Newpeak Metals Ltd. · ASX:NPM
Newpeak Metals — Dark Horse Resources — Latin America Down Under 2016
29 slides from Newpeak Metals's conference presentation, May 16, 2016
Slide 1: Dark Horse Resources at Latin America Down Under
ASX Announcement 16 May 2016 Dark Horse Resources at Latin America Down Under The Board of Directors of Dark Horse Resources Limited (the Company, ASX: DHR) will be presenting at the Latin America Down Under conference in Perth from the 17th and 18th May. Location: Pan Pacific Hotel, Perth. Please s
Slide 2: Dark Horse Resources (ASX: DHR)
DAR® \ORSE RESOURCE
Slide 3: Reliability, environment and economic benefits
RELIABILITY: Help alleviate Power shortfalls in Argentina Unreliable base load power Compliment the pressured hydro system (CAPEX maintenance and availability problems) and future wind development costs and availability. ENVIRONMENT: Address Clean Power requirements of the Paris Accord 2015.
Slide 4: Argentina power demand by region
Catamarca, Jujuy, La Rioja, Chubut, Santa Cruz Salta, Santiago del Estero, Chaco, Corrientes, 4% Tucuman Formosa, Misiones 8% 6% Mendoza, San Juan 6% La Pampa, Neuquen, Rio Buenos Aires Negro 51% 4% Cordoba, San Luis 9% Santa Fe, Entre Rios 12% 3
Slide 5: The current system is vulnerable
35,000 - 32,559 MW Unserviceable 6,512 MW 30,000 or The current Unavailable 25,000 system is - vulnerable 26,047 MW 25,380 MW 20,000 to demand growth and 15,000 capacity failure 10,000 5,000 - Installed Available Peak demand 4
Slide 6: Energy imports and dependence on gas imports
• ↑Energy Imports • ↑Dependence on Natural Gas Imports Approximately 500 Pjs/year Deficit is largely worth $5 billion power costs Current Account left hand scale Government budget right hand scale • Drainage of Forex Reserves (↑ current account deficit) • Energy Subsidies 50% of overall fiscal defic
Slide 7: Rosario Industrial Area Aluar Aluminium Smelter
Rosario Industrial Area Aluar Aluminium Smelter 6
Slide 8: Various Countries Fuel Mix used for Power Generation
Various Countries Fuel Mix used for Power Generation 120% All countries mentioned in this Graph have signed the Paris Accord. 100% 80% 60% 40% 20% 0% Argentina Brazil Canada Japan United United Colombia Germany India Australia China Mexico Kingdom States Coal Natural Gas Oil & Derivatives Nuclear Pe
Slide 9: Total generation cost per MWh
TOTAL GENERATION COST per 1 MWh $USD $700 $450 $600 Renewables $500 $330 $400 $300 $210.00 $200 $124 $150 $110 $100 $73 $60 $20 $- Coal Gas Distillate Average Hydro * Average Wind * Average Solar* Price / Mwh 33% Availability *The availability factor of Wind, Solar and Hydro power plants depends on
Slide 10: Efficiency factors by power source
Coal has a 90% efficiency factor Gas has 80% efficiency factor Nuclear has 80-90% efficiency factor Hydro and Wind Power have 33% efficiency factor 9
Slide 11: Fuel cost to generate 1 MWh
FUEL COST to Generate 1 Mwhour $USD $90 $80 $70 $60 $50 $56 $40 $80 $30 $20 $10 $24 $- Coal Gas Saving Coal to Gas Note that the carbon emission cost of coal over non-fossil renewables on an Advanced Ultra Supercritical Power Station is on the basis of US Carbon cost settings likely to be equivalent
Slide 12: Fuel and carbon emission cost comparison
Unit CO2 CO2 US$ Cost per Energy $US Cost / Emissions Fuel Total Fuel Commodity Emission Unit Content GJ kg/GJ Cost/MWh Cost/MWh cost/MWh GJ ** Coal US$/Tonne 1 tonne 70 25 $2.80 86* $24.00* $13.60 $37.60 Gas LNG US$/GJ Gigajoule 10 1 $10.00 59 $80.00 $10.78 $90.78 Natural Gas US$/MMBTU Mmbtu 7.5 1.
