Wa Kaolin Limited · ASX:WAK
Wa Kaolin — Investor Presentation (March 2021)
21 slides from Wa Kaolin's investor presentation, March 2021
Slide 1: Investor Presentation March 2021
Investor Presentation March 2021 Production of High Purity Kaolin From One of the World’s Largest Primary Resources
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer § This presentation has been prepared by WA Kaolin Ltd (WAK). This document contains background § To the fullest extent permitted by law, WAK and its related bodies corporate, its directors, officers, information about WAK current at the date of this presentation. The
Slide 3: Investment Overview
Investment Overview A high quality, long life, permitted Kaolin Project located in Wickepin, 220km south-east of Perth. WA Kaolin recently raised $22m on IPO (November 2020). Global Demand World Class Mineral De-Risked through Proven Low Cost Customers Exceeds Supply Resource Investment Production &
Slide 4: Low Capital Intensity
Low Capital Intensity Simple Strong Potential for Mining Cash Flow Low CAPEX Staged Ramp Up Delivery Capability Amenable to free digging, open A Definitive Feasibility Study Estimated capex of circa $18 Stage 1 is designed to deliver The Board and Executive team cut campaign mining with a low (DFS)
Slide 5: The Wickepin Project
The Wickepin Project 5
Slide 6: Project Overview
Project Overview Location § WAK's project is located in Wickepin, 220 km south-east of Perth, Western Australia § Existing processing plant is currently located on portside industrial land in Kwinana, south of Perth in Western Australia § All infrastructure located close to WAK’s mine and processing
Slide 7: One of the World’s Largest Remaining Primary Resources
One of the World’s Largest Remaining Primary Resources Reserves of Kaolin Resources of Kaolin Producer Country Type (mt)1 (mt)1 WA Kaolin Australia Primary 13.42 270.02 Imerys (Listed Conglomerate) All Areas Primary/Secondary 98.9 151.7 KaMin (Private) All Areas Secondary 120.8 0 BASF (Private) All
Slide 8: About Kaolin
About Kaolin Overview § A platy white clay derived from the mineral Kaolinite formed by The Ceramics Industry hydrothermal weathering of igneous rock such as granite Kaolin increases the durability of ceramics as well as the smoothness and whiteness of the finished product. § A common mineral, howev
Slide 9: Kaolin Market
Kaolin Market Kaolin Market by Application (US$m) Kaolin Market by Region (US$m) $6,000 $6,000.00 444 498.5 $5,000 $5,000.00 100 53 286 200 1718.4 312 96 $4,000 345 $4,000.00 1,504 $3,000.00 $3,000 1566 1,943 $2,000.00 $2,000 $1,000.00 927.3 $1,000 $0.00 $0 Middle East Africa Central South America E
Slide 10: APAC Region Breakdown
APAC Region Breakdown APAC Market Revenue by Application (US$m) APAC Vertical Markets by Country (US$m) Ceramic, Fibreglass, Paint, Rubber 283.4 65.8 213.52 693.9 100.3 396.2 111.5 24.8 463.5 28.0 13.7 64.9 Paper Ceramics Paint & Coatings China Japan Australia Thailand Vietnam Other Fibreglass Rubbe
Slide 11: Existing Customers
Existing Customers Existing WA Kaolin Customers FY2019 % Country Vertical About of Production Executed Offtake - Distributor servicing the fibreglass § Demand for WAK’s kaolin products from China & Taiwan 48% Fibreglass market in China and Taiwan existing customers is driving the expansion timing an
Slide 12: Definitive Feasibility Study Complete
Definitive Feasibility Study Complete DFS1 carried out by BDB Process Pty Ltd in 2020 § DFS confirms positive outcomes for the development of the Wickepin Project: § Stage 1 initial production of 200,000 tonnes per annum (tpa) of kaolin product § Stage 2 see ramp up to 400,000 tpa § Life Mine of 31
Slide 13: Key DFS Outcomes
Key DFS Outcomes Key Financial Parameters Value Average NPV(7) LOM ($k) 256,709 IRR 47% Kaolin Sold t 3,760 313 $k 1,208,159 100,680 Average $/t 321 Cost of Sales $k (incl freight to Port) (601,737) (50,145) $/t (160) Gross Margin $k 606,421 50,535 % of Sales Revenue 50% Total Operating Expenses $k
Slide 14: Stage 1 Work Completed to Date
Stage 1 Work Completed to Date Overview § Building works well underway with all structural steel now installed. § Build commenced early 2021 - AUSPAN, one of Australia’s leading steel frame construction companies has been contracted to carry out the Stage 1 Building Structural Design and Constructio
Slide 15: Stage 1 Project Program
Stage 1 Project Program 2020 2021 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Pre IPO IPO Civil Silos Bagging Kiln Mechanical Structural Electrical Services Lighting and SP Commissioning 15
Slide 16: Staged Ramp Up to 400,000 tpa and beyond
Staged Ramp Up to 400,000 tpa and beyond 2021 Stage 1 Current Operations Stage 2 Ramp Up Future Scale Up Ramp Up K99 K99 Expand K99 Further Expansion of Proof of Concept Plant, Kwinana, WA Commercial Scale, Wickepin Capacity, Wickepin K99 Capacity, Wickepin § Existing Production § 25t/hour § 50t/hou
Slide 17: Corporate Overview
Corporate Overview Substantial Shareholders Top 20 Shareholders 67.27% Owners & Board 38.34% No. of Shareholders 1,450 Corporate Structure Shares on Issue 283m Market Capitalisation $48.08m Unlisted Options 167,232,813 Performance Rights 27,500,000 Cash $16,700,000 17 Ongoing plant construction at W
Slide 18: Condensed Statement of Financial Position
CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 31 December 2020 30 June 2020 Assets $ $ Current assets Cash and cash equivalents 18,175,691 2,020,295 Trade and other receivables 572,642 257,206 Total current assets 18,748,333 2,277,501 Non-current assets Property, plant and equipme
Slide 19: Experienced & Invested Executive Team
Experienced & Invested Executive Team Dr John White Andrew Sorensen Alf Baker Linton Putland Cathy Moises Michael Kenyon Chairman CEO Executive Director Non-Exec Director Non-Exec Director CFO & CoSec Director and/or CEO of several Over 30 years’ experience in (17.64% Current Ownership) Degrees in m
Slide 20: Competent Persons Statements
Competent Persons Statements The Mineral Resources, Ore Reserves and production targets referred to in this announcement were previously reported in the Prospectus dated 11 October 2020 and released to the ASX on 24 November 2020 and the Definitive Feasibility Study announcements released on 24 and
Slide 21: Andrew Sorensen CEO
Andrew Sorensen CEO asorensen@wakaolin.com.au +61 8 9439 6300 wakaolin.com.au Investor Relations Victoria Humphries victoria@nwrcommunications.com.au 21