Aspire Mining Limited · ASX:AKM
Aspire Mining — Investor Presentation (November 2013)
24 slides from Aspire Mining's investor presentation, November 2013
Slide 1: Ovoot Coking Coal Project Investor Presentation
Ovoot Coking Coal Project Investor Presentation November 2013 June 2010 1
Slide 2: Important Information
Important Information •Nature of this document: This document has been prepared by Aspire Mining Limited (“Aspire”, “AKM”, or the “Company”) and contains summary information about the Company and its subsidiaries as at the date of release of this document. The information in this document does not s
Slide 3: Important Information cont.
Important Information cont. •Production Target Assumptions: The following are key assumptions used to achieve the first year target of 5Mtpa of marketable coking coal: 1) In the eight months prior to commencement of first year production, a 20 million BCM waste removal programme to pre‐strip overbur
Slide 4: Company Snapshot – Corporate Structure
Company Snapshot – Corporate Structure Ownership (Fully Diluted) AKM Directors (ex Turbat) SouthGobi Resources Ltd 26.73% 30.97% Noble Group Mongolian Shareholders 17.82% Others 13.67% 100% 90% 10%* 10.81% Ovoot Coking Northern Capital Structure (ASX:AKM) Coal Project Railways LLC Undiluted Diluted
Slide 5: Significant Mongolian Coal Projects
Significant Mongolian Coal Projects 5
Slide 6: JORC Resource & Reserve Update Confirm Ovoot as Second Largest Coking Coal Reserve in Country
JORC Resource & Reserve Update Confirm Ovoot as Second Largest Coking Coal Reserve in Country JORC Reserve Probable Total Marketable (31 July 2013) (Mt) (Mt) (Mt) (arb 2% (arb, 9.5% moisture) moisture) Ovoot Open Pit 247 247 182 Ovoot 8 8 6 Underground Total 255 255 188 JORC Ovoot Open Ovoot Total (
Slide 7: Exceptional Deposit – High Washing Yield and % Coking = Highest In-Situ Value per tonne
Exceptional Deposit – High Washing Yield and % Coking = Highest In‐Situ Value per tonne 7
Slide 8: Ovoot Revised Development Plan
Ovoot Revised Development Plan Mine CAPEX and OPEX Estimates Initial Production up to 5 Mtpa CAPEX US$144m (incl. contingency and working capital) Commencement 2017 Production growth potential up to 12MtpaNote1 Life of Mine 20 yearsNote1 OPEX (Avg first 3 years) US$83‐93/tNote2 Total Saleable Produc
Slide 9: Revised Ovoot Mine Development Plan Has Robust Economics
Revised Ovoot Mine Development Plan Has Robust Economics Revised development plan has significantly reduced capital cost estimates for the Ovoot mine Estimated Capex to produce 5mtpaNote1 US$ 144 Estimated Opex FOR China at US$93/t ‐ Mine pre strip $60 5mptaNote 1 ‐ Mobilisation $8 ‐ Mining and Proc
Slide 10: Ovoot coking coal will have a long term cost advantage
Ovoot coking coal will have a long term cost advantage Metallurgical Coal (HCC + PCI + SSCC) Ovoot and Mongolian coking coal has a significant geographical advantage that requires rail development to secure Source: Aspire Mining Ovoot coking coal nominal cost US$93/t (not including royalty). Refer A
Slide 11: China Fat, Primary Coking Coal against Seaborne traded HCC
China Fat, Primary Coking Coal against Seaborne traded HCC Coking Coal Price Comparison China HCC (Primary Coking Coal) China Fat Coking Coal Seaborne HCC 400.00 350.00 300.00 250.00 US$/tonne 200.00 150.00 100.00 50.00 0.00 May‐11 Feb 12 Jul 12 Sep 12 Feb 13 Sept 13 Jun‐10 Aug‐10 Oct‐10 Nov‐10 Dec‐
Slide 12: Ovoot Coking Coal – High Fluidity, Mid-Vol
Ovoot Coking Coal – High Fluidity, Mid‐Vol Ovoot is the highest dilation in the mid-vol range Ovoot coal when blended with 75% thermal coal significantly improved its caking performance and coke quality 12
Slide 13: VITROCOAL Low Ash, High Fluidity Coking Coal
