Terramin Australia Limited · ASX:TZN
Terramin Australia — Shareholder Meeting (May 2011)
27 slides from Terramin Australia's shareholder meeting presentation, May 26, 2011
Slide 1: Terramin Australia Limited – Focused on Zinc
For personal use only TERRAMIN AUSTRALIA LIMITED Focused on Zinc 2011 Annual General Meeting May 2011
Slide 2: Important information
Important information For personal use only The information in this presentation is designed as an aid to a spoken explanation. It is not to be considered without that explanation. It is not intended to guide any investment decisions in Terramin Australia Ltd. The information is intended as a guide
Slide 3: Terramin: compelling option on zinc price
Terramin: compelling option on zinc price For personal use only An Australian zinc miner with a large African project Attributable metal – 3 million tonnes lead and zinc 3 billion lbs zinc in ore reserves Average C1 cost 32c/lb $44m available for project development Expert and enthusiastic
Slide 4: Growth and Leverage
Growth and Leverage For personal use only Considerable resource and reserve base TERRAMIN AUSTRALIA LIMITED SLIDE No. 4
Slide 5: Capability for Further Growth
Capability for Further Growth: For personal use only Angas Zinc Mine - South Australia (100%) 400Ktpa operation developed on time and budget Development and operating capability Tala Hamza Zinc Project – Algeria (65%) DFS completed, development decision pending for 4Mtpa operation - $40m s
Slide 6: Zinc Market Outlook
For personal use only Zinc Market Outlook TERRAMIN AUSTRALIA LIMITED SLIDE No. 6
Slide 7: Forecast Zinc Market Supply Imbalance to Increase Prices
Forecast Zinc Market Supply Imbalance to Increase Prices For personal use only Zinc Implied Surplus/Deficit ‘000 Tonnes LME Zinc Cash Price $US/lb 600 $1.60 400 $1.40 200 $1.20 - $1.00 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (200)
Slide 8: Zinc Price and Terramin EV Correlation
Zinc Price and Terramin EV Correlation For personal use only TZN Enterprise Value to Zn Price Movement - 6 Monthly Data 400 5,000 • There is a strong 350 4,500 correlation between 4,000 the zinc price and 300 3,500 the enterprise value 250 of Terramin 3,000 • With the medium $'m 200 2,500 term zinc
Slide 9: Strategy and Objectives
For personal use only Strategy and Objectives TERRAMIN AUSTRALIA LIMITED SLIDE No. 9
Slide 10: Strategic framework
Strategic framework For personal use only 1. Grow production from existing operations and projects Low cost operating base Leverage skilled workforce 2. Grow production pipeline Building on existing portfolio through focused exploration Acquiring new projects which meet the criteria of: Cl
Slide 11: Key Competencies
Key Competencies For personal use only 1. Proven mine and processing operators – delivery on- time and on-budget 2. Manage from resource concept through to feasibility and then execution 3. Accurately assess, manage and minimise project risk 4. Strategically align with commercial, technical and fund
Slide 12: Management – Experienced and capable
Management – Experienced and capable For personal use only Management Mining Processing Legal Finance Project International Commercial Management Experience Accounting Mark Terry ✔✔✔ ✔✔✔ Chief Financial Officer Ian Holman ✔✔✔ ✔✔✔ ✔✔✔ ✔✔✔ Chief Mining Engineer Nic Clift ✔✔✔ ✔✔✔ ✔✔✔ ✔✔✔ GM, Algeria Ro
Slide 13: Technical - international
Technical - international For personal use only Geology/ Resource - Languages HR; Business International Mining Reserve systems Experience estimation Arabic French Charlotte Hy, BSc;PhD ✔✔✔ ✔✔✔ ✔✔✔ Angas Exploration Ken Cross, BSc; PhD ✔✔✔ Menninnie Exploration Dominique Petroons, BSc; ✔✔✔ ✔✔✔ ✔✔✔ T
Slide 14: Operations
For personal use only Operations TERRAMIN AUSTRALIA LIMITED SLIDE No. 14
Slide 15: Terramin – SA Mines and Projects
Terramin – SA Mines and Projects For personal use only TERRAMIN AUSTRALIA LIMITED SLIDE No. 15
Slide 16: Angas Zinc Mine Operation
Angas Zinc Mine Operation For personal use only TERRAMIN AUSTRALIA LIMITED SLIDE No. 16
Slide 17: Angas near mine potential
Angas near mine potential For personal use only Sunter Garwood Rankine Prospective zone TERRAMIN AUSTRALIA LIMITED for Rankine type SLIDE No. 17
Slide 18: Menninnie – strong foundation
Menninnie – strong foundation For personal use only Menninnie Central Zone - Inferred Resource of 7.7Mt @ 3.1% Zn and 2.6% Pb, and 27g/t Ag (not closed off) 160km from Pt Pirie lead smelter High lead/zinc ratio Other prospects with good Pb-Zn drill results Large geophysical and Cu-Pb-Zn ge
Slide 19: Oued Amizour Zinc Project - Algeria
Oued Amizour Zinc Project - Algeria For personal use only 65% Terramin : 35% Government BEJAIA PORT TERRAMIN AUSTRALIA LIMITED SLIDE No. 19
Slide 20: Oued Amizour Zinc Project
Oued Amizour Zinc Project For personal use only Location is only one competitive advantage……… TERRAMIN AUSTRALIA LIMITED SLIDE No. 20
Slide 21: Competitive advantages
Competitive advantages For personal use only Infrastructure deep water port international airport plentiful water on lease Workforce proximity to city local universities high unemployment iron and zinc mining history Cheap power and fuel (US$) power approximately 4c/kWh low c
Slide 22: Tala Hamza Block Cave
Tala Hamza Block Cave For personal use only 250 metres Mineral Resource Ventilation shaft Measured, Indicated and MEASURED & INDICATED Inferred RESOURCE 68.6 Mt at 4.6% Zn, 1.1% Pb Undercut level Extraction level Access and waste trucking decline Ore Reserve Ore conveyor Probable incline Ore Passes
Slide 23: Production profile
Production profile For personal use only First concentrate production is scheduled for the final quarter of 2016 – however investigations underway to bring this forward Output from the mine and plant will quickly ramp up to 4Mtpa with peak zinc and lead concentrate production of 425,000t (230,00
Slide 24: Capital Funding Requirement
Capital Funding Requirement For personal use only Terramin capital funding requirement estimated at US$109m based on 70% local debt funding on pro-rata basis Terramin Funding Profile for Tala Hamza Project $US Millions 200 150 $ Millions 100 50 0 2011 2012 2013 2014 2015 2016 Total Other Funding 7 4
Slide 25: Project ranking
Project ranking For personal use only Tala Hamza in the top ten zinc mines.... Zinc Mine Output (Zn Metal – 000’s mt) 700 600 500 400 300 200 100 0 X XX X Rampura‐ Red Dog Century Antamina Mt Isa San Cristobal Tala Hamza Tara Brunswick Skorpion Lisheen Agucha TERRAMIN AUSTRALIA LIMITED SLIDE No. 25
Slide 26: Terramin – Leverage for success
Terramin – Leverage for success For personal use only Angas is de-risked - major cash flow generator in 2012-15 Tala Hamza to commission as major Pb-Zn mines close Angas mine life extension likely Menninnie Resource increasing and scoping underway TERRAMIN AUSTRALIA LIMITED SLIDE No. 26
Slide 27: Terramin Australia Limited – Focused on Zinc
For personal use only TERRAMIN AUSTRALIA LIMITED Focused on Zinc 2011 Annual General Meeting May 2011