Wa Kaolin Limited · ASX:WAK
Wa Kaolin — Investor Presentation (February 2025)
24 slides from Wa Kaolin's investor presentation, Feb 6, 2025
Slide 1: Corporate Update and Equity Raising Presentation
Corporate Update and Equity Raising Presentation INVESTOR PRESENTATION Equitable capital raising to all shareholders to support sales ramp up February 2025
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by WA Kaolin Ltd (WAK). This document contains background recommendations in this presentation are not intended to represent recommendations of particular information about WAK current at the date of this presentation. The presentat
Slide 3: Now Driving Towards Full Production
Now Driving Towards Full Production • WA Kaolin is pleased to confirm that the fourth quarter of 2024 was a pivotal turning point in its operations. • The classifier project has delivered the required production solutions as announced to the market on 27th November 2024 and on the 24th January 2025.
Slide 4: Overview
Overview • The Wickepin Project, discovered by Rio Tinto in 1980’s and acquired by WA Kaolin in 1999, contains an Ore World class deposit Reserve of 64.9mt of ultra bright, high purity kaolinised granite and Mineral Resource of 643.0mt (Resource includes ore reserve). • WAK’s classifier project has
Slide 5: Corporate Snapshot
Corporate Snapshot Corporate Structure at 31 January 2024 Board & Management SHARES ON ISSUE 523,634,125 MARKET CAPITALISATION A$36.7m @ 7.0c PER SHARE UNLISTED OPTIONS1 56,212,503 CASH AT BANK (as at 31 December $1.12m 2024) Substantial Shareholders John White Alf Baker Ken Hall TOP 20 SHAREHOLDERS
Slide 6: Attractive operational outlook
Attractive operational outlook • Long life project with potential 100+ year annuity style cashflows and long-term equity returns Production Free Cash Flow Resource Equipment in place for The company can now strive 100+ year LOM, open cut, nameplate and staffing towards positive operating free dig, l
Slide 7: Kaolin
Kaolin Overview* THE CERAMICS INDUSTRY • A platy white clay derived from the mineral Kaolinite formed by hydrothermal weathering of igneous rock such as granite Kaolin increases the durability of ceramics as well as • A common mineral, however, rarely occurs in large high-grade and the smoothness an
Slide 8: The Kaolin Market
The Kaolin Market Kaolin market by Application (US$m) Kaolin market by Region (US$m) $6,000 $6,000 444.2 499 $5,000 $5,000 99.7 53.3 286 199.7 311.9 96 1,718 $4,000 344.7 $4,000 1504 $3,000 $3,000 1,566 $2,000 1942.6 $2,000 New finer grades 927 $1,000 $1,000 under development can now address these m
Slide 9: Customers
Customers • In addition to servicing WA Kaolin’s marquee customers directly with the help of WA Kaolin’s Malaysian based regional sales office, WA Kaolin has developed relationships with distributors in the key geographical and end use markets in Asia Pacific region. The Company has active distribut
Slide 10: Updated Ore Reserve Estimate and Mineral Resource Estimate
Updated Ore Reserve Estimate and Mineral Resource Estimate Table 1. Ore Reserves by JORC Classification • Wickepin Project Ore Reserve Estimate and Mineral TONNES ISO BRIGHTNESS YIELD (%) IN SITU KAOLIN Resource Estimate updated by CSA Global JORC Classification (Mt) (%) (<45 µM IN SIZE) (MT) • Ore
Slide 11: Mining Process
Mining Process • The mining process at Wickepin is low risk. The ore and overburden is 100% free dig with the overburden thickness varying from 5m – 9m. The low strip ratio contributes to the low cost of operations • There are 2 pits in operation inside the mining tenement are (M70/1143) with the mi
Slide 12: Production Background
Production Background • WA Kaolin production process is a unique dry separation process developed over the last 10 years in prototype, pilot and commercial scales. Production commenced at Wickepin WA in October 2022. • Operational improvements have been made since start up in late 2022. As is the no
Slide 13: Production Status Update continued
Production Status Update continued • Plant is running reliably 5 days x 12-18 hours. K99 Kaolin Production • Additional staff are already trained for additional shifts in readiness for sales growth. Plan is to run up to 5 days x 18 hours to build inventory to 4000 tonnes by end May 2025 • A total of
Slide 14: Current Production Status
Current Production Status • The two new classifiers have each achieved 15 tonnes per hour, the total of 30 tonnes per hour is 20% above the plant nameplate of 25 tonnes per hour and further increases are expected as the Company finetunes them. • This means that the implementation of the second train
Slide 15: Equity Funding Overview
Equity Funding Overview • WA Kaolin Limited (“WA Kaolin” or the “Company”) is seeking to undertake a fully underwritten accelerated non-renounceable entitlement offer to raise a total of approximately A$7.0 million (“ANREO” or the “Offer”). • Existing eligible shareholders will be entitled to apply
Slide 16: Indicative Capital Structure and Sources & Uses
Indicative Capital Structure and Sources & Uses Pro-Forma Capitalisation m Sources of Funds (A$m)2 Shares on Issue 523.6 Offer Proceeds 6.7 New Shares under ANREO 174.5 Cash Balance (31 Dec 2024) 1.1 Total shares on issue post Offer 698.2 Total 7.8 Market Capitalisation post Offer (at issue price) A
Slide 17: Indicative Timetable
Indicative Timetable Event Date1 Trading Halt Monday, 3 February 2025 Announce Offer / lodges Appendix 3B with ASX / lodgement of Prospectus with the ASIC and ASX Wednesday, 6 February 2025 Company conducts Institutional Offer Thursday, 6 February 2025 Announcement of results of Institutional Offer
Slide 18: Investment Opportunity
Investment Opportunity Multi-Generation Life of Mine | Current Resource supports a sustained +73 years production Highly leveraged to increased production | Nameplate production of 200ktpa with apparent excess capacity De-risked processing | The classifier project is delivering higher volumes and hi
Slide 19: Contact Us
Contact Us www.wakaolin.com.au Alf Baker| Managing Director +61 419314283 abaker@wakaolin.com.au Andrew Sorensen | Director Sales & Marketing +61 8 9439 6300 asorensen@wakaolin.com.au
Slide 20: APPENDIX
WA Kaolin APPENDIX ft WO
Slide 21: WAK processing plant adjacent to the mines in Wickepin
WAK processing plant adjacent to the mines in Wickepin Western Australia 21 Investor Presentation | February 2025
Slide 22: WAK Wickepin No 2 Pit mining campaign
WAK Wickepin No 2 Pit mining campaign will yield circa 140,000 tonne of kaolin ore. At the end of January approx. 50% complete. Close up shows approx. 4m of gravel overburden and 8m of mottled clay, then pure white high-quality kaolin down to 25-35m 22 Investor Presentation | February 2025
Slide 23: Out-bound Finished Product
Out-bound Finished Product 23 Investor Presentation | February 2025
Slide 24: Risks
Risks • Production ramp up: The Company intends to ramp up its mining and processing operations. There is a risk that any ramp up may take longer than planned, not achieve desired kaolin product levels, revenues may be less than anticipated or costs may be higher than anticipated • Going concern: Th