Slide 13: Internationally traded coal quality
7,500 0% 2% 7,000 5% 6,500 10% 10% 10% 12% 6,000 14% 15% 15% 14% Calorific Value (kcal) 16% 5,500 19% 20% 21% Ash % 5,000 25% 25% 4,500 30% 4,000 35% 3,500 40% 3,000 45% 45% 2,500 50% Pico Quemado Australian Australian Indonesian South Africa India (domestic) Primary Secondary Calorific Value (kcal)
Slide 14: Develop Pico Quemado ultra-supercritical coal power station
Develop the Pico Quemado Advanced Ultra-Supercritical 750-1,500MW mine mouth coal fired power station in Rio Negro Province. Provide inexpensive and clean base load electricity to the Argentine national power grid. Deliver Economic savings of up to $375m ( $50/MWh ). • Pico Power can save Arge
Slide 15: Nirihuau Basin option agreement and power project structure
Dark Horse Resources Limited pursuant to an Exploration and option to purchase Agreement earning up to 75% of the Nirihuau Basin with Trendix SA in Rio Negro Province. The Nirihuau Basin has potential for steaming coal suitable for a variety of thermal and coking applications particularly power
Slide 16: Power station project structure and funding
Power Station Developer Debt Funds US$ 1,600M 50% 50% Up to 75% Operational Surplus 50% DHR 750-1500 MW 50% Partner Power Station US$ 400M Pico Quemado coal mine Rio Negro Province Argentina PPA with Argentine Power Fuel Purchase Agreement Authority 500KV Transmission lines Supply Power to Argentina
Slide 17: Proposed power plant and mine site with infrastructure
Alicura Hydro Plant 98km to Proposed Buenos Aires Power Project. Demand 69,360GWh in 2015 Start of 500 kv lines to Buenos Aires. Proposed Power Plant and PQ Mine Site Proposed Power Plant and mine site with existing infrastructure and power distribution options Aluar Aluminium Smelter Puerto Madryn>
Slide 18: Buenos Aires demand and Puerto Madryn
Buenos Aires Demand 69,360GWh in 2014 Area enlarged in previous slide Puerto Madryn 17
Slide 19: Power Project Timetable
2016 2017 2018 2019 Power ProjectTimetable Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Business case to Argentine Authorities Pico Quemado Coal exploration and PFS Power Project Concept design and financial model Power Purchase Agreement (PPA) Term Sheet Power Station Feasibility and design PPA
Slide 20: Cost of Construction
Cost of Construction $ Million Boilers $100 $100 Turbines $650 $300 Transmission $200 Balance of Plant $650 EPCm construction and fees Coal Mine and Transport facilities 19
Slide 21: Debt and Equity Funded
Debt and Equity Funded $ Million Debt: Export credit agencies $400 Debt: EPCm Contractor $200 $100 $1,300 Debt: Other Banks Equity: Discounted forward power sales agreements and other stakeholder arrangements 20
Slide 22: Pico Quemado Coal Project
Pico Quemado Coal Project
Slide 23: Onsite at PQ
Onsite at PQ DARK ~\ORSE RESOURCES 22
Slide 24: Located in western Rio Negro, northern Patagonia
Located in western part of Rio Negro, northern Patagonia. DHR and Trendix JV have tenure over the Tertiary synclinal Nirihuau Basin containing the southern Pico Quemado deposit and northern Chenqueniyeu. 4 main seams with up to 12m aggregate coal thickness dipping 10- 30 degrees over a 22kms s
Slide 25: Pico Quemado coal quality
Pico Quemado coal quality: Moisture 2 - 3% Ash 10 - 25% Volatiles 24 - 33% Energy 6000 – 7000 Kcals/kg Sulphur 0.2 - 0.6% Nitrogen gases - low Efficient and cost effective, best practice, open cut and underground mining technology. 24
Slide 26: 3D view looking north – coal seams and historical drilling
3D VIEW LOOKING NORTH – 4 COAL SEAMS AND HISTORICAL DRILLING Seam 4 - Upper Pack Seam 3 - Upper Pack 2 Seam 2 - Lower Pack 5 Seam 1 - Lower Pack
Slide 27: Board and management
Non- Executive Chairman - Nick Mather Mr Mather’s area of experience and expertise is the financing and development of unrecognised resource exploration opportunities. He has been an executive and investor in the junior resource sector at all levels for more than 35 years and in that time has been i
Slide 28: Company background: diversified exploration company
Since listing on the Australian Stock Exchange in 2012 as Navaho Gold Limited, the company has evolved into a diversified exploration company, with interests in gold projects in the USA, numerous mineral licence applications in Australia, oil and gas project interests in Australia, and coal project
Slide 29: Disclaimer
This presentation is not a prospectus, disclosure document or offering document under Australian law or under any other law. It is for informational purposes only. This document does not constitute, and should not be construed as, an offer to issue or sell or a solicitation of an offer or invitation