Ecograf Ltd. · ASX:EGR
Ecograf — Kibaran Resources — Investor Presentation (July 2014)
28 slides from Ecograf's investor presentation, July 2014
Slide 1: Fast-tracking Graphite Production in Tanzania
Fast-tracking Graphite Production in Tanzania Kibaran Resources Limited (ASX: KNL) Andrew Spinks, Executive Director Investor Update – July 2014
Slide 2: Disclaimer
DISCLAIMER Securities Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, or solicitation to purchase, any securities. Such Offer can be made only through proper subscription documentation and only to investors meeting strict suitability requirem
Slide 3: Corporate Overview – ASX: KNL
CORPORATE OVERVIEW – ASX: KNL An exploration company focused on unlocking the graphite potential of the mineral-rich landscapes of Tanzania. Share price A$0.325 (as at 15/7/14) Board of Directors Ordinary shares on issue 115.4 million Simon O’Loughlin Non-Exec Chairman Performance shares1 15 million
Slide 4: Experienced Board and Management
EXPERIENCED BOARD AND MANAGEMENT Simon O’Loughlin, Non-Exec. Chairman Lawyer and founding member of O'Loughlins Lawyers, with extensive experience in corporate and commercial law. More recently, he has been focusing on the resources sector. Simon also holds accounting qualifications and has comprehe
Slide 5: Focused Strategy
FOCUSED STRATEGY Goal: • To become a major producer of high value, premium quality large flake graphite. • Establish strategic partnerships to participate in the new industrial revolution through graphite and graphene Strategy: • Fast track Epanko Graphite Deposit towards development and production
Slide 6: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS World-class graphite assets MAHENGE Flagship Epanko Deposit: Inferred JORC Resource established, advanced metallurgy, initial Scoping Study released, commenced Environmental and Social Impact Assessment studies Binding off-take agreement signed with major European g
Slide 7: Why Graphite?
WHY GRAPHITE? Major global growth commodity of the 21st century: Long-term, global demand – expected to double within the next eight years Driven by growing number of applications in technology, industrial and new energy markets Essential component of modern lithium ion batteries (smart phones
Slide 8: Why Kibaran?
WHY KIBARAN? Epanko graphite is premium, world class quality: Ultra High Purity : 99.98% - No limitation of applications Size matters: Value is a function of flake size and purity Large flake (+180µm), 94%-97% C (carbon) varieties command premium market prices Future applications demand requ
Slide 9: Why Tanzania?
WHY TANZANIA? Mineral-rich landscape: Significant graphite endowment Largest flake sizes in East Africa - high metamorphic gradient High-grade graphite occurrences Mining-friendly country: Stable Government committed to mining sector growth and development Significant mining support servic
Slide 10: East Africa
EAST AFRICA East Africa Host’s the largest graphite occurrences in the world Tanzania has the potential to overtake India (120ktpa) and Brazil (80ktpa) production Key graphite projects in Tanzania: Mahenge Project – comprises the priority Epanko Deposit Merelani-Arusha Project – MoU signed w
Slide 11: Flagship Epanko Deposit
FLAGSHIP EPANKO DEPOSIT JORC Inferred Mineral Resource Estimate: 14.9Mt at 10.5% TGC for 1.56Mt contained graphite Mineral resource estimate being upgraded with recent drilling results Highest grade graphite Mineral Resource to be delineated in Tanzania Graphite grade compare favourably to p
Slide 12: Binding Off-take Agreement
BINDING OFF-TAKE AGREEMENT Kibaran is the first ASX-listed company to sign a binding off-take agreement and partnership for graphite sales Agreement with sophisticated European graphite market trader Guarantee to purchase 10,000tpa of flake graphite for a 5+5 year period1 European graphite t
Slide 13: Epanko Resource Upside
EPANKO RESOURCE UPSIDE Extensive RC and diamond drilling has confirmed presence of high-grade graphite mineralisation in both Eastern and Western Zones 43 RC holes, 3 diamond drill holes and 11 trenches have been completed to date Grade consistent along strike, mineralisation remains open at d
Slide 14: Epanko Metallurgical Results
EPANKO METALLURGICAL RESULTS Independent but complementary test work programs completed: 1) Test work completed by a leading European manufacturer of carbon-based products 2) Independent mineral processing work by a large sophisticated European graphite trader Results: Ultra High Purity – 99.98% a
Slide 15: Scoping Study Flow Sheet and Design
