Mineral Commodities Ltd · ASX:MRC
Mineral Commodities — Shareholder Meeting (May 2019)
24 slides from Mineral Commodities's shareholder meeting presentation, May 30, 2019
Slide 1: 2019 Annual General Meeting
MINERAL COMMODITIES LTD 2019 ANNUAL GENERAL MEETING 30TH MAY Presented By: Executive Chairman MARK CARUSO
Slide 2: Caution Statements
Caution Statements Nothing in these materials shall under any circumstances create an implication The information, if any, in this presentation that relates to metallurgy, the This document has been prepared by Mineral Commodities Ltd (MRC or the that there has been no change in the affairs of MRC s
Slide 3: Converting High Grade to High Value
MINERAL COMMODITIES LTD Converting High Grade to High Value High Grade Mine Operations – Tormin/South Africa, one of the highest grade mineral sands operations in the world and Skaland Graphite in Norway Diversification - Geographic and Commodity into battery minerals with proposed acquisition of gr
Slide 4: Our philosophy of how high grade mining turns into high value
TORMIN MUNGLINUP SKALAND Our philosophy of how high grade mining turns into high value 2014 2018 TORMIN HIGH GRADE HEAVY MINERAL SANDS OPERATION 2018 provided Mineral Commodities Ltd with record MUNGLINUP & SKALAND HIGH GRADE operational and processing performance while GRAPHITE DEVELOPMENT AND PROD
Slide 5: Financial Performance
FINANCIAL PERFORMANCE The Tormin Mineral Sands Operation continued to generate positive cash flows REVENUE EBITDA US$55.4 Impacted by lower concentrate volumes US$14.7 The lower overall sales volumes and shipped during 2018, partially offset by higher revenue, in conjunction with increased million z
Slide 6: Tormin Mineral Sands Operation
TORMIN MINERAL SANDS OPERATION 6
Slide 7: Safety: TRIFR and hours worked
TRIFR 12 Month Rolling Average = 0 0.040 0.035 0.030 0.025 0.020 0.015 0.010 0.005 0.000 12 Month Rolling Average 3 Month Rolling Average Since commencement of operations in late 2013, MRC has incurred 1 Lost Time Injury in April 2017, for in excess of 3.3 million hours worked
Slide 8: Commitment to Community
COMMITMENT TO R7.2 million Spent on Historically Disadvantaged South Africans (HDSA) COMMUNITY Social Labour Plan, including bursaries, scholarships, traineeships, apprenticeships, adult basic education programs, community-based enterprise and infrastructure support development, and the sponsoring o
Slide 9: Production Sales
PRODUCTION SALES Production and Sales Performance 2018 PBC / MINING PRODUCTION SCP/ GSP TONNES TONNES PROCESSED CONCENTRATE TONNES PRODUCED (1) CONCENTRATE TONNES SOLD (2) 2,500,000 300,000 300,000 250,000 250,000 2,000,000 200,000 200,000 1,500,000 150,000 150,000 23,152 1,000,000 1,924,795 22,111
Slide 10: Tormin Mining
TORMIN MINING The ore body that keeps performing 10 60.0% 9 mined since 2014 8 50.0% 241% 9.2Mt 7 More than 40.0% Millions Tonnes 6 original Axis Title Resource 5 30.0% 4 20.0% 3 Indicated Resource – Dec 2013 2.7Mt 2 2.3Mt 10.0% 1 Inferred Resource – Dec 2018 0 0.0% 2014 2015 2016 2017 2018 Cumulati
Slide 11: Investing in Expansion
INVESTING IN EXPANSION Phase 1 - Development increases Primary Beach Concentration Production Capacity Phase 2 - Mineral Separation Plant STUDIES AND ENGINEERING PHASE 2 - MINERAL SEPARATION PLANT 2020 The Section 102 Application and associated Planned MSP capacity of 650ktpa Con feed mining program
Slide 12: Mining Exploration Applications
MINING EXPLORATION APPLICATIONS Targeting known heavy mineral resources to secure Tormin future Area Type Status Graauw Approved – Under Appeal Prospecting Duinen Decision Pending Geelwal Approved - Under Appeal Prospecting Karoo Decision Pending Approval Appeal Upheld – De Punt Prospecting Remitted
