Slide 1: Developing World Class Cobalt, Nickel and Scandium Assets
For personal use only DEVELOPING WORLD CLASS COBALT, NICKEL AND SCANDIUM ASSETS April 2017
Slide 2: Important note on these slides
Important note on these slides This document is a visual aid accompanying a presentation to investors by the Company’s Managing Director from 5 April 2017. It is not intended to be read as a stand-alone For personal use only document. It contains select information, in abbreviated or summary form, a
Slide 3: Plugging in to Co, Ni and Sc production
For personal use only PLUGGING IN to Co, Ni and Sc production “Our Sconi and Flemington projects, producing cobalt sulphate & nickel sulphate as well as scandium oxide, once in production, will position Australian Mines as a leading supplier of technology metals to the rapidly expanding electric veh
Slide 4: Unique Opportunity
UNIQUE OPPORTUNITY For personal use only • The Sconi Cobalt-Nickel-Scandium Project in northern Queensland is considered the most advanced project of its type in Australia , with mining and 1 environmental approvals already in place and a Bankable Feasibility Study under way • Sconi is similar to Cl
Slide 5: Meeting Demand
MEETING DEMAND For personal use only • Test work confirms Sconi and Flemington’s outcropping lateritic mineralisation is amenable to producing the cobalt sulphate & nickel sulphate products required by the electric vehicle market, and a premium scandium oxide product that is subject to increasing de
Slide 6: Investment Highlights: Sconi
INVESTMENT HIGHLIGHTS For personal use only Joint Venture agreement to acquire up to 75% of Sconi The most advanced cobalt-nickel-scandium project in Australia 3 Project 54,500 tonnes of contained cobalt currently in resource Sconi 4 Mineralisation outcrops and is well defined as a 5 kilometre long
Slide 7: Investment Highlights: Flemington
INVESTMENT HIGHLIGHTS For personal use only Option Agreement to acquire 100% interest of the Flemington Project located in central New South Wales Scoping Study completed by SRK Consulting highlighted positive economics and technical feasibility Flemington One of the highest grade scandium deposits
Slide 8: Sconi = One Giant Battery
SCONI = ONE GIANT BATTERY For personal use only • Excluding aluminium, Sconi has the potential to produce those commodities that constitute 95% of the raw materials in a Tesla Model S battery pack cathode (80% nickel, 15% cobalt) and 100% of the iPhone 9 battery cathode, made exclusively from cobalt
Slide 9: Critical Battery Minerals
CRITICAL BATTERY MINERALS For personal use only The commodity mix contained within the Sconi and Flemington ore bodies are strongly compatible with the critical commodities required for the batteries used in today’s high-demand technology products www.australianmines.com.au
Slide 10: Supply of Battery Minerals
SUPPLY OF BATTERY MINERALS For personal use only Some of the most critical metals for batteries also have questionable or unstable current supply, while others are more commonly produced but likely to grow in demand with the adoption of electric vehicles Source: https://electrek.co/2016/11/01/breakd
Slide 11: Secure Supply Chain
SECURE SUPPLY CHAIN For personal use only • There is a legal requirement for all American companies including Tesla, Apple, General Motors and The Linde Group to declare annually that their supply chains are compliant with applicable USA and international laws & regulations around human rights, labo
Slide 12: Cobalt Price
COBALT PRICE For personal use only Cobalt price on the London Metals’ Exchange (LME) has doubled over the past 12 months. Source: http://www.lme.com/metals/minor-metals/cobalt/ www.australianmines.com.au
Slide 13: Sconi and Cobalt Production
SCONI AND COBALT PRODUCTION For personal use only • Cobalt, being primarily produced as a by-product of another metal (usually copper or nickel) suffers from an instability in supply, as it is the market price of the primary commodity in the ore body that ultimately dictates a mine’s production outp
Slide 14: Nickel/Cobalt Ratios
NICKEL/COBALT RATIOS For personal use only Sconi is second only to Syerston in terms of favourable nickel-cobalt ratios, while Flemington is a continuation of the Syerston ore body “Sconi’s superior primary commodity ratio will allow us to scale production to capitalise on rises in commodity prices”
Slide 15: The Projects
For personal use only THE PROJECTS Aerial photo of the Sconi ore body
Slide 16: Sconi Co+Ni+Sc Project
SCONI Co+Ni+Sc PROJECT For personal use only • Located near the mining centre of Greenvale, 250 kilometres west of the port of Townsville in northern Queensland • The project benefits from established surrounding infrastructure to support future mine development ➢ Negligible sovereign risk in Austra
Slide 17: Sconi Co+Ni+Sc Project
SCONI Co+Ni+Sc PROJECT For personal use only Sconi is on the road to a final investment decision in early 2018, pending a positive Bankable Feasibility Study result: ✓ Mining Lease granted ✓ Environmental Licence granted ✓ Plant design identified ✓ Electricity source confirmed ✓ Proposed water suppl
Slide 18: Financial Evaluation of Sconi
FINANCIAL EVALUATION OF SCONI 18 For personal use only • Processing plant throughput of 750,000 tonnes per annum • Average cobalt feed grade for the first 20 years of production of 0.11% • Average nickel feed grade for the first 20 years of production of 0.81% • Estimated breakdown of annual cobalt