SCOPING STUDY FLOW SHEET AND DESIGN Flowsheet and plant design: Simple flow sheet design Outstanding test results producing an attractive size fraction Size (Micron) Portion of size Fixed Carbon (%) Fraction (%) > 500 8.4 97.6 > 300 13.2 95.4 > 180 28.6 93.8 > 106 23.6 93.6 > 75 10.4 91.0 < 75 *
Slide 16: 2014 – Epanko Development Program
2014 – EPANKO DEVELOPMENT PROGRAM Program on schedule and major value drivers expected in short term 2014 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Exploration - Development Drill pad preparation Drilling to Upgrade Resource from Inferred to Indicated
Slide 17: Merelani Graphite Project
MERELANI GRAPHITE PROJECT Located in world-class graphite province MoU signed to provide access to strategic graphite rights at project. All Parties working towards binding offtake agreement Merelani mine had largest historical production (15ktpa) in East Africa Associated mine infrastructur
Slide 18: Current Graphite Pricing
CURRENT GRAPHITE PRICING Pricing of graphite sales is related to flake size and product characteristics (size, Indicative Graphite Pricing* purity, ash, moisture, etc) FLAKE SIZE GRADE PRICE Larger flake size = higher price > 500 microns 96-98% C US$2,300/t Flake distribution is critical to pr
Slide 19: Current Graphite Industry
CURRENT GRAPHITE INDUSTRY Market requires graphite grade of 94-97% C and seeks large flake > 180 micron Several types of graphite: Expanded, Spherical and Micronised Spherical graphite is immediate key growth sector; key graphite ingredient in batteries Battery applications: not necessary to
Slide 20: Economic Graphite Occurrences
ECONOMIC GRAPHITE OCCURENCES Economic Graphite occurrence’s depend on a number factors Grade > +5 % TGC and sufficient tonnage to support mine life (~ +2Mt) Operate in low cost environments or alternatively have large flake distributions Near surface, thick high grade zones of mineralisation a
Slide 21: Future Pricing
FUTURE PRICING Stormcrow Research – Highlights the competitive advantage of having a high proportion of Large (>180 micron) and Jumbo (>300 micron) flake distribution; combined with a low proportion of Fine (<75 micron). CURRENT GRAPHITE PRICING STORMCROW 2020 PRICES FLAKE SIZE SIZE FRACTION PRICE
Slide 22: Saleable Graphite and Price
SALEABLE GRAPHITE AND PRICE New production needs to compete Indicative Basket Price - Epanko with low cost environments SIZE China, India and Brazil represent 95% FLAKE SIZE PRICE (US$) VALUE (US$) FRACTION of world’s production > 500 microns $2,300/t 8.4 $193 Unlikely that new production will
Slide 23: Peer Comparison - Technical
PEER COMPARISON - TECHNICAL Epanko Deposit has the highest large flake size distribution and the lowest % of fines Company Kibaran Sovereign Uranex Talga Valence Lamboo Triton Syrah Bourse ASX ASX ASX ASX ASX ASX ASX ASX Code KNL SVM UNX TLG VXL LMB TON SYR Market Cap ($m) 37 42 50 52 77 108 158 862
Slide 24: Peer Comparison - Value
PEER COMPARISON - VALUE Australian listed graphite explorers 500 400 300 200 100 0 KNL SVM UNX TLG VXL LMB TON SYR Market Cap ($m) 37 42 50 52 77 108 158 862 Kibaran leads its peer group in both graphite quality and technical aspects, yet has the lowest market capitalisation 24
Slide 25: Positioned for Growth
POSITIONED FOR GROWTH Epanko Deposit • Upgrade to JORC Inferred Mineral Resource 14.9Mt at 10.5% TGC expected in coming weeks MAHENGE • Significant upside to increase resource • Economic Scoping Study nearing completion Historical Graphite Mine MERELANI • Strategic consolidation of graphite assets •
Slide 26: Graphite & Graphene 3D Printing
GRAPHITE & GRAPHENE 3D PRINTING Binding strategic alliance signed with leading Australian 3D printing company - 3D Group Investigate application of graphite and graphene in 3D printing Established jointly owned 3D Graphtech Industries Goals: Pursue patents Engage in collaborative researc
Slide 27: Conclusions
CONCLUSIONS Epanko has ultra high graphite purity 99.98% C and one of the highest large flake distributions of listed explorers Only company globally with sales partner and offtake agreement outside of China Strategically positioned to participate in future applications of graphite and graphen
Slide 28: Contact Details
CONTACT DETAILS Developing high value, premium quality graphite in Tanzania Developing high value, premium quality graphite in Tanzania Kibaran Resources Limited (ASX: KNL) 338 Hay Street, Subiaco WA 6008 Phone: + 61 8 6389 1003 info@kibaranresources.com www.kibaranresources.com.au 28
Kibaran Resources — Investor Presentation (July 2014) on 6ix