VITROCOAL Low Ash, High Fluidity Coking Coal Indicative Ovoot Washed Coking Ovoot Coking Coal displays High fluidity and Coal Specification plastic properties Moisture 9% An ideal blend coking coal indicated by industry leading Gray-King Index and Rank Ash 9% Chinese classification “FM Premium
Slide 14: Chinese Blending Coal Requirements
Chinese Blending Coal Requirements Chinese Coking Coal Reserves Typical Chinese Coke Blend Unamed coal, 2% Other, Meagre 5% lean, Gas coal, 7% 14% Lean, 12% Lean, 7% Gas coal, 29% 1/3 Coking, 19% Primary coking coal, 25% Primary coking Gas fat coal, coal, 31% 7% 1/3 Coking, Fat, 19% 13% Fat, 10% • N
Slide 15: Chinese Fat Coal… A Short Life Remaining Given Current Consumption Levels
Chinese Fat Coal… A Short Life Remaining Given Current Consumption Levels Chinese Consumption of Coking Coal to Reserves Ratio 2.00 1.80 1.60 1.40 1.20 Ratio 1.00 0.80 0.60 0.40 0.20 0.00 Fat Coal Lean, 1/3 Coking Primary Coal Gas Coal Other Meagre Lean 1) 55% Yield to saleable product estimated bas
Slide 16: Significant Interest in Ovoot Coking Coal Exceed Ovoot Development Production
Significant Interest in Ovoot Coking Coal Exceed Ovoot Development Production Offtake Customers Potential Offtake under Non‐Binding MOU’s Chinese up to 5.6 Mtpa ODP Production 5 Mtpa Excess MOU interest 0.6 Mtpa (+12%) Additional Chinese, Russian, Japanese, Eastern Europe Steel Mills and Coke Plants
Slide 17: Oxidised and low quality coking coals can be upgraded when blended with Ovoot coking coal
Oxidised and low quality coking coals can be upgraded with blended with Ovoot coking coal Non-coking, Thermal Coals, and Semi-Soft Coking Coals • Coke oven blend tests conducted on 50/50 blend and 75/25 blend (oxidised coal/Ovoot) • Used alone, low coking, thermal and oxidised coals are not enough t
Slide 18: Rail Infrastructure Key to Unlocking Northern Mongolia
Rail Infrastructure Key to Unlocking Northern Mongolia • Connects the Ovoot Project and Northern Mongolia Northern Rail Line Rail Capex directly onto the Trans‐Mongolian Railway network for access to international markets Alignment Erdenet to Ovoot (547km) CAPEX1 US$1,300m + contingencies • Apply fo
Slide 19: Potential Routes to Coal Markets – Rail Access
Potential Routes to Coal Markets – Rail Access 19
Slide 20: Ovoot Could Become Mongolia's first to Export Coking Coal to Europe/Mediterranean Markets
Ovoot Could Become Mongolia’s first to Export Coking Coal to Europe/Mediterranean Markets 2012 Crude Steel Production Top 5 EU Crude Steel Producers 2012 800 708.8 700 600 UK, 5.80% France, Production (Mt) 500 9.21% 400 Spain, 8.04% 300 273.9 200 169.4 121.9 111.2 Italy, Germany, 100 46.9 37.9 34.4
Slide 21: European Demands for Coking Coals Make it a Key Customer Market Alongside Asia
European Demands for Coking Coals Make it a Key Customer Market Alongside Asia 2012 Major Suppliers of Coking Coal into Europe1 Comparison of Coking Coal Imports China and Top EU2 Other, 9% 60 Canada, 5% 50 Russia, 9% Australia, 39% Tonnes (millions) 40 34.5 Mt 30 20 84.2% USA, 38% 10 0 China Total
Slide 22: Steps to Develop the Ovoot Project
Steps to Develop the Ovoot Project 22
Slide 23: Investor Sentiment Should be Improving Toward Mongolia
Investor Sentiment Should be Improving Toward Mongolia “Mongolia Deepens Investment Ties With China”….. 25 October “Mongolia Prime Minister Welcomes Foreign Investors as Boom Slows” ….. 27 October “China, Mongolia to up cooperation” ….. 26 October Source: Wall Street Journal “Mongolia Deepens Invest
Slide 24: Contact details
Contact details Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Level 2, Suite 20, 22 Railway Road Subiaco, Western Australia, 6008 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave‐8 Social Insurance Department Building Altai Tower, 3rd Floor,
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