Slide 1: 2013 Annual General Meeting
ALKANE RESOURCES Ltd 2013 Annual General Meeting For personal use only PERTH 17 October 2013
Slide 2: Corporate Snapshot
Corporate Snapshot • Listed on ASX since 1969, also listed on OTCQX (US) For personal use only • Market cap $140M • 6,100 shareholders (85% Australian) • Multi commodity explorer, miner and developer focused on Central West of NSW • Active in region for more than 20 years • Developed Peak Hill Gold
Slide 3: Tomingley Gold Project Base case statistics
Tomingley Gold Project Base case statistics For personal use only Project approval by NSW Department of Planning and Infrastructure late July 2012. Mining Lease approved February 2013 Resource – 12.6 Mt @ 2.0g/t (812,000oz) CAPEX – A$107M Throughput – 1.0Mtpa Head Grade – 2.00g/t Recover
Slide 4: TGP Resource Expansion
TGP Resource Expansion Additional Resource Potential For personal use only Caloma Two open pit and underground (Recent drill intercept 9m @ 110g/t Au) Expand Wyoming One underground Caloma underground Myalls underground Wyoming Two and Three underground McLeans Caloma Two – Geological model 4
Slide 5: TGP Construction
For personal use only 5 TGP Construction
Slide 6: TGP CIL Plant & Gold Drill Sample
TGP CIL Plant & Gold Drill Sample For personal use only © 6
Slide 7: The Dubbo Zirconia Project
The Dubbo Zirconia Project For personal use only • A very large* polymetallic resource of the metals zirconium (hafnium), niobium (tantalum), yttrium and rare earths • Important and strategic metal mix, including 25% heavy rare earths • Open pit life of at least 70 years • Demonstrated flow sheet wi
Slide 8: Zirconium Applications
Zirconium Applications For personal use only © 8
Slide 9: Zirconium Industry
Zirconium Industry Zirconium Chemicals Output For personal use only (2011 – 194,000t ZrO2 basis CAGR 10% ) • Mid 2013 consumer zircon inventories running down • Market expected to move back into under supply 2015 - 2016 • Prices starting to recover © Source: Iluka, TCMS, JP Morgan 9
Slide 10: Zirconium Pricing
Zirconium Pricing For personal use only Zirconia and zirconium chemicals market growing at 11% pa © Source: TCMS 10
Slide 11: Niobium Applications
Niobium Applications For personal use only © 11
Slide 12: Niobium Industry
Niobium Industry Current use of ferro-niobium For personal use only 13% 29% Structural 10% Pipe Auto Stainless Other 24% 24% • 90% of Nb used in standard grade ferro-niobium for the production of high strength low alloy (HSLA) steels • Nb HSLA steels are primarily consumed in structural and pipe, bu
Slide 13: Niobium Pricing
Niobium Pricing For personal use only CAGR 10% Demand driven by greater usage in steels of BRIC producers © Sources: Niobec (IAMGOLD) 13
Slide 14: Rare Earth Applications
Rare Earth Applications For personal use only © 14
Slide 15: REE Industry
REE Industry REE 15 elements roughly divided “light” La, Ce, Pr, Nd, Pm, Sm and “heavy” Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu For personal use only Y and Sc are sometimes included with heavy REE • Total REE consumption 2012 115,000t REE DEMAND 2016 with annual growth estimated at 5- Other 10% to be 162
Slide 16: REE Pricing
REE Pricing For personal use only Market imbalanced but overall CAGR 6% - 12% seems likely by 2016 © Source: IMCOA 16
Slide 17: DZP Process Flow Sheet
DZP Process Flow Sheet For personal use only Simple open cut mining operation 1 million tonnes per annum Crushing and grinding Sulphuric acid, roast, leach whole of ore Solvent extraction, separation & refining 15,800 tonnes ZrO2 units 1,970 tonnes Nb units 3,997 tonnes REO units 911 tonnes
Slide 18: DZP Demonstration Pilot Plant
DZP Demonstration Pilot Plant For personal use only Y and HREE refining and recovery DPP Filtration, PLS, SX, Zr and Nb recovery Zirconium refining and precipitation Reverse osmosis and water recycle © Operating at ANSTO since 2008 18
Slide 19: DZP Commercial Plant
DZP Commercial Plant For personal use only © 19
Slide 20: DZP Pathway to Market
DZP Pathway to Market For personal use only AZL MoU’s and Agreements to secure 100% of output Zirconium (Zr) • Leading chemical company to develop applications and markets in Asia for zirconia produced by DZP • European manufacturer/trading company to market DZP products in Europe and North America
Slide 21: DZP Infrastructure
DZP Infrastructure For personal use only • 20km from Dubbo (43,000 pop) • Access to skilled local labour • 250 permanent workforce • Access to State power and gas • Land and water being secured • Waste to be stored onsite • EIS lodged June 2013 • Production expected Q1 2016 © 21
Slide 22: DZP Environment
DZP Environment Alkane has a 25 year history of sustainable mine management For personal use only EIS lodged 28 June and addresses all environmental aspects Water • 70% recycle of process water currently achievable • Limited groundwater aquifers – minimal impact • Water secured from existing water l
Slide 23: DZP Financing
DZP Financing For personal use only • $1 billion DZP finance package being arranged by: o Credit Suisse (Australia) o Sumitomo Mitsui Banking Corporation o Petra Capital • Finance sources: o Possible sale of a strategic minority stake in DZP o International Government funding (ECA) o Commercial debt
Slide 24: DZP Major Milestones
DZP Major Milestones For personal use only Major Milestones 2013 2014 2015 2016 Environmental Impact Statement Project Approval Process Project Financing Program EPC / EPCM tender award Detailed design / Long lead orders CONSTRUCTION PRODUCTION © 24
Slide 25: Conclusion
Conclusion For personal use only • Alkane transformation underway – long term investment opportunity • Development strategy of multi-commodity operations in tight geographic location • Substantial emerging cash flow – ~A$200 - 275Mpa after 2016 • Aspects of upside o Longer mine life at TGP and DZP o
Slide 26: Financial and Equity
Financial and Equity For personal use only Financial Equity Shares – 372,639,000 Market Capitalisation – A$140M (16 October 2013) Cash & Investments – A$85M (30 September 2013) Debt – nil Share turnover – ~0.2M / day current 12 Month Low/High – A$0.25/$1.05 Top 20 – 58% Codes – ALK (
Slide 27: Board & Management
Board & Management Board Senior Management For personal use only John S F Dunlop (Chairman) BE(Min), MEngSc(Min). Mining Michael Ball (Chief Financial Officer) CA Bcom engineer Nic Earner (Chief Operations Officer) BEng (Honours) D Ian Chalmers (Managing Director) MSc. Geologist Terry Rans
Slide 28: Disclaimer
Disclaimer For personal use only Disclaimer This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth o
Slide 29: Resource & Reserves: Dubbo + Galwadgere
Resource & Reserves: Dubbo + Galwadgere Dubbo Zirconia Project – Mineral Resources For personal use only Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO U3O8 Deposit (Mt) (%) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 0.014 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 0.014 T
Slide 30: Resource & Reserves: Tomingley + Peak Hill
Resource & Reserves: Tomingley + Peak Hill Tomingley (TGP) – Mineral Resources For personal use only DEPOSIT MEASURED INDICATED INFERRED TOTAL Top Cut Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Gold 2.5x2.5x5.0m model (t) (g/t) (t) (g/t) (t) (g/t) (t) (g/t) (koz) Wyoming One 2,316,550 2