Slide 19: Sconi Priorities & Timetable
SCONI PRIORITIES & TIMETABLE For personal use only 1. Commence construction of a fully-operational, demonstration-scale processing plant in Perth, Western Australia, this month 2. Complete construction of the processing plant by September 2017 3. Produce commercial quality Cobalt sulphate, Nickel su
Slide 20: Flemington Co+Sc (+Ni) Project
FLEMINGTON Co+Sc (+Ni) PROJECT For personal use only • Located near the historic mining centre of Fifield in central New South Wales, 370 kilometres west of Sydney • Considered New South Wales’ premier cobalt-nickel-scandium province • Skilled mining workforce residing within the surrounding region
Slide 21: Flemington Co+Sc (+Ni) Project
FLEMINGTON Co+Sc (+Ni) PROJECT For personal use only • Australian Mines’ Flemington ore body is the western continuation of Clean TeQ’s Syerston cobalt-nickel-scandium deposit (mineralisation cut by tenement boundary) • Scoping Study revealed the potential for high-grade cobalt mineralisation to con
Slide 22: Two Halves of the Same Deposit
TWO HALVES OF THE SAME DEPOSIT For personal use only The geology hosting both Australian Mines’ Flemington ore body and Clean TeQ’s adjoining Syerston project appears as a solid, continuous (red-coloured) body in the above aeromagnetic image www.australianmines.com.au
Slide 23: Flemington Priorities & Timetable
FLEMINGTON PRIORITIES & TIMETABLE For personal use only 1. Commence Mineral Resource extension drilling targeting high-grade cobalt zone this month 2. Secure water licence by June 2017 3. Release Mineral Resource update in July 2017 4. Commence Pre-Feasibility Study in August 2017 (completed by Apri
Slide 24: The Scandium Flight Path
THE SCANDIUM FLIGHT PATH For personal use only
Slide 25: Scandium
SCANDIUM For personal use only • Scandium, or Scandium Oxide (Sc2O3) as it is commonly marketed, is a relatively scarce, high-value mineral used to produce aluminium alloys • Scandium-reinforced alloys suitable for the manufacture of weldable aluminium products such as: ➢ Car chassis and body panels
Slide 26: Current and Future Demand
CURRENT AND FUTURE DEMAND For personal use only • Existing demand for Scandium extends across multiple civilian and military applications, including: ➢ automotive and aircraft manufacturing ➢ solid oxide fuel cells ➢ lightweight, high-strength sporting equipment • Annual demand for Scandium is antic
Slide 27: Investment Proposition
The Potential For personal use only INVESTMENT PROPOSITION
Slide 28: Take-away Points
TAKE-AWAY POINTS For personal use only • Large scale mining with cobalt as the priority output is rare globally 24 • Worldwide demand for the technology-enabling metals of cobalt and scandium expected to grow significantly in next decade • Sconi is the most advanced cobalt-nickel-scandium project in
Slide 29: Take-away Points
TAKE-AWAY POINTS For personal use only • Well advanced plans for Australian Mines to become a cost-effective and reliable cobalt sulphate and nickel sulphate supplier, as well major scandium producer • Both Sconi and Flemington can achieve optimal production rates using the same traditional processi
Slide 30: Thank You
For personal use only Thank You Level 1,83 Havelock St West Perth WA 6005 +61 8 9481 5811 +61 4 6777 0016 bbell@australianmines.com.au www.australianmines.com.au
Slide 31: Competent Persons' Statements
Competent Persons’ Statements For personal use only Sconi Cobalt-Nickel-Scandium Project information in this announcement that relates to Mineral Resources for the Sconi Project is extracted from Australian Mines announcement dated 31 March 2017 and is available to view at www.australianmines.com.au
Slide 32: Cautionary Statements
Cautionary Statements For personal use only Sconi Cobalt-Nickel-Scandium Project The studies referred to in this announcement, and completed by an internationally renowned mining consulting firm, has been undertaken to evaluate the technical feasibility of the Sconi Project. It is a preliminary tech
Slide 33: Footnotes
Footnotes For personal use only 1 Australian Mines Limited, Environmental Licences granted for mining and processing operation at Sconi, released 2 March 2017 Unlike Australian Mines & Metallica Minerals’ Sconi Project, Platina Resources Limited (ASX: PGM) is yet to obtain a Mining Lease over the Ow
Slide 34: Footnotes
Footnotes For personal use only 10 Australian Mines Limited, Environmental Licences granted for mining and processing operation at Sconi, released 2 March 2017 Unlike Australian Mines & Metallica Minerals’ Sconi Project, Platina Resources Limited (ASX: PGM) is yet to obtain a Mining Lease over the O
Slide 35: Footnotes
Footnotes For personal use only 18 The financial evaluation was completed on a 100% project basis. The key economic inputs are outlined in Australian Mines' announcement dated 31 March 2017 titled Technical Reports, which has previously been lodged with the Australian Securities Exchange and is avai
Slide 36: Footnotes
Footnotes For personal use only 22 Australian Mines presently has sufficient cash-in-bank to fund activities 1 to 5 described on this slide. The Board believes that there are reasonable grounds to assume that funding for the ongoing development of the Flemington Project will be available as envisage
Slide 37: For personal use only
For personal use only www.australianmines.com.au