Rox Resources Ltd · ASX:RXL
Rox Resources — Shareholder Meeting (November 2016)
20 slides from Rox Resources's shareholder meeting presentation, Nov 24, 2016
Slide 1: Annual General Meeting
ASX: RXL For personal use only Annual General Meeting 24 November 2016 Ian Mulholland Managing Director 3
Slide 2: Rox Assets
Rox Assets For personal use only Fisher East Nickel Sulphide Reward Zinc-Lead Project Project Sale • Resource of 78,000t (172 Mlb) of • $20.6 million contained nickel, 4.2 Mt @ 1.9% Ni1 • Cash and shares, in staged payments over 6 • Potential to increase resources years with a number of high quality
Slide 3: Unlocking Value of RXL's Zinc
Unlocking Value of RXL’s Zinc For personal use only RXL’s share price has tracked the US$ Nickel price since the discovery of Fisher East nickel in 2013, even though Teena was discovered during this period…. No real long term relationship with Zinc Price – even with the release of the Teena resource
Slide 4: Reward Sale Terms
Reward Sale Terms For personal use only Cash Payment Now $8.0m Tradeable Shares Now $3.6m Convertible Note @ 10% 3 Years $5.25m Deferred Payment 6 Years $3.75m TOTAL NPV $19.0m $20.6m Plus Current Cash $1.2m $21.8m 6
Slide 5: Value Proposition
Value Proposition For personal use only Well Funded, with $20.6 million in cash, securities and deferred payments post finalisation of the Reward project sale Independent Research has valued the Company at $47 million, more than twice its current market value and share price Outstanding nickel-gold
Slide 6: Nickel Market
Nickel Market For personal use only Nickel price currently coming out of a low cycle Nickel stocks coming off a high Nickel supply predicted to go into deficit over next 4 years Supply out of The Philippines in doubt Pressure will build on nickel price * Sources: Kitco, Wood Mackenzie, HSBC 8
Slide 7: Fisher East Nickel
Fisher East Nickel For personal use only New nickel province – discovered by Rox Four deposits discovered so far, Camelwood, Cannonball, Musket & Sabre Total Mineral Resource* of 4.2 Mt @ 1.9% Ni, for 78,000 tonnes Ni metal High grade portion of 0.5 Mt @ 4.6% Ni across 3 orebodies Strong exploration
Slide 8: Studies
Studies For personal use only Low technical risk project: o Toll milling – truck ore to nearby plant (e.g. Nickel West at Leinster) o Build a plant (e.g. 600,000 tpa) – truck concentrate for sale Box cuts with separate declines to underground mines ~100m depth to sulphides Standard underground minin
Slide 9: Exploration Potential
Exploration Potential For personal use only Strong exploration potential over 25km Sabre ready to drill out Fresh sulphides in 10m @ 1.9% Ni aircore at Mt Tate and Horatio Several new targets ready for RC drilling – e.g. Cutlass, Sabre North, Mt Tate, Horatio, Claymore Potential to double total reso
Slide 10: Mt Fisher Gold
Mt Fisher Gold For personal use only Poorly explored Mt Fisher greenstone belt Norseman-Wiluna Belt, northern end (Agnew-Wiluna) = 10 Moz Yandal Belt = 17 Mozs 17 Moz Potential for Mt Fisher to become a multi-million ounce 5 Moz? greenstone belt (5 Moz?) – current endowment ~ 0.5 10 Moz Moz JORC res
Slide 11: $10M JV with Doray
$10M JV with Doray For personal use only $10M JV with Doray Minerals Doray is a well known and highly successful gold explorer and miner, with several projects in WA $1M minimum expenditure in Year 1 before withdrawal Additional $4M over 2 years (years 2-3) to earn 51% Additional $5M over 2 years (y
Slide 12: Collurabbie Acquisition
Collurabbie Acquisition For personal use only Located only 70km east of Fisher East 123km2 of prospective tenure ~$90K expenditure commitment $25,000 cash + 7.5 million RXL shares (~$150K) Underdone previous exploration Widespread Ni-Cu-PGE mineralisation over ~15km strike length on multiple stratig
Slide 13: Olympia Deposit
Olympia Deposit For personal use only High grade Olympia lens has been well drilled, but down plunge potential Untested downhole EM anomalies 5.8m @ 3.0% Ni, 2.0% Cu, 5.3g/t PGE 15
Slide 14: Bonya Copper Project
Bonya Copper Project For personal use only High grade copper sulphides at the Bonya prospect 11m @ 4.4% Cu, incl. 3m @ 6.1% Cu 38m @ 4.4% Cu, incl. 6m @ 8.8% Cu and 8m @ 7.9% Cu 5m @ 9.1% Cu, incl. 3m @ 13.4% Cu and 11m @ 3.9% Cu Open at depth Rox 51% and earning to 70% for Numerous untested $1 mill
Slide 15: Value Proposition
Value Proposition For personal use only Obvious relationship between EV/t Ni and Ni Nickel Resources grade 4.0 MCR RXL seems to be fairly valued at ~$21m against 3.0 peers based on grade of nickel resource Grade (Ni%) RXL Reward Sale proceeds have an NPV ~$19m 2.0 PAN WSA Rox’s market cap should be
Slide 16: Forward Strategy
Forward Strategy For personal use only • Nickel Leverage for an improved price – be ready when the price is right Fisher East: Continue to explore and grow the resources – drilling & development studies Collurabbie: Complete data review and then make some discoveries - drilling • Zinc Complete the s
Slide 17: Disclaimers
Disclaimers For personal use only Forward-Looking Statements Competent Person Statements This presentation has been prepared by Rox Resources Limited. This document contains background information Resource Statements about Rox Resources Limited current at the date of this presentation. The presentat
Slide 18: Thank You
For personal use only Thank You Rox Resources Limited Level 1, 34 Colin Street, West Perth, WA, 6005 AUSTRALIA T: (08) 9226 0044 F: (08) 9322 6254 E: admin@roxresources.com.au W: www.roxresources.com.au 20
Slide 19: Appendix: Mineral Resources
Appendix For personal use only Mineral Resources Fisher East Nickel, ASX:RXL 5 February 2016 Mt Fisher Gold, ASX:RXL 10 February 2012 Deposit Category Tonnes Uncut Cut Deposit Category Tonnes (Mt) Ni% Ni (kt) Grade Metal Grade Metal Value (g/tAu) (Ozs) (g/tAu) (Ozs) (g/tAu) Moray Reef Measured 25,70
Slide 20: Appendix: Nickel Resource EV comparison
Appendix For personal use only Resource/Reserve EV/t Market Company ASX Resource Reserve Grade Res Grade Rsv Cash EV EV/tNi Res EV/tNi Rsv Comments Reference Cap kt Ni kt Ni %Ni %Ni $M $M $M 17-Oct-16 30-Jun-16 BHP Nickel West BHP 6,144 388 0.61 0.67 NA NA Part of a Major Multi-national company ASX: