Aspire Mining Limited · ASX:AKM
Aspire Mining — Investor Presentation (November 2012)
28 slides from Aspire Mining's investor presentation, Nov 28, 2012
Slide 1: Ovoot Coking Coal Project Update
For personal use only Ovoot Coking Coal Project Update Investor Presentation November 2012 June 2010 1
Slide 2: Important Information
Important Information For personal use only •Nature of this document: This document has been prepared by Aspire Mining Limited (“Aspire”, “AKM”, or the “Company”) and contains summary information about the Company and its subsidiaries as at November 2012. The information in this document does not su
Slide 3: Mongolia media headlines on mining
ly Ise On For personal Mongolia politicians want mo 4 November 2012 g. No wonder ’s mineral exports are plummetin re Oyu Tolgoi . Frik Els, MINING.com Mongolian resource grab turns off investors _ Andrew White, The Weekend Australian 3 Novembe: NO Mining Boom for Mongolia Mo ia i I ngolia in the spo
Slide 4: A New Evolving Democracy
A New Evolving Democracy For personal use only 100 19,000 0.7 percent Of the population Newspapers Candidates totalling only 2.8 currently available The number of people in Mongolia million people! running for local elections 30 14 4 Television stations The number of The number of Prime broadcasting
Slide 5: Performance Comparison of Mongolian Coking Coal Companies versus Indonesian and Chinese
Performance Comparison of Mongolian Coking Coal Companies versus Indonesian and Chinese For personal use only Source: UBS 5
Slide 6: Mongolia Needs Foreign Investment
Mongolia Needs Foreign Investment For personal use only Foreign Direct Investment (FDI) 3,000 Current Account balance 2,000 US$ millions (forecasted data) 1,000 0 -1,000 -2,000 -3,000 Year Source: The World Bank, Mongolia Quarterly Economic Update October 2012 6
Slide 7: Reading Between the Lines
Reading Between the Lines For personal use only 23 October: IFC and World Bank report Mongolia as a top improver for the year for ease of doing business in east Asia moving up 12 places since the previous year (The World Bank) 24 October: China & Mongolia recently signed a cooperation deal for a
Slide 8: Reading Between the Lines
Reading Between the Lines For personal use only 5 November: Oyu Tolgoi (“OT”) Power Agreement with China is secured (Dow Jones Newswires) 13 November: “confident that both issues [foreign investment legislation and SouthGobi corruption investigation] will be resolved soon”, Mr Bold, Mongolian Am
Slide 9: Company Snapshot – Corporate Structure
Company Snapshot – Corporate Structure For personal use only Capital Structure (ASX:AKM) Board of Directors • David McSweeney (Non-Exec Chairman) – lawyer by training and Undiluted Diluted has over 20 years experience in the resources sector ranging from Share Price (12 Nov 12) $ 0.083 0.083 explora
Slide 10: Projects
Projects For personal use only Project Locations Project Interests Ovoot Coking Coal Project (100%) Jilchigbulag Coal Project (100%) Nuramt Coal Project (100%) Zavkhan Iron Ore Project (Earning 70%) 10
Slide 11: Ovoot Coking Coal Project Overview
Ovoot Coking Coal Project Overview For personal use only Acquired Project 100% in February 2010: 509 sqkm Rail Pre-Feasibility completed April 2012 Project PFS completed May 2012 - Based on 166 Holes, 38,000m of drilling Ovoot Project Probable Reserves increased to 219 Mt in November 2012
Slide 12: Ovoot Open Pit & Underground Resource Outline
Ovoot Open Pit & Underground Resource Outline For personal use only 12
Slide 13: Ovoot PFS at a Glance
Ovoot PFS at a Glance For personal use only Large single open pit operation Reserves1 Probable (Mt) Total (Mt) Marketable (Mt) JORC Coal Reserves of 219Mt (211Mt from the Ovoot Open 211 211 174 open pit) Pit Ovoot 8 8 6 High Yield of 82% to saleable coking coal Underground 20 yr Life of Mine
Slide 14: Aspire's Ovoot Project Sits Comfortably Amongst other Tier Assets
Aspire’s Ovoot Project Sits Comfortably Amongst other Tier 1 Assets For personal use only 700 Marketable Coking Coal (Mt) 600 500 400 300 200 100 0 - Teck Resources - BHP/Mitsubishi - Aspire Mining - Xstrata - Rio Tinto - Peabody - Anglo American Source: Company website, Company annual reports, Comp
