Asarian Energy Limited · TSX:ARN
Asarian Energy — Forsys Metals — Investor Presentation (May 2013)
32 slides from Asarian Energy's investor presentation, May 2013
Slide 1: Corporate Presentation
Corporate Presentation May 2013 TSX:FSY FSE: F2T NSX:FSY “Valencia Deposit with drill sites“
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements contained in the following material are forward looking statements and not statement of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently available. Forward looking
Slide 3: Forsys Metals Corp. Advancing Africa's most compelling Uranium Project
Forsys Metals Corp. Advancing Africa’s most compelling Uranium Project 3
Slide 4: Forsys Investment Highlights
Forsys Investment Highlights Consolidated has strong fundamentals: Fully permitted Valencia property with a mining licence and all EIA/EMP and accessory works approvals in place Capability to capitalize on attractive mid and long-term uranium sector dynamics and outlook Substantial uranium resources
Slide 5: Mining in Namibia
Mining in Namibia Stable political and business environment; multi-party democracy with a population of 2.1m people Mining accounts for 9% of Namibia’s GDP and 44% of merchandise exports Mineral commodities include uranium, gold, diamonds, zinc, copper and lead A fair and balanced mining code and ta
Slide 6: Namibia – A Proven Uranium Mining Jurisdiction
Namibia – A Proven Uranium Mining Jurisdiction Areva Namibplaas Valencia Rio Tinto Paladin 6
Slide 7: Norasa – A World Class Uranium Project
Norasa – A World Class Uranium Project Norasa Uranium is a consolidation of: • Valencia a fully permitted development stage uranium mine with a 25 year mining licence with all EIA/EMP Namibplaas Deposit and accessory works approvals in place and a large compliant Resource and Reserve Valencia Deposi
Slide 8: World Class Asset – Competitive Cash Cost Profile
World Class Asset – Competitive Cash Cost Profile Top 10 Global Uranium Producers Tonnes U3O8 7686.0 3353.0 2726.0 2608.0 2240.0 2191.0 2175.0 1903.0 1822.0 1548.0 McArthur River Olympic Dam Arlit (AREVA) Tortkuduk Ranger (ERA) Krazbokamensk Budenovskoye 2 Valencia / Rössing South Inkai (Cameco) (BH
Slide 9: Uranium Deposits and Pit Designs
Uranium Deposits and Pit Designs Valencia Main Namibplaas High grade ore Medium grade ore Open pit designs with low strip ratio 9
Slide 10: Norasa Production Profile
Norasa Production Profile 5.0 Namibplaas 4.5 Uranium Produced (Mlbs U3O8) Valencia 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2016 2027 2015 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028 2029 2030 2031 Updated Feasibility Study (Snowden Group) to optimize and expand processing plant to an average
Slide 11: Valencia Process Plant Update
Valencia Process Plant Update In May 2013 AMEC released an Engineering Cost Study Report. The scope of works included assessing a number of comminution flowsheet changes, optimizations and process plant Capex and Opex updates. The preferred option was a two-stage crush plus single stage SAG mill usi
Slide 12: Status Update and Strategic Objectives
Status Update and Strategic Objectives Quarter Objective % Completed Notes Detailed review of the process plant including an Q1 13 Independent review of Valencia process plant 100 evaluation of the flow-sheet, all inputs, Capex and Opex AMEC report on comminution flowsheet changes, Q2 13 Engineering
Slide 13: Large Compliant Resource Statements
Large Compliant Resource Statements 13
Slide 14: Infrastructure Update
Infrastructure Update Water Supply Namibian Government completed tender process to develop second seawater desalination project. The National Desalination Task Force confirmed additional water availability by end of 2014 approximating 20 million cubic metre capacity per annum Power Supply NamPower c
Slide 15: Capital Structure and Trading History
Capital Structure and Trading History Forsys Metals Shareholder 6.1% Base Shares Outstanding*: 109.9 M Options*: 2.9 M 40.4% 53.5% Warrants*: 2.0 M Fully Diluted*: 114.8 M % of Insiders % of Institutional % of Retail Major institutional shareholder is the Leo Fund : 26.7% Cash*: $5.6 M Share Price*:
Slide 16: Current Valuation & Industry Acquisitions
Current Valuation* & Industry Acquisitions 30.2 27.1 88.3 62.3 39.2 112.3 121.7 56.3 170.1 Resources 3.9 M Lb’s 4 3.5 3 2.5 EV/LB ($) 2 1.6 1.5 1.0 1 0.8 Average: $1.04 0.7 0.5 0.5 0.5 0.2 0.1 0 FIS.V KIV.V UEX.T LAM.T MGA.T FSY.T DYL.AX STM.T BAN.T Forsys under-valued relative to peers Acquisition
Slide 17: Management Team
Management Team Marcel Hilmer Mr. Hilmer has 30 years of senior management experience with global public and private organizations, CEO & Director specifically with international mergers and acquisitions in Africa, Europe, Asia and Australia. A long standing member of the Institute of Chartered Acco
Slide 18: Directors
Directors Martin R. Rowley Mr. Rowley graduated from the University of Western Australia with a Bachelor of Commerce degree in 1975. He Independent Director & Chairman worked as executive assistant to the Board of Directors of a large Australian public company from 1980 to 1984. He then established
Slide 19: Why Nuclear Power?
