Alphamin Resources Corp. · TSXV:AFM
Alphamin Resources — Investor Presentation (June 2017)
17 slides from Alphamin Resources's investor presentation, June 2017
Slide 1: Developing a new tin province for a stable supply of conflict-free tin
Developing a new tin province for a stable supply of conflict-free tin Boris Kamstra Chief Executive Officer June 2017
Slide 2: Disclaimer
Disclaimer The statements made in this presentation which are not historical facts contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the Company to which this presentation pertains. The actual resu
Slide 3: Alphamin Resources Corp – A Snapshot
Alphamin Resources Corp – A Snapshot • TSX Venture listed with a market cap of • DFS and subsequent control budget C$163 million (US$121 million)(1) estimate for Mpama North shows exceptional estimated returns: • Focused on the development of the Bisie tin project in North Kivu province • Production
Slide 4: Why Tin?
Why Tin? Tin replaced lead in solder and caused a step change in demand Under-explored and aging tin mines, projected supply constraints will lead to probable long-term upward price pressure Tin Consumption by End Use Tin Price & LME Inventories Other 30,000 18,000 14% Inventory Tin Price 16,000 25,
Slide 5: Major Alphamin Stakeholders
Major Alphamin Stakeholders • Tremont Master Holdings 44% • Industrial Development Corporation (14% Shareholder in ABM – project company) • Malaysian Smelting Corporation 4.4% • High net-worth Individuals Sound Capital Structure • Current market capitalisation US$121 million • Project capex - peak f
Slide 6: Experienced management team
Alphamin has a highly experienced management team with a proven track record of developing and operating mines across the globe including in the DRC’s unique environment. 6
Slide 7: World Class Tin Resource – North Kivu, DRC
World Class Tin Resource – North Kivu, DRC Mpama North Resource Category Tonnes Grade Contained Sn Cut-off (Mt) (%Sn) (t) (%Sn) Measured 0.46 4.31 19,600 0.5 Indicated 4.14 4.55 188,400 0.5 Total M&I 4.60 4.52 208,100 0.5 Inferred 0.54 4.25 22,800 0.5 Mpama North Growth Potential • Within Mining per
Slide 8: The Geology – Mpama North
The Geology – Mpama North Current resource area at Mpama North Long section showing chute geometry, high grade intercepts and mineralisation open at depth • Mineralisation focused within a high grade chute plunging at 40 degrees to the north • Tin mineralisation delineated through drilling to 550m b
Slide 9: The Geology – Bisie Upside
The Geology – Bisie Upside Mpama Deeps Mpama South Regional Targets • High grade chute continues & open down plunge • Best intersections at depth on northern • Limited drilling at Mpama South • Well developed tin and copper in soil anomalies drill line along 15km of the Bisie Ridge • Significant gra
Slide 10: Mining & Processing Methods
Mining & Processing Methods Mining by Sub-Level Caving Methods Process Flow Sheet Follows Standard Gravity Separation Methods 10
Slide 11: Capital Budget Estimate – Key Economic Indicators
Capital Budget Estimate – Key Economic Indicators • Front-end engineering design (FEED) completed by DRA – increased confidence • Further optimisations targeted – led by Ian Dunn (16 years Minsur director of process engineering) and DRA Assumptions Operating Costs US$/t Tin price US$21,400/t Mining
Slide 12: Lowest Quartile Costs
Lowest Quartile Costs Mines operational in 2017 Potential new LSM operations by 2019 Market equilibrium upwards of US$22,500/tonne projected in 2020 (assuming global mined tin demand exceeds 280,000 t) Cost (US$/tonne) Bisie % of cumulative global mined tin production Notes: Projected ITRI Full Cost
Slide 13: Construction Commenced
Construction Commenced • Access road cleared in late 2016, significantly reducing travel costs to site (demobilisation of helicopter) • Excavation of box cut and access road: contractors selected and arrived on-site • Phase one mining: mining contractor appointed and in process of mobilising to site
Slide 14: Self Funded Expansion Strategy
Self Funded Expansion Strategy Phase 2 •Develop Mpama North 2017 to 2018 •Operate mine and plant at •Develop Mpama • All future output of 10,000t Sn per Deeps 2028 to 2031 annum from 2019 to 2027 •Develop Mpama South expansions are 2025 to 2026 expected to be self-funded Phase 1 Phase 3 14
Slide 15: Corporate Social Responsibility
Corporate Social Responsibility Alphamin is a catalyst for the economy of North Kivu – adding to employment, safety, rule of law, improved lives Alphamin is a manifestation of the objectives of Dodd Frank conflict-free minerals act, which also provides “insurance” to the project In time the full tin
Slide 16: Financing Strategy
Financing Strategy • Non-binding term sheets for US$80 million of project debt executed May 2017 • Working towards securing unconditional commitments from lenders • Alphamin and IDC to fund equity requirement 85%/15% Uses of Funds1,2 US$m Sources of Funds1 US$m Capital expenditure 155.6 Project debt
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