Slide 15: Ovoot - Second Largest Coking Coal Reserve in Mongolia
Ovoot - Second Largest Coking Coal Reserve in Mongolia For personal use only Mongolian Coking Coal Reserves Large 400 350 300 250 219 Mt 200 Mt 139 Mt 150 122 Mt 111 Mt 100 50 0 Tavan Tolgoi Aspire - Ovoot MMC - UHG SouthGobi - MMC - Baruun Ovoot Tolgoi Naran Source: Company website, Company annual
Slide 16: Exceptional Deposit – High Washing Yield and % Coking
Exceptional Deposit – High Washing Yield and % Coking = Highest In-Situ Value per tonne For personal use only 16
Slide 17: Ovoot Indicative Product Quality & Fluidity
Ovoot Indicative Product Quality & Fluidity Properties For personal use only Yield Ash Volatiles CSN RoMax Sulphur % % % % Indicative Washed Coal 82 9.5 25 – 28 8-9 1.2 1 Quality • Air dried basis • ISO Coal Classification: Medium Rank B, high vitrinite, low ash, coking coal • Vitrinite levels 96% -
Slide 18: Ideal Rank for Blending
Ideal Rank for Blending For personal use only 18
Slide 19: Substantial Room to Grow Resource
Substantial Room to Grow Resource For personal use only Project Tenement and Geology +500sqkm project area. Comprehensive airborne magnetics programme clearly defines extensive basin. Basin essentially untested 19
Slide 20: Large New Coking Coal Deposits Need to be Developed
Large New Coking Coal Deposits Need to be Developed For personal use only According to Wood MacKenzie analysis, only 36% of current Met Coal Projects future production can achieve 15% return using the current contract price of US$170/tonne Source: Wood MacKenzie 20
Slide 21: Mongolian Coking Coal now the Dominant Source
Mongolian Coking Coal now the Dominant Source For personal use only 7,000 Chinese Coking Coal Imports 6,000 5,000 Quantity 000' Tonnes 4,000 3,000 2,000 1,000 0 June Qtr 2010 Sept Qtr 2010 Dec Qtr 2010 Mar Qtr 2011 Jun Qtr 2011 Sept Qtr 2011 Dec Qtr 2011 Mar Qtr 2012 Jun Qtr 2012 Sept Qtr 2012 Perio
Slide 22: Rail Infrastructure – Key to Unlocking Northern Mongolia
Rail Infrastructure – Key to Unlocking Northern Mongolia For personal use only Commentary Potential Rail Route – Ovoot Coking Coal Project is 550kms from Trans-Mongolian rail terminus – Opens up major transport corridor in Northern Mongolia – Rail construction can be broken up into two sections: Erd
Slide 23: Northern Railways LLC
Northern Railways LLC Subsidiary of Aspire Mining For personal use only • Focused on infrastructure to connect Ovoot to Erdenet • Stand alone Special Purpose Vehicle to: - Apply for BOOT (Build Own Operate Transfer) rail concession - Manage EPC contractors - Raise required funds through issuing debt
Slide 24: Sources of Debt and Equity Financing
Sources of Debt and Equity Financing For personal use only Development Commercial Bilateral Banks Banks Agencies Multilaterals ECAs DEBT NORTHERN RAILWAYS LLC EQUITY Multilaterals Coal Customers Infrastructure Strategic Developers Partners 24
Slide 25: Potential Routes to Coal Markets – Rail Access
Potential Routes to Coal Markets – Rail Access For personal use only Asian Importers of Metallurgical Coal: Japan 68.6Mt1 Korea 25.9Mt1 Taiwan 5.7Mt1 100.4Mt Russian total Metallurgical Coal Exports to Asian markets (incl. China): 3.8Mt1 1. Source: TEX Report, 2011 data. 25
Slide 26: Focus has moved from Exploration to Commercial Negotiations
Focus has moved from Exploration to Commercial Negotiations to Develop the Ovoot Project For personal use only Next Steps Investigating a relatively small scale pre-rail trucking option Resource remodelling Complete revised Rail PFS along the alternative southern alignment Commence discussio
Slide 27: Competent Person Statement
Competent Person Statement For personal use only Competent Persons Statement In accordance with the Australian Securities Exchange requirements, the technical information contained in this announcement in relation to the JORC Compliant Coal Reserves and JORC Compliant Coal Resource for the Ovoot Cok
Slide 28: Contact details
Contact details For personal use only Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Level 2, Suite 20, 22 Railway Road Subiaco, Western Australia, 6008 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave-8 Social Insurance Department Building A
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