Admiralty Resources NL · ASX:ADY
Admiralty Resources NL — Investor Presentation (August 2006)
29 slides from Admiralty Resources NL's investor presentation, Aug 24, 2006
Slide 1: ASX Company Announcement
ASX Company Announcement a Admiralty Resources NL « aS ACN 010 195 972 DM | RALTY RESO U RCES Level 14, 200 Queen Street Melbourne VIC 3000 4 u > ft] +61-3-96701838 {f] +61-3-9870 1898 [w] www.ady.com.au 24 August 2006 Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street S
Slide 2: Presentation August 2006
PRESENTATION August 2006 S82?’ DMIRALTY RESOURCES
Slide 3: Company Overview
Company Overview Public Company listed on the Australian Stock Exchange ASX:ADY OTCBB:ARYRY (see www.adrbny.com) Diversified mineral interests in Australia, Chile and Argentina 556 million shares on issue 109.8 million unlisted options at 10 cents exercise price Exchange! provides oe . no volume dat
Slide 4: Project Overview
Project Overview @ PARTECH charts Admiralty Resources NL 4Aug 0.419 puts ADY Resources Ltd por g Argentina 048 S O15 Pyke Hill NL aia Pyke Hill - Nickel 013 F a2 z Bulman Resources NL eo Lead, Zinc O11 3 eS ia ot Five Star Mining NL Fortune Global Holdings 50% of Cia Minera Santa Barbara Mie eee Aug
Slide 5: Key Personnel
Key Personnel Board of Directors Prof. J Ross Harper CBE —- LLB MA DUniv Chairman, Scottish Coal, legal background, London John Anderson —B Com MBA Director, banking, mining management — residing in Melbourne Phillip Thomas — BSc MBM AIG SIA Managing Director, geology, investment, marketing — locate
Slide 6: Cia Minera Santa Barbara Iron Ore Project
Cia Minera Santa Barbara Iron Ore Project Equity share - 50% interest in the Cia Minera Santa Barbara iron ore mines on production (Oct 2006) # Acquisition Cost was US$8.5m, A$1.5m_ shares, USD$10m working capital, priority repayment (funding US$8.0m advanced) # Resource - 10 mines, proven JORC reso
Slide 7: Iron Ore Prices
Iron Ore Prices Historical Pricing et May 2006 Pellet Pricing So ro Fines Pricing Gi) Before 19% increase 2 50 a = & a0 ht ‘d Alt 20 10 G T T : T T T T T T T T T (oer 1988 1891 1903 1995 1997 1399 2om1 27003 200% 2007 2noe 2011 AME Mineral Economics, Research and Analysis ADMIRALTY RESOURCES
Slide 8: Competitive at $68 CNF ex Chile at 63%
Competitive at $68 CNF ex Chile at 63% Indian spot iron ore prices to China sti well above contract (after adjusting for quality differences 100 - 90: mer Australia Braz India 80 = 70 2 : £ 60 50 40 36 + _ oo ot S286 2 Pee oe 6 oP ee eS 2 @ SEZRRZEREZREE RE SE = s & c > — a 4282257228 288 28 28 Sour
Slide 9: Cia Minera Santa Barbara Iron Ore Project
Cia Minera Santa Barbara Iron Ore Project # Located in Northern Chile 7 kilometres south-west of Vallenar # 55 kilometres from the commercial port of Huasco Bay, 210 km from Caldera] # JORC Proven reserve of 32.75m tonnes at 12.2% avg Fe grade # 7.310 4.8 to 1 extraction ratio — currently 23.2% avg
Slide 10: Geomagnetics — high anomolies
Geomagnetics — high anomolies ‘g2ad00 New Tenements Existing Tenements (Japonesa Agreement} Name Size - hectares Mine Name’ Size - hectares Leo 3 200 *Japonesa 34 Leo 4 200 *‘Japonesita 96 Leo7 200 Mirador 21 Leo 8 300 *Gibaiju aT Leo9 300 Natasha 50 Leo 10 200 Tatiana 60 Leo 11 200 Phil 3 Leo 72 30
Slide 11: Japonesa Tenement — 32.75 Million tonnes
Japonesa Tenement — 32.75 Million tonnes VISUALES 4 CERROS CONOCIDOS = ‘OORBEN Tas EROURARICIS = TET A. _— ALTITUDES ; - — ona Ee TE Wine - a Rtian ee oe wltiee ¢ guene: enae, od " < a “ ) E hee cane id acebstoe a et « 3 5 : et TGAZON A ba RED GEODESICA gums yam S35 ; ene ee) Be (tuparel i ub 583 ee
Slide 12: Cia Minera Santa Barbara Iron Ore Production
Cia Minera Santa Barbara Iron Ore Production Iron Ore fines 6mm 70% < 3mm ee Wud 7 es oy us ee a ey A a ae Yields averaging 65% Fe have been obtained from 25,000 tonnes The stockpile behind Phillip Thomas CEO, is “raw fines” being separated from iump material averaging 23% Fe not 12.2% as per the JO
Slide 13: Product Specification — Shipping Schedule - Caldera
PRODUCT SPECIFICATION — SHIPPING SCHEDULE - CALDERA Element Penalty Level% SGS Contract Specification % Fe 62.50 min 63.5 Shipping $i02 §.0 max 4.00 Per Month One handymax 45,000 tonnes Al203 1.6 max 1.00 One panamax 60,000 tonnes P 0.08 max 0.05 Shipping permit for 75,000 tonnes applied for s 0.06
Slide 14: Cia Minera Santa Barbara Iron Ore Project: Extraction Process
