Diatreme Resources Limited · ASX:DRX
Diatreme Resources — Investor Presentation (October 2020)
35 slides from Diatreme Resources's investor presentation, Oct 9, 2020
Slide 1: Time to shine – Diatreme Corporate Presentation October 2020
ASX:DRX For personal use only Time to shine. Advanced, high grade, low-cost silica project located adjacent the world’s largest silica mine Diatreme Corporate Presentation October 2020
Slide 2: Important Information
Diatreme Resources Important Information For personal use only This presentation contains certain forward-looking statements and forecasts which include Additional Information ASX:DRX without limitation, expectations regarding future performance, exploration, mineral resources, the financial positio
Slide 3: Diatreme Resources – World Class Silica Sands Project
Diatreme Resources Diatreme Resources – World Class Silica Sands Project For personal use only Our vision is to become a producer of high-quality silica and mineral sands for use in growing global solar PV and ceramics markets ASX:DRX One of the world’s purest silica sands Global Silica Consumption
Slide 4: Corporate Overview – Post Current Capital Raise Completion
Diatreme Resources Corporate Overview – Post Current Capital Raise Completion and Attached Share Issuance Share price For personal use only Market capitalisation Ilwella P/L ( Brian Flannery) A$0.01 A$23.2m 19.0% ASX:DRX October 2020 Placement issue price 52 week high $0.015, low $0.008 Directors &
Slide 5: Silica market: Growing global demand
Diatreme Resources Silica market Growing global demand For personal use only ASX:DRX • Silica sand has many uses, the market is experiencing increasing demand from emerging consumers such as China TRENDS 2009 - 2022 and India from foundry, automotive and construction industries including the solar P
Slide 6: Silica market: Solar market consuming more sand
Diatreme Resources Silica market Solar market consuming more sand For personal use only for panel manufacturing ASX:DRX • Solar panel PV market forecast to reach US$48.2 billion by 2025, with a CAGR of 34.7%* • World Bank estimates global renewable capacity will grow by over 1TW from 2018 to 2023, u
Slide 7: Positive Scoping Study Results September 2019
Diatreme Resources POSITIVE SCOPING STUDY RESULTS SEPTEMBER 2019 For personal use only ASX:DRX • Pre-tax NPV $231m, IRR 150% and estimated • Additional improvement from developing ultra- capital payback within 8 mths low iron silica sand, currently trading at significant price multiple • Estimated d
Slide 8: A compelling opportunity
Diatreme Resources Diatreme Resources A compelling Annual gross revenue For personal use only opportunity A$80m ASX:DRX Annual operating costs Targeted A$42m Annual DRX silica Annual global silica production consumption 250Mt Annual operating margin 0.75Mt A$37m x 15 years Project life Total net rev
Slide 9: Key upcoming company value catalysts
Diatreme Resources Key upcoming company value catalysts For personal use only ASX:DRX October 2020 Capital Raising to advance DRX to Approvals and FID Q4 2020 Lodge NAIF application for initial Project Funding assessment Q4 2020 Advancement on final transhipment and logistics solutions 1H 2021 Offta
Slide 10: Galalar Silica Sands Project
For personal use only GALALAR SILICA SANDS PROJECT
Slide 11: Galalar Silica Project: Premium quality silica
Diatreme Resources Galalar Silica Project Premium quality silica For personal use only • Project located 20km north of Cooktown, FNQ adjacent to world’s ASX:DRX largest silica sand mine at Cape Flattery (Mitsubishi-owned) operating 30 years plus • Diatreme holds dominant exploration position in know
Slide 12: Galalar Silica Project: Scoping study snapshot
Diatreme Resources Galalar Silica Project Scoping study snapshot For personal use only ASX:DRX Annual ore feed Annual production Silica price Annual gross revenue Gross revenue 950,000tpa 750,000tpa US$75/t* A$80m x 15 years A$1.2b Project life *The price assumption is for a ‘low iron’ silica sand p
Slide 13: Galalar Silica Project: Near-term production
Diatreme Resources Galalar Silica Project Near-term production For personal use only ASX:DRX 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Prepare & submit draft EIS (develop and consult on draft terms of reference (DToR), undertake various Finalise ToR and EIS Technical Studies technical & economic stu
Slide 14: Approvals: Expected project timelines
Diatreme Resources APPROVALS EXPECTED PROJECT TIMELINES For personal use only ASX:DRX Dec 2019 Feb 2020 Oct 2020/Oct 2021 Jan/Mar 2022 Mining Lease (ML) Application EPBC Act Referral Operational works Draft and Final EIS ML under the Mineral Resources EPBC Act referral submitted based Operational wo
Slide 15: EIS Studies: Completed work
Diatreme Resources EIS STUDIES Landscape & Visual Marine Ecology: COMPLETED WORK • Desktop assessment of OUV January / February 2020 For personal use only Hydrographic survey: ASX:DRX Terrestrial Ecology: • Nob Point barge ramp site October 2018 • Wet season survey January 2019 Land survey: • Dry Se
Slide 16: EIS Studies – The Team
EIS STUDIES – THE TEAM For personal use only SLIDE | 16
Slide 17: Galalar Silica Project: High quality silica product
Diatreme Resources Galalar Silica Project High quality silica product For personal use only ASX:DRX • The sand from the Galalar project is some of the world’s purest. • Solar panel manufacturers’ feed stock requires >99% purity silica with “low iron” less than 100ppm iron oxide levels • Bulk sample
