Slide 1: Barruecopardo Tungsten Project
ORMONDE MINING BARRUECOPARDO TUNGSTEN PROJECT • Project Permitted • Project Funded • Project Upside Mar 2017 1
Slide 2: Disclaimer
ORMONDE MINING Disclaimer The content of this document has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (as amended). Reliance on this document for the purpose of engaging in any investment activity may expose an individual to a signific
Slide 3: Company snapshot
Company snapshot Ormonde in brief Significant shareholders Shareholder % (Mar 2017) Listed in Dublin (ESM) and London (AIM) with a market M&G Investment Management 8.97% capitalisation of ~ £6.7M* Thomas Anderson 8.68% Ticker = ORM Rathbone Brothers plc 4.98% Directors & Families 2.88% Issued
Slide 4: Tungsten
Tungsten Tungsten (chemical symbol W) is a metal with outstanding properties: Highest melting point (3,400°C) and tensile strength of all metals Second strongest material after diamond Unique properties and limited substitutability makes tungsten critical for many industries (including automot
Slide 5: Price trough – Good time to be developing
Price trough – Good time to be developing 2 1 3 4 Source: Metal Bulletin 1. Chinese domestic demand increases and export quotas coming into effect 2. Price rebound after GFC, plus stockpiling 3. General weakening of commodity price environment 4. Destocking, plus rising demand some sectors 5
Slide 6: Supply and demand
Supply Supply and and demand demand Supply Side - Tightening Demand Side - Growth China: Restrictions on new mine permits Growth in primary W demand correlates closely to global GDP growth China: Higher costs, lower grade, deeper mining Global GDP growth estimated 3.4% for 2017 rising to 3.6
Slide 7: Project – Good location
Location PROJECT – Good LOCATION infrastructure 7
Slide 8: Operations – Low risk
Operations – Low risk DFS Completed, Permits & Funding in place, Land access achieved: Initial 9 yr mine life (2,600t WO3 or 260,000 mtu/year steady state) Environmental and Mining Permits in place Access achieved to all lands required to commence Simple Mining: Open-pit, contract mining, utilis
Slide 9: Capex and Opex costs - Exceptional
Capex and Opex costs - Exceptional Project Capex Project Opex EURm Project Opex USD/mtu EUR/mtu % Plant Engineering & Construction Mining (Ore) 19.1 17.4 17% 32.5 Project Services (land, power-line, etc.) Mining (Waste)* 70.4 64.0 62% 4.5 Water Management Scheme Processing 18.7 17.0 16% 9.9 Mining P
Slide 10: Oaktree project financing
Oaktree project financing Comprehensive Funding Package USD 99.7 million package, split favourably between - Equity US$ 44.2 million Debt of US$ 55.5 million Ormonde retains 30% of a fully funded project, Oaktree 70% Flexible Debt Facility Flexible repayment terms allow for: o cash to be retai
Slide 11: Recent achievements – 2016 and Early 2017
OnProject the moveOutline – Recent Timeline achievements Achievements – 2016 and Early 2017 Permissions: Water use license - Received Land: Exercise of Land Option to Purchase Agreements – Completed Land: Access to all lands under compulsory acquisition - Received Engineering: Final geotechn
Slide 12: On the move – On the ground activities
OnProject the moveOutline – On Timeline the ground activities 12
Slide 13: Project outline timeline
Project Project outline Outline timeline Timeline H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 PLANT ENGINEERING AND CONSTRUCTION Detailed Engineering Procurement Construction and Installation Commissioning LAND Compulsory Acquisition WATER MANAGEMENT Construction and Pit Dewatering MINING PREPAR
Slide 14: Mineral Resources and Ore Reserves
Mineral Resources and Ore Reserves Total Mineral Resources Category Tonnes (millions) Grade (WO3%) Contained WO3 (mtu) Measured 5.47 0.34 1.86 million Indicated 12.33 0.26 3.20 million Inferred 9.59 0.23 2.20 million Total 27.39 0.26 7.12 million Ore Reserves within the Open Pit Category Tonnes (mil
Slide 15: Expansion potential - Significant
Expansion potential - Significant Barruecopardo resource in red and open pit shell in blue – view looking upwards ( and west) towards ground surface Significant potential to extend life of mine, increase production: Planned open pit captures only ~40% of current total Resources Deposit open alon
Slide 16: Expansion - 2000m drilling program completed May'16
Expansion - 2000m drilling program completed May’16: Aim: Confirm mineralisation extensions at depth beneath central part of planned pit, plus follow-up on potentially expanded zone under shallow Northern end of pit. Key Results: BAR83: 23m @ 0.26% WO3 from 172m and 5m @ 1.95% WO3 from 404m
Slide 17: Expansion potential – First results
Expansion potential – First results Drill rig operating during drilling program Coarse grained tungsten mineralisation from recent drilling program Core logging during recent drilling program 17
Slide 18: Expansion potential – Underground (stage 2)
Expansion potential – Underground (stage 2) Conceptual Underground Access & Development 18
Slide 19: Expansion potential - Satellites
Expansion potential - Satellites Satellite Mineralisation on Mining Concession & Surrounding Permits 19
Slide 20: Growth
Growth Barruecopardo Growth Strategy 1. Deliver stable production based on the Barruecopardo DFS 2. Increase production and mine life through the investigation and evaluation of depth extensions to current resource with objective of establishing an underground (Stage 2) mine 3. Potential further exp
Slide 21: Ormonde Mining - Focused
Ormonde Mining - Focused Focused on Shareholder Value Bringing Barruecopardo Project online - on budget Aggressively growing the value of the Barruecopardo asset Actively seeking growth opportunities 21