NH3 Clean Energy Limited · ASX:NH3
NH3 Clean Energy — Hexagon Resources — Investor Presentation (June 2017)
29 slides from NH3 Clean Energy's investor presentation, Jun 20, 2017
Slide 1: ASX Release: Updated Corporate Presentation
ASX Release 20 June 2017 UPDATED CORPORATE PRESENTATION Hexagon Resources Limited (ASX: HXG) is pleased to present an updated Corporate Presentation which provides an update on the Company’s Pre-feasibility Study and its plans to progress the Feasibility Study. Hexagon’s Chairman, Mr Charles Whitfie
Slide 2: Pathway to Commercialisation
PATHWAY TO COMMERCIALISATION POSITIVE PRE-FEASIBILITY STUDY OUTCOMES AND FEASIBILITY STUDY OUTLOOK. June, 2017 Page 1 of 28
Slide 3: Company Summary
Company Summary • Hexagon Resources Limited is an Australian based mineral development company focusing on the production of high purity and crystalline flake graphite for use in advanced technologies. • Positive Pre-feasibility Study (PFS) outcomes were reported on 31 May 2017 for the development o
Slide 4: Presentation Outline
Presentation Outline Focus on Pre-feasibility Study (PFS) outcomes and plans to realise major improvements though the Feasibility Study (FS) 1. Project snapshot 2. Key Pre-feasibility Study outcomes 3. Feasibility Study – improvements and opportunities • Project “as is” improvements; and • Ore sorti
Slide 5: McIntosh Project Snapshot and Location Plan
McIntosh Project Snapshot Project Location Plan • High quality Resource – characterised by favorable metallurgy allowing for production of high purity graphite concentrates for supply into the premium value battery and other advanced technical applications. • Positive PFS just completed – for initia
Slide 6: Summary of Key PFS Outcomes
McIntosh Project PFS Summary of Key Outcomes Annual Life of Mine Life of Mine PHYSICALS Unit PFS FINANCIAL OUTCOMES Unit Average (LOM) (LOM) Ore Mined Mt 2.4 14.3 Site Operating Costs AUD/t Conc 987 Strip Ratio W:O 4.3 4.5 Realisation Costs (FOB) AUD/t Conc 51 Total Mined Mt 11.3 79.3 Total Operatin
Slide 7: Review Key PFS Elements & Potential Upside
McIntosh Project PFS Review Key PFS Elements & Potential Upside McIntosh Project – Main Access Road. Emperor Deposit – drill pad and drill collar Page 6 of 28
Slide 8: What have we learned from the PFS?
McIntosh Project PFS Review Key PFS Elements & Potential Upside Overview – “what have we learned from the PFS?” Key objectives of the FS are to: • Reduce Operating Costs: Power Mining Ore sorting • Increase Revenue Preserve flake size – review grinding regime Downstream processing to upgra
Slide 9: Mineral Resource & Ore Reserve Estimates
McIntosh Project PFS Mineral Resource & Ore Reserve Estimates PFS - Mining Inventory: 14.3Mt at 4.3% TGC comprising: • 11.9Mt at 4.3% TGC – Proven Ore Reserves1 • 2.4 MT at 4.2% TGC – Inferred Mineral Resource2 FS – outlook & aims: • Modest drilling program to start early July, 2017 • No need to “dr
Slide 10: Exploration Target and Resource Estimates
PFS – Key Outcomes Mineral Resources & Ore Reserve Estimates FS – outlook & aims [Cont.]: • Exploration Target of 110 to 220Mt can be tested in stages as the Project starts production. • Excellent correlation between EM anomalies and Mineral Resources. “Management focus needs to be on processing and
Slide 11: Mining
McIntosh Project PFS Mining PFS- Mining: • Ore mined is 14.3Mt at 4.3% TGC • Ore sources from 4 different deposits • W:O is 4.5: 1 • Mining Cost is $19/t ore • Utilised rudimentary designs and schedules with conservative geotechnical assumptions. FS – outlook & aims: • Aim is to lower mining costs b
Slide 12: Processing
McIntosh Project PFS Processing PFS - Processing: • Throughput of 2.4Mtpa to produce ~88ktpa of 98% TGC flake graphite concentrate. • Processing cost of $13/t ore or $355/t of concentrate. • Current design has little consideration for flake size preservation – hence design P80 < 106 microns to give
Slide 13: Site Infrastructure
McIntosh Project PFS Site Infrastructure PFS – Site Infrastructure: • Power – “through the fence” supply assumed from first pass EoI. • Camp and services – all assumed to be new equipment. • Construct fully lined tails storage facility. • Existing Main Access Road to Gt Northern Highway. • Existing
Slide 14: Site Infrastructure: Power Outlook
McIntosh Project PFS Site Infrastructure FS – Outlook & Aims: • Power – is a major cost input and contributor to the Project CO2 footprint. Seek to capitalise on recent technical and financial innovation to utilise hybrid solar-diesel systems. Huge boost to the green credentials of McIntosh prod
Slide 15: Logistics
McIntosh Project PFS Logistics PFS – Logistics: • Labour is FIFO ex Perth. • Concentrate is trucked from site to Port utilising existing sealed highway and experienced operators. • Fuel – trucked from existing storage facilities at Wyndham Port to Project site via existing services. • Several underc
