Altoro Metals Limited · ASX:ARO
Altoro Metals — Variscan Mines — Shareholder Meeting (October 2017)
27 slides from Altoro Metals's shareholder meeting presentation, October 2017
Slide 1: Building a next-generation mineral development and mining company
Building a next-generation mineral development and mining company AGM Presentation - 2017
Slide 2: Disclaimer
Disclaimer These slides and the presentation do not constitute or form part of any prospectus, admission document, invitation or offer for sale or solicitation or any offer to buy or subscribe for any securities nor will they or any part of them form the basis of, or be relied on in connection with,
Slide 3: Delivery in 2017
Delivery in 2017 2017 – Progress § Attractive Asset Portfolio: § 7x advanced exploration & development projects in France § Published Independent Technical Assessment Report § Merléac: High quality Zinc development project (2.2Mt @ ~13% Zn Eq) § Lack of political clarity delayed proposed drilling §
Slide 4: Company Overview
Company Overview Overview Located in the heart of Europe § Ambitious exploration & development mineral company § Focus on: § High-grade Zinc deposit at Merléac (2.2Mt @ 13% Zn Eq) § High-grade WO3 Couflens project (free-carried) § Further value: § Portfolio of advanced exploration & development proj
Slide 5: Corporate & Capital Structure
Corporate & Capital Structure Shareholder Ownership (%) Share Price Performance YTD 2017 29.34 50.98 7.4 7.78 4.5 Kwan Chee Seng (Director) BNP Paribas (Pattersons) Directors (Ex. KCS) C & B Carr Other Shareholders Source: Company; Boardroom Source: Financial Times Capital Structure Options Number o
Slide 6: Board of Directors
Board of Directors Patrick Elliott Non-Executive § 35+ years experience in investment and corporate management. Chairman § Previous experience: Consolidated Gold Fields Australia Limited, Head of Corporate Finance for Morgan Grenfell Australia, MD of Natcorp § Current Chairman of Argonaut Resources
Slide 7: Investment Case
Investment Case Compelling value drivers Merléac : High quality Zinc development project Couflens: Next French mine? § First quartile grade ~13% Zn Eq § High grade 1-5% - 2.5% Equity is undervalued § 2.2Mt @ 6% Zn, 1.3%Pb, 0.8% Cu, 81g/t Ag, 0.9g/t Au WO3 former mine § Significant discount to asset
Slide 8: Valuation
Valuation Breaking out the value: The replacement cost to replicate Varsican’s assets 25 20 15 10 5 0 Current Market Merleac Historic Cash ASX Co Investments Value of Couflens Implied Value of Potential Value Value Capital Spend Free-carry Spend Couflens Stake (Apollo M&A Value) Source: Company esti
Slide 9: Operating in France
Operating in France Exploration and development activity in France Source: BRGM Increasing activity and licence applications
Slide 10: France – Fundamentals
France – Fundamentals Overview GDP Annual Growth § Population: 66.5m 8 § GDP: $2,419 trillion 6 % Annual growth 4 § GDP growth: 1.3% 2 § Inflation: 0.2% 0 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 -2 §
Slide 11: Operating in France
Operating in France Established local presence in France President Macron approved 3x licences when Minister for Economy § Strong local management inc. Head of Chamber of Mines § Total of 7 employees – 85% are field geologists § Office located in Orleans – close proximity to BRGM § Access to BRGM da
Slide 12: Operating in France
Operating in France Bringing the latest industry technology to France (e.g. VTEM) VAR is the largest holder of exploration permits (PER) in France Variscan Immerys La Mancha Montezuma Source: Company Source: www.mineralinfo.fr, Company The first company to conduct RC drilling in France VAR receives
Slide 13: Key Assets
Key Assets Prioritising our portfolio Project Area Metal Former High grade Historical JORC Mineral (kmsq2) Mine exploration Mineral resource results BRGM data Resource Estimate available Estimate Merléac 411 Zn, Pb , Cu, Ag, Au Couflens 208 W, Cu, Au St Pierre 386 Au Beaulieu 278 Sn,W Silifac 173 Zn
Slide 14: Merléac (100% interest)
Merléac (100% interest) Merléac – Overview Merléac – Exciting Prospects with ore grade drill intersections § Licence granted November 2014 § Volcanogenic Massive Sulphide § Well-defined high grade Zn-Pb-Cu-Ag-Au deposit at Porte-aux-Moines § Access to extensive work by BRGM from 1975 to 1985 § ~6,84
