Diatreme Resources Limited · ASX:DRX
Diatreme Resources — Brisbane Mining Investor Conference 2024
28 slides from Diatreme Resources's conference presentation, Mar 13, 2024
Slide 1: High purity silica sand - critical mineral in global demand
For personal use only High purity silica sand - critical mineral in global demand. Neil McIntyre, CEO, Diatreme Resources Brisbane Mining Investor Conference 13 March 2024
Slide 2: Important Information
Important Information For personal use only Resource Estimates and Production Targets ASX Announcements The Resource Estimates and Production Targets reported by Diatreme Resource Limited’s (DRX or the Company) on 14 June This presentation should also be read in conjunction with the DRX Annual Repor
Slide 3: Two high purity, low iron silica sands projects in North Qld
Two high purity, low iron silica sands projects in North Qld For personal use only The Northern Silica and Galalar projects will be co-developed with our J/V partner Sibelco. • Long life, sustainable operations with excellent logistics and ESG credentials • Diatreme exploration acreage (500 sq km) a
Slide 4: Corporate snapshot
Corporate snapshot For personal use only Share price Market capitalisation Shares on issue Cash Debt facility (unsecured) Options A$0.022 A$82m 3,730m A$37.5m A$1.5m 70m 10.0m – Exp 27/5/26 @ $0.025 8 March 2024 8 March 2024 31 December 2023 Repayment 30 May 2024 8 March 2024 10.0m – Exp 27/5/26 @ $
Slide 5: In a nutshell
In a nutshell For personal use only Diatreme’s Northern Mineral Resource High silicon dioxide Low iron Silica Project in 402Mt 99.9%+ <120ppm North Queensland is Across All Silica Projects 98% in range 100% in range one of the world’s purest silica sand projects. High purity silica sand in global de
Slide 6: Sibelco is our development partner
Sibelco is our development partner For personal use only The Northern Silica June 2022 Project’s high purity Diatreme enters joint venture with international materials heavyweight Sibelco. silica sand is • Sibelco paid $35m for 26.8% of Diatreme’s silica projects attracting interest • 2nd tranche in
Slide 7: Sibelco
Sibelco One of the world’s leading providers of industrial minerals For personal use only Sibelco brings world class silica processing and technical knowledge along with marketing and development expertise • Sibelco is also a leading supplier of silica to the Asian market for specialty glass • Globa
Slide 8: High-purity silica is vital for the manufacture of solar panels
High-purity silica is vital for the manufacture of solar panels For personal use only 70% of a solar panel is comprised of 70% high- glass made from high purity, purity silica low iron silica. • High-grade low iron silica sand is an essential raw material in production of solar panels, smartphones a
Slide 9: Silica surge
Silica surge US$32B global market by 2028 For personal use only IMARC predicts global silica sand APAC silica sand sales volume (Mtpa) market will grow from US$22.9B in 2022 to US$32.1B in 2028, with 180 CAGR of 5.6%. 160 40Mtpa of extra high quality sand is needed in • Global solar investment in 20
Slide 10: Chinese supply needs
Chinese supply needs Demand exceeds forecasts For personal use only China is facing a bottleneck for the China PV Glass production & silica sand consumption APAC silica sand sales volume (Mtpa) supply of low iron, PV grade silica sand due to strong global demand. PV glass daily production (t/d) Low
Slide 11: Ports North/CFSM/Diatreme: Unlocking approvals
Ports North/CFSM/Diatreme Unlocking approvals For personal use only • Tripartite Entry Deed signed with Far North Queensland Ports Corporation (Ports North), the relevant port authority for Cape Flattery Port & port incumbent operator Cape Flattery Silica Mines (CFSM, Mitsubishi owned) • Allows Diat
Slide 12: Proposed Conditional takeover bid for Metallica
For personal use only Proposed Conditional takeover bid for Metallica
Slide 13: Transaction overview
Transaction overview Attractive all-scrip Offer for DRX to acquire all MLM Shares on issue at a 37.33% premium to MLM’s 30-day VWAP1 • DRX announced on 16 February 2024 its conditional intention to Attractive offer premium and value 5,6 make a takeover bid for all the ordinary shares in MLM Implied
Slide 14: Transaction highlights and rationale
