Volt Resources Ltd · ASX:VRC
Volt Resources — Investor Presentation (September 2017)
18 slides from Volt Resources's investor presentation, September 2017
Slide 1: Fast-tracking a globally significant graphite project
Fast-tracking a globally significant graphite project Investor Presentation Trevor Matthews | Chief Executive Officer September 2017
Slide 2: Disclaimer
Disclaimer The information contained in this confidential document (“Presentation”) has been prepared by Volt Resources Limited (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. While the information contained herein has been prepare
Slide 3: Investment Highlights
Investment Highlights ► Volt Resources Limited (ASX:VRC) is a flake graphite exploration and development company focused on fast-tracking the development of its 100% owned world-class Namangale Graphite Project in Tanzania ► Prime Location – Situated in the highly endowed East Africa graphite belt a
Slide 4: Corporate Snapshot
Corporate Snapshot 12 Month Share Price Performance and Volume 12 Month Share Price Performance and Volume 60,000 60,000 0.10 0.10 Capital Structure 0.08 0.08 Shares on Issue 976,784,189 40,000 40,000 ('000) Listed Options 236,314,931 Volume ('000) 0.06 0.06 Price ($) Price ($) Volume 0.04 20,000 0.
Slide 5: The Namangale Project
The Namangale Project ► 100% owned by Volt ► Flake distribution skewed towards jumbo, large and medium size ► Largest ore reserve amongst ASX listed peers of 127 Mt @ 4.4% TGC ► Largest mineral resource in Tanzania of 461Mt @ 4.9% TGC ► Huge exploration upside with only 6% of Volt’s tenement area ha
Slide 6: Strategic Location and Excellent Infrastructure
Strategic Location and Excellent Infrastructure ► Located in south-east Tanzania 140km from Mtwara Port ► Sealed road from Project to Port ► Deep water port at Mtwara ► Port land available for product storage ► Safe to export concentrate product ► Situated in highly endowed East African graphite bel
Slide 7: Fast-Tracking Smaller Stage 1 Production
Fast-Tracking Smaller Stage 1 Production ► PFS Completed in December 2016 confirmed robust project economics (refer to Appendix 1) ► Strategic plan recently implemented to fast-track smaller Stage 1 Development and generate cash-flows by 2018 by concentrating on smaller initial development: • 20,000
Slide 8: Fast-Tracking Smaller Stage 1 Production
Fast-Tracking Smaller Stage 1 Production Namangale North Project Layout ► Expedite Stage 1 DFS by completing: • 1,500 metres of infill reverse circulation drilling and 400 metres of wide diameter diamond cord drilling to facilitate further flow sheet refinements • Water bore programme to assist in h
Slide 9: Considerable Expansion Potential
Considerable Expansion Potential Outline of ore movement from pit to market ► Stage 2 Development: • Strategic plan will see capacity expand in tandem with the anticipated increase in global demand for graphite with the enlarged facility planned for completion by 2020 • PFS based on 170,000tpa of gr
Slide 10: Exceptional Product Characteristics
Exceptional Product Characteristics ► Flake distribution skewed towards jumbo, large and medium flake size making Namangale graphite suitable for expandable, battery anode and graphene application ► Independent German metallurgical lab has confirmed excellent metallurgy ► Good product quality with n
Slide 11: Graphite Peer Comparison
Graphite Peer Comparison Largest Ore Reserve 2nd Largest Mineral Resource Probable Proved Measured Indicated Inferred GPX GPX KNL KNL BKT MNS MNS SYR VRC VRC SYR 0 20 40 60 80 100 120 140 0 200 400 600 800 1,000 1,200 (Mt) (Mt) 11
Slide 12: Graphite Market 2017 and Beyond
Graphite Market 2017 and Beyond NATU RA L F LA KE CONCENTRATE DEMA ND F OR SPHERI Forecast CA L/EX growth in PA NDA flake natural B LE GRA PHI TE concentrate demand for spherical and PRODU CTI ONexpandable graphite ► Current indicative prices of US$700-US$1,700 per (tonnes) tonne for Volt’s graphite
Slide 13: Indicative Commitments for all Stage 1 Capacity
Indicative Commitments for all Stage 1 Capacity GEM Agreement One of China’s China’s largest Fixed price Two of China’s leading graphite building materials binding 5 year largest graphite groups group. Net assets offtake processors and US$79bn. agreement distributors Product Battery anode Expandable
Slide 14: Tanzanian Legislation Changes are Manageable
Tanzanian Legislation Changes are Manageable Recent Changes Impact for Volt Increased non-dilutable free carried interest 16% in Volt's Tanzanian subsidiary Reporting and compliance provisions Negligible Royalty rate of 3% Nil Introduction of Beneficiation of minerals, metallic and precious minerals
Slide 15: Development Timeline
Development Timeline JUNE-17 DECEMBER-17 JULY-18 FEBRUARY-19 AUGUST-19 MARCH-20 SEPTEMBER-20 STAGE 1 DFS | STAGE 1 PLANT CONSTRUCTION | STAGE 2 DFS COMPLETION | STAGE 1 COMMISSIONING AND RAMP-UP STAGE 2 FID BASED ON OFFTAKES AND FINANCIAL CLOSE ~ STAGE 2 COMMISSIONING AND RAMP UP |
Slide 16: Why Volt?
Why Volt? ► Largest JORC compliant graphite resource in Tanzania ► Clear strategy to become a near term graphite producer leading to a globally significant natural flake graphite supplier ► Potential to be generating cash-flows in 2018 with low CAPEX of US$30m to produce 20,000tpa of graphite concen
Slide 17: Appendix 1 PFS Demonstrated Project Economics
Appendix 1 PFS Demonstrated Project Economics ► PFS concluded Namangale project is financially Parameter Units Metric attractive to progress – US$1.3B pre-tax NPV and IRR - before tax (%, real) 86.9% 1.4 year Payback IRR - after tax (%, real) 66.5% ► Average annual EBITDA of US$195m NPV @ 10.0% - be
Slide 18: Appendix 2 Strategic Location and Excellent Infrastructure
Appendix 2 Strategic Location and Excellent Infrastructure 18
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