New Age Exploration Limited · ASX:NAE
New Age Exploration — Shareholder Meeting (July 2018)
29 slides from New Age Exploration's shareholder meeting presentation, Jul 26, 2018
Slide 1: EGM Presentation 26 July 2018
For personal use only EGM Presentation 26 July 2018
Slide 2: NAE Highlights
NAE Highlights Advanced Tin-Tungsten and Coking Coal Projects in the UK For personal use only Redmoor Tin Tungsten Project, UK Lochinvar Coking Coal Project, High Grade Inferred Resource of 4.5Mt UK @ 0.37% WO3, 0.25% Sn & 0.57% Cu Large strategic coking coal asset (1.00% SnEq) Ideally located
Slide 3: Redmoor Tin Tungsten Project, UK
For personal use only Redmoor Tin Tungsten Project, UK
Slide 4: An Exciting Outlook for Tin and Tungsten
An Exciting Outlook for Tin and Tungsten Very positive outlook for both tin and tungsten – tin is 1st highest ranked metal effected by new technology and tungsten is the 7th highest according to recent Rio Tinto MIT study For personal use only 4
Slide 5: Tin Outlook
Tin Outlook • Tin is a critical metal for new technology - Uses include: • Electronics –major use (48%) of tin as lead-free solder $24,000 Tin Spot Price (US$/t) For personal use only • Electric Vehicles • Robotics $20,000 • Renewables $16,000 • “Tin may be the forgotten EV metal” (ITRI, Nov 2017):
Slide 6: Tungsten Outlook
Tungsten Outlook • Tungsten is an essential metal due to its unique properties: $400 Tungsten Spot Price (APT US$/MTU) • Highest melting temperature of all metals For personal use only • Very high density $350 • Very high hardness $300 • Major uses of tungsten include: $250 • Cemented carbide used i
Slide 7: Redmoor Background
Redmoor Background • Redmoor Project owned by Cornwall Resources Limited (CRL) – 50/50 JV between NAE and AIM-listed Strategic Minerals Limited For personal use only • Redmoor is located in the world-class Cornwall tin–tungsten– copper mining district • CRL holds 23km2 mineral rights package over a
Slide 8: Redmoor Geology & Mineralisation
Redmoor Geology & Mineralisation • Mineralisation at Redmoor is related to the Kit Hill granite, which caused mineral rich fluids to be For personal use only mobilised along fractures and faults • 2 mineralisation styles at Redmoor: 1. Sheeted Vein System (SVS) - a ~90m wide envelope containing nume
Slide 9: Redmoor 2018 Inferred Resource & Exploration Target
Redmoor 2018 Inferred Resource & Exploration Target Redmoor 2018 Inferred Mineral Resource 1, 2 Tonnage WO3 Sn Cu SnEq For personal use only Description (Mt) (%) (%) (%) (%) SVS High Grade Zones 4.5 0.37 0.25 0.57 1.0 • High Grade Inferred Resource of 4.5Mt @ 1.0% Sn Eq defined by CRL 2017 20 hole (
Slide 10: Redmoor 2018 Inferred Resource & Exploration Target
Redmoor 2018 Inferred Resource & Exploration Target “Drillhole CRD019 is CRL’s best hole to date. It contains over 20m true thickness in 3 High Grade Zones between 1.1% and 2.6% SnEq, located ~150m directly below the inferred resource and ~450m from the For personal use only surface. This is in the
Slide 11: Redmoor Inferred Resource Grade Increases with Depth
Redmoor Inferred Resource Grade Increases with Depth SnEq (%) For personal use only 1.50% 1.30% 1.10% Majority of Exploration Target & Majority of Current Inferred Resource 2018 Phase 1 Drilling Target Depths 0.90% 0.70% CRD019 High Grade Zone Intersections 0.50% 0 100 200 300 400 500 600 Approx. De
Slide 12: CRL 2018 Drilling Program
CRL 2018 Drilling Program “While the Redmoor resource is already the world’s 3rd highest-grade new tin-tungsten project, the 2018 drilling program aims to demonstrate Redmoor is truly world-class both in term of grade and tonnes” For personal use only CRL’s shareholders are committed to a phased 201
Slide 13: Redmoor Further Exploration Upside
Redmoor Further Exploration Upside High Grade Inferred Resource of 4.5Mt @ 1.0% SnEQ + High Grade Exploration Target of 4-6Mt @0.9% to 1.3% SnEq For personal use only + Significant Further High Grade Exploration Potential on CRL Mineral Rights Further Exploration Potential • Large 23km2 mineral righ
Slide 14: Community & Environment
Community & Environment The Redmoor Project benefits from a supportive local community and government For personal use only • Minimising community and environmental impacts has been a key aim for CRL • Positive community engagement throughout, resulting in good support - 15 community meetings held t
Slide 15: Redmoor - Benchmarking
Redmoor - Benchmarking Redmoor is the world’s 3rd highest-grade new tin-tungsten project and the 5th highest grade project including existing mines The Redmoor Inferred Resource has 45,000 tonnes of contained tin equivalent & the Exploration Target has the potential to increase For personal use only