Slide 16: Capital Costs
McIntosh Project PFS Capital Costs PFS – Capital Costs: Capital Item Start-up Capital Sustaining LOM Mine establishment 11.4 7.1 18.5 Processing Plant 60.3 60.3 Plant Services & Utilities 6.2 6.2 Onsite Infrastructure 12.4 17.8 30.2 Indirect Costs 12.9 12.9 Power Transmission 1.5 1.5 Accommodation C
Slide 17: Operating Costs
McIntosh Project PFS Operating Costs PFS – Operating Costs: Operational Activity $/t Processed $/t Concentrate Mining and ore haulage 19.3 483 Processing 13.4 334 General and Administration 1.7 42 Realisation Costs 2.0 51 Sustainability 0.4 10 Royalties 4.7 117 Total 41.5 1,037 Note: Rounding may re
Slide 18: Revenue: Product Pricing
McIntosh Project PFS Revenue PFS – Product pricing: • Current product assumption is a bulk, flake graphite concentrate grading 98% TGC primarily aimed at the battery market due to outstanding electrical test work results achieved to date. • Assumed price is US$1,565/t concentrate at an exchange rate
Slide 19: Jurisdiction
McIntosh Project PFS Jurisdiction Customers are looking for supply stability. Australia is a favourable source for a range of reasons……. • Australia ranks 3rd in Global Investment Attractiveness Appeal Index1 • Australia has a stable tax, minerals royalty and legal regime – in Australia “you only pa
Slide 20: Ore Sorting: The Potential Game Changer
McIntosh Project PFS The potential “Game Changer” FS Outlook - Ore Sorting Initial test work by Tomra has demonstrated “ore” material can be separated into 3 streams using a combination of electromagnetic and X-ray sensors: • Low Density Conductive – graphite stream; • Low Density Non-Conductive – s
Slide 21: Ore Sorting: The Potential Game Changer (Opportunities)
McIntosh Project PFS The potential “Game Changer” FS Outlook - Ore Sorting “If further test work proves successful this would impact positively on all aspects of the Project – from mining to processing to environmental management.” • The opportunities under investigation include: Smaller scale pla
Slide 22: Report Card So Far
McIntosh Project PFS Report card – so far….. “McIntosh is a very solid Project, but we are hard markers. The NPV may be $261M, but to date our performance on the PFS has been at a solid ‘C’ rating. We clearly have the capacity to improve this to a ‘B+’ or an ‘A’ as we seek to commercialise this…” Pa
Slide 23: Board of Directors & Senior Management
Board of Directors & Senior Management Charles Whitfield - Chairman Mr. Whitfield is the Principal Investment Officer at Drumrock Capital, an investment firm providing capital and advisory services to start-up and early round companies. He has undertaken board and supporting roles in several compani
Slide 24: Corporate Snapshot
The Path to Commercialisation Corporate Snapshot – Hexagon Resources Limited (ASX:HXG) Shares on Issue Conceptual Pit-Wahoo 246.3M Options on issue (unlisted) 17.9M Share price (24/4/17) A$0.11 Market Capitalisation A$27M Top Twenty 43.4% Cash (31/3/17) A$2.0M Does not include the Hengda settlement
Slide 25: Next Steps on the Path
The Path to Commercialisation Next steps on the Path 1. Deliver Pit-Wahoo Conceptual PFS late May 2017 – positive outcomes 2. Management & Board changes 3. Settlement of Hengda dispute 3. Off-take & Financing – in progress 4. Feasibility Study – started • Downstream processing work – Spheronisation:
Slide 26: Important Notices
Important Notices Competent Person The information within this report that relates to exploration results, Exploration Target Estimates, geological data and Mineral Resources at the McIntosh Project is based on information compiled by Mr Shane Tomlinson and Mr Mike Rosenstreich who are both employee
Slide 27: Appendix 1: Mineral Resource
Appendix 1: Mineral Resource McIntosh Flake Graphite Project Mineral Resource as at May 2017 reported by deposit and above a 3% TGC cut-off grade. Material Tonnes Contained Conceptual Deposit Pit-Wahoo JORC Classification Type (Mt) TGC % Graphite (Kt) Please refer to ASX Release “Pre-Feasibility Stu
Slide 28: Appendix 2: Ore Reserve
Appendix 2: Ore Reserve McIntosh Flake Graphite Project Ore Reserve as at May 2017 reported by deposit and undertaken at a nominal 3% TGC cut-off grade. Tonnes Contained Conceptual Deposit Pit-Wahoo JORC Classification Pit Stage (Mt) TGC % Graphite (Kt) Please refer to ASX Release “Pre-Feasibility S
Slide 29: Hexagon Resources Limited Contact Details
HEXAGON RESOURCES LIMITED Head Office Level 16, 344 Queen Street Brisbane QLD 4000 Phone: +61 7 3221 6022 Fax: +61 7 3221 6625 Operations Office Unit 4, 20 Peel Road O’Connor WA 6163 Phone: +61 8 6244 0349 Mike Rosenstreich Managing Director miker@hexagonresources.com Page 28 of 28
Hexagon Resources — Investor Presentation (June 2017) on 6ix