Slide 15: Volcanogenic Massive Sulphides
Volcanogenic Massive Sulphides Schematic cross-sectional model of the architecture & genesis of Overview VMS deposits § VMS deposits contributed ~22% of historical global Zn production § 1000+ significant (>200,000T) VMS deposits globally (USGS database) § CSA Global consider the sediment-associated
Slide 16: Merléac – Porte-aux-Moines – JORC Mineral Resource Estimate
Merléac – Porte-aux-Moines – JORC Mineral Resource Estimate JORC (2012) Mineral Resource Estimate As at 31 May 2016 Tonnes Zinc % Lead % Copper % Silver g/t Gold g/t INDICATED Main 291,000 6.1 1.2 0.8 7.65 0.9 HW1 - 0.0 0.0 0.0 0.0 0.0 HW2 - 0.0 0.0 0.0 0.0 0.0 Total 291,000 6.1 1.2 0.8 7.65 0.9 INF
Slide 17: Merléac – Porte-aux-Moines – Zinc Rich, High grade Polymetallic VMS Deposit
Merléac– Porte-aux-Moines – Zinc Rich, High grade Polymetallic VMS Deposit High grade underpins further development Source: Company § Source: Company Top Quartile Grade Zinc Deposit
Slide 18: Merléac – Outlook – seeking to increase JORC Resource to 3.5Mt+
Merléac – Outlook – seeking to increase JORC Resource to 3.5Mt+ Drilling (3x DDH) delayed Further exploration applied to VMS targets confirmed by VTEM Source: Company Source: Company Focus on Resource expansion before commencing feasibility studies 18
Slide 19: Zinc – Fundamentals
Zinc – Fundamentals Zinc - End Uses Zinc - Usage by region (2015) 4% 1% 6% 13% 6% 17% 18% 50% 67% 1% 17% Galvanizing Zinc Alloying Brass & Bronze Zinc Semi-Manufactures Chemicals Miscellaneous Asia Africa Europe America Oceania Source: International Lead & Zinc Study Group Source: International Lead
Slide 20: Zinc – Pricing & Outlook
Zinc – Pricing & Outlook Long Term Pricing (1960-2017) Outlook & Price Drivers 5000.00 § 2016: 60%+ price rise 4500.00 § 2017: price sustained: Median 2017 forecast of $2,700/mt 4000.00 3500.00 § Market expected to remain tight with favourable prices due to: 3000.00 § Permanent mine closures Zinc ($
Slide 21: Couflens (20% interest)
Couflens (20% interest) Couflens – Overview Former mining area – Salau Mine produced 930,000t at 1.5% WO3 § Licence granted February 2017 80,000 4.0 § Salau scheelite skarn tungsten deposit discovered in 1960s by 70,000 3.5 BRGM 60,000 3.0 Head Grade (%WO3) § Les Mines d’Anglade operated the mine fr
Slide 22: Couflens – Outlook
Couflens – Outlook Joint Venture with Apollo Minerals (ASX:AON) Exploration Plan & Outcomes § Mines du Salat (MdS) JV company between Ariege Tungstene SAS and § Apollo initial work plan includes: Variscan (80:20) § Acquire & digitise data § Ariege Tungstene purchased by Apollo Minerals § Risk assess
Slide 23: Saint-Pierre-Montlimart (100% interest)
Saint-Pierre-Montlimart (100% interest) St Pierre – Overview St Pierre – Soil Sampling Results followed up with RC drill traverse § Licence granted February 2014 § Shear zone - quartz veins - production grade of 12g/t Au § 3rd largest goldfield in France § La Belliere Mine operated 1905-1952 - produ
Slide 24: Saint-Pierre-Montlimart – Outlook
Saint-Pierre-Montlimart – Outlook Drilling (2x DDH) complete at Ville Tirard Outcomes § Overall drill programme successfully completed § Ville Tirard § DDH: SCSTP001: 100.7m deep § DDH: SCSTP002: 143.8m deep § Sheared, highly silicified volcanics § Pyrite bearing in part § Waiting for assay results
Slide 25: Beaulieu (100% interest)
Beaulieu (100% interest) Beaulieu – Overview Former mining town – Abbaretz Tin Mine produced 2,700t Sn § Licence granted April 2015 § Variscan has access to access to data set from BRGM § Societe Nantaise des Minerais de l’Ouest mined the deposit until 1957 § 1000+ shallow holes drilled by BRGM § Tw
Slide 26: Summary & Outlook
Summary & Outlook Summary Near Term Objectives … § Ambitious exploration & development mineral company § Corporate § Vision to build a profitable and sustainable mid-tier base § Selectively pursuing other development opportunities in low risk regions which are undervalued and precious metals company
Slide 27: Q&A session
Q&A session AGM Presentation - 2017