Slide 13: Pricing Outlook
The zircon market is one of the best structural supply side stories in PRICING OUTLOOK commodities, in our view. We forecast over a 10% market deficit in 2021 – Goldman Sachs Where credible forecasters see the market $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $- 2017 2018 2019E 20
Slide 14: Munglinup Skaland
MUNGLINUP SKALAND 14
Slide 15: Munglinup Graphite Project
MUNGLINUP GRAPHITE PROJECT High grade mineral resource • PFS completed in May 2018 outlining a robust and economically justifiable project • Recent high grade results from infill drilling confirm continuity of mineralisation with positive impact on DFS • Mineral Resource of 3.6Mt at 15.3% TGC (10% c
Slide 16: Munglinup Definitive Feasibility Study
MUNGLINUP DEFINITIVE POSITIVE MUNGLINUP GRAPHITE OPTIMISATION TEST WORK RESULTS (2) FEASIBILITY STUDY Test Mass in +150µm fraction TGC in +150µm fraction BF1281 48.4% 97.7% BF1304 47.7% 96.5% BF1289 57.0% 95.7% BF1305 46.4% 96.5% BF1306 54.1% 97.4% Coming Soon Mass in -150µm fraction 51.6% 52.3% 43.
Slide 17: Skaland Graphite AS
SKALAND GRAPHITE AS Largest flake graphite producer in Europe and the highest grade flake graphite mine in the world Presently the world’s highest grade operating flake graphite mine with mill feed grade averaging around 28% C Skaland is the largest flake graphite producer in Europe and fourth large
Slide 18: Skaland Transaction
SKALAND TRANSACTION April 2019 entered into a Share Purchase Agreement (“SPA”) with Leonhard Nilsen & Sønner – Eiendom AS (“LNS”) to purchase Skaland Graphite AS which operates the Trælen Graphite Mine and Skaland Processing Facility. FUNDED FROM EXISTING CASH RESERVES Total locked box consideration
Slide 19: Skaland Upside
SKALAND UPSIDE A high grade operation, in a Tier 1 jurisdiction with a long history of production Synergistic value of acquisition creates immediate market profile and leverage to market Munglinup products Technically de-risks Munglinup through access to operational data, systems and processes
Slide 20: Percentage 2018 Supply
PERCENTAGE 2018 SUPPLY Benchmark Minerals Gigafactory Analysis predicts regional demand in 2028 as a percentage of existing supply (1) 183% 773% 108% 75% CHINA EUROPE 2028: 1159.3 GWH 2028: 274 GWH ASIA – EX CHINA NORTH AMERICA 2028: 162.7 GWH 2028: 112.5 GWH Tonnes Graphite Anode % required by 2028
Slide 21: The Graphite Carbon Future
THE GRAPHITE CARBON FUTURE The ex China ex Africa solution Source : (1) – Benchmark Minerals - Lithium in 2019 & The Exchange Traded Opportunity, Andrew Miller, May 2019 (2) – Benchmark Minerals - Dawn of the battery megafactories and the 21 impact on industrial minerals, Simon Moores, 20 April 2019
Slide 22: The Upside of Downstream
THE UPSIDE OF DOWNSTREAM Progressing downstream graphite processing opportunities PURIFICATION MICRONISATION BATTERY ANODE MATERIAL EXPANDABLE Characterisation work for non- High purity (~99%C) Conduct initial testing for Initial test work shows HF chemical purification micronised graphite has basel
Slide 23: Exploration Western Australia
EXPLORATION WESTERN AUSTRALIA Eight new exploration licences acquired or applied for and two further farm-in agreements executed on exploration tenements in Western Australia Targeting lithium (Yandeyarra and Geraldton Prospects), channel iron (Glen Florrie Prospect), gold-copper (Doolgunna and Cave
Slide 24: Focus for Future Success
FOCUS FOR FUTURE SUCCESS Significant positive catalysts ahead PEOPLE PRODUCTION MUNGLINUP SKALAND • Maintain the culture of safety in • Secure permitting to extend • Finalise DFS • Complete transaction the workplace Tormin target LOM +10y • Optimise processing • Complete marketing through additional