Transaction highlights and rationale Logical consolidation of strategic silica projects in the Cape Flattery region to drive value for ALL shareholders and stakeholders For personal use only Offer represents a highly Strong strategic rationale Opportunity for Metallica Integration, scalability and S
Slide 15: Potential to create FNQ critical minerals hub
Potential to create FNQ critical minerals hub Qld Govt has demonstrated increased interest and investment in FNQ critical minerals market Queensland Critical Minerals Strategy to oversee $245M investment in For personal use only critical minerals, driving energy transition to renewables • Cape Flatt
Slide 16: Silica Projects
For personal use only Silica Projects
Slide 17: Mineral Resource Estimate increased by more than 400% in three years
Mineral Resource Estimate increased by more than 400% in three years For personal use only 2023 Measured, Indicated & Inferred Mineral Resource 402Mt Northern Silica Project Galalar Project 235.0Mt 75.46Mt >99.33 (SiO2%) >99.18 (SiO2%) Note: Under the JORC Code, 2012 Edition an Indicated Mineral Res
Slide 18: Northern Silica Project: Positive Scoping Study
Northern Silica Project Positive Scoping Study strengthens development plans. Feasibility Study now underway. For personal use only Target: Production of 121 million Note: Refer to ASX announcement 14 June 2023 – “Positive Scoping Study for Northern Silica Project strengthens development plans”. Dia
Slide 19: Northern Silica Project: phases and export infrastructure
Northern Silica Project Project adjacent to Cape Flattery Silica Mine. For personal use only Phase 2 (years 3 -25) Production of 5Mtpa loaded from jetty to ocean-going vessel (OGV). • Phase 1: Production of 3Mtpa; transhipping via barge to OGV within Port of Cape Flattery using existing wharf berthi
Slide 20: Northern Silica Project: one of the world's purest silica sand projects
Northern Silica Project One of the world’s purest silica sand projects For personal use only The Northern Silica Project’s high purity, low iron product can be used as a direct feed by manufacturers. Offtake advancing – MOU with FLAT Glass, one of the world’s largest manufacturers of photovoltaic (P
Slide 21: Galalar Project: Strategic 75Mt silica resource
Galalar Project Strategic 75Mt silica resource For personal use only Galalar Project anticipated to feed future Northern Silica Project production. Cooktown Nob Point Galalar Project High purity silica sand in global demand. 21
Slide 22: Maintaining the rights of Traditional Owners
Maintaining the rights of Traditional Owners For personal use only Walmbaar Aboriginal Corporation • Hope Vale Congress also has role as trustee of Aboriginal Freehold land and Hope Vale Congress Aboriginal Corporation represent interests of • Detailed pre-clearing inspections for any exploration wi
Slide 23: Northern Silica Project: Delivery timeline 2023-2026
Northern Silica Project Delivery timeline 2023-2026 Note: Subject to timely advancement through State and Federal Government permitting and approval process. For personal use only 1H 2023 2H 2023 1H 2024 2H 2024 1H 2025 2H 2025 1H 2026 2H 2026 Obtain ML Scoping Study & & EA Commence EIS Complete EIS
Slide 24: Contact Details
For personal use only CONTACT DETAILS Critical High Office: Unit 8, 61 Holdsworth Street Purity Silica Coorparoo, QLD, 4151 P: 07 3397 2222 E: manager@diatreme.com.au W: www.diatreme.com.au
Slide 25: Appendices
For personal use only APPENDICES Critical High Purity Silica
Slide 26: Experienced Leadership
Experienced Leadership Our team has extensive experience in the government, mining and resources sector For personal use only Wayne Swan Neil McIntyre Michael Chapman Gregory Starr Cheng (William) Wang Kara Keys Chairman CEO Non-Exec Director Non-Exec Director Non-Exec Director Non-Exec Director Mr
Slide 27: Competent person's statement
Competent person’s statement For personal use only Statement in accordance with the Australasian code for reporting of exploration results, mineral resources Mineral Resources and ore reserves (the JORC code) The information in this presentation that relates to Mineral Resources at the Galalar Silic
Slide 28: Resources and Reserves Statement
Resources and Reserves Statement For personal use only Global Resources – Northern Silica Project, Galalar Silica Project & Western Resource Area Density JORC Resource Category Silica sand (Mt) Silica sand (Mm3) Cut-off SiO2 (%) SiO2 % Fe2O3 % TiO2 % LOI % Al2O3 % Total % (t/m3) Galalar Measured* 43
Diatreme Resources — Brisbane Mining Investor Conference 2024 on 6ix