Resolution Minerals Ltd. · ASX:RML
Resolution Minerals — Northern Cobalt — Investor Presentation (November 2018)
29 slides from Resolution Minerals's investor presentation, Nov 13, 2018
Slide 1: Investor Presentation November 2018
PAGE 1 INVESTOR PRESENTATION November 2018
Slide 2: Disclaimer and Competent Persons Statement
D I S C L A I M E R A N D C O M P E T E N T P E R S O N S S TAT E M E N T This presentation has been prepared by Northern Cobalt Limited (Northern place reliance on forward looking statements. Any forward-looking Cobalt). This document contains background information about Northern statements in thi
Slide 3: Corporate Overview
CO RPO R AT E O VERVI EW Capital Structure 13 th November 2018 Len Dean Chairman PAGE 3 Ordinary Shares (m) 50.8 Metallurgist, experienced ASX Chairman BHP Market Capitalisation (A$m) – 10 cents $5.1 Marketing Director Iron Ore and Group General Cash (A$m) (28/9/2018) $2.2 Manager Minerals Marketing
Slide 4: Key Points – N27 Projects
KEY POINTS – N27 PROJECTS PAGE 4 • Cobalt resource in well regarded mining jurisdiction (Australia) • Large exploration upside, secure tenure, prospective rocks • Drilling in progress on multiple Co-Cu prospects • Non-laterite, non-refractory mineralisation style leads to low Capex options • Current
Slide 5: Key Points – Cobalt Price
K E Y P O I N T S – C O B A LT P R I C E PAGE 5 THREE MAIN FACTORS AFFECTING THE COBALT PRICE Short term oversupply due to: 1. Increase in capacity from major producers in the DRC 2. Unsustainable increase in unethical artisanal production (up to 40,000 tpa) 3. Changes to Chinese subsidy regimes for
Slide 6: Key Points – Cobalt Demand
K E Y P O I N T S – C O B A LT D E M A N D PAGE 6 INCREASE IN CAPACITY FROM THE DEMOCRATIC REPUBLIC OF CONGO (DRC) • Glencore has ramped up production capacity from it’s existing Katanga and Mutanda mines to capitalise on the increased cobalt price • However, the Glencore Katanga Mine has halted cob
Slide 7: Key Points – Cobalt Demand
K E Y P O I N T S – C O B A LT D E M A N D PAGE 7 CHANGES TO THE CHINESE ELECTRIC VEHICLE (EV) SUBSIDY SCHEME FOR 2018 1. Range based targets to encourage automakers to produce longer range vehicles: • vehicles with driving range below 150 km will not receive subsidies, • vehicles with 300 km of dri
Slide 8: Chinese Manufacturers Are Adapting to the New Subsidy Structure
CHINESE MANUFACTURERS ARE ADAPTING TO PAGE 8 THE NEW SUBSIDY STRUCTURE
Slide 9: Cobalt Price / Demand Forecasts
C O B A LT P R I C E / D E M A N D F O R E C A S T S • Benchmark Mineral Intelligence forecasts that the use of cobalt in batteries will more than triple between 2017 and 2026 – despite PAGE 9 the shift to lower cobalt batteries during this timeframe • Removing cobalt from both NCA and NCM technolog
Slide 10: Cobalt Price / Demand Forecasts
C O B A LT P R I C E / D E M A N D F O R E C A S T S PAGE 10 • Potential for China to ban all internal combustion engine (ICE) sales by 2030 • Electrification of transport is a disruptive technology, has the potential to change the way we live (e.g. implementation of mobile phones) • Projected deman
Slide 11: In a 100% EV world…
demand would change by… PAGE 11 In a 100% incremental EV world… annual commodity demand would deplete reserves by …
Slide 12: Megafactories Are Here
M E G A FA C T O R I E S A R E H E R E – F r o m 3 M e g a f a c t o r i e s i n 2 0 1 5 t o 5 1 i n 2 0 1 8 120.0 PAGE 12 Capacity 2017: 147.8 GWh Capacity 2028: 51 Megafactories @ 1110.5 GWh 100.0 80.0 Asia (excl. China) China Europe US Other 60.0 40.0 20.0 0.0 Source: Benchmark Mineral Intelligen
Slide 13: Cobalt Price / Demand Forecasts
C O B A LT P R I C E / D E M A N D F O R E C A S T S PAGE 13 • Significant disconnect between LME and Metal Bulletin price for cobalt metal • LME Cobalt price appears to have stabilised around $US60,000/metric tonne from high of $90,000 • Current Metal Bulletin price is approximately $US75,000/metri
Slide 14: Running Creek Prospect, Wollogorang Project, NT
PAGE 14 RUNNING CREEK PROSPECT, WOLLOGORANG PROJECT, NT
Slide 15: Location, Mineralisation Style
