steps 1. Regulatory Approvals 2. Build a mine 3. Commission and operate safely and efficiently 4. Grow the mines 5. Returns for shareholders 6. Benefit local communities 7. Minimise any environmental impact 10
Slide 11: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement Forward Looking Statements by Battery Minerals of the same information in the same form • The information in this presentation that relates to Battery and context, until the consent is withdrawn or replaced by a Minerals’ Balama Central Mineral Resources is a
Slide 12: APPENDICES
APPENDICES • Graphite Price Trend Jan 2016 to Sept 2017 • Graphite Price Forecast • Flake Graphite Cost Curve • Montepuez CAPEX and OPEX • Montepuez Power, Headcount and Haulage • Montepuez Project Delivery Schedule • Montepuez Product size and specification • Balama Central Product size and specifi
Slide 13: Graphite Price Trend Jan 2016 to Sept 2017
Graphite Price Trend Jan 2016 to Sept 2017 Flake Graphite Price Trend Jan 2016 to Sept 2017 USD, Metric tonnes Graphite commodity price Data source: Benchmark Mineral Intelligence $2,000 have steadily improved since March/April 2017 $1,800 $1,600 $1,400 $1,200 UBS long term is $1,000 US$950/t cif Ch
Slide 14: Graphite Price Forecast
Graphite Price Forecast BAT has taken a robust, well-referenced, and conservative approach to graphite commodity price assumptions in the VES, to provide a solid basis for decision making September Benchmark Graphite Price Forecast Minerals Price for Montepuez Sources: UBS, BMI, Rosskill basket is U
Slide 15: Flake Graphite Cost Curve
Flake Graphite Cost Curve Flake Graphite Price Trend Jan 16 - Sept 17 Flake Graphite Cost curve USD, Metric tonnes Data source: Benchmark Mineral Intelligence 2017 $2,000 (Opex cost FOB port of origin) 1000 $1,800 900 $1,600 800 $1,400 700 $1,200 600 $1,000 500 $800 400 $600 300 $400 200 $200 100 $0
Slide 16: Montepuez CAPEX & OPEX
Montepuez CAPEX & OPEX COST DRIVERS CAPEX OPEX CAPEX • Small Modular Plant – 70 t/h vs 180 t/h Area US $M Area Cost $/t (Conventional) • Smaller TSF Process Plant 20.9 Mining 46.32 • Cost Effective Buildings Mining fleet and 2.1 • Modular allows for accelerated expansions Processing 128.35 maintenan
Slide 17: Montepuez Diesel, Headcount and Haulage
Montepuez Diesel, Headcount and Haulage Diesel Operations Headcount Haulage Area US $/t Area No Area US $/t Power Generation Plant 62.6 Mining 27 Montepuez to Pemba Warehouse 21.67 Power Generation Camp 7.6 Processing 46 Warehouse to Port 30.75 Mining Fleet 18.7 Maintenance 25 Pemba Port Fees 9.45 M
Slide 18: Montepuez Project Delivery Schedule
Montepuez Project Delivery Schedule 2017 2018 2019 Activity Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Montepuez Graphite Mine Value Engineering Study completed Project Approvals Design Procurement Construction Commissioning Ramp Up Steady State Production and Shipping Note: See ASX announcement dated 18 October 20
Slide 19: Montepuez Product size and specification
Montepuez Product size and specification Montepuez Flake Graphite Concentrate Sizing Flake size Flake size % of TGC grade Flake size (mesh) (micron) concentrate Fine -100 Mesh 0 -150 71.9% 97% Medium +100 Mesh +150 -180 10.2% 96% Large +80 Mesh +180 -300 15.5% 96% Jumbo +50 Mesh +300 4.4% 96% Note:
Slide 20: Balama Central: Product size and specification
Balama Central: Product size and specification Balama Central: Flake Graphite Concentrate Sizing Flake size Flake size % of TGC grade Flake size (mesh) (micron) concentrate Fine -100 Mesh 0 -150 37% 97% Medium +100 Mesh +150 -180 9% 96% Large +80 Mesh +180 -300 25% 96% Jumbo +50 Mesh +300 29% 96% No
Slide 21: Graphite Price drivers
Graphite Price drivers Graphite Price Drivers Source – UBS June 2017 t 21
Slide 22: Graphite Price drivers
Graphite Price drivers Source – Blackrock Investment Institute April 2017 t 22
Slide 23: Graphite Price drivers
Graphite Price drivers How much graphite is needed for electric car take-up? • A typical EV or HEV has a 30-100kWh battery pack (Tesla Model 3 have >60kWh) • Each battery requires ~1.1kg of graphite per kWh. • A Nissan Leaf with a 24kWh battery would need 27kg of graphite • A Tesla Model S with a 85
Slide 24: This is why we are in graphite! Demand will exceed supply by 2020
This is why we are in graphite! Demand will exceed supply by 2020 Mega Chinese anode plant projects alone exceed current supply Almost 500,000 tpa of additional natural graphite conc required by 2020 to feed these 4 in China alone!!! 24
Slide 25: This is why we are in graphite! Demand will exceed supply by 2020
This is why we are in graphite! Demand will exceed supply by 2020 Mega Chinese anode plant projects alone exceed current supply 25
Slide 26: Battery Minerals Limited – Graphite Prices
Battery Minerals Limited – Graphite Prices Graphite Price – UBS ($/t of concentrate) 26
Slide 27: Battery Minerals Limited – Graphite Prices
Battery Minerals Limited – Graphite Prices Prospective Global Graphite Production t 27
Slide 28: 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 29: 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 MONTEPUEZ GRAPHITE PROJECT – ORE RESERVE STATEMENT @ 4% TGC cut-off - January 2017 Ore Contained TGC Ore
Slide 30: 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 31: Mozambican - Foreign Direct Investment
Mozambican - Foreign Direct Investment Corporate Tax - 32% Investment Incentives / protection • Legal protection for investors (incl. property/ intellectual rights) • No restrictions on loans/interest payments abroad • Multilateral Investment Guarantee Agency (MIGA) plus Overseas Private Investment
Slide 32: Mozambique: a favourable jurisdiction
Mozambique: a favourable jurisdiction • Montepuez Mining Licence Application Submitted: defined approval timeline • Environmental Impact Assessment completed and submitted in October 2017 • July 2017: A secured allocation of 100,000tpa port capacity with Portos e Caminhos de Ferro de Moçambique (CFM
Slide 33: Mozambique - Snapshot
Mozambique - Snapshot OVERVIEW RESOURCES Stable multi-party democracy since 1994 Energy - Hydro, Gas and Thermal Population - 27 million Minerals - Coal, Gold, Graphite, Heavy Sands, ECONOMY Rare Earths, Precious Stones One of Africa's fastest growing economies STRATEGIC POSITION Access to markets –
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