Ovoot: A World Class Coking Coal Development
March 2025
Investor Presentation
INVESTMENT SUMMARY
Ovoot is a Quality Investment Opportunity
Aspire's Ovoot Coking Coal Project is a standalone, permitted coking coal development now progressing into the development phase.
Ovoot Validated as Low Capex, High Payback: Independent Technical Report (ITR) supports the robust returns and technical viability demonstrated in the Life-of-Mine plan underpinning the current JORC Coal Reserve estimate.1
Financing in Progress: Structuring in place to minimise shareholder dilution and maximise value, including off-balance sheet financing of road to preserve capital for mining and operations.
Fast-Track Development Underway - Camps & Early Works: Site establishment has commenced, to expedite construction of worker camp and early-stage infrastructure.
De-Risked Project with Social Licence Secured: Years of engagement ensure strong community and government backing.
Compelling Value Proposition - Positioned for Rapid Execution: With approvals secured and a clear funding path, Ovoot is ready to develop.
Notes: (1) ASX announcement "Ovoot Coal Resources and Reserves Updated - Revised" on 22 November 2024
PROJECT VALIDATION
High-Return Coking Coal Project Confirmed
Aspire's Ovoot Coking Coal Project has robust economic parameters, a capital-efficient development plan, and a short payback period. The Project has a structured pathway to production with demonstrated community support.
Key Takeaways
Project Economic Highlights1
Robust Economics: $US2.2 billion pre-tax NPV
30+ Year Mine Life: 116 Mt Life of Mine washed coking coal sales
Low-Cost, High-Yield: Low capital costs to first coal production, 3.8 year pre-tax payment period
Phased Expansion from 1.5 Mtpa to 5.0 Mtpa production rate
Fast-Track Development Underway: Early infrastructure works in progress
2,174 1,558
NPV10 (US$m) (Pre-tax)
NPV10 (US$m) (Post-tax)
Pre-production capital (US$m)
Payback period (Yr) (Pre-tax)
Payback period (Yr) (Post-tax)
215 3.8 4.2
Average Annual Free Cash Flow (US$m) 2
All In Sustaining Cost (US$/t) 3
Assumed price for Ovoot fat coking coal (US$/t) 4
220 142 230
Notes: (1) Outcome from JORC Coal Reserve estimate. (2) Over 31-year mine life.
(3) Imported to Erlian, China (4) Delivered Duty Paid basis in Erlian, China
WORLD CLASS PROJECT OF SIGNIFICANT SCALE
Ovoot Coking Coal Project
A premium 'fat' coking coal project of significant resource scale and saleability, with all major permits in place to construct; significant work has been done by Aspire to optimise and de-risk the route to market of Ovoot coal
Overview | |
Ownership | 100% |
JORC Coal Resource | 219.4 Mt |
JORC Coal Reserve | 130.1 Mt |
Coal Type | Low ash 'fat' coking coal |
Construction Start | Q2-2025 |
First Coal Delivery | Q4-2026 |
Tenement Validity | August 20421 |
Trucking Distance | 600 km |
Railing Distance | 1,115 km |
Mine (2022) | |
Major Permits | CHPP (2024) |
Road (2024) | |
aspirelimited.com |
Location
Notes: (1) Extendable twice by 20-year periods.
PREMIUM QUALITY PRODUCT
Premium Fat Coking Coal - Scarcity Drives Strong Prices
Ovoot's 'fat' coal is highly sought after for its wide plastic range, affording it excellent blending properties with other coals
Sustained supply shortfalls result in strong demand and prices1
• Ovoot's fat coking coal is sought after in the prospective Target Market Regions of Hebei, Inner Mongolia, Liaoning, Heilongjiang, and Jilin provinces in China
• Supply shortfalls of washed, fat coking coals in these regions are expected to reach 18.1 Mtpa by 2029, increasing from a 15.1 Mt shortfall in 2023
• Average prices for Ovoot specification coal delivered to Erlian port in Inner Mongolia are forecast to be US$230/t in 2026.