L O C AT I O N , M I N E R A L I S AT I O N S T Y L E Wollogorang Cobalt Project, Northern Territory PAGE 15 N27’s Wollogorang Cobalt Project is a sediment hosted cobalt mineralisation system which has potential for low CAPEX and OPEX options due to: Arunta Lithium, REE Project, • Oxide mineralisati
Slide 16: Exploration Potential
E X P L O R AT I O N P O T E N T I A L PAGE 16
Slide 17: Exploration Potential – GregJo Prospect
E X P L O R AT I O N P O T E N T I A L – G r e g J o P r o s p e c t PAGE 17 FIRST DRILL TARGET - GREGJO PROSPECT • Deeper RAB drilling completed at first drill target • Copper and cobalt mineralisation in drilling • Magnetic low on regional Gregjo Fault
Slide 18: Exploration Potential – GregJo Prospect
E X P L O R AT I O N P O T E N T I A L – G r e g J o P r o s p e c t Hole ID Easting Northing Depth From Depth To Interval Cu (%) 18RAB009 792824 8144624 1 16 15 0.57 PAGE 18 including 6 10 4 1.03 18RAB013 792788 8144655 5 12 7 1.26 including 1 4.98 18RAB014 792788 8144629 3 7 5 0.36 18RAB019 792863
Slide 19: Exploration Potential – GregJo Prospect
E X P L O R AT I O N P O T E N T I A L – G r e g J o P r o s p e c t PAGE 19 COPPER VS COBALT RICH ZONES: • Copper appears to be controlled by the Gregjo Fault • Cobalt and zinc are anomalous in the south- east part of the prospect • Mineralisation appears to be zoned from copper rich to cobalt then
Slide 20: GregJo Prospect – Section E792789
E X P L O R AT I O N P O T E N T I A L – G r e g J o P r o s p e c t - S e c t i o n E 7 9 2 7 8 9 PAGE 20
Slide 21: GregJo Prospect – Section E792922
E X P L O R AT I O N P O T E N T I A L – G r e g J o P r o s p e c t – S e c t i o n E 7 9 2 9 2 2 PAGE 21
Slide 22: GregJo vs Walford Creek Mineralisation
E X P L O R AT I O N P O T E N T I A L – G r e g J o P r o s p e c t PAGE 22 GregJo Walford Creek • Mineralisation controlled • Mineralisation controlled by the Gregjo Fault by the Fish River Fault • Transitional • Cu-Co adjacent to fault mineralisation style from transitioning to Ag-Pb-Zn Cu-Co-Zn-
Slide 23: Exploration – Next Steps
E X P L O R AT I O N – N e x t s t e p s PAGE 23 INDUCED POLARISATION (IP) SURVEY – GregJo Prospect: • Identifies disseminated sulphides such as pyrite and chalcopyrite which are present at depth at GregJo • Will allow the targeting of the most mineralised parts of the system at depth beneath the we
Slide 24: Exploration Potential – Wollogorang Project
E X P L O R AT I O N P O T E N T I A L – W o l l o g o r a n g P r o j e c t PAGE 24 RUNNING CREEK COPPER-COBALT • Testing a new geological model for control on mineralisation • 1.8 km to the east of the Stanton Cobalt Deposit
Slide 25: Running Creek Copper-Cobalt
E X P L O R AT I O N P O T E N T I A L – W o l l o g o r a n g P r o j e c t RUNNING CREEK COPPER-COBALT PAGE 25 • 55m @ 0.72% Cu, including 33m @ 1.0% Cu and 7m @ 2.1% Cu • Testing a new geological model for control on mineralisation 150m
Slide 26: Running Creek Copper-Cobalt
E X P L O R AT I O N P O T E N T I A L – W o l l o g o r a n g P r o j e c t RUNNING CREEK COPPER-COBALT PAGE 26 • Significant cobalt mineralisation associated with the copper system • IP survey has been completed. Results due shortly
Slide 27: Summary – N27 Projects
S U M M A RY – N 2 7 P R O J E C T PAGE 27 • Cobalt resource in well regarded mining jurisdiction (Australia) • Large exploration upside, secure tenure, prospective rocks • Drilling in progress on multiple Co-Cu prospects • Non-laterite, non-refractory mineralisation style leads to low Capex options
Slide 28: Summary – Cobalt Price / Demand Forecast
S U M M A RY – C O B A LT P R I C E / D E M A N D F O R E C A S T PAGE 28 • Current increase in cobalt supply due to 1. Increase in production from existing mines in the DRC • However, Katanga supply has been halted, other mines have limited expansion capacity 2. Increase in unethical artisanal mini
Slide 29: Northern Cobalt – Powering the Future
PAGE 29 NORTHERN C O BALT POWERING THE FUTURE www.northerncobalt.com.au 67 Goodwood Rd, Wayville, Adelaide, South Australia 5034 [email protected] +61 402 101 790 (Michael Schwarz)
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