Aura Energy Ltd · ASX:AEE
Aura Energy — Investor Presentation (July 2016)
38 slides from Aura Energy's investor presentation, July 2016
Slide 1: Investor Presentation July 2016
INVESTOR PRESENTATION | JULY 2016 | PETER REEVE | EXECUTIVE CHAIRMAN | NEIL CLIFFORD | PRINCIPAL GEOLOGIST |
Slide 2: Disclaimer
DISCLAIMER This document, any attachments and the oral presentation on the slides (together the "Presentation") have been prepared and are being supplied to you by Aura Energy Limited (the "Company") solely for information purposes in connection with a potential offering of securities by the Company
Slide 3: Aura Snapshot
a AURA SNAPSHOT y Uranium exploration and development company = Gold, soda ash and lithium prospects = Portfolio of uranium development projects in Africa and Europe = Aura believes these demonstrate attractive economics and value upside potential = Potential uranium market opportunity — forecast su
Slide 4: Project Portfolio
P R O J E C T P O RT F O L I O ₃ ₈ ★ ₃ ₈ ★ 4
Slide 5: Contract and Spot U3O8 Price
₃ ₈ ₃ ₈ ₃ ₈ CONTRACT U₃O₈ PRICE – US$42/lb* SPOT U₃O₈ PRICE – US$26.10/lb* 5
Slide 6: Development Strategy: Simple Path to Cash Flow
D E V E L O P M E N T S T R AT E G Y S I M P L E PAT H T O C A S H F L O W TIRIS INTO PRODUCTION MID 2018 TIRIS CONSTRUCTION H2 2017 – SUBJECT TO FUNDING PROJECT TIRIS FEASIBILITY FINANCE STUDY IN 12 MONTHS CONTINUE TO ASSESS NEW OPPORTUNITIES 2016 2018 6
Slide 7: Uranium Drivers
URANIUM DRIVERS Electricity 500+ reactor’s Forecast to built & under construction Rise 76% by 500+ planned & 2030 proposed by (Source: World Nuclear Association, March 1, 2016) 2030 Forecast new reactors by 2030. (Source: World Nuclear Association, March 1, 2016) 7
Slide 8: Uranium Market Drivers
aura URANIUM MARKET DRIVERS energy Aura’s view on key uranium market issues is: = Decreasing level of Long Term contract coverage to end 2014 = Short Term reliance on spot supplies by utilities Constant M Ibs U,0, US $/lb U,0, 350 ack $140 ta Spo 300 288 a ” @—@Long-Term $120 250 | —spot Price* $100
Slide 9: Projects
PROJECTS T I R I S U R A N I U M – M A U R I TA N I A TA S I A S T S O U T H G O L D – M A U R I TA N I A S O D A A S H & L I T H I U M – M A U R I TA N I A HÄGGÅN URANIUM – SWEDEN 9
Slide 10: Tiris Uranium Project
TIRIS URANIUM PROJECT M A U R I TA N I A ₃ ₈ 10
Slide 11: Tiris – Mining Region
TIRIS – MINING REGION • • ESTABLISHED RESOURCE PLAYERS IN THE REGION 11
Slide 12: Tiris Uranium Deposits
TIRIS URANIUM DEPOSITS Soda Ash – Lithium Deposit 12
Slide 13: Tiris Geology
(2 TIRIS GEOLOGY Solid Unaltered Grey Granite Sheared “Hot” Pink Granite 1 y] 2 a i 5 GREY GRANITE U,0, Leaches from Pink Granite Carnotite (U,O, Mineral)/Gravel Mix ALTERED PINK GRANITES ~ Sheds into Surrounds Gathers in Desert Low Points _——-a Natural Processes Concentrate Carnotite into a Surfici
Slide 14: Reveals Mineralisation
R E V E A L S M I N E R A L I S AT I O N CALCRETE DEPOSIT WITH CARNOTITE URANIUM IN A W E AT H E R E D G R A N I T E H O S T FREE DIGGING MINING, NO DRILL AND BLAST URANIUM PERMITTING IN A M I N E R A L I S AT I O N REMOTE DESERT AS CARNOTITE REGION 14
Slide 15: Simple Ore Upgrade
ca SIMPLE ORE UPGRADE y Soft Friable Material That Breaks Down Easily Coarse Weathered Granite Fine Grained Carnotite Water Waste & Coarse Oversize ; leathere ranite & @ Sr ace aes eS 90% Mass & a 10% Uranium i 10% Mass Vv 90% Uranium Leach Plant 1 eo ee 25 TPH (0.2mtpa) “ * . _° Fine < eee etc ie e
Slide 16: Tiris Scoping Study
TIRIS SCOPING STUDY R E L E A S E D J U LY 2 0 1 4 ₃ ₈ ₃ ₈ ₃ ₈ ₃ ₈ ₃ ₈ 16
Slide 17: Feasibility Study Underway
F E A S I B I L I T Y S T U D Y U N D E RWAY TA R G E T T O C O M P L E T E T I R I S F E A S I B I L I T Y S T U D Y I N 1 2 MONTHS AND COMMENCE MINE CONSTRUCTION IN H2 2017 Update significant portion of resource to Measured and Indicated ☐ Mining study Beneficiation testwork on ore zones ☐ E
Slide 18: Strategic Chinese MoU
S T R AT E G I C C H I N E S E M O U 18
Slide 19: Exploration Upside