Slide 16: Lochinvar Coking Coal Project, UK
For personal use only Lochinvar Coking Coal Project, UK 16
Slide 17: Lochinvar - Key Achievements & Work Plan
Lochinvar - Key Achievements & Work Plan Large strategic Coking Coal Asset with Attractive Economics For personal use only Lochinvar Phase 1 Indicated Project on Activities re- Coal quality Indicative license Drilling and Inferred hold due to commenced review timeline of 3 secured Resource low cokin
Slide 18: Coking Coal - Prices
Coking Coal – Prices HCC prices continue to strengthen at levels very supportive of Lochinvar development For personal use only • HCC price stabilising in the US$175/t to US$225/t range over past 12 months. Current spot price ~US$175/t • Stepped improvement from 2014-2016 cyclical low HCC prices & m
Slide 19: Lochinvar Scoping Study
Lochinvar Scoping Study The Scoping Study has confirmed that a modern underground longwall mine, wash plant and short rail connection at Lochinvar is a potentially attractive project For personal use only • 111Mt Total Indicated and Inferred Resource (49Mt Indicated and 62Mt Inferred) 1 & 2 • 31-64M
Slide 20: Lochinvar - Attractive Economics
Lochinvar - Attractive Economics US$410M NPV, 27% IRR , 4 Year Payback Period, (+/-40% accuracy) 1, 2 & 3 For personal use only • Economic Evaluation based on US$160/t HCC Benchmark Price / US$150/t Lochinvar Realised Price • Robust to changes in Coking Coal Price and other key assumptions (Break Ev
Slide 21: Ideal Location to Supply European Steel Industry
Ideal Location to Supply European Steel Industry Clear sea freight advantage to Europe For personal use only (~3% price premium vs competing US coking coal) 21
Slide 22: Lochinvar - World Class Supply Chain to European Market
Lochinvar - World Class Supply Chain to European Market • Majority of customers within For personal use only 1,000 km • Regular smaller deliveries from local supplier benefits customers • Existing UK rail and port infrastructure with excess capacity: • Short 7km connection into mainline • Short UK r
Slide 23: Growing European Demand for Coking Coal
Growing European Demand for Coking Coal Wood MacKenzie forecast a 50% growth in European demand for Lochinvar Style High Volatile Hard Coking Coals (HV HCC) over Life of Mine For personal use only • Europe Total Met Coal imports: 58Mt in 2017 (1.4Mtpa Lochinvar = 3% Market Share) • Europe High Volat
Slide 24: Lochinvar - A Low Cost Competitive Supplier
Lochinvar – A Low Cost Competitive Supplier 1st Quartile of Global Seaborne Metallurgical Coal Cost Curve For personal use only US$/t FOB Lochinvar Metallurgical Coal 58 Low rail costs (short distance) Low labour costs Low royalties Favourable exchange rates 0 Mt 50 Mt 100 Mt 150 Mt 200 Mt 2
Slide 25: NAE Corporate: Experienced Board and Management
NAE Corporate Experienced Board and Management For personal use only Alan Broome AM Chairman Gary Fietz Managing Director Mike Amundsen Director A metallurgist with over 40 years’ experience in A mining executive with over 30 years’ A corporate advisor with over 30 years’ global the mining industry.
Slide 26: Competent Persons Statement
Competent Persons Statement Lochinvar The Lochinvar Resources estimate is based on information compiled by Dr John Bamberry, who is a Member of the Australasian Institute of Geoscientists For personal use only (Member No. 4090). Dr Bamberry is the Principal Geologist at Palaris. He has sufficient ex
Slide 27: Lochinvar Scoping Study Cautionary Statements
Lochinvar Scoping Study Cautionary Statements Information in relation to the Lochinvar Coking Coal Project, including production targets and financial information, included in this presentation is extracted from the NAE Scoping Study Update announcement dated 15 March 2017. The Company confirms that
Slide 28: Disclaimers
Disclaimers Forward Looking Statements - This report contains “forward-looking information” that is based on the Company’s expectations, estimates and forecasts as of the date on which the statements were made For personal use only This forward-looking information includes, among other things, state
Slide 29: New Age Exploration Limited
For personal use only New Age Exploration Limited ABN 64 004 749 508 Level 3, 480 Collins Street Melbourne, VIC 3000 Australia Phone: +61 3 8610 6494 Fax: +61 3 8610 6334 Email: info@nae.net.au Website: nae.net.au Twitter: @NAE_Exploration
New Age Exploration — Shareholder Meeting (July 2018) on 6ix