Aspire Mining Limited · ASX:AKM
Aspire Mining — Investor Presentation (November 2013)
27 slides from Aspire Mining's investor presentation, Nov 27, 2013
Slide 1: The Ovoot Coking Coal Project Investor Presentation
For personal use only The Ovoot Coking Coal Project Investor Presentation Sydney, November 2013 June 2010 1
Slide 2: Important Information
Important Information For personal use only •Nature of this document: This document has been prepared by Aspire Mining Limited (“Aspire”, “AKM”, or the “Company”) and contains summary information about the Company and its subsidiaries as at the date of release of this document. The information in th
Slide 3: Important Information cont.
Important Information cont. For personal use only •Production Target Assumptions: The following are key assumptions used to achieve the first year target of 5Mtpa of marketable coking coal: 1) In the eight months prior to commencement of first year production, a 20 million BCM waste removal programm
Slide 4: Company Snapshot – Corporate Structure
Company Snapshot – Corporate Structure For personal use only Ownership (Fully Diluted) AKM Directors (ex Turbat) 10.8% SouthGobi Resources Ltd 26.73% 30.97% Noble Group Mongolian Shareholders 17.82% Others 13.67% 100% 90% 10%* 10.81% Ovoot Coking Northern Capital Structure (ASX:AKM) Coal Project Rai
Slide 5: Mongolia – A Major Trading Corridor
Mongolia – A Major Trading Corridor For personal use only 8 November 2013 “RZD offer Mongolia to speed up modernisation of Ulan-Bator Railway to attract 100 million tonnes of transit freight” 5 November 2013 “UN Study – Encouraging Mongolia to become a trade corridor between Russia and China” 28 Oct
Slide 6: The Mongolian Transit Corridor
The Mongolian Transit Corridor For personal use only • RZD offer Mongolia to speed up modernisation of Ulan-Bator Railway to attract 100 million tonnes of transit freight (November 13) • Mongolia has agreed to establish a working group with China to oversee the construction of new road, rail and pip
Slide 7: UN Development Program Euro-Asia Transport Study
UN Development Program Euro‐Asia Transport Study For personal use only Source: United Nations Economic Commission for Europe “Euro-Asian Transport Linkages” Phase II, dated 2012 7
Slide 8: A few Scenarios Investigated in the Report
A few Scenario’s Investigated in the Report United Nations Economic Commission for Europe Transport Division For personal use only 1. Khabarovsk (Russia Far East) – Potsdam (Germany) 1 2. Hangzhou (China) – 6 Kaluga (Russia) 6. Ussuriysk (Russia Far East) – Kiev (Ukraine) 2 7 7. Shanghai (China) – W
Slide 9: Potential Routes to Coal Markets – Rail Access
Potential Routes to Coal Markets – Rail Access For personal use only Capacity Increase to 100 Mtpa 9
Slide 10: European Demands for Coking Coals Make it a Key Customer Market
European Demands for Coking Coals Make it a Key Customer Market Alongside Asia For personal use only 2012 Crude Steel Production 2012 Major Suppliers of Coking Coal into 800 Europe1 708.8 700 Other, 9% 600 Canada, 5% Production (Mt) 500 400 Russia, 9% Australia, 39% 300 273.9 200 169.4 121.9 111.2 1
Slide 11: JORC Resource & Reserve Update Confirm Ovoot as Second Largest Coking Coal Reserve
JORC Resource & Reserve Update Confirm Ovoot as Second Largest Coking Coal Reserve in Country For personal use only JORC Reserve Probable Total Marketable (31 July 2013) (Mt) (Mt) (Mt) (arb 2% (arb, 9.5% moisture) moisture) Ovoot Open Pit 247 247 182 Ovoot 8 8 6 Underground Total 255 255 188 JORC Ov
Slide 12: Exceptional Deposit – High Washing Yield and % Coking
Exceptional Deposit – High Washing Yield and % Coking = Highest In‐Situ Value per tonne For personal use only 12
Slide 13: The Ovoot Basin
For personal use only The Ovoot Basin 13
Slide 14: Ovoot Development Plan
Ovoot Development Plan For personal use only Mine CAPEX and OPEX Estimates Initial Production up to 5 Mtpa CAPEX US$144m (incl. contingency and working capital) Commencement 2017 Production growth potential up to 12MtpaNote1 Life of Mine 20 yearsNote1 OPEX (Avg first 3 years) US$83‐93/tNote2 Total S
Slide 15: Ovoot Mine Development Plan Has Robust Economics