Slide 18: Galalar Silica Project: Offtake MOU agreements in place
Diatreme Resources Galalar Silica Project Offtake MOU agreements in place For personal use only ASX:DRX • Diatreme has secured an MOU off-take agreement with the Fengsha Group, China’s largest processor and supplier to solar photovoltaic panels manufacturers and specialty high end silica sand relate
Slide 19: Galalar Silica Project: Fengsha facilities, China
Diatreme Resources Galalar Silica Project Fengsha facilities, China For personal use only ASX:DRX Slide | 19 Chemical pickling vats Mineral Separation Plant Thin Film Transistor line
Slide 20: Galalar Silica Project: Strong stakeholder support
Diatreme Resources Galalar Silica Project Strong stakeholder support For personal use only ASX:DRX • Project being developed with support of traditional owners through Hopevale Congress Aboriginal Corporation (12.5% direct “free carry” stake) the RNTBC entity, representing the interests of all affec
Slide 21: Galalar Silica Project: Expanding mineral resource
Diatreme Resources Galalar Silica Project Expanding mineral resource For personal use only ASX:DRX • Scoping Study production target derived from 2018 JORC • Significant JORC Exploration Target highlights potential to Resource. expand resource. • Planned drilling in 2020 to expand and upgrade the si
Slide 22: Galalar Silica Project: Simple processing system
Diatreme Resources Galalar Silica Project Simple processing system For personal use only ASX:DRX • Amenable to low capex & opex • No caustic chemicals or dust Front end loader Hopper conveyor Trommel Spiral separator Slide | 22 Hydrocyclone Wet high-intensity Classifiers Attrition scrubber product s
Slide 23: Galalar Silica Project: Export option Cooktown
Diatreme Resources Galalar Silica Project Export option Scoping Study: Cooktown For personal use only ASX:DRX • Nine trucks operating 12 hours per day via existing road network from mine site to Cooktown (63km). 50 tonnes per truck, 42 loads daily, 360 days per year. • Stockpile up to 25,000 tonnes
Slide 24: Galalar Silica Project: Export option 2: Nob Point
Diatreme Resources Galalar Silica Project Export option 2: Nob Point For personal use only Optimised transport solution ASX:DRX • Construction of new 3.6km road from mine site to purpose-built barge ramp at Nob Point (subject to Qld Govt approvals), saving significant trucking opex costs • Reduces t
Slide 25: Appendix: Resource statement – Galalar Silica Project
Diatreme Resources Appendix 1 Resource statement For personal use only Galalar Silica Project ASX:DRX Slide | 25
Slide 26: Appendix
For personal use only APPENDIX
Slide 27: Cyclone Zircon Project
For personal use only CYCLONE ZIRCON PROJECT
Slide 28: Cyclone Zircon Project: Ready for development
Diatreme Resources Cyclone Zircon Project Ready for development For personal use only ASX:DRX • Corporate advisers appointed to support progression of the project and ensure maximum shareholder benefit received. • JORC Resource: 203Mt @ 2.3% HM (1% HM cut-off grade), containing 4.7Mt HM & 1,262 Kt z
Slide 29: Zircon market: Valuable heavy mineral
Diatreme Resources Zircon market Valuable heavy mineral For personal use only ASX:DRX • Most valuable heavy mineral, with current prices US$1,487/t (2018: US$1,351/t)* • Global zircon production in 2018 approx. 1.2Mt. • Zircon primarily used to produce ceramic tiles, as well as other applications in
Slide 30: Titanium market: Growing global demand
Diatreme Resources Titanium market Growing global demand For personal use only ASX:DRX • Around 7.4m tpa global market (2018)*. • Rutile price averaged US$1,142/t in 2019 (2018: US$952/t)*. • Used primarily in pigments. • Demand increasing due to higher environmental standards in China and technolog
Slide 31: Cyclone Zircon Project: Low-cost transportation
Diatreme Resources Cyclone Zircon Project Low-cost transportation For personal use only ASX:DRX • HMC loaded into containers at Cyclone. 33 tonne per container. • 240 kilometre truck transport by road from Cyclone to Forrest rail siding in 100 tonne loads. • 1,100 kilometre rail transport from Forre
Slide 32: Cyclone Zircon Project: Easy mining process
Diatreme Resources Cyclone Zircon Project Easy mining process For personal use only ASX:DRX Project Development Options: Mining & Logistics • Mineral Separation Plant in Australia – final products from Strip Ratio 1:1 Australia Mining Rate (Dry) 1,300 tonnes per hour – 2 x Dozer traps • Mineral Sepa
Slide 33: Cyclone Zircon Project: Project fundamentals
Diatreme Resources Cyclone Zircon Project Project fundamentals For personal use only ASX:DRX • All primary project approvals in place: Mining Lease, traditional owner agreements, environmental approvals • Sufficient reserves to support a long mine life: - Currently 14 years at 10Mt pa - Strand miner
Slide 34: Appendix: Resource statement – Cyclone Zircon Project
Diatreme Resources Appendix 2 Resource statement For personal use only Cyclone Zircon Project ASX:DRX Notes: • Refer to ASX release 15 June 2016 “Cyclone Study Reaffirms Project Profitability” for more detail • Rounding may generate differences in last decimal place • A constant SG of 1.7 has been u
Slide 35: Diatreme Contact Details
For personal use only DIATREME CONTACT DETAILS Neil McIntyre, Chief Executive 07 33972222 neil.mcintyre@diatreme.com.au Phil McMurtrie – Project Manager 07 33972222 phil.mcmurtrie@diatreme.com.au Unit 8, 61 Holdsworth Street Coorparoo QLD 4151
Diatreme Resources — Investor Presentation (October 2020) on 6ix