Australian Mines Limited · ASX:AUZ
Australian Mines — Shareholder Meeting (May 2018)
36 slides from Australian Mines's shareholder meeting presentation, May 30, 2018
Slide 1: EGM Presentation
EGM Presentation 30 May 2018 ASX: AUZ australianmines.com.au March 2018
Slide 2: Disclaimer
Disclaimer This document is a visual aid accompanying a presentation by the Managing Director at Australian Mines’ General Meeting of Shareholders held on 30 May 2018. It is not intended to be read as a stand-alone document. It contains selected information, in abbreviated or summary form, and does
Slide 3: Disclaimer: Cautionary note for U.S. investors
Disclaimer CAUTIONARY NOTE FOR U.S. INVESTORS REGARDING RESERVE AND RESOURCE ESTIMATES All resource estimates by the Company in this Presentation were calculated in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”), a pro
Slide 4: Australian Mines: at a glance
Australian Mines: at a glance 100% owner of multiple battery metals projects2 Rapidly growing resource and battery metals company Sconi is the most advanced battery metal project of its type in • Proven track record, having successfully operated an Australia underground nickel mine in Western Austra
Slide 5: Australian Mines: An emerging cobalt and nickel producer
Australian Mines: An emerging cobalt and nickel producer Flagship = Sconi Project, Queensland, Australia • Capable of producing ➢ 3,000 tonnes of contained cobalt metal and ➢ 15,000 tonnes of contained nickel metal annually3 ➢ Equating to c.3% of annual global cobalt supply • Optimising production u
Slide 6: Production scheduled to begin at Sconi Project by 2021
Production scheduled to begin at Sconi Project by 2021 • 13-year off-take agreement with SK Innovation for 100% of the project’s cobalt and nickel production6 ➢ Initial period of 7 years + option to extend for a further 6 year • Contract pricing linked to LME nickel and cobalt price, adjusted on a q
Slide 7: Utilising conventional, proven processing technology
Utilising convectional, proven processing technology • Two-third of the global nickel production currently comes from mining and processing laterite deposits • High-Pressure Acid Leach (HPAL) is the most widely adopted technology for processing laterite ore and the only established option for produc
Slide 8: Shareholders benefit from a pipeline of multiple cobalt projects
Shareholders benefit from a pipeline of multiple cobalt projects • In addition to its 100% owned Sconi Project, Australian Mines is also working on developing its: Flemington Project, New South Wales, Australia • Confirmed as the immediate continuation of Clean TeQ’s Sunrise deposit • Drilling to da
Slide 9: Cobalt Projects
COBALT PROJECTS May 2018 www.australianmines.com.au Aerial view of the Sconi Project 9
Slide 10: Sconi Cobalt-Nickel-Scandium Project
Sconi Cobalt-Nickel-Scandium Project The most advanced cobalt project of its type in Australia • Located within 250 kilometres of the approved cobalt & nickel exporting port of Townsville in northern Queensland, Australia • 100% owned by Australian Mines11 • Greenvale (base for the Sconi project) be
Slide 11: Outcropping, laterally-extensive ore body
Outcropping, laterally-extensive ore body • Sconi is a laterite ore deposit • Two-third of the world’s nickel currently comes from laterite deposits14 • Ore body outcrops at Sconi and is friable, meaning easy (low cost) open pit mining operation • Strip ratio for life of mine is very low at 0.6 (was
Slide 12: Sconi's development program
Sconi’s development program • Workforce to be employed on a residential basis with emphasis on recruiting locally – existing community of Greenvale located within 10 kilometres of proposed operation • Investigating renewable energy options to part-power the Sconi processing plant • Longest lead item
Slide 13: Flemington Cobalt-Nickel-Scandium Project
Flemington Cobalt-Nickel-Scandium Project • Located 370 kilometres west of Sydney, New South Wales • Maiden Mineral Resource of 2.7 million tonnes at 0.101% cobalt18 • Only 1% of the tenement area tested to date • Mineralisation from surface • Unlocking further value through on-going regional explor
Slide 14: Flemington: Potential second production hub
Flemington: Potential second production hub • Flemington mineralisation is the continuation of Clean TeQ Holding’s (ASX: CLQ) Sunrise project • Flemington / Sunrise mineralisation separated only by a tenement boundary • Historic nickel mining within Flemington tenements presenting additional target
Slide 15: Thackaringa Cobalt Project
Thackaringa Cobalt Project • Located within 25 kilometres of established mining centre Broken Hill, New South Wales • Similar geology and cobalt potential as adjoining Cobalt Blue’s (COB) deposits • Thackaringa provides Australian Mines with significant exploration upside • Three zones of anomalous
Slide 16: Demonstration Processing Plant
DEMONSTRATION PROCESSING PLANT Solvent Extraction circuit for cobalt at the May 2018 www.australianmines.com.au 16 company’s Perth demonstration plant
Slide 17: Processing Plant: proven technology and design
Processing Plant: proven technology and design Proven process • Australian Mines’ proposed Pressure Acid Leach (front end) + Solvent Extraction (back end) processing plant uses a proven “ore to finished product” flow chart – utilising both a conventional, industry standard processing flow chart and
Slide 18: Sconi Project's proposed processing plant flowsheet
Sconi Project’s proposed processing plant flowsheet May 2018 www.australianmines.com.au 18
Slide 19: Australian Mines already operating Australia's largest demo plant
