Reward Minerals Ltd · ASX:RWD
Reward Minerals — Shareholder Meeting (May 2018)
22 slides from Reward Minerals's shareholder meeting presentation, May 30, 2018
Slide 1: Reward Minerals Limited AGM Presentation
REWARD MINERALS Aiming to develop the LIMITED longest-life brine SOP Project outside of China AGM Presentation 30 May 2018 ASX | RWD www.rewardminerals.com
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Contents
CONTENTS ►Reward Corporate Snapshot ►2017 Highlights ►LD Project PFS Results ►PFS Feedback and Responses ►Conclusions 3
Slide 4: Reward Corporate Snapshot
REWARD CORPORATE SNAPSHOT Capital Structure 29 May 2018 ASX:RWD Ordinary Shares on Issue 135.8m Rights and Options on Issue 4m Share Price $0.195 Undiluted Market Capitalisation $26.5m Short Term Debt A$1.0m Net Cash & Equivalents1 ~A$1.7m Undiluted Enterprise Value A$25.8m Major Shareholders Name S
Slide 5: 2017 Highlights
2017 HIGHLIGHTS A challenging, yet successful year ► Permitting ► Environmental Review Document submitted ► Culmination of 5 years of work ► Ongoing engagement with regulators ► Pre-Feasibility Study ► CPC replaced Lycopodium – progressed rapidly up the learning curve ► Completed post year-end – ben
Slide 6: LD Project PFS Results
LD PROJECT PFS RESULTS1 Production: ► Over 9 Mt SOP produced at over 400,000 tpa ► 27-year LOM, based on extraction of only 6% of current resource Costs: ► Capex – A$345M, incl. indirects and owners costs (+/-20% accuracy) ► Total Capex – A$451M, incl. contingency and pre-production costs ► AISC Ope
Slide 7: LD Project PFS Results Continued
LD PROJECT PFS RESULTS CONTINUED1 Process: ► Over 40 phases of metallurgical testwork completed ► ERCOSPLAN independent review of mass balance and flowsheet: ► “State of the art” Timing: ► 3¼-Year development period ► One year production ramp-up Life extension: ► Excellent potential to increase prod
Slide 8: PFS Results – Capital Costs
PFS RESULTS – CAPITAL COSTS1 Initial and Sustaining Capital Costs (LOM Real) AUD M Production - Trenches and Ponds 57.6 Process Plant 73.2 Infrastructure 108.8 Site Support Temporary Services 2.9 Construction Costs 59.2 Subtotal 301.7 Indirect Costs (EPC, Consultants, Commissioning) 20.0 Owners Cost
Slide 9: PFS Results – Cash Opex Costs
PFS RESULTS– CASH OPEX COSTS1 A$91/t A$102/t Other Opex Costs Closure – A$2/t Martu Royalty – A$7/t Road Maint - A$15/t FOB Cash Cost: Site Services - A$22/t A$362/t (US$272/t) EBITDA Margin: A$123/t ~41.9% @ US$500/t Ex-Works Cost: A$239/t (US$180/t) 1. All figures taken from 2018 PFS Study – Refer
Slide 10: PFS Feedback
PFS FEEDBACK1 Is this where capex is going to end up Your recovery Why have you not for most brine SOP seems low, can’t used wet projects? you do any better? harvesting? Will 133 km of trenches be Reward’s flow rates enough? are optimistic You seem to have Why has Reward taken a very escalated its S
Slide 11: PFS Feedback – Responses
PFS FEEDBACK – RESPONSES ►Recovery – Agreed! ► Overall Recovery of 65% assumed, based on testwork ► Losses to seepage and entrainment incorporated into 65% recovery model ► It is conservative, 70 to 75% may be achievable over time ►Capex – Thorough, conservative approach ► Estimate largely based on
Slide 12: PFS Feedback – Responses Continued
PFS FEEDBACK – RESPONSES CONTINUED ►Financial Modelling – Used best practice methodology ► A nominal model used – price and costs are inflated (inflation effects are included) ► Ensures correct treatment of depreciation, tax and tax losses ► Quarterly periodicity allows accurate assessment of pre-pr
Slide 13: Next Steps
NEXT STEPS1 Funding ► Progress discussions with potential strategic partners Environmental Assessment ► Address EPA comments/questions ► Finalise ERD for public review Project Enhancements ► Further R&D on process flow and pond design & construction will deliver benefits ► Assess contractor consolid
Slide 14: Conclusion
CONCLUSION Reward is clearly positioned for a significant re-rating… The PFS has shown that the LD Project is Technically Sound ► Conservative PFS conducted to exacting standards (+/-20% accuracy) ► Successful independent process review completed (ERCOSPLAN) … and Economically Robust ► Pre-tax NPV8%
Slide 15: Appendices
\ APPENDICES
Slide 16: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT Colin McCavana – Non-Executive Director, Chairman Daniel Tenardi – Projects Director - 30+ years experience in mining and earthmoving industries - 25+ years mining experience with various organisations including the management, acquisition and development of including
Slide 17: Globally Significant Tier 1 Resource
GLOBALLY SIGNIFICANT TIER 1 RESOURCE LD’s Drainable SOP Resource dwarfs all Australian deposits (…it has the highest average in-situ grade…) Assigned Specific SOP Brine Unit Nominal Dimensions (m) Volume Area Yield Drainable JORC Resource Hydrostratigraphic Unit Grade Symbol Effective 3 (1) SOP (Mt)
Slide 18: Brine SOP Critical Success Factors
BRINE SOP CRITICAL SUCCESS FACTORS Critical Success Factors for Brine-based SOP Operations Geology Operational Environment • Current producers operate from large, • High evaporation rates all year round single deposit, long-life operations • Relatively low rainfall (recharge) • Simple geology, consi
Slide 19: Operational Environment – Evaporation
OPERATIONAL ENVIRONMENT – 1 Year-round evaporation is critical, not just the average….. ~ Lake Disappointment “The winter is coming….” Denser potash salts brines evaporate very slowly 19
Slide 20: Operational Environment – Rainfall
OPERATIONAL ENVIRONMENT – 1 Rainfall is useful for recharge, but not welcome in winter….. ~ Lake Disappointment “The winter is coming….” Denser potash salts brines evaporate very slowly 20
Slide 21: Competent Person Statement
COMPETENT PERSON STATEMENT This information in this report that relates to Resource Estimation and hydrogeology is based on information compiled by Mr Robert Kinnell, a hydrogeologist and Competent Person who is a Member of The Australian Institute of Mining and Metallurgy and a Fellow of the Geolog
Slide 22: Reward Minerals Ltd contact details
Reward Minerals Ltd 159 Stirling Highway Nedlands WA, 6009 (T): +61 8 9386-4699 (W): www.rewardminerals.com