Alphamin Resources Corp. · TSXV:AFM
Alphamin Resources — Investor Presentation (December 2017)
30 slides from Alphamin Resources's investor presentation, December 2017
Slide 1: A Strategic Position in a Significant New Tin Province
A Strategic Position in a Significant New Tin Province Boris Kamstra Chief Executive Officer December 2017
Slide 2: Disclaimer – Alphamin
Disclaimer – Alphamin This presentation contains certain forward-looking statements and information (collectively the “forward looking statements”) including, but not limited to, forward looking statements concerning potential developments affecting the business, prospects, financial condition and o
Slide 3: Table of Contents
Table of Contents REF SECTION PAGE 1 Key Messages 5 2 Tin Market Overview 6 3 Securing a Strategic Position in the Future of Tin 8 4 Unlocking and Developing the Tin Province 10 5 Bisie Phase 1: Mpama North - The World’s Richest Known Tin Deposit 12 6 Company Overview 16 7 Bisie Phase 1: Financial A
Slide 4: Key Messages
Key Messages Strategy Why Tin? Arguably the most prospective tin province in the world The Team Phase 1: Mpama North Later Phases: Mpama Deeps, Mpama South, Marouge, Smelting, Trading, A Strategic Position in the Logistics Global Tin Market 4
Slide 5: Why Tin? - The Market
Why Tin? - The Market Tin Market Overview 20 Year Tin Price History ▪ Tin replaced lead in solder which caused a step change in demand ▪ The International Tin Research Institute (“ITRI”) has forecast that there is likely to be a global shortfall of tin commencing in 2018 ▪ Future supply is uncertain
Slide 6: Why Tin? – A "Tech" Play
Why Tin? – A “Tech” Play Tin Consumption by End Use Other 14% Lead Acid Batteries 7% Solder 48% Tin Plate 15% Chemicals 16% Source: ITRI 6
Slide 7: Securing a Strategic Position in the Future of Tin
Securing a Strategic Position in the Future of Tin ▪ Alphamin has a strategic land holding in a highly prospective tin province, which has already delivered some of the world’s richest known tin deposit – Mpama North ▪ Alphamin’s medium term objective is to deliver multiple tin projects that will pr
Slide 8: Securing a Strategic Position in the Future of Tin
Securing a Strategic Position in the Future of Tin 2021 ITRI Tin Mine Full Costs Tin Resource and Grade 35000 Market equilibrium upwards of US$22,500/tonne projected in 2020 30000 (assuming global mined tin demand exceeds 280,000 t) 25000 20000 Full Cost US$/t Bisie 15000 10000 5000 0 10 20 30 40 50
Slide 9: Unlocking the Tin Province
Unlocking the Tin Province Milestones Status Secure site and establish security of tenure Negotiate departure of artisanal miners Establish the LOWA Alliance and win national and provincial support to ensure ‘social license to operate’ Prove the resource and complete Definitive Feasibility Study (NI
Slide 10: Developing the Tin Province
Developing the Tin Province Mpama North Mpama Deeps Mpama South Regional Targets All future expansions are expected to be self-funded ▪ Develop Mpama North 2017 to Q1 ▪ Develop Mpama South - start drilling ▪ Develop Mpama Deeps 2028 to 2031 ▪ Further drilling and exploration to be 2019 with first fr
Slide 11: Bisie Phase 1: Mpama North - The World's Richest Known Tin Deposit
Bisie Phase 1: Mpama North - The World’s Richest Known Tin Deposit Bisie Tin Project Mpama North ▪ Alphamin has a 30 year mining licence at Mpama North situated in the North Kivu province of the DRC ▪ Phase 1 of the project will involve developing Mpama North - construction commenced in early 2017 a
Slide 12: Becoming a Strategic Player in the Tin Market
Becoming a Strategic Player in the Tin Market ITRI Cash Costs and Full Costs - 2021 35000 35000 30000 30000 25000 ITRI Forecast Equilibrium Price – US$ 22,500 25000 ITRI Forecast Equilibrium Price – US$ 22,500 20000 20000 Cash Cost US$/t Full Cost US$/t Bisie Bisie 15000 15000 10000 10000 5000 5000
Slide 13: Bisie Phase 1: Mpama North Construction Advancing
Bisie Phase 1: Mpama North Construction Advancing Progress to Date ▪ Access road cleared in late 2016, significantly reducing travel costs to site (demobilisation of helicopter) ▪ Excavation of box cut and access road completed ▪ Phase one mining: decline development schedule commenced and currently
Slide 14: Bisie Phase 1: Mpama North Construction Advancing
Bisie Phase 1: Mpama North Construction Advancing 14
Slide 15: Alphamin – A Snapshot
Alphamin – A Snapshot Company Overview Group Organogram Global Energy & Resources Private US$8 Billion in resource investments. Equity Firm Largest investment house in the world focused on ▪ Alphamin Resources (“Alphamin”) is a pioneering tin exploration and Denham Capital Established in 2004 small
Slide 16: Major Stakeholders and Partners
