Slide 1: Discovery to Value
For personal use only Discovery to Value
Slide 2: Disclaimer
Disclaimer For personal use only This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other tre
Slide 3: A Brief History of (ALK) Time: In The Beginning
A Brief History of (ALK) Time For personal use only In The Beginning • Listed on the ASX in 1969 to explore for hydrocarbons in the Sydney Basin and Bass Strait. • Expands interests to include mineral exploration throughout Australia during 1970’s. • Like most junior resource companies, effort gover
Slide 4: A Brief History of (ALK) Time: Operations Evolution
A Brief History of (ALK) Time For personal use only Operations Evolution • Drilling at Parkes (London-Victoria) 1987 demonstrates 1.1Mt @ 2.59g/t Au. • Parkes JV to BHP Gold and feasibility study completed 1987. Alkane sells residual 40% to BHP Gold for $2.1 million rather than fund its share of dev
Slide 5: A Brief History of (ALK) Time: Financial Evolution
A Brief History of (ALK) Time For personal use only Financial Evolution • Peak Hill produces 153,000oz of gold 1996 – 2005 with cash flow of $18 million. • Alkane discovers channel iron deposits while exploring for diamonds near Nullagine in WA. Floats BC Iron 2006 to develop these deposits and ulti
Slide 6: A Brief History of (ALK) Time: Tomingley Gold Project
A Brief History of (ALK) Time For personal use only Tomingley Gold Project • $115 million TGP funded from internal financial resources – no debt • Resource – 830,000oz of gold (30 June 2014) # • Mine Method – open cut & underground • Mine Life – 7.5 years (targeting 10+ years) • Processing plant thr
Slide 7: The Future - Dubbo Zirconia Project
The Future - Dubbo Zirconia Project For personal use only • A very large polymetallic resource of the metals zirconium, hafnium, niobium (tantalum), yttrium and rare earths. • Important and strategic metal mix. • Reserve supports 35 year mine life at 1 million tonne ore processing per annum with def
Slide 8: DZP Discovery and Development
DZP Discovery and Development For personal use only Recognition Exploration Resource Process • 1960’s • Drill holes 1990 • 1999-2002 Development • Initial drilling • Preliminary • Mini pilot plant • Metallurgy 2006 1983 for Cu-Au metallurgical - present work • Feasibility study Demonstration EIS Off
Slide 9: Geology and Resources
Geology and Resources For personal use only Trachyte lava or sub-volcanic intrusive • Resources and reserves detailed in slide 24 Largely homogeneous ore body Ore mineralogy: • eudialyte (“like” Zr silicate +Y and HRE) • natroniobite (Nb-Ta) • bastnaesite (LRE) All readily soluble in sulphuric acid
Slide 10: Flow Sheet with "new" Hafnium Recovery
Flow Sheet with “new” Hafnium Recovery For personal use only © 2015 Alkane Resources Ltd 10
Slide 11: DZP Product Output
DZP Product Output For personal use only 4,665 tpa Light rare earth chemical concentrate 99% REO (LREO units) 1,309 tpa Heavy rare earth chemical concentrate 95% REO (HREO units) Product Output 15,827 tpa Zirconium as ZBC (carbonate) & zirconia 99% ZrO2 (ZrO2 units) Assumed 50% 200 tpa Hafnium as Hf
Slide 12: Rare Earth Industry
Rare Earth Industry For personal use only REE Demand 2016 by Application • US$3-5B Global market Other Catalysts • 136,000t Annual consumption 2014 8% 18% • 5-10% Annual growth estimates • 85-90% REE produced by China Ceramics 5% Glass 6% Phosphors 5% Polishing 12% Magnets Metal 27% Alloys 16% Renew
Slide 13: Zirconium Industry
Zirconium Industry For personal use only Zircon Demand by End Use (2014 ~ 1 million tonnes) Other 3% Foundry 12% Ceramics 47% Chemicals 21% Refractory 17% • Global market US$2-3B • China dominates downstream • 2014 consumer zircon inventories running down zirconium industry (85-90%) • Market expecte
Slide 14: Niobium Industry
Niobium Industry For personal use only 90% of Nb used in standard grade ferro-niobium for the production of high strength low alloy (HSLA) steels. World production estimated at 80,000t Nb in 2012. CBMM in Brazil accounts for 85%. Global market US$3-4B. Price stability since 2008, including GFC. CAGR
Slide 15: Hafnium Industry
Hafnium Industry For personal use only Super Alloys - 73% of 2015 supply By-product from zirconium metal • Depends on nuclear industry Prices escalating through demand by aerospace industries 2014 into 2015 © 2015 Alkane Resources Ltd Source: Modified after Lipmann Walton & Co Ltd 2015 15
Slide 16: Diversified applications for all products
Diversified applications for all products For personal use only Renewable energy Energy efficient lighting Auto - emissions Auto – fuel efficiency Health Electronics Smart technologies Aerospace © 2015 Alkane Resources Ltd 16
Slide 17: Financial Summary
Financial Summary For personal use only Definitive Feasibility completed April 2013 – BFS with updated capex and opex being compiled. BFS scheduled for completion Q3 2015. DFS Base Case ~A$1B capex and 20 year NPV A$1.2B* Zr-Nb-Pr-Nd-Tb-Dy-Y Zr-Hf-Nb-Pr-Nd-Tb-Dy-Y Anticipated revenue at current Chin
Slide 18: Funding Strategy
Funding Strategy For personal use only Investment at Project Government Commercial Bank Equity Capital Level Assistance Programs Debt Markets (ALK) • Strategic • ECA Style Funding • Advisors: SMBC & • Advisors: Credit Suisse Investment(s) • Lead coordinator: Credit Suisse & Petra Capital • Advisors:
Slide 19: Timetable
Timetable For personal use only State approval received 29 May 2015 ML and EPL anticipated by end of September Estimates of times are indicative only and are subject to change. Alkane reserves the right to vary the timetable without notice. © 2015 Alkane Resources Ltd 19
Slide 20: Producing the Metals of the Future
Producing the Metals of the Future For personal use only Internationally strategic DZP with supply of several critical metals from non- Chinese sources Diversified DZP output gives robust revenues, even at current Chinese domestic RE prices Full spectrum of rare earth magnet materials – neodymium, p
Slide 21: Discovery to Value
Discovery to Value For personal use only Alkane has demonstrated over a 45 year period that junior resource companies can survive and thrive using a diversified approach to discovery and taking a value return to suit the circumstances at any particular time. While the Company is yet to deliver divid
Slide 22: For personal use only
For personal use only © 2015 Alkane Resources Ltd 22
Slide 23: TGO Resource & Reserves
TGO Resource & Reserves For personal use only TOMINGLEY GOLD PROJECT MINERAL RESOURCES (as at 30 June 2014) MEASURED INDICATED INFERRED TOTAL Total Gold DEPOSIT Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Koz) Open Pittable Resourc
Slide 24: DZP Resources and Reserves
DZP Resources and Reserves For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO Deposit (Mt) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 Total 73.20 1.96 0.04 0.46 0.03 0.1