Australian Mines Limited · ASX:AUZ
Australian Mines — Investor Presentation (February 2019)
27 slides from Australian Mines's investor presentation, Feb 19, 2019
Slide 1: Investor Presentation February 2019
For personal use only Investor Presentation February 2019 Australian Securities Exchange: AUZ USA OTCQB: AMSLF Frankfurt Stock Exchange: MJH
Slide 2: Disclaimer: Forward Looking Statements
Disclaimer Forward Looking Statements This document may contain forward looking statements. Forward looking statements can generally be identified by the use of forward looking words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’,
Slide 3: Cautionary Note For U.S. Investors Regarding Reserve and Resource Estimates
Disclaimer Cautionary Note For U.S. Investors Regarding Reserve and Resource Estimates All resource estimates by the Company in this Presentation were calculated in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”, 2012 E
Slide 4: Australian Mines: battery precursor chemicals for the EV sector
Australian Mines: For personal use only Produce cobalt sulphate and nickel sulphate battery precursor chemicals with a fully auditable supply chain for the electric vehicle sector ▪ Owner of world-class cobalt-nickel assets in sovereign-stable mining jurisdiction ▪ Bankable Feasibility Study forecas
Slide 5: Australian Mines Limited: Capital Structure and Share Ownership
Australian Mines Limited For personal use only Capital Structure Share Ownership Stock code ASX: AUZ Directors/ Management OTCQB: AMSLF Other 10% 84% Frankfurt Stock Exchange: MJH Institutional Investors Shares on issue 2,824 million 6% Share price (14 Feb 2019) $0.043 Market Capitalisation $121 mil
Slide 6: Australian Mines: Sconi, Flemington and Thackaringa projects
Australian Mines: For personal use only SCONI Greenvale, Queensland Cobalt-Nickel-Scandium Project Planned production1: Stage: Townsville 53,000tpa Nickel sulphate (12ktpa metal) • BFS completed 8,500tpa Cobalt sulphate (1.8ktpa metal) • Production from 2021 89tpa Scandium oxide (planned – subject t
Slide 7: Australian Mines: key strengths
Australian Mines: For personal use only ✓ 100% owner of multiple battery metals projects in the Tier 1 jurisdiction of Australia ✓ Advanced project pipeline with a development-ready flagship project ✓ Australian Mines plan to own and control the entire process: from mining its own ore through to pro
Slide 8: Sconi: large scale production of battery precursor chemicals
Sconi: For personal use only Large scale production of battery precursor chemicals World class resource3 Low impurity ore Granted Mining Leases Significant upside from Mineral Resource upgrade (including potential to extend current 18 year life of mine) Queensland Government Prescribed Project statu
Slide 9: Sconi: location and infrastructure
Sconi: For personal use only ▪ ▪ Greenvale Township. Population of approx. 150 Aerial view of the Sconi Project ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 8
Slide 10: Sconi
For personal use only Sconi: 9
Slide 11: Sconi: processing flowsheet
Sconi: For personal use only H2SO4 MINED ORE CRUSHING AND HIGH SCANDIUM SCANDIUM Sc203 FROM SCONI GRINDING OF PRESSURE SOLVENT PRECIPITATION ORE ACID LEACH EXTRACTION (HPAL) (ScSX) COBALT SULPHATE CRYSTALLISATION IRON REMOVAL MIXED PRESSURE SOLVENT CoSO4 (FeR) SULPHIDE OXIDATION LEACH EXTRACTION Ste
Slide 12: Sconi: strong forecasted financials
Sconi: For personal use only Strong Forecasted Financials Operating Costs: Average Annual Revenue: $512 million US$0.48 per pound Nickel Average Annual EBITDA: $295 million (post by-product credits) (over initial 8 year Life of Mine) Pre-Tax IRR: 21% Pre-Tax NPV: $1.31 Billion Life-of-Mine Average C
Slide 13: Sconi: nickel and cobalt cost curves
Sconi: For personal use only ▪ Nickel sulphate cost curve 2025 Pro rata cost curve of cobalt producers 2025 (nominal USD per tonne of nickel contained) (Nominal USD per pound cobalt) 4 Source: CRU. Refer to Australian Mines’ announcement released on 12 February 2019 for further information. 4Sconi t
Slide 14: Sconi: potential upside changes
Sconi: For personal use only ▪ ▪ Potential Changes Potential Impact ✓ Increase Ore Reserve Increased NPV Increased IRR Increased Life of Mine ➢ Greenvale deposit now 63% larger than at BFS ➢ Lucknow deposit now 94% larger than Reduced Operating Expenses Reduced Payback Period at BFS ✓ Increase cobal