Major Stakeholders and Partners Major Alphamin Stakeholders and Strategic Partners ▪ Tremont Services is a Mauritian-based investment advisor to Tremont Master Holdings, a Mauritian-domiciled investment holding company. Tremont Master Holdings ▪ The Government of DRC is a 5% shareholder in ABM owns
Slide 17: Key Individuals
Key Individuals Ian Gordon Hall Dun Rob Still Charles Needham Bernard Swanepoel Paul Baloyi Tony Cox Panel of Experts Panel of Experts Board Chairman Board Member Board Member Panel of Experts Paul has over 35 years’ of Tony has 50 years’ experience Ian was the Director of Process Rob has over 30 ye
Slide 18: Alphamin's Highly Experienced Management Team
Alphamin’s Highly Experienced Management Team Boris Kamstra Trevor Faber Richard Robinson Eoin O’Driscoll Boris is the Chief Executive Officer and Trevor is the Chief Operating Officer Richard is the MD of ABM and has Eoin is the Chief Financial Officer and has been involved in the DRC mining and ha
Slide 19: Bisie Phase 1: Mpama North - Financial Analysis
Bisie Phase 1: Mpama North - Financial Analysis Real NPV Analysis 30000 Base case: US$ 402.2m Tin Price (US$/t) 25000 20000 15000 10000 Last Price ITRI Forecast 1000 300 Shares Outstanding (m) Significant margin of safety between current market cap and 800 80.75% of the Project NPV 600 200 US$m The
Slide 20: Mpama North - Potential Financial Upside
Mpama North - Potential Financial Upside Increase in Tin Price Process Logistics Costs Geological Upside Improvements Optimisation Further work required, but: The NPV base case uses a tin Improved recoveries: Rough terrain vehicle usage Expect at least 1 further project price of US$ 21,400/t which i
Slide 21: Bisie Phase 1: Mpama North - The Foundation of the Tin Province
Bisie Phase 1: Mpama North - The Foundation of the Tin Province ▪Mpama North is the first step in the creation of a tin province ▪ The financial metrics and budgeted costs are exclusively for the development of Mpama North ▪ The return metrics for future tin projects are likely to be enhanced by the
Slide 22: Funding: Path to Production
Funding: Path to Production Funding Details 300 250 IDC & Tremont 31,4 { $56m private 200 US$38.4m { 13,8 Tremont 24,6 placement US$ m 150 80 100 22,3 50 73,5 0 Investment to June 2017 Equity raised July 2017 Project Senior Debt IDC Equity Final Private Placement ▪ US$ 73.5m invested to 1 January 20
Slide 23: Appendices
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Slide 24: Bisie Key Developments Timeline
Bisie Key Developments Timeline In August 2011, Alphamin The maiden Resource Definitive Feasibility Study closed its acquisition of a statement was released in Box-cut and ventilation released in February 2017 70 % interest in the Bisie November 2013 for an adit completed in 2017. for a measured and
Slide 25: Conflict-Free Tin
Conflict-Free Tin Conflict-Free Tin Movement ▪ The tin industry, along with the three other so-called conflict minerals (gold, tantalum and tungsten) sectors have actively developed initiatives to prevent conflict minerals from the Great Lakes Region entering the supply chain ▪ Through these initiat
Slide 26: Peak Funding Requirement
Peak Funding Requirement Nominal Nominal Uses of Funds Sources of Funds US$m US$m Capital expenditure 154.1 Equity raised – July 2017 22.3 VAT 6.8 TMH equity commitment – Final raise 24.1 Working capital 2.8 IDC equity commitment – Final equity raise 13.6 Cash from operations (5.7) Cash on hand & co
Slide 27: Control Budget Estimate and Operating Costs
Control Budget Estimate and Operating Costs Control Budget Estimate Operating Costs ▪ Front-end engineering design (FEED) completed by DRA: Operating Costs US$/t tin ▪ increased confidence Mining 2,909 ▪ Further optimisations targeted: Processing 348 ▪ Led by Ian Dunn (16 years Minsur director of pr
Slide 28: Corporate Social Responsibility
Corporate Social Responsibility ▪ Alphamin is a catalyst for the economy of North Kivu – adding to employment, safety, rule of law, improved lives ▪ Alphamin is a manifestation of the objectives of Dodd Frank conflict-free minerals act, which also provides “insurance” to the project ▪ In time the fu
Slide 29: Mining and Processing Methods
Mining and Processing Methods Mining by Sub-Level Caving Methods Process Flow Sheet Follows Standard Gravity Separation Methods 29
Slide 30: Logistics and Marketing
Logistics and Marketing Logistics Marketing ▪ AFM responsible for logistics to Goma export warehouse only ▪ Off-take contract tentatively awarded to major, global trading house ▪ Total distance of ~290 Km ▪ Tin concentrates to be acquired ex-Goma export warehouse ▪ 105 Km in reasonable condition ▪ R
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