Hmc Capital Limited · ASX:HMC
Hmc Capital — HydroMet — Shareholder Meeting (October 2010)
19 slides from Hmc Capital's shareholder meeting presentation, Oct 18, 2010
Slide 1: HydroMet AGM October 18th 2010
HydroMet AGM October 18th 2010
Slide 2: Managing Director's Update
HydroMet October 2010 Managing Director’s Update
Slide 3: Activities
HydroMet 2010 Activities Hydromet focused on the following activities in the 2010 financial year : Successfully increased output through the Unanderra battery recycling plant. Significant and better than forecast throughput achieved. Continued to build a solid customer base for our lead products
Slide 4: Activities cont'd.
HydroMet 2010 Activities cont’d. Progressed with plan to build a secondary lead smelter at the Newcastle facility. Capital quotations received and in line with expectations. Bank finance secured for $5 Million from principal banker. Withdrawn to fully assess the melting low capital option. F
Slide 5: Key performance indicators 2010 financial year
HydroMet 2010 Key performance indicators 2010 financial year. 2010 2009 Change Change Revenue $M $M $M % Lead products 27.00 9.90 + 17.10 +172% Polypropylene .90 .50 + .40 + 80% Selenium 7.03 4.80 + 2.23 + 46% Tellurium 2.12 1.33 + .79 + 59% Precious Metals 3.61 9.30 - 5.69 - 61% Treatme
Slide 6: Used Lead Acid Battery Throughput FY2010
HydroMet 2010 USED LEAD ACID BATTERY THROUGHPUT FY2010 PROCESSED - TONNES 4,000 3,634 3,571 3,550 3,500 3,103 T 3,000 2,812 O N 2,442 N 2,500 2,203 2,235 E 2,006 S 2,000 1,743 T 1,540 1,572 1,568 1,445 i 1,500 t 1,100 l e 1,000 500 QTY - Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
Slide 7: Monthly Average LME in US$ and AU$
HydroMet 2010 MONTHLY AVERAGE LME IN US$ AND AU$ PRICE PER TONNE $3,000 LME MONTHLY AVERAGE $ $2,500 $2,000 $1,500 $1,000 $500 $- Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 US$ AU$ Linear (US$) Linear (US$) Linear (AU$)
Slide 8: US Exchange Rate
HydroMet 2010 U$ EXCHANGE RATE 0.9500 0.9369 0.926284211 0.9202 0.9148 0.912008696 0.9072 0.9028 0.9000 0.8991 0.8863 0.874309091 Exchange Rate 0.8717 0.8611 0.8500 0.851190909 0.8344 0.8000 0.8040 0.7500 0.7000 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-
Slide 9: Selenium Price History
HydroMet 2010 SELENIUM PRICE HISTORY METAL BULLETIN $45.00 $40.00 $35.00 U $ $30.00 P $25.00 E R $20.00 L $15.00 B $10.00 $5.00 $- Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 LOW HIGH
Slide 10: Unanderra (Wollongong)
HydroMet 2010 Unanderra (Wollongong) Primary activities : 2010 2009 Change Used lead acid batteries processed– number 1.75 Mill 0.961 Mill + 0.789 Mill +82% Used lead acid batteries processed – tonnes 26,246 14,413 +11,833 +82% Production of plastic for recycling – sold tonnes 1,312 720 + 592
Slide 11: Unanderra (Wollongong) cont'd.
HydroMet 2010 Unanderra (Wollongong) cont’d. Focus for 2011 : Stabilize battery throughput at current levels and test plant upper limits. Maintain ULAB collection network success and collection rate to meet lead output expectations. Extend product customer portfolio. Install mini tilting rot
Slide 12: Tomago (Newcastle)
HydroMet 2010 Tomago (Newcastle) Primary activities : 2010 2009 Selenium feeds processed 160 tonnes 149 tonnes Tellurium feeds processed 159 tonnes 117 tonnes Other Feeds processed 60 tonnes 119 tonnes Selenium produced/sold 103 tonnes 80 tonnes Tellurium produced/sold 14 tonnes 8 tonnes
Slide 13: Tomago (Newcastle) cont'd.
HydroMet 2010 Tomago (Newcastle) cont’d. Focus for 2011: Increase precious metals purchase/selenium processing through the plant. Complete precious metals recovery options development work. Objective to produce a higher grade intermediate product – increase value and revenue to Hydromet. Insta
Slide 14: Secondary Lead Smelter and new development
HydroMet 2010 Secondary Lead Smelter and new development Efforts to complete the $12 Million fundraising for construction of the 20,000 tonne smelter for the Newcastle facility proved difficult in 2010 under prevailing market conditions. With adverse market sentiment, the Board and management re
Slide 15: Timeframe
HydroMet 2010 Timeframe Work has commenced to : Define equipment and services requirement. Determine necessary regulatory requirements – expect to be minimal compared to full smelter. Complete detailed layout plans and plant allocation. Confirm capital and operating cost models. Complete t
Slide 16: Overall benefits in this strategy
HydroMet 2010 Overall benefits in this strategy : Bring the lead metal production facility online at lower capital investment. Minimise risk with significant capex requirement. Take advantage of existing facilities at Unanderra. Reduced operating costs of ULAB processing. Little or no debt
Slide 17: Hydromet Personnel
HydroMet 2010 Hydromet Personnel The lead smelter project is supported by : A number of Hydromet senior industry qualified operations personnel who manage the processing/production and development activities within the group. Extensive smelting experience within senior personnel pool. Extern
Slide 18: Unanderra Future Projects Minmet Operation
HydroMet 2010 Unanderra Future Projects Minmet Operation ULAB CRT Glass (E- pee Waste) Spent Pot Copper Lead Dross Precious A ” Smelt Battery Lining & EAF Dust from Pb Smelter additional Au Residues | & Se feed reatment Copper Lead Dross Leaching Se —Te Processing | Additional | Lead Feed Additional
Slide 19: Revenue streams expectations for F2011
HydroMet 2010 Revenue streams expectations for F2011 With mature lead product and selenium/precious metals/tellurium customer base and assuming commodity and exchange rate utilized. Lead product sales 32,000 tonnes A$46 Million Plastics sale 1,650 tonnes 1.3 Million Precious metals sales 6 Mil