Earths Energy Ltd · ASX:EE1
Earths Energy — Cradle Resources — Investor Presentation (November 2013)
15 slides from Earths Energy's investor presentation, November 2013
Slide 1: Panda Hill Niobium Project
Panda Hill Niobium Project November 2013
Slide 2: Capital Structure
Capital Structure Issued Shares* 128,675,017 Unlisted options (May 2016 at 26.7c) 7,687,500 Listed options (January 2015 at 26.7c) 15,962,506 Total Options 23,650,006 * Included in Issued Shares is 37,500,000 performance shares: • Half subject to the completion of a scoping study • Half subject to c
Slide 3: Project Ownership
Project Ownership • Cradle owns 50% of the Panda Hill Project • Cradle has an option to purchase the remaining 50% before March 2017 • The option exercise price is ~US$14 million*, of which US$9 million is payable in cash and US$5 million in shares or capped royalty. * The precise option exercise pr
Slide 4: What is Niobium?
What is Niobium? Niobium (Nb) is used as an alloy to make steel harder Nb steel is known as high strength, low alloy steel (HSLA) Niobium Properties: • Strengthens steel and lightens • Corrosive resistant properties • High temperature tolerance Main growth industries: • Automotive • Construction • P
Slide 5: Niobium Demand
Niobium Demand • HSLA is a well known, commonly used steel product: • About 20% of steel produced in developed countries is HSLA • Compared to about 10% of steel in developing countries • Solid demand growth is expected over the next six years (~30%) • Growth in Nb demand is a combination of: • Gene
Slide 6: Niobium Supply
Niobium Supply • Only three existing producers (CBMM, IAMGOLD, Anglo American) • No new producers since 1976, even though market has grown several fold • Limited suppliers result in highly stable Nb prices • Panda Hill will add about 5% to annual supply • No greenfields supply under construction, no
Slide 7: Panda Hill Niobium Project
Panda Hill Niobium Project • Located in Mbeya region, Tanzania • Excellent local infrastructure (grid power, roads, rail) • 160 holes drilled 1950 – 1990s Panda Hill, Mbeya 7
Slide 8: 2013 Updated JORC Inferred Resource
2013 Updated JORC Inferred Resource 82 Mt at 0.52% Nb2O5 (at 0.30% cut-off) • Resource verified and increased by recent in-fill drilling program • Resource estimated by Coffey Mining, independent mining consultants • Includes a weathered cap – 11 Mt at 0.80% Nb2O5 • Resource is open at depth and to
Slide 9: Project Metrics
Project Metrics Panda Hill is a robust project From the work completed to date: • First 10 years mine life > 0.7% Nb2O5 • Low cash costs/high margin operation • Short payback period • Capital cost ~ US$220M • Long mine life 9
Slide 10: Niobec – Case Study
Niobec – Case Study Niobec is an existing Nb producer (a subsidiary of Iamgold, TSX listed) • A 2m tpa underground operation located in Canada • Same flow sheet as Panda Hill, except underground mining • Characterised by solid earnings and a stable metal price Nb Price EBITDA Head grade Year US$ US$
Slide 11: Scoping Study
Scoping Study Commenced a scoping study July 2013 • 2 Mtpa operation • Most study items will be to pre-feasibility level • Resource update and mining study (Coffey) • Metallurgical test work (SGS Lakefield) • Capital and operating costs estimates (Lycopodium) • Social and environmental plan (MTL) •
Slide 12: Planning Schedule
Planning Schedule Panda Hill Niobium Project. Project Activities Q3 2013 Q4 2013 Q1 2014 Resource Drilling Program Metallurgical Testwork Resource update and mining study Engineering study Social and environmental plan 12
Slide 13: Extraction Process
Extraction Process Well known, simple extraction process • Two stage flotation to produce a concentrate (~55% Nb2O5) • Then a converter (mini-roaster) to produce FeNb (~60% Nb) • This process is used by all existing Niobium producers • FeNb is marketed directly to steel mills as a direct feed • Init
Slide 14: Disclaimer and Competent Person
Disclaimer and Competent Person The summary information contained herein has been provided by Cradle Resources (“Cradle” or the “Company”). No representation, express or implied, or warranty as to the accuracy or completeness of the information contained herein is made by any party and nothing conta
Slide 15: For additional information contact
For additional information contact: Grant Davey Managing Director admin@cradleresources.com.au +61 8 9389 2000
Cradle Resources — Investor Presentation (November 2013) on 6ix