Slide 1: Corporate Presentation
For personal use only Corporate Presentation Development Commenced First Cash Flows Early 2014 September 2013
Slide 2: Corporate Profile
Corporate Profile • 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 M
Slide 3: 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 earth • Open pit life of at least 70 years • Demonstrated flow sheet wit
Slide 4: Zirconium Industry
Zirconium Industry For personal use only DZP target market Increasing prices Increasing purity ©
Slide 5: Zirconium Industry
Zirconium Industry Zirconium Chemicals Output For personal use only (2012 – 140,000t 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 5
Slide 6: Zirconium Applications
Zirconium Applications For personal use only © 6
Slide 7: Niobium Industry/Price
Niobium Industry/Price For personal use only • CBMM (Brazil) dominates the industry 85% (80,000t) of world production in 2012 • Early 2011 a Japanese Korean consortium acquired 15% of CBMM for US$1.95B • September 2011 a Chinese consortium acquired 15% of CBMM for US$1.95B • Price very stable at US$
Slide 8: Niobium Applications
Niobium Applications For personal use only © 8
Slide 9: REE Industry
REE Industry For personal use only • Total REE consumption 2012 115,000t REE DEMAND 2016 with annual growth estimated at 5- Other Catalysts 10% to be 162,000t in 2016 12% 15% • China produces about 90% of world Ceramics supply and consumed about 65%, 6% with Japan 15% and the US 14% Glass 6% • The R
Slide 10: REE Supply - Demand
REE Supply - Demand For personal use only © Source: IMCOA 10
Slide 11: Rare Earth Applications
Rare Earth Applications For personal use only © 11
Slide 12: DZP Process Flow Sheet
DZP Process Flow Sheet For personal use only Demonstration Pilot Plant – established 2008 ANSTO – Aust. Nuclear Science & Technology Organisation Process – unique & advanced Optimization – ongoing Simple open cut mining operation Crushing and grinding Sulphuric acid leach whole of ore
Slide 13: 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 13
Slide 14: DZP Product Output
DZP Product Output For personal use only 100% 4% 911t $149.4M 90% 18% 3,997t 30% 80% 9% 1,967t 70% $118.7M 60% 24% 50% 15,827t 40% $81.5M 16% 70% 30% 20% $153.9M 31% 10% 0% Production 22,702T Revenue A$503.5M ZrO2 Nb metal LREO concentrate HREO concentrate © 19
Slide 15: 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 16: DZP Operating Costs
DZP Operating Costs For personal use only Annual operation costs at 1Mtpa steady state ~A$214M • Polymetallic deposit and integrated flow sheet makes it difficult to assign costs to specific products • For total output, cost ~US$8.80/kg • On a proportional revenue basis: Zirconium ~US$ 3.90/kg Niobi
Slide 17: DZP Feasibility Study
DZP Feasibility Study For personal use only DUBBO ZIRCONIA PROJECT Financial Summary for 20 year life in A$ Project Capacity 1,000,000 tonnes pa Capex – Plant $396.8M Sulphuric Acid Plant $116.6M Infrastructure + Owners $253.4M SUB TOTAL $766.8M EPCM $63.5M Contingency (20%) $166.1M TOTAL $996.4M An
Slide 18: 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 © 18
Slide 19: 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 20: 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 © 20
Slide 21: Tomingley Gold Project
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 22: TGP Resource Expansion
TGP Resource Expansion Geological Summary – Wyoming / Caloma For personal use only Pelitic Sediments Feldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc schist Andesitic volcanics Mineralisation Additional Resource Potenti
Slide 23: TGP Construction
For personal use only 23 TGP Construction
Slide 24: TGP CIL Plant
For personal use only © 24 TGP CIL Plant
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 – 372,539,000 Hedge Funds 6% Domestic Market Capitalisation – A$140M (14 Aug 2013) Institutions 20% Retail and Foreign Cash & Investments – A$100M (30 June 2013) others 34% Institutions 14% Debt – nil Directors and management
Slide 27: 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 28: 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 29: 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