EXPLORATION UPSIDE HIGHLY PROSPECTIVE AREA - HIPPOLYTE SOUTH APPLICATION = Aura has observed strong & extensive radiometric anomalism = Between existing resources of Hippolyte & Lazare = Previously poorly tested = Magnetic data defines structural association with Hippolyte resource zones = Same stru
Slide 20: Tasiast South gold drill intercepts
TGRC 022 71m @ 0.3 g/t Au incl: •5m @ 1.2 g/t Au, •3m @ 1.0 g/t Au •11m @ 0.5 g/t Au TGRC 007 38m @ 0.4 g/t Au incl: •1m @ 6.1 g/t Au •6m @ 0.7 g/t Au 20
Slide 21: Tiris - Soda Ash & Lithium
TIRIS - SODA ASH & LITHIUM 21
Slide 22: Sweden
ONE OF THE LARGEST UNDEVELOPED URANIUM PROJECTS IN THE WORLD, WITH 803 Mlbs INFERRED URANIUM RESOURCE SWEDEN ★ 22
Slide 23: Excellent Locality
EXCELLENT LOCALITY 23
Slide 24: Low Capex – Bio Heap Leach
process scale-up tests bacterial cultures & develops study on the applicability of bioflotation for monito Preliminary research activities focused on isolating and identifying novel microorganisms A numb LOW CAPEX – BIO HEAP LEACH (and those available in personal culture investiga collections) that
Slide 25: Low Cost, High Margin Project
L O W C O S T, H I G H M A R G I N P R O J E C T [ 1 ] M T PA APPROX OP COST U₃O₈ Mlbs Mo MLBS Ni MLBS CAPEX* US$/lb p.a. p.a. p.a. $m 5* 190 18.00- 1.4 0.6 2.4 22.00 30.0 540 13.50 7.8 4.3 14.8 25
Slide 26: Key Company Data
K E Y C O M PA N Y D ATA 0.024 12 C O R P O R AT E S T R U C T U R E Millions 0.022 10 Share Price A cents 1.8cps 0.02 Shares On Issue 457m 8 Cents Per Share 0.018 Options On Issue 197m 6 0.016 Market Capitalisation A$8.2m 4 0.014 Cash (30/9/15) A$0.427 2 0.012 Enterprise Value A$7.78m 0.01 0 Jun 15
Slide 27: Why Aura Energy?
WHY AURA ENERGY? 27
Slide 28: Peter Reeve
PETER REEVE EXECUTIVE CHAIRMAN [email protected] +613 9516 6500
Slide 29: Tiris Feasibility Team
TIRIS FEASIBILITY TEAM George has over 40 years’ experience in the metallurgical and mineral processing industries in Australia, North and South America, Africa, Europe and Asia. His project and study involvement has included gold, silver, copper, lead, zinc. uranium and mineral sands. George was a
Slide 30: Uranium Resources
URANIUM RESOURCES T I R I S R E S O U R C E - M A U R I TA N I A 100ppm cut-off To n n e s Grade M l b s U 3O 8 Indicated 2 300 2 Inferred 64 335 47 Total 66 334 49 100ppm TONNES U 3O 8 V NI ZN U 3O 8 c u t - (BT) (PPM) MO (PPM) (PPM) (PPM) (PPM) off ₃ ₈ 30
Slide 31: Water Infrastructure
WAT E R I N F R A S T U C T U R E 31
Slide 32: Uranium Supply vs Demand
URANIUM SUPPLY VS DEMAND RJL Global Uranium Supply vs. Demand (Mlbs/yr) 325 300 275 250 ie] Q 225 2 = 200 2 = 175 150 125 100 N cal t+ w wo nt i) a Oo a N nm t+ wo wo n oe a So a a a a a a a a N N N N N N N N N N isa) fo) fo} fo} Oo Oo Oo Oo Oo Oo Oo Oo Co Oo Oo Oo Oo Oo N N N N N N N N N N N N N N
Slide 33: Primary Supply Forecast
aura PRIMARY SUPPLY FORCAST energ RJL Global Primary Supply Forecast (Mlibs/yr U308eq) 200 4 Today 175 150 125 100 ~ uw uw o Global Mine Supply (MIbs/yr) N wn 0 SRESESSESSSHRES HBR HHS HRHRESHRER EBB o So So o So So a a a a a a a a a a N N Nn N Nn N N N N N ical coc OUCOCUCUCOCUCOCUCOCCOCCcOCUClCOOC
Slide 34: Secondary Supply Forecast
S E C O N D A RY S U P P LY F O R E C A S T 34
Slide 35: Nuclear Capacity
dUfa energy NUCLEAR CAPACITY RJL Global Operating Nuclear Capacity by Country/Region (GW gross, end of period) 650 600 uw uw oO Global Ope rating Nuclear Capcity (GW) 8 o 2011A 2012A Today —? —? w w w Ww w Ww w Ww w Ww w w w w w w ~m t+ w wo Lt °c a oO a N m <5 w wo ined co Dp So a a a a a a a N N N
Slide 36: Incentive Price Curve
INCENTIVE PRICE CURVE RJL Incentive Price Curve for New Mines = UxC: >50% production have production costs >US$35/lb U308 = RJL: amongst potential new mines, incentive price averages >US$/75 = Developers unlikely to sign contracts unless they incent new production 120 7 110 + 100 + 50 oe | — —— = =e
Slide 37: Tiris Process Flowsheet
TIRIS PROCESS FLOWSHEET ₃ ₈ 37
Slide 38: Tiris Permitting Process
TIRIS PERMITTING PROCESS Project Phases Mining License Application EIA Process Conduct, Prepare and Submit EIA and Environmental Mat it Plan in line with TOR Pate tna snide (30 days) completed by Elementary Bib Opinion of Local jes (5 days) and writing of j | EIA Review by the ‘of Environment end ot