Waratah Minerals Limited · ASX:WTM
Waratah Minerals — Diggers & Dealers 2018
29 slides from Waratah Minerals's conference presentation, Aug 6, 2018
Slide 1: Two Exceptional Projects
Two Exceptional Projects Diggers and Dealers 6th August 2018 1
Slide 2: Roskill forecasts – July 2018 report
Roskill forecasts – July 2018 report Roskill Forecast price (nominal) of natural flake graphite 94-97%TGC, 2017-2027 (US$/t)1,2 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 94-97% C Fine 94-97% C Medium 94-97% C Large Notes: 1-B
Slide 3: CRU – Graphite Demand
CRU - Graphite Demand Figure 8 Graphite demand by source, kt 4500 - 4000 + 3500 4 3000 + 2500 + 2000 + 1500 1000 500 0 T 1 ; 1 1 T 2017 2018 2019 2020 2021 2022 2023 1 1 1 @ Natural graphite m@ Synthetic graphite
Slide 4: Corporate Overview
Corporate Overview Share Price Jeff Dowling Ben Van Roon Non-Exec Chairman Chief Operating Officer David Flanagan Tony Walsh Managing Director Company Secretary & GM Corporate Brett Smith Jeff Dawkins Non Exec Director Chief Financial Officer Gilbert George Naomi Scott Non Exec Director Country Dire
Slide 5: Project 1 Montepuez
Project 1 Montepuez Montepuez Graphite Project 2 VES (First Module) Annual graphite production 45,000 – 50,000pa Capex (pre-production) US$51.2 M Opex (concentrate/t)7 US$378/t Grade processed 12% TGC Plant Type and Scale Modular, ~500ktpa Projected Payback ~2 years5 Net Operating Cash Flow ~US$20 M
Slide 6: Cost effectively preserving the option
Cost effectively preserving the option Budgeted Expenditure in the six months to 31 December 2018: • Tailings Dam complete & Earthworks AUD $2.2M • Mozambique Admin and owners costs AUD $2.1M • Camp completion AUD $1.4M • Balama Central Project Feasibility Study AUD $1.3M • Detailed engineering desi
Slide 7: Permanent Camp Construction at 85% - August 2018
Permanent Camp Construction at 85% - August 2018 7
Slide 8: Tailings Dam Wall First Lift – August 2018
Tailings Dam Wall First Lift – August 2018 8
Slide 9: May 2018 Satellite Image
May 2018 Satellite Image Elephant Deposit Buffalo Deposit Plant Site Camp Warthog Prospect Tailings dam Haul Road 9
Slide 10: A very simple low risk processing plant
A very simple low risk processing plant Floatation Drying, Mining Crushing Milling Re-Grind Screening Trucking & Filtration & Bagging USD $88.25/t con USD $16.94/t con USD $37.78/t con USD $86.29/t con USD $72.20/t con USD $76.57/t con 10
Slide 11: Project 2 Balama
Project 2 Balama Balama Graphite Project 2 Scoping Study Annual graphite production 50,000 – 55,000pa Capex (pre-production) US$50 M Opex (concentrate/t)6 US$372/t Grade Processed 10.6% TGC Plant Type and Scale Modular, ~550ktpa Projected Payback <1.5 years5 Net Operating Cash Flow >US$30 Mpa5 Metal
Slide 12: Production Profile
Production Profile Year 1 Year 2 Year 3 Year 4 Year 5 MONTEPUEZ RAMPING STAGE 1 COMMISSION RAMP UP ‘ONT BALAMA USSSOM STAGE 2 FIRST UP STAGE 2 BALAMA MONTEPUEZ STAGE 2 BALAMA pa EXPORTS MONTEPUEZ STAGE 2 FULL PRODUCTION START RAMP UP RAMPING UP FROM 50,000 EXCEED TO 50,000TPA = 100,000TPA RAMPING UP
Slide 13: Key Milestones for BAT
Key Milestones for BAT Milestone Status • Environmental Impact Assessment ✓ Completed and Approved, 2017 • PFS,DFS and Value Engineering Studies ✓ Completed, 2017 • Detailed engineering, early works & procurement ✓ Completed • Port Allocation from government for Pemba port ✓ 100,000tpa export capaci
Slide 14: Next Steps
Next Steps 1. Complete Montepuez project finance 2. Award remaining construction contracts and commit expenditure 3. Urbix, Anode and other downstream test work 4. Resource and reserves, exploration update 5. Balama Feasibility Study Results 6. Montepuez Project Commissioning & Exports 7. Vanadium a
Slide 15: APPENDICES
APPENDICES • Montepuez Exploration Potential • Elephant grade control drilling confirmatory results • EV Lithium ion battery mineral requirements • CRU-Growing demands across industries for graphite • Roskill-Growing demand forecast for battery consumption • Capex waterfall impact of currency and de
