Aspire Mining Limited · ASX:AKM
Aspire Mining — Proactive Investors Forum 2013
25 slides from Aspire Mining's conference presentation, May 8, 2013
Slide 1: Ovoot Coking Coal Project
For personal use only Ovoot Coking Coal Project Investor Presentation to Proactive Investors Forum 8 May 2013 June 2010 1
Slide 2: Important Information
Important Information For personal use only •Nature of this document: This document has been prepared by Aspire Mining Limited (“Aspire”, “AKM”, or the “Company”) and contains summary information about the Company and its subsidiaries as at the date of release of this document. The information in th
Slide 3: Company Snapshot – Corporate Structure
Company Snapshot – Corporate Structure For personal use only Capital Structure (ASX:AKM) Board of Directors • David McSweeney (Non-Exec Chairman) – lawyer by training and has over Undiluted Diluted 20 years experience in the resources sector ranging from exploration to project Share Price (29 April
Slide 4: Significant Mongolian Coal Projects
Significant Mongolian Coal Projects For personal use only 4
Slide 5: Ovoot - Second Largest Coking Coal Reserve in Mongolia
Ovoot - Second Largest Coking Coal Reserve in Mongolia For personal use only Mongolian Coking Coal Reserves Large 400 350 300 250 219 Mt 200 Mt 139 Mt 150 122 Mt 111 Mt 100 50 0 Tavan Tolgoi: Aspire - Ovoot MMC - UHG SouthGobi - MMC - Baruun West Tankshi Ovoot Tolgoi Naran Source: Company website, C
Slide 6: Exceptional Deposit – High Washing Yield and % Coking
Exceptional Deposit – High Washing Yield and % Coking = Highest In-Situ Value per tonne For personal use only 6
Slide 7: Ovoot Coking Coal Project
Ovoot Coking Coal Project For personal use only An Important New Coal Discovery in Northern Mongolia PFS Key Highlights • 20 year Life Ovoot Production Schedule • Producing in excess of 184 mt Marketable Coking Coal 14,000 • Producing up to 12 Mtpa 12,000 • Annual Revenue US$2 - $2.4 bn per 10,000
Slide 8: Ovoot PFS Revision Financial Highlights
Ovoot PFS Revision Financial Highlights For personal use only OPEX • Average operating cost ex mine gate US$36/t for Life of Mine • Average operating cost estimated at US$115/tNote1 for Life of Mine • 0-5 Years: Average operating cost to deliver coal to China US$91/tNote1 Mine CAPEX Requirements S
Slide 9: A Comparison of C1 + Royalty Costs
A Comparison of C1 + Royalty Costs For personal use only US$/t Sources: BHP Half Year and Full Year Financial Reports and Supplementary Statements for periods reported for six months ended Dec 2010 to six months ended Dec 2012; Queensland Government, Office of State Revenue, Royalty Rates; Aspire Mi
Slide 10: VITROCOAL: Low Ash, High Fluidity Coking Coal
VITROCOAL Low Ash, High Fluidity Coking Coal For personal use only Indicative Ovoot Washed Coking Ovoot Coking Coal displays High fluidity and Coal Specification plastic properties Moisture 9% An ideal blend coking coal indicated by industry leading Gray-King Index and Rank Ash 9% Chinese clas
Slide 11: Chinese Blending Coal Requirements
Chinese Blending Coal Requirements For personal use only Sources: AME Group, “Coking Coal Market Outlook” presentation to Coaltrans Conference Brisbane dated August 2011 11
Slide 12: Marketing Activities Commenced with Major Asian Potential Customers
Marketing Activities Commenced with Major Asian Potential Customers For personal use only Initial discussions with North Asian coking coal end users has confirmed that Ovoot Coking Coal fits neatly into the clean fat coking coal category • Washed bulk sample being provided to interested parties for
Slide 13: Rail Infrastructure: Key to Unlocking Northern Mongolia
Rail Infrastructure Key to Unlocking Northern Mongolia For personal use only Commentary Potential Rail Route – Ovoot Coking Coal Project is 550kms (direct) from Trans-Mongolian rail terminus – Opens up major transport corridor in Northern Mongolia (passing through Orkhon, Bulgan, Khuvsgul and Zavkha