Slide 15: Sconi: completed targets and future milestones
Sconi: For personal use only Completed Targets Future Milestones ✔ Complete 100% acquisition of Sconi Revised mine plan ✔ Commissioning of demonstration plant Deliver optimised feasibility report ✔ Secure off-take for cobalt and nickel Secure project financing ✔ Deliver Bankable Feasibility Study Co
Slide 16: Board of Directors and Management Team
Australian Mines: Board of Directors For personal use only Michael Ramsden Mick Elias Dominic Marinelli Chairman Director Director Lawyer (BEc, LLB, FFIN) Geologist (BSc (Hons), FAusIMM, CPGeo) Financial Professional (MBA, BEng, PGD Sc) 30 years experience as a Internationally recognised expert in l
Slide 17: Flemington
Flemington: For personal use only ▪ ▪ 5 Initial Mineral Resource of 2.5 million tonnes at 0.103% cobalt and 403ppm scandium in the Measured category; and 0.2 million tonnes at 0.076% cobalt and 408ppm scandium in the Indicated category. Mineral Resources as per Australian Mines’ announcement release
Slide 18: Thackaringa
Thackaringa: For personal use only ▪ ▪ 6 Australian Mines Limited, Large-scale cobalt-in-soil anomalies at Thackaringa. Released 29 May 2018. 17
Slide 19: Australian Mines: summary of investment case
Australian Mines: For personal use only Exposure to battery metals (particularly ex-DRC cobalt) with targeted production from 2021 1 De-risked development-ready flagship project in sovereign-stable mining jurisdiction 2 3 Future potential global player about to embark on next stage of development 4
Slide 20: For further information
For further information For personal use only Shareholder contact: Media contact: Sophia Bolhassan Michael Cairnduff Investor Relations Manager Cannings Purple p: +61 488 022 944 p: +61 406 775 241 e: sbolhassan@australianmines.com.au e: mcairnduff@canningspurple.com.au australianmines.com.au ASX: A
Slide 21: Appendix 1. Typical chemical composition of cathodes
Appendix 1. For personal use only ▪ ▪ contain more nickel and cobalt than lithium Typical Chemical Composition of Cathodes* *Excludes lithium content of cathodes. The terms ‘NMC’ and ‘NCM’ are often used interchangeably by industry . 6:2:1 or 8:1:1 chemistries refer to the relative content of nickel
Slide 22: Appendix 2. The role of cobalt in batteries
Appendix 2. For personal use only ▪ ▪ The role of cobalt in batteries Aids battery performance Provides thermal stability Increase energy density (optimises the rate at which power is delivered) (improves safety) (extends the driving range of vehicles) 21
Slide 23: Appendix 3. Cobalt supply-demand balance
Appendix 3. For personal use only ▪ ▪ Cobalt supply-demand balance (kt) Other Cermet tools and hard materials Superalloys Battery demand Demand Outlook Supply Requirement 250 210 210 200 150 135 Projected shortfall 140 94 100 73 38 50 22 25 Current supply 19 16 12 14 25 26 29 0 2016 2020 2025 2025 S
Slide 24: Appendix 4. Nickel supply-demand balance
Appendix 4. For personal use only ▪ ▪ ▪ Nickel supply-demand balance (kt) Plating Source: UBS Research, Nov 2017, Nickel: Electric Vehicle Demand Refinement. 23
Slide 25: Appendix 5. World nickel HPAL operations
Appendix 5. For personal use only ▪ ▪ ▪ Mine Owner Location Design* Start World Nickel HPAL Operations: Mine Locations 1 Moa Bay Cuba 33ktpa 1959 (1st Gen) Murrin 2 Murrin Australia 45ktpa 1999 (2nd Gen) 3 Coral rd Bay Philippines 20ktpa 2005 (3 Gen) 4 Goro th New Caledonia 60ktpa 2011 (4 Gen) 5 Amb
Slide 26: Appendix 6. Sconi Project Mineral Resources
Appendix 6. Sconi Project - Mineral Resources (effective 14 February 2019) For personal use only Classification Tonnes Nickel equivalent Nickel Cobalt (million tonnes) (%) (%) (%) Measured 5.05 1.06 0.83 0.07 Indicated 17.24 0.90 0.73 0.05 Inferred 10.34 0.63 0.54 0.04 TOTAL 32.63 0.84 0.69 0.05 Gre
Slide 27: Appendix 7. Competent Persons' Statements
Appendix 7. Competent Persons’ Statements Sconi Cobalt-Nickel-Scandium Project, Queensland (Australia) For personal use only The Mineral Resource for the Sconi Cobalt-Nickel-Scandium Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource was first report
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