Slide 16: Montepuez Exploration Target – Additional Growth 300-400MT @ 5-10 % TGC
Montepuez Exploration Target – Additional Growth 300-400MT @ 5-10 % TGC1 • 5 VTEM target areas • Only 15-20% of targets have been drilled • VTEM conductors remain largely untested • All deposits remain open at depth and along strike • Potential for 300- 400Mt @ 5-10% TGC1 • Buffalo deposit drilling
Slide 17: Montepuez Detailed Drilling Confirms Potential
Montepuez Detailed Drilling Confirms Potential Elephant deposit, comprised 240 holes for 4,968 metres drilled to refusal using blade RC aircore technique. The results include: ▪ EL028A, 37 metres at 13.49% TGC from surface, ▪ EL058A, 20 metres at 15.61%TGC from 2 metres, ▪ EL078A, 24 metres at 16.07
Slide 18: NEV sales driving all battery materials
NEV sales driving all battery materials 18
Slide 19: CRU – Graphite Demand
CRU - Graphite Deman Figure 9 Natural graphite end use demand, kt 2500 5 1500 | mw a = 1000 + mma 500 + 0) r r r r r 1 2017 2018 2019 2020 2021 2022 2023 m Refractory & Foundry @ Carburisation Lubricants @ Friction products Li-ion batteries Graphite shapes m Expanded graphite Carbon brushes m Other
Slide 20: Roskill - Consumption of graphite for batteries 2017-27
Roskill - Consumption of graphite for batteries 2017-27 Forecast consumption of graphite by type and battery application compared with the market for lithium-ion batteries, 2017-2027 From: Natural and Synthetic Graphite: Global Industry, Markets and Outlook, 2018, Source: Roskill 20
Slide 21: CAPEX
CAPEX $51.26 $13.5 (at Dec 18) Revised Capex 21
Slide 22: OPEX
OPEX US$412/t US$378/t Years 1 to 5 Life of Mine 22
Slide 23: BMI – Montepuez Basket Price Jan16 - June18
BMI – Montepuez Basket Price Jan16 - June18 Graphite commodity prices have steadily improved since March/April 2017 Montepuez: Battery Minerals - Flake Graphite Concentrate Sizing Flake size Flake size % of Flake size TGC grade (mesh) (micron) concentrate Fine -100 Mesh 0 - 150 71.9% 97.0% Medium +1
Slide 24: BMI - Balama Basket Price Jan16 to June18
BMI - Balama Basket Price Jan16 to June18 Balama Central Graphite Project ▪ Higher Jumbo and Large flake product ▪ Higher basket price of circa US$1,220/t Balama Central Battery Minerals - Flake Graphite Concentrate Sizing Flake size Flake size % of Flake size TGC grade (mesh) (micron) concentrate F
Slide 25: Roskill forecast
Roskill forecast Forecast price (nominal) of natural flake graphite, 2017-2027 (US$/t) 1,2 85-87% C 90% C 94-97% C Medium Fine Medium Large Fine Medium Large 2017 425 525 585 625 692 782 849 2018 435 535 597 637 879 1,046 1,155 2019 460 553 638 678 971 1,129 1,198 2020 476 570 665 705 1,118 1,223 1,
Slide 26: Montepuez Ore Reserves and Mineral Resources
Montepuez Ore Reserves and Mineral Resources • Ore Reserve Estimate January 2017 for Buffalo and Elephant deposits is 41.4Mt @ 8.80% TGC for 3.64Mt of graphite reported at a cut-off grade of 4% TGC • Total Mineral Resource July 2018 and January 2017 for Elephant and Buffalo deposits is 115.6Mt @ 7.5
Slide 27: Montepuez Mineral Resource Statement
Montepuez Mineral Resource Statement Total Mineral Resource July 2018 and January 2017 for Elephant and Buffalo Elephant deposits is 115.6Mt @ 7.51% TGC for 8.62Mt of graphite reported at a 2.5% TGC cut-off ELEPHANT RESOURCE @ 2.5% TGC cut-off – July 2018 Contained Tonnes TGC Classification Type Gra
Slide 28: Balama Central Mineral Resource
Balama Central Mineral Resource (1) Total Mineral Resource for Balama Central is 32.9 million tonnes at 10.2 per cent TGC for 3.36Mt of graphite reported at a 6.0% TGC cut-off and includes Indicated Resources of 26Mt @ 10.3% TGC for 2,733Kt of graphite reported at a 6.0% TGC cut-off BALAMA CENTRAL G
Slide 29: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement Forward Looking Statements published data for which Competent Persons consents were periodic and continuous disclosure announcements lodged with obtained. Their consents remain in place for subsequent releases the ASX, which are available on the Battery Miner