Adamant Dri Processing And Minerals Group · OTC:ADMG
Adamant Dri Processing And Minerals — Investor Presentation (July 2017)
24 slides from Adamant Dri Processing And Minerals's investor presentation, Jul 28, 2017
Slide 1: Adamant DRI Processing and Minerals Group Investor Presentation
Processing And Minerals Group A Adamant DRI Adamant DRI Processing and Minerals Group (ADMG — OTCQB) Investor Presentation July 2017
Slide 2: Forward Looking Statement
F FORWARD LOOKING STATEMENT _ The foregoing information has been provided by Adamant DRI Processing & Minerals Group (“Adamant DRI”). None of this information may be distributed to the press or other media or reproduced or redistributed in the whole or in part in any form at any time. The foregoing
Slide 3: Company Overview
COMPANY OVERVIEW QO Adamant DRI Processing and Minerals Group (“ADMG” “Company”) is a producer, processor and distributor of direct reduced iron (DRI) feedstock (aka sponge iron) and affiliated iron concentrates, fines and pellets to various segments of China’s steel making industry including SOEs a
Slide 4: Ideal Geographic Location
IDEAL GEOGRAPHIC LOCATION A Adamant DRI RUSSIA KAZAKHSTAN* cilongiiang Xinjiang Autonome Taner Mongotia Autonomous Region, PAKISTAN ras Ayionomods ReRion' “Autonomous Region Sichuan = Chongging” YY Guizhou? PHILIPPINESS3.8 HEBE! PROVINCE Population: 74 million 2016 GDP: $500+ billion USD 3.9% unempl
Slide 5: Key Highlights
KEY HIGHLIGHTS fe Maman Regionally Well-positioned DRI Producer in China High growth story & turn-around situation participating in China’s under-penetrated/fragmented DRI/iron concentrate segment of steel sector = DRI benefits: lower operating/permitting costs, yields grade product with less impuri
Slide 6: Background
BACKGROUND
Slide 7: ee ERR G
© &, ee ERR G Be >
Slide 8: What is DRI?
WHAT IS DRI? * Reduced iron derives its name from the chemical change that iron ore undergoes when it is heated in a furnace at high temperatures in the presence of hydrocarbon-rich gasses. * Direct reduction refersto processes which reduce iron oxides to metallic iron below the melting point of iro
Slide 9: DRI & Steel Making Value-Chain
DRI & STEEL MAKING VALUE-CHAIN IRON ORE DRI PROCESS Lump Ore Fine Ore Lump & Fine Ore lump Ore — Fine Ore sinter peek é | pellets an . ai oe) pellets ‘ coke||| 1 <ceeeaeS blast furnace J—| coal, oil blast orgas 02 hot metal om [me ‘= O2-converter t ] pre-reduction coal i" smelting Q2 feduction’ (Cor
Slide 10: Production Overhaul (2015-2017)
PRODUCTION OVERHAUL (2015-2017) pe Manan Brief History: = Beginning in 2008 and in response to environmental restrictions, thousands of Chinese iron and steel producers shuttered or transitioned to mining = Hundreds of minors across Hebei Province and thousands across China were adversely impacted =
Slide 11: Slide 11
Slide 12: Slide 12
Slide 13: Main Subsidiaries
MAIN SUBSIDIARIES > $39 million invested since 2011 to build & upgrade DRI faci CHINA JINXIN * Upgraded, high efficiency, iron ore processing, DRI, iron concentrate production facility = 59 employees * Located in Zhuolu County, Hebei Province, China = 10km from cargo hub- Dagin Zhuolu Station Custom
Slide 14: Huaxin Facility
Adamant DRI HUAXIN FACILITY ae HEX RED MUA BRA] WEE BED WAT IRS ARE SA
Slide 15: Jinxin Facility
>> hdamant Rt JINXIN FACILITY ae
Slide 16: Growth Outlook
GROWTH OUTLOOK
Slide 17: Competitive Factors
COMPETITIVE FACTORS Zs Iufamant DRI CHINA LANDSCAPE * Hebei Province responsible for 1/4 China iron and steel output * Iron ore mines classified by annual production capacity * Chinese iron ore/processing sector highly fragmented- dominated by hundreds of smaller regional players * Large-scale opera
Slide 18: Recent Customer Win
RECENT CUSTOMER WIN pe Manan $5+ Million Purchase Order from Key Regional Steel Industry Supplier = JiangSu YanCheng YunQiJia Trading Co is a leading processor and supplier of specialized steel to SOEs Nanjing Iron & Steel Group and Jiangyin Xingcheng Special Steel Works = Huaxin facility to deliver
Slide 19: Growth Strategy
> iamant ORI GROWTH STRATEGY haa Y Horizontal & vertical integration v Leverage domestic supply & demand imbalance for high quality DRI / iron ore concentrate v Focus on customers & operators in relative proximity to Huaxin and Jinxin facilities v¥ Acquire small to mid-sized mines, producers & opera
Slide 20: Growth Strategy — M&A
GROWTH STRATEGY — M&A A Adamant DRI Macro conditions driving consolidation remain ideal: ¥ Historical lowinterest rate environment v Large, evolving & fragmented industry across Asia-Pac v DRI is a growth sector v Relatively low organic growth opportunities for numerous smaller participants v Macro
Slide 21: Financial Projections
> iamant ORI FINANCIAL PROJECTIONS Y , ea Assumptions: (mill) USD 12/31 2016A 2017E 2018E 2019E 2020E = Current backlog of $5 million * Current pipeline of $12 million Total Revenue 0.6 19.0 45.0 70.0 90.0 ™ One new account per quarter beginning 3Q17 = Meaningful gross margin improvement y/y Cost of
Slide 22: Management & Corporate Structure
Z Adamant DRI MANAGEMENT & CORPORATE STRUCTURE Mr. Changkui Zhu — CEO & Director ADAMANT DRI PROCESSING & MINERALS GROUP = CEO since September 2011 * Provides industry, fiscal, strategic, operational | 100% leadership = 1997 to 2009, Vice President of Shandong Dashan : 7a Mining Co., Ltd China Real
Slide 23: Summary
Leroi SUMMARY = Regionally Well-positioned DRI Producer in China = High growth story & turn-aroundsituation participating in China’s under-penetrated/fragmented DRI/iron concentrate segment of steel sector = DRI benefits: lower operating/permitting costs, yields grade product with less impurities, l
Slide 24: Thank You
THANK YOU
Adamant DRI Processing and Minerals Group — Investor Presentation (July 2017) on 6ix