Terramin Australia Limited · ASX:TZN
Terramin Australia — Investor Presentation (August 2018)
34 slides from Terramin Australia's investor presentation, Aug 30, 2018
Slide 1: Tala Hamza DFS Presentation
For personal use only TERRAMIN TALA HAMZA DFS PRESENTATION Investor Presentation Richard Taylor | CEO August 2018
Slide 2: Forward Looking & Competent Person Statements
Forward Looking & Competent Person Statements Disclaimer For personal use only The material contained in this presentation has been prepared by Terramin Australia Limited (Terramin). It is current as at the date of this presentation. It contains information in a summary form and should be read in co
Slide 3: Corporate Snapshot - Board and Management
Corporate Update Corporate Snapshot - 31 July 2018 Board and Management For personal use only Share on issue 1,869,601,371 Feng Sheng Executive Chairman Market Cap $206M @ $0.11/share Michael Kennedy Non-Executive Vice-Chairman Liquidity 12 Month - 120,735 shares (0.01%) Angelo Siciliano Non-Executi
Slide 4: Tala Hamza Highlights
Tala Hamza Highlights High grade For personal use only • Tala Hamza is a high grade zinc and lead operation & large scale • Concentrate production will be significant in global terms • Tala Hamza has a projected mine life of 21 years Long life • Deposit is open to the south and east with near mine e
Slide 5: Board & Management
Board & Management Board & Executives For personal use only Mr Feng Sheng Mr Kevin McGuinness Executive Chairman – Appointed 17 April 2013 Non-Executive Director – Appointed 17 April 2013 Mr. Sheng is the Chairman of Melbourne based Asipac Mr McGuinness is a finance executive with more than 20 years
Slide 6: Vision & Values
Vision & Values Terramin will become a globally diversified top 5 base metals company through its first-mover For personal use only advantage in Algeria and strengths in stakeholder engagement and environmental stewardship Acting in a manner that is compliant Working with others, being a with regula
Slide 7: Terramin Sustainability
Terramin Sustainability A core value of Terramin is safety and sustainability, particularly acting in a manner that both For personal use only complies and exceeds regulatory, safety and environmental standards. Sustainability Program • Mining baseline studies covering - water sources (ground and su
Slide 8: Stakeholder Engagement
Stakeholder Engagement Terramin actively engages with communities in Algeria through formal government processes as well For personal use only as employing predominantly from the local area and conducting hundreds of informal interactions Terramin Approach • All Projects have a Community Engagement
Slide 9: Tala Hamza Overview
Tala Hamza Overview Tala Hamza is one of the largest undeveloped zinc & lead mines in the world and an important part For personal use only of future supply geared towards meeting projected increases in global zinc demand next decade Overview • World class resource containing 3.5 million tonnes of z
Slide 10: Infrastructure
Infrastructure The Tala Hamza Deposit is located close to the Mediterranean coast, within close proximity to major For personal use only roads, rail, air, energy & port facilities. The mine site is close to the township of Bejaia and will be served by a drive in drive out workforce underpinned by Te
Slide 11: Why Zinc? Why Now?
Why Zinc? Why Now? Globally zinc and other base metals are entering a period of supply side restrictions as old mines For personal use only close, head grades fall and new mines face permitting and approval delays leading to high prices LME Zinc Prices Sources of Future Mine Production Nominal Real
Slide 12: Growth in Galvanising
Growth in Galvanising Galvanising and construction are the dominant first- and end-uses of zinc. Urbanisation and For personal use only industrialisation will remain the most significant force behind global zinc consumption. The developing world will drive consumption and, as a result, galvanising w
Slide 13: Tala Hamza – DFS Scope Changes
Tala Hamza – DFS Scope Changes Tala Hamza is one of the largest undeveloped zinc & lead mines in the world and an important part For personal use only of future supply geared towards meeting projected increases in global zinc demand next decade Evolution of the Project Comparison PFS DFS DFS 2010 1
Slide 14: Tala Hamza – DFS Capital Costs
Tala Hamza – DFS Capital Costs Capital Costs For personal use only Project CAPEX 2 DFS 1 US$M DFS 1 AU$M 2018 2018 • Mining and processing infrastructure have been centralised in a single valley Direct Capital Mining 96.9 127.5 • Mining decline optimised to reduce Processing Plant & Surface Infrastr
Slide 15: Tala Hamza – Key Financials
Tala Hamza – Key Financials Base Case3 High Case For personal use only 2018 DFS 4 Key Financial Metrics Nominal Nominal Commodity Price Metrics Zinc price - LOM average US$1.25/lb US$1.50/lb Lead price - LOM average US$1.05/lb US$1.11/lb Cost Metrics C1 Operating Costs - LOM average US$0.53/lb US$0.