Ovoot Mine Development Plan Has Robust Economics For personal use only Revised development plan has significantly reduced capital cost estimates for the Ovoot mine Estimated Capex to produce 5mtpaNote1 US$ 144m Estimated Opex FOR China at US$93/t ‐ Mine pre strip $60m 5mptaNote 1 ‐ Mobilisation $ 8m
Slide 16: Ovoot coking coal will have a long term cost advantage
Ovoot coking coal will have a long term cost advantage For personal use only Metallurgical Coal (HCC + PCI + SSCC) Ovoot and Mongolian coking coal has a significant geographical advantage that requires rail development to secure Source: Aspire Mining Ovoot coking coal nominal cost US$93/t (not inclu
Slide 17: China Fat, Primary Coking Coal against Seaborne traded HCC
China Fat, Primary Coking Coal against Seaborne traded HCC For personal use only Coking Coal Price Comparison China HCC (Primary Coking Coal) China Fat Coking Coal Seaborne HCC 400.00 350.00 300.00 250.00 US$/tonne 200.00 150.00 100.00 50.00 0.00 Jul 12 Sept 13 Jun‐10 Aug‐10 Oct‐10 Dec‐10 Jan‐11 Mar
Slide 18: Ovoot Coking Coal – High Fluidity, Mid-Vol
Ovoot Coking Coal – High Fluidity, Mid‐Vol For personal use only Ovoot is the highest dilation in the mid-vol range 18
Slide 19: VITROCOAL Low Ash, High Fluidity Coking Coal
VITROCOAL Low Ash, High Fluidity Coking Coal For personal use only Indicative Ovoot Washed Coking Ovoot Coking Coal displays High fluidity and Coal Specification plastic properties Moisture 9% An ideal blend coking coal indicated by industry leading Gray-King Index and Rank Ash 9% Chinese clas
Slide 20: Chinese Blending Coal Requirements
Chinese Blending Coal Requirements For personal use only Chinese Coking Coal Reserves Typical Chinese Coke Blend Unamed coal, 2% Other, Meagre 5% lean, Gas coal, 7% 14% Lean, 12% Lean, 7% Gas coal, 29% 1/3 Coking, 19% Primary coking coal, 25% Primary coking Gas fat coal, coal, 31% 7% 1/3 Coking, Fat
Slide 21: Chinese Fat Coal… Relatively Short Life Remaining
Chinese Fat Coal… Relatively Short Life Remaining Given Current Consumption Levels For personal use only Chinese Consumption of Coking Coal to Reserves Ratio 2.00 1.80 1.60 1.40 1.20 Ratio 1.00 0.80 0.60 0.40 0.20 0.00 Fat Coal Lean, 1/3 Coking Primary Coal Gas Coal Other Meagre Lean 1) 55% Yield to
Slide 22: Significant Interest in Ovoot Coking Coal Exceed Ovoot Development Production
Significant Interest in Ovoot Coking Coal Exceed Ovoot Development Production For personal use only Offtake Customers Potential Offtake under Non‐Binding MOU’s Chinese up to 5.6 Mtpa ODP Production 5 Mtpa Excess MOU interest 0.6 Mtpa (+12%) Additional Chinese, Russian, Japanese, Eastern Europe Steel
Slide 23: Oxidised and low quality coking coals can be upgraded when blended with Ovoot
Oxidised and low quality coking coals can be upgraded with blended with Ovoot coking coal For personal use only Non-coking, Thermal Coals, and Semi-Soft Coking Coals • Coke oven blend tests conducted on 50/50 blend and 75/25 blend (oxidised coal/Ovoot) • Used alone, low coking, thermal and oxidised
Slide 24: Rail Infrastructure
Rail Infrastructure Key to Unlocking Northern Mongolia For personal use only • Connects the Ovoot Project and Northern Mongolia Northern Rail Line Rail Capex directly onto the Trans‐Mongolian Railway network for access to international markets Alignment Erdenet to Ovoot (547km) CAPEX1 US$1,300m + co
Slide 25: Steps to Develop the Ovoot Project
Steps to Develop the Ovoot Project For personal use only 25
Slide 26: Investor Sentiment Should be Improving Toward Mongolia
Investor Sentiment Should be Improving Toward Mongolia For personal use only “Mongolia Deepens Investment Ties With China”….. 25 October “Mongolia Prime Minister Welcomes Foreign Investors as Boom Slows” ….. 27 October “China, Mongolia to up cooperation” ….. 26 October Source: Wall Street Journal “M
Slide 27: Contact details
Contact details For personal use only Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Level 2, Suite 20, 22 Railway Road Subiaco, Western Australia, 6008 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave‐8 Social Insurance Department Building A
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