Comparative Coal Prices (USD/t inc. VAT)2
Long Term Ovoot
Fat Coking Coal
Price Assumption = US$230/t
Notes: (1) ASX announcement "Fenwei Market Study Findings", 30 April 2024. (2) Coal prices fromwww.sxcoal.cn, USD/CNY rates fromwww.wsj.com
STRONG COKING COAL MARKET FUNDAMENTALS
Ovoot's Market Advantage: High Demand, Limited Supply
Ovoot is ideally positioned to meet the growing global demand for premium coking coals, including a 4.1% CAGR for Indian metallurgical coal demand, as one of few new projects forecast to come online
Global Export Coking Coal Demand (Mt)1
500
482
400
India
300
200
China
100
Rest of World
0
2024
2030
2050
Fat Coal Supply and Demand in Target Markets2
Demand
Supply
3.3% CAGR supply gap from 2021 to 2029
30
25
20
15
10
5
0
Ovoot Fills the Regional "Fat" Coking Coal Supply Gap
2021
2022
2023
2024e
2025e
2026e
2027e
2028e
2029e
Notes: (1) Coronado Coal, ASX announcement, 12 February 2025. (2) ASX announcement, 30 April 2024.
Ovoot Project Economics
Ovoot Project Economics1
Financial Summary
Financial Sensitivities (US$m NPV10)
Unit | Value | ||||
NPV10 (post-tax) | US$m | 1,558 | |||
Payback period (post-tax) | Years | 4.2 | |||
Pre-Production Capital | US$m | 215 | |||
Fat Coking Coal price | US$/t | 230 | |||
Life of Mine Duration | Years | 31 | |||
Initial production rate (from 2026) | Mtpa | 1.5 | |||
Steady-state production rate (from 2032) | Mtpa | 5.0 | |||
Free Cash Flow (LOM2) (post-tax) | US$m | 6,806 | |||
Study Outcome | |||||
Average annual Free Cash Flow | US$m | 220 | |||
EBIT (LOM) | 9,863 | Mining | US$/t | 16 | |
US$m | |||||
Average annual EBIT | US$m/yr | 318 | Processing | US$/t | 3 |
Total Material Moved (LOM) | Mbcm | 1,122 | Truck Transportation | US$/t | 27 |
Coal Sold (LOM) | Mt | 116 | Rail Logistics | US$/t | 26 |
Mongolian taxes and royalties paid (LOM) | US$m | 3,954 | Selling Costs3 | US$/t | 55 |
Strip Ratio (LOM) | bcm:ROMt | 6.5 | Corporate & Site Administration | US$/t | 5 |
Average Processing Yield (LOM) | % | 79 | Sustaining Capex | US$/t | 11 |
AISC (LOM) | US$/t | 142 |
Unit
Coal Price +/-10% | ||
AISC +/-10% | 1,367 (-191) | 1,748 (+190) |
Yield +/-5% | 1,432 (-126) | 1,683 (+125) |
Capex +/-10% | 1,513 (-45) | 1,603 (+45) |
Life-of-Mine Average Operating Costs
Notes: (1) The production target and forecast financial information derived from it were reported in the ASX announcement dated 22 November 2024. The Company confirms that aspirelimited.com all the material assumptions underpinning the production target, and the forecast financial information derived from it, in the 22 November 2024 announcement continue to apply and have not been materially changed by the ITR (2) Life-of-Mine (3) Includes Mongolian royalties, customs fees, marketing agent fees, and Chinese VAT and Customs Duty.
Ovoot Project Economics
Co
Coking Coal Export Royalty Structure 1
Pre-Production Capital Costs
• Mongolia has a progressive corporate tax system, whereby the tax rate is 10% on the first taxable income up to Mongolian Tugrik ₮6.0 billion (c.US$1.8 million)
• For annual taxable income exceeding ₮6.0 billion, the tax rate is ₮600 million plus 25% on the taxable income over ₮6.0 billion
Realised Coal Sale Price (US$/t) | Unit | Royalty Rate | Unit | Study Outcome | |
0 to 99.99 | % | 5.0 | Mining | US$m | 59 |
100.00 to 129.99 | % | 6.0 | Processing | US$m | 65 |
130.00 to 159.99 | % | 6.5 | Transportation | US$m | 62 |
160.00 to 189.99 | % | 7.0 | Logistics | US$m | 26 |
190.00 to 209.99 | % | 7.5 | Other | US$m | 2 |
Over 210.00 | % | 8.0 | Total Pre-Production Capital | US$m | 215 |
Tax Regime | Life-of-Mine Capital Costs | ||||
Unit | Study Outcome | ||||
Mining | US$m | 1,799 | |||
Processing | US$m | 383 | |||
Transport | US$m | 3,087 | |||
Logistics | US$m | 2,950 | |||
Sustaining Capital (LOM) | US$m | 1,477 |
Notes: (1) FOB at the point of export.
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