Slide 16: Terramin Strategy – Zinc Peers
Terramin Strategy – Zinc Peers Tala Hamza is competitive with peer projects at the pre-production stage and the project For personal use only presents attractive exposure to zinc and lead production over the next two decades Contained Metal Tonnes v Market Cap 4.5 Simon to update with 700 4.0 3.5 Zi
Slide 17: Expansion Case 1: Increase Mining Rate
Expansion Case 1: Increase Mining Rate The Tala Hamza Deposit remains open in For personal use only multiple areas. Land access achieved through 704150E the grant of the Mining Lease opens up the opportunity for a second access, maintain mine life and support expansion Drill Pb+Zn% of the processing
Slide 18: Expansion Case 2: Near Mine Deposits
Expansion Case 2: Near Mine Deposits The Tala Hamza District is heavily mineralised. There are a number of nearby under explored zinc targets that For personal use only provide the potential for conveying or haulage to a centralised processing hub at the Tala Hamza Deposit. 18
Slide 19: Mining & Waste Management
Mining & Waste Management Algerian environmental and social concerns ruled out block caving and sub-level caving. The revised For personal use only DFS looked at alternate methodologies to cater for poor rock quality and water management Mining Method • Tala Hamza deposit is deep (greater than 500 m
Slide 20: Mining Method: Underhand Drift & Fill (UDF)
Mining Method: Underhand Drift & Fill (UDF) UDF was selected as an alternative to block caving and is required to deal with the poor quality For personal use only of rock within the mine area. Tailings are blended with concreting agents to fill and stabilise voids • Underhand drift and fill (UDF) mi
Slide 21: Process Plant Layout & Design
Process Plant Layout & Design The DFS 2018 maintains the same standard process plant design concept as DFS2010 with the For personal use only exception of the introduction of dry stack tailings storage and use of cement paste backfill 21
Slide 22: Process Plant Layout & Design
Process Plant Layout & Design Tala Hamza processing will utilise conventional flotation technology. Process plant infrastructure For personal use only has been consolidated entirely within Valley B and provides scalability options going forward ROM Crusher & stockpile The process plant design has a
Slide 23: Transportation & Logistics
Transportation & Logistics Trucking containerised concentrate to the Port of Bejaia has been chosen as the most efficient For personal use only method. Rotatable containers avoids additional capex at the Port of Bejaia. Rotatable containers stacked Container in process of ship loading Port of Bejaia
Slide 24: Project Benefits
Project Benefits For personal use only • Low pre-production capital cost Low Capex • Starter project for broader regional development potential • Infrastructure contained within one valley • Competitive cost structure for new projects Cost 2nd • Low labour costs and educated workforce Quartile • Acc
Slide 25: Tala Hamza – Forward Looking Plan
Tala Hamza – Forward Looking Plan New management team has been appointed with a clear pipeline of activities to deliver For personal use only on Terramin’s base and precious metals strategies. Current status: 01 Formal submission of the DFS to the Government of Algeria 02 Wilaya (local administratio
Slide 26: Tala Hamza – Indicative Time Frames
Tala Hamza – Indicative Time Frames Timeframes are for indicative purposes only. The project has been delayed while working with the For personal use only Algerian authorities to address environmental and social aspects. Timeframes may extend. 2018 2019 2020 2021 01 Approvals & Permitting 02 Early W
Slide 27: Terramin Demerger of Gold Assets
Terramin Demerger of Gold Assets Terramin has announced a strategic review looking at the demerger of its precious and base metals For personal use only business. The focus of today’s presentation is the South Australian gold assets: 27
Slide 28: Bird-in-Hand – Exploration Upside
Bird-in-Hand – Exploration Upside Bird in Hand Gold Project has significant exploration upside – deposit open at depth and historic For personal use only mines highlight the potential along strike. Current Bird in Hand Resource stands at 252,000 ounces. Planned Infill drilling Planned Extension dril
Slide 29: Bird-in-Hand – High Grade Potential
For personal use only Grade 1 (g/t) 0 2 4 6 8 10 12 14 16 18 Fosterville 1. Gwalia Bird in Hand Nicolsons Waihi Penny's Find Agnew Lawlers Tanami Hera Cracow Mt Carlton Jundee Granny Smith Mount Monger Deflector Kalgoorlie Ops Darlot Challenger Sunrise Dam St Ives Carosue Dam Tomingley Mungari Bird-
Slide 30: Terramin Exploration Pipeline – Pathway 1m Oz
Terramin Exploration Pipeline – Pathway 1m Oz Terramin has a pipeline of high grade potential gold targets that will form the basis of its For personal use only aspirational target of 1m Oz in resource from existing tenements and potential acquisitions. Bird in 252k Oz Resource Hand BIH The Deeps Ri
Slide 31: Reasons to Invest in Terramin
Reasons to Invest in Terramin Terramin is in the right place at the right time and with the right projects and people For personal use only to capitalise on a strong price environment for its key commodities Right Commodity Right Assets Right People • Zinc & lead historic • Algeria an emerging • Sig
Slide 32: Contact Details
Contact Details For further information please contact: For personal use only Richard Taylor Main Office Chief Executive Officer Unit 7, 202-208 Glen Osmond Road, Fullarton, Adelaide Simon Iacopetta South Australia, 5063 Chief Financial Officer T +61 (0) 8 8213 1415 F +61 (0) 8 8213 1416 info@terram
Slide 33: Annex: Tala Hamza Resources & Reserves
Annex: Tala Hamza Resources & Reserves Tala Hamza Resource For personal use only Measured + Indicated Resource Inferred Resource Total Resource 2009 Resource Terramin Tala Hamza Interest (%) Tonnes Zn Pb Tonnes Zn Pb Tonnes Zn Pb (Mt) (%) (%) (Mt) (%) (%) (Mt) (%) (%) Tala Hamza - 51.1 4.87 1.27 17.
Slide 34: Annex: Tala Hamza Resources & Reserves
Annex: Tala Hamza Resources & Reserves Tala Hamza Resource For personal use only Probable Reserve Total Reserve 2010 Reserve Terramin Tala Hamza Interest (%) Tonnes Zn Pb Tonnes Zn Pb (Mt) (%) (%) (Mt) (%) (%) Tala Hamza - 38.10 4.78 1.36 38.10 4.78 1.36 Total - 38.10 4.78 1.36 38.10 4.78 1.36 Terra
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