Slide 14: Northern Railways LLC
Northern Railways LLC Subsidiary of Aspire Mining For personal use only • Focused on infrastructure to connect Ovoot to Erdenet • Stand alone Special Purpose Vehicle to: - Apply for BOOT (Build Own Operate Transfer) rail concession - Manage EPC contractors - Raise required funds through issuing debt
Slide 15: Permanent Infrastructure to Benefit Mongolia for Long Term
Permanent Infrastructure to Benefit Mongolia for Long Term For personal use only Rail Infrastructure: US$1,300 million Mine Costs Costs of the Permanent 30% 70% Infrastructure for Mongolia Minesite: US$565 million Note: Costs do not include contingencies as detailed in the Pre-Feasibility Study Anno
Slide 16: Potential Routes to Coal Markets – Rail Access
Potential Routes to Coal Markets – Rail Access For personal use only Asian Importers of Metallurgical Coal: Japan 71.5Mt1 Korea 25.8Mt1 Taiwan 5.5Mt1 102.6Mt Russian total Metallurgical Coal Exports to Asian markets (incl. China): 7.6Mt1 1. Source: TEX Report, 2012 data. 16
Slide 17: Steps to Develop the Ovoot Project
Steps to Develop the Ovoot Project For personal use only Focus Areas over coming 12 months Mine Progress small scale pre-rail trucking option Commence discussions with potential customers Rail Progress Bankable Feasibility Study for Railway Complete Environmental Impact Assessments on wester
Slide 18: Government Fast Tracking Changes to Re-Attract Foreign Direct Investment
The Government is Fast Tracking Changes to Re- Attract Foreign Direct Investment in Mongolia For personal use only Foreign Investment Law Oct 2012: The Mongolian Minister for Economic Development announced that the Foreign Investment Law would be considered for revision in particular the threshold
Slide 19: Update on the Minerals Draft Law
Update on the Minerals Draft Law For personal use only Minerals Draft Law President Tsakhia Elbegdorj recently held private meeting with various members of Mongolian business, government, academia, mining industry to discuss and hear views on the current Draft minerals law. President’s Office co
Slide 20: Foreign Perception is Unforgiving
Foreign Perception is Unforgiving For personal use only Perceived Risk Actual Situation X Changes to Laws Aspire continues to own 100% of the Ovoot Project – the second X Government Election turmoil largest coking coal Reserve in Mongolia (219Mt) X Presidential Election uncertainty Aspire receiv
Slide 21: Other Miners' Progress since May 2012
Other Miners’ Progress since May 2012 For personal use only Company Development Progress Mongolian Alt Group MAK EBRD €190million debt financing for the Tsagaan Suvarga copper project (Private) 10year US$98m ECA transaction provided by BNP Paribas, BHF Bank Prophecy Coal (TSX) Energy Authority
Slide 22: Development Progress is not Reflected in Share Price
Development Progress is not Reflected in Share Price For personal use only Share Price Performance since May 2012 (Indexed) 120 100 80 60 40 “Compared to other emerging markets, Mongolia offers arguably the highest potential reward with the 20 lowest risk right now – as all risks are known, are on t
Slide 23: Risk is in the eye of the Beholder
Risk is in the eye of the Beholder For personal use only 23
Slide 24: Competent Person Statement
Competent Person Statement For personal use only Competent Persons Statement In accordance with the Australian Securities Exchange requirements, the technical information contained in this announcement in relation to the JORC Compliant Coal Reserves and JORC Compliant Coal Resource for the Ovoot Cok
Slide 25: Contact details
Contact details For personal use only Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Level 2, Suite 20, 22 Railway Road Subiaco, Western Australia, 6008 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave-8 Social Insurance Department Building A