Australian Mines already operating Australia’s largest demo plant • Australian Mines, in conjunction with Simulus Engineering, has commissioned and is currently conducting continuous ore processing tests at the demonstration-scale plant in Perth, Australia • This processing plant is the largest test
Slide 20: Partnership with SK Innovation
PARTNERSHIPBook WITHmark SK INNOVATION Electric vehicle batteries being manufactured at SK Innovation’s facility May 2018 www.australianmines.com.au 20
Slide 21: Off-take agreement secured with leading battery manufacturer
Off-take agreement secured with leading battery manufacturer • Australian Mines has executed a binding off-take term sheet agreement with SK Innovation • Australian Mines will be the sole supplier of cobalt to SK Innovation22 • Off-take quantities are up to: o 12,000 tonnes of cobalt sulphate per ye
Slide 22: Public statements from SK Innovation's President Kim Jun
Public statements from the SK Innovation’s President Kim Jun SK Innovation’s President, Mr Kim Jun, stated at a press conference held in Seoul, Korea on 11 April 2018 that: ✓ Australian Mines’ proposed processing flow chart for the Sconi Project has the ability to produce the 'battery metal’ of coba
Slide 23: SK Innovation: Australian Mines' electric vehicle battery partner
SK Innovation: Australian Mines’ electric vehicle battery partner • Korean-headquartered, SK Innovation is the • Ranked 1st in the Korean oil & gas sector world’s 57th largest company • Ranked 1st in the Korean telecommunication sector • 3rd largest Korean company • World’s second largest semi-condu
Slide 24: Australian Mines' electric vehicle battery partner
Australian Mines’ electric vehicle battery partner SK Innovation to invest US$790 million on its new EV battery plant in Hungary Construction began in Mass production to Producing third-generation EV March 2018 start in 2020 for the batteries (which allow EVs to European market cover 500km on a sing
Slide 25: Driving shareholder value in the immediate, medium and longer term
Australian Mines: Driving shareholder value in the immediate, medium and longer term Key Catalysts on the horizon • Sconi Definitive Feasibility Study: End Q2 2018 • Engineering, Construction & Procurement construction contract: late Q3/early Q4 2018 • Completion of Sconi project financing: Q4 2018
Slide 26: Experienced management team
Experienced management team Michael Ramsden Benjamin Bell Chairman Managing Director Lawyer with 30 years experience as a Geophysicist with 20 years experience in the minerals corporate advisor industry Mick Elias Tim Maclean Director Chief Operating Officer International recognised expert in lateri
Slide 27: For further information
For further information: Shareholder Contact: Media Contact: Sophia Bolhassan Michael Cairnduff Investor Relations Manager Cannings Purple Ph: +61 488 022 944 Ph: + 61 406 775 241 E: sbolhassan@australianmines.com.au E: mcairnduff@canningspurple.com.au May 2018 www.australianmines.com.au 27
Slide 28: May 2018 www.australianmines.com.au
May 2018 www.australianmines.com.au 28
Slide 29: Appendix 1: Cobalt's expected critical supply shortage
Appendix 1: Cobalt’s expected critical supply shortage 2017 Cobalt Mine Production by Region • Electric vehicle companies expected to increase Other demand for critical battery metals including cobalt Zambia countries Papua New 3% 11% (and nickel) Guinea 3% • Historically, cobalt supplies have mainl
Slide 30: Appendix 2: References
Appendix 2: References Slide 4 : Australian Mines - at a glance 1 See Australian Mines’ announcement to the ASX dated 6 March 2018 for full details of the terms of its binding off-take agreement with SK Innovation, which include the following key commercial terms: • A seven-year contract term from t
Slide 31: References
References Slide 4 : Australian Mines: at a glance (continued) 2 See Australian Mines’ announcement to the ASX dated 8 December 2017 for full details of the Sconi transaction. Australian Mines has an option to acquire 100% of the Flemington project from Jervois Mining Limited. The last option paymen
Slide 32: References
References Slide 10 : Sconi Cobalt-Nickel-Scandium Project 11 See Australian Mines’ announcement to the ASX dated 8 December 2017 for full details of the Sconi transaction. 12 See Australian Mines Limited’s announcement to the ASX dated 31 March 2017 for further details on the Sconi Project. The Min
Slide 33: References
References Slide 13 : Flemington Cobalt-Nickel-Scandium Project 18 Australian Mines has an option to acquire 100% of the Flemington project from Jervois Mining Limited. The last option payment paid to Jervois Mining made in February 2018, with a final $4 million payment due in September 2018. Jervoi
Slide 34: References
References Slide 21 : Off-take agreement secured with leading battery manufacturer 22https://translate.google.com.au/translate?hl=en&sl=ko&u=http://www.fntimes.com/html/view.php%3Fud%3D2018041112571223671ab245d71a_18 &prev=search 23 See Australian Mines’ announcement to the ASX dated 6 March 2018 fo
Slide 35: References
References Slide 22 : Public statements from the SK Innovation’s President Kim Jun 24 https://translate.google.com.au/translate?hl=en&sl=ko&u=http://www.fntimes.com/html/view.php%3Fud%3D2018041112571223671ab245d71a_18&p rev=search . May 2018 www.australianmines.com.au 35
Slide 36: Appendix 3: Competent Persons Statement
Appendix 3: Competent Persons Statement Sconi Project, Queensland The Mineral Resource for the Sconi Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource was first reported by Australian Mines on 31 March 2017. There has been no Material Change or Re-e