Cia Minera Santa Barbara Iron Ore Project extraction Process Extraction process for 3 mi Japonesa and Mirador. ion tonne stockpiles at 3 milion tonne xiachpile Magnetic Saparator B8trr (Ay (3) €} Ship at Mazaco Port (f) Stockpile at por (0) ae. PP ADMIRALTY RESQURCES
Slide 15: Japonesa - Besalco Maquinarias S.A
JAPONESA - BESALCO MAQUINARIAS S.A PLANT MINERAL TRANSPORTATION SERVICE TO CALDERA Sixty Five 30 tonne trucks will freight the iron ore to the stockpile at Caldera some 230km from the mine When Punta Alcalde is completed we will save $8.50 per tonne on transport costs a. SEP ADMIRALTY RESOURCES
Slide 16: Major Plant Configuration
Major Plant Configuration RESOURCES
Slide 17: Flowsheet of the Plant at La Japonesa
FLOWSHEET OF THE PLANT AT LA JAPONESA - PROBABLE SCENARIO MATERIAL BEING [eocrsse AT THE MINE 1.600 tmph — 16% Fe CLASSIFICATION -1” | PLANT MATERIAL 252 TONNES FROM 1,200 TONNES RATIO OF 1:4.8 WASTE 409 tmph 4.200 "en - 20% Fe NN + 600 tmph + 600 tmph WASTE 362,4 tmph 3HSD 247,6 tmph mag 359,4 tmph
Slide 18: Stockpile area at Caldera
Stockpile area at Caldera Se Ly L ie eae Loe e a ee & D ae ee el a = = eB. SEP ADMIRALTY RESOURCES
Slide 19: 500m from Stockpile to Ship
500m from Stockpile to Ship Seo : oe ge lL i CA e y yy oO
Slide 20: Rincon Salar - Argentina
Rincon Salar - Argentina # Major, world-class, multi-element brine resource (Li, K,) located in the Salta Province of Argentina. # The 37 tenements cover an area in excess of 250 square kilometres. # Key resources are lithium chloride, lithium carbonate and potassium chloride, (Potash). & Potassium
Slide 21: Rincon Salar - Argentina
Rincon Salar - Argentina wv # REFERENE (ERT elon eae BOLIVIA . The Resource # The Rincon Project is located in north-western Argentina near the Chilean border. LEED torte Regn Lai See 2 aes Pane sR SSS waaay OL RCA 8 # It is a hyper saline lake, brine enriched in lithium, magnesium, potash, and boro
Slide 22: Rincon Salar - Argentina
Rincon Salar - Argentina Lithium Concentrations from drill hole data 3380000 oa 40 KM eo ABCD Pozos ce explotacian — Caminos EF ,G Pozos de reserva Le «Goo. Minera = 21 Ses SF ‘ADMIRALTY RESOURCES
Slide 23: Production Estimates
Production Estimates * Lithium Chloride (Dec 2008) 17,000 tonnes per annum (or 10,000 tonnes Lithium Carbonate and 7,000 Lithium Chloride) # US$4,000 - $4,500 per tonne for Lithium Carbonate # Annual Revenue US$76.5 million per annum (2006 US?Japan demand 100,000 tonnes +? Flux for Aluminium welding
Slide 24: The Lithium Extraction Process
Rincon Salar - Argentina The Lithium Extraction Process c. Salt removed riche d. Magnesium removed bone tho d. Sodium sulphate removed Pune sneha d. Potash removed e. f. Lithium Chloride produced mia NN AY 8) Soo Potassiam Shipping at market 23 eB. SEP ADMIRALTY RESOURCES
Slide 25: Rincon Salar - Our price assumptions
Rincon Salar - Argentina -Our price assumptions PUSH wei) ghted at $4,500 Crease ‘ADMIRALTY RESOURCES Latest lithium mineral & carbonate prices fices for both lithium car- Pree a basic ingrecient for the production of \ithiunr batteries, and fithium minerals, used in gles anti ceramic manu. facturin
Slide 26: Bulman — Northern Territory
Bulman — Northern Territory » % = =~ ADMIRALTY RESOURCES Zinc and Lead oxide, sulphide deposit located in southern Arnhem land in Australia’s Northern Territory. Applied for ELA23814 — 637 sq kilometres In the 1950’s CRA estimated there was ’* 375,000 tonnes @ 15% Zn and 2% Pb of mainly oxide materi
Slide 27: Pyke Hill — Nickel Cobalt JV — Cougar Metals NL
Pyke Hill — Nickel Cobalt JV — Cougar Metals NL # The Pyke Hill Project is located approximately 40km southeast of the Murrin Murrin Nickel Operation, near Leonora, Western Australia. Prospective for a high-grade nickel-cobait lateritic resource. # Aircore drilling undertaken by Cougar in FY2004 ret
Slide 28: Funding - 2005 - 2007
Funding - 2005 - 2007 Second tranch of Converting Note Drawndown Investment Bank Finance —- US$10m — three year facility pending application Cia Minera Santa Barbara repayment of US$10m loan in FY2006 Capex Summary Price/Revenue 2008/9 $US Santa Barbara - $10m ($3m to spend) $41 tonne -$133m 3millio
Slide 29: Projected Profit and Earnings
Projected Profit and Earnings 2006-2007 2007-2008 2008-2009 $US $US $US Net Profit After Tax 7.8M 12.8M 55.10M (1.2 m tonnes Fe) Earnings Per Share 0.9 cents 1.0 cents 6.4 cents $US Earnings per share . 10% 640% growth Price/earnings B-10x 10 -12x 12 - 20x Multiple Projection ASX small caps Iron ore
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