Why Nuclear Power? World energy demands are rapidly growing – especially in developing countries (two-thirds of humanity have limited or no access to electricity) Improved nuclear economics – power plants more advanced with greatly improved safety and shorter development timeframes Necessary contrib
Slide 20: Attractive Sector Dynamics
Attractive Sector Dynamics Global Uranium Supply/ Demand1 75,000 350,000 Demand exceeds supply: 50,000 300,000 • Annual demand is ~170 M lbs • Current production supply is 140 M lbs 25,000 250,000 • The gap largely filled by secondary 0 200,000 sources including military warheads (US and Russia) wil
Slide 21: New and Planned Reactors Fueling Uranium's Demand
New and Planned Reactors Fueling Uranium’s Demand New Nuclear Reactors – Top 8 Countries 435 reactors are in operation world- wide China Russia 548 new reactors (317 proposed, 164 planned, 67 under construction) India Under Construction USA 30% growth in number of reactors by 2020. China nuclear pow
Slide 22: Future Uranium Production – Demand Driven
Future Uranium Production – Demand Driven Production must increase sharply to cover rising demand and diminishing secondary supplies from end of 2013 Recent trend has been for increased dominance by small number of major producing companies and countries Africa (Namibia) focus of exploration and dev
Slide 23: Forsys Investment Summary
Forsys Investment Summary Historical Technical Report – January 2010 • NPV of $429m and $273m pre and post tax respectively • Average cash costs $35/lb • Fully permitted Valencia project with a mining licence Norasa Consolidated Project – January 2013 • Combined ore feed from a Valencia Main, Valenc
Slide 24: Contact Information
Contact Information Investor Relations and Corporate Services Canada: Joe Racanelli VP, TMX Equicom 31 Adelaide Street East Toronto, Ontario M5C 2K3 +1 416-815-0700 ext. 243 Email: jracanelli@tmxequicom.com Australian Representative Office Marcel Hilmer CEO 15 Outram Street West Perth, WA 6005 Telep
Slide 25: Appendix
Appendix
Slide 26: Valencia – A Fully Permitted Project
Valencia – A Fully Permitted Project Valencia Permit Summary Permit Issued By Mining Licence (ML149) Ministry of Mines and Energy Accessory Works Ministry of Mines and Energy Environmental Clearance —Valencia Village Ministry of Environment and Tourism Environmental Clearance Ministry of Envir
Slide 27: Large Compliant Resource Statements
Large Compliant Resource Statements 1 - Namibplaas by Mike Andrew BSc., MAusIMM and the AIG, Director, Optiro 2012 2 - Valencia prepared by Jeremy Peters BSc., B.Eng, MAusIMM, Principal Consultant, Snowden 2009 & 2010 Inclusive of Mineral Reserve estimate update with 80ppm cut-off of 148.0 Mt, grade
Slide 28: Valencia East Zone
Valencia East Zone Since November 2012 a total of 15 percussion drill holes for a total of 2,250 metres. An approved budget of US$0.5 million to complete a second phase of drilling for a total of 31 percussion drill holes by June 2013. Drilling results have confirmed considerable mineralization in 1
Slide 29: Other Assets - Ondundu Gold Project
Other Assets - Ondundu Gold Project Located in the Erongo Region, Namibia, 70% ownership Open pittable shallow dipping stratiform deposit Historical non compliant 43-101 resource of approximately 500 k oz of gold (4.5 MMt at 3.387 g/t) 29
Slide 30: Social Responsibility – "Working Together"
Social Responsibility – “Working Together” Usakos Community Vegetable Project A major local project that is enabling the community to produce commercial quantities of fresh vegetables for the Valencia mine village and the Usakos market. We believe this will empower self-employment through hands-on s
Slide 31: Norasa – Infrastructure Map
Norasa – Infrastructure Map 31
Slide 32: Valencia – Proposed Flowsheet (May 2013)
Valencia – Proposed Flowsheet (May 2013) 32