Ormonde Mining Plc · AQUIS:ORM
Ormonde Mining — Technical Presentation (February 2012)
24 slides from Ormonde Mining's technical presentation, February 2012
Slide 1: Barruecopardo Tungsten Project Definitive Feasibility Study Results
Barruecopardo Tungsten Project Definitive Feasibility Study Results FEBRUARY 2012
Slide 2: Disclaimer
DISCLAIMER Some of the statements contained in the following presentation are forward-looking statements and not statements of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently available. These assumptions may prov
Slide 3: Barruecopardo Feasibility Study Results
BARRUECOPARDO FEASIBILITY STUDY RESULTS Very positive DFS confirms the financial and technical viability of a 1.1Mtpa operation 9 year open pit, with potential to extend this by one year (Inferred Resources) Potential to extend mine life thereafter by underground mining; Not considered in DFS Favour
Slide 4: DFS - Key Outcomes
DFS - KEY OUTCOMES Units Base Case ATP Price US$/mtu 350 Life of Open Pit Years 9 Years Averaged Annual Tungsten Production Mtu’s 227,000 Total Production from Open Pit Mtu’s 2.04M CAPEX (Inc. Contingency) € 48.5M Average Cash Operating Costs €/mtu 99 Project NPV (8% Discount, Pre-tax Ungeared) € 12
Slide 5: Project Cashflows
PROJECT CASHFLOWS Barruecopardo - Project Pre-tax Cash Flows at APT Price of US$350 250 200 150 Million € 100 50 - Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 -50 Tungsten APT Price February’12: U$437/mtu
Slide 6: Barruecopardo Operation 1970 Historic Open Pit
BARRUECOPARDO OPERATION 1970 Historic Open Pit
Slide 7: Mineral Resources and Ore Reserves
MINERAL RESOURCES AND ORE RESERVES Global Mineral Resources Category Tonnes (millions) Grade (WO3%) Contained WO3 (mtu) Measured 5.47 0.34 1.86 million Indicated 12.33 0.26 3.20 million Inferred 9.59 0.23 2.20 million GLOBAL 27.39 0.26 7.12 million Ore Reserves within the Open Pit Category Tonnes (m
Slide 8: Potential to Extend Mine Life
POTENTIAL TO EXTEND MINE LIFE IMAGE OF THE PIT SHELL + RESOURCES (AS PER THE VIDEO) WITHIN OPEN PIT: There are 180,000 mtu’s of Inferred Mineral Resource within the open pit Some or all of this Inferred Resource may convert to feed for the process plant during the course of mine production Potential
Slide 9: Potential to Extend Mine Life
POTENTIAL TO EXTEND MINE LIFE OUTSIDE OF OPEN PIT: The planned open pit captures only 40% of the current Global Resources Once in production, the Company plans to commence studies further extending the mine life by underground mining methods In addition the deposit is open along strike and at depth
Slide 10: Plan View of Mine Layout
PLAN VIEW OF MINE LAYOUT Water management System Waste dumps Plant Haul road New pit shell
Slide 11: Process Flow Sheet
PROCESS FLOW SHEET Crush to maximum liberation size of 5mm ROM Ore, 1.1 Mtpa, 0.30% WO3 Pre-conc. Circuit Jig tails Reject 99% of feed by Jigs and Spirals -5 mm Jigs 797 ktpa +1 mm 807 ktpa -1 mm 293 ktpa Roll crusher Upgrade circuits very small Spiral tails Spirals 290 ktpa -1 mm, 8,400 tpa Gravity
Slide 12: Low Operating Costs
LOW OPERATING COSTS Life of mine operating costs are €23.31/ tonne of ore processed ITEM €/tonne Mining (Ore) 4.07 Mining (Waste) 14.47 Processing 3.50 General & Administration 1.27 TOTAL OPERATING COST 23.31 *Strip ratio ore to waste of 6.3:1 Total operating cost equates to €99/mtu processed Low op
Slide 13: Capital Costs
CAPITAL COSTS ITEM COST (€M) Mining 3.9 Process Plant, associated Infrastructure and 26.8 EPCM Water Management System 8.2 Owner Costs 5.2 Contingency 4.4 TOTAL 48.5
Slide 14: Sensitivity to Tungsten Price
SENSITIVITY TO TUNGSTEN PRICE Tungsten APT Price US$250 US$350 US$450 US$ to Euro 1.30 1.30 1.30 Pre-tax ungeared NPV (8% discount rate) €28M €120M €212M Pre-tax IRR 19.9% 52.0% 80.3% Average annual pre-tax net operating cash flow €13M €29M €45M Pre-tax net operating cash flows over life of €120M €2
Slide 15: Location and Permitting
LOCATION AND PERMITTING Located in a country and region use to and very supportive of mining industry Brownfield site benefits from direct access Barruecopardo to power, water and road network Tungsten Project Located close to major European tungsten processors and users Strong local support for the
Slide 16: 2012-2013 Development Plan
2012– 2013 DEVELOPMENT PLAN 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FEASIBILITY & PERMITTING STAGE Feasibility/Engineering design Permitting DEVELOPMENT STAGE Capital funding & off-take arrangements Plant construction & commissioning PRODUCTION Open pit mining Underground mining UNDERGROUND FROM 2023
Slide 17: Barruecopardo Project Summary
BARRUECOPARDO PROJECT SUMMARY Large JORC Resource – 27.4Mt grading 0.26% WO3 = 7.1 million mtus ($440/mtu) 9 year open pit mine defined, to produce 2.04 million mtus – followed by underground Annual production ~12% of non-Chinese global tungsten mine production Simple processing & initial open pit m
Slide 18: Tungsten Properties & Uses
TUNGSTEN PROPERTIES & USES Metal with many outstanding properties – o Second strongest material after diamond o Highest melting point of all metals - 3,400°C As a result no real satisfactory substitute for key applications Most important use is as tungsten carbide (hardmetals) in all cutting & drill
Slide 19: Tungsten Price Chart
TUNGSTEN PRICE CHART Tungsten Price (US$/mtu for European APT) from 2004 - 2012 $500 $450 Ongoing reduction $400 of Chinese tungsten $350 exports & increasing consumption $300 $250 $200 China increasing $150 domestic consumption Global $100 Recession $50 SOURCE: METAL BULLETIN
Slide 20: China and the Tungsten Market
CHINA AND THE TUNGSTEN MARKET China Dominates World Primary And is the Main Source of Tungsten Tungsten Production to the Rest of World (RoW) World mine Production in 2010 RoW Primary Tungsten demand in 2010 SOURCE: ITIA (2011) SOURCE: ITIA (2011)
Slide 21: China's Rapidly Increasing Domestic Consumption
CHINA’S RAPIDLY INCREASING DOMESTIC CONSUMPTION China’s requirement for tungsten in its indigenous industry is increasing, resulting in reductions of supply to RoW China’s Domestic Consumption V’s China’s Supply to RoW 40,000 35,000 Mt W 30,000 25,000 20,000 15,000 10,000 5,000 - 2001 2002 2003 2004
Slide 22: Positive Outlook for Tungsten
POSITIVE OUTLOOK FOR TUNGSTEN APT Prices are forecast by one leader in international metals research to average US$415 over the period 2012-2016 Global tungsten demand is forecast to increase at an annual rate of 5-6% from 75,000 tonnes at end 2011 to 98,500 tonnes by end 2016 China produced 85% of
Slide 23: Directors - Experienced Miners
DIRECTORS – EXPERIENCED MINERS Experienced +75 years of direct experience in exploration, development Board: and running of mining / processing operations Mike Donoghue Mining Engineer with +30 yrs European, African, Australian Exec Chairman experience in development and operation of mines Kerr Ande
Slide 24: Corporate Structure
CORPORATE STRUCTURE Quoted on AIM and ESM (ticker = ORM) Issued Shares: 339 m Current Price: 10p Market Capitalisation: £34M NOMAD & Joint Broker: Davy Joint Broker: Fairfax Institutional Shareholding: 35% JP Morgan 6.4% Blackrock 5.5% SOURCE: DAVY SHAREHOLDER ANALYSIS Jupiter 5.3% Fidelity 4.9% Sar
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