Focus Minerals Ltd · ASX:FML
Focus Minerals — Austminex — Investor Presentation (May 2005)
22 slides from Focus Minerals's investor presentation, May 2005
Slide 1: Investor Presentation May 2005
Investor Presentation May 2005 1
Slide 2: Purpose of this Presentation
Purpose of this Presentation • Introduce/Update Austminex Limited (“ASX:ATX”) • Introduce Matador Exploration Inc (“TSXV:MXN”) – ATX’s farm-in partner • Present plans for transition to gold production • Discuss potential capital raising in June/July 2005 2 1
Slide 3: ATX Transition
ATX Transition Now July 2005 …By June 2007 • Gold & Nickel exploration • 1.2 mtpa gold mill (on care • Additional oz from ~A$2.7m assets – gold focus and maintenance) exploration spend • ~740k oz gold resource • 1.4m oz gold resource • Conversion of oz to Reserve (sufficient for 3-5 years • EV/oz A$
Slide 4: ATX Introduction
ATX Introduction ATX Share Price Performance* Key Financials (pre CGP acquisition) $0.30 Shares on Issue 244,380,431 $0.25 14 Day Volume Weighted Price* $0.048 Enter into JV with CSM $0.20 Market Cap* $11,796,527 Announce CGP Share Price acquisition & $0.15 Matador farm-in Net Debt** ($307,325) EV –
Slide 5: Valuations for Pre-Production Gold Coys
Valuations for Pre-Production Gold Coys EV per Resource Ounce 160 138 140 120 100 EV/Oz (A$) 86 84 80 80 63 59 A$52/oz ave 60 44 43 40 40 20 20 11 8 6 0 BGF NMC DEG BMO WTE CTO TAM LAF ARX VRE ATX RED RNG EV/Resource oz Average 5 Source: Bloomberg (as at 5 May 2005), Company websites, Company announ
Slide 6: Valuations for Pre-Production Gold Companies
Valuations for Pre-Production Gold Companies Gold Res. Gold & Gold Production Location of ore Company EV (A$m) EV/oz Grade (g/t) Comments (oz) Equiv. (oz) Start bodies Ballarat Goldfields NL 1,100,000 1,100,000 Mar-06 $152.17 $138.34 11.0 Ballarat, VIC Exploration potential of 9.2m oz (BGF) WA’s Ash
Slide 7: Current ATX Resources
Current ATX Resources JORC Compliant Resources - Gold (ATX) Grade Name Tonnes Ounces (g/t) The Mount 2,130,000 5.20 356,620 Dreadnought 3,543,000 2.10 238,800 Norris/Grosmont 555,000 4.32 77,085 Lord Bob 844,189 1.56 42,340 The Mount Boundary 178,000 3.50 20,030 900 hectares Abundance 23,550 3.39
Slide 8: The Mount Mining Lease – Surface Channel Results
The Mount Mining Lease – Surface Channel Results No 4 M15/30 N Fu Ea 3m @ 7.3g/t ch G st 0 200 er Lo s m 1m @ 13.5g/t 4m @ 3.0g/t Lo an Ma de metres de 3min@ 8.9g/t Lo 2m @ 3.7g/t de Lo Goodwyn Underground mining to 35 metres ` de Pit 3m @ 4.6g/t in 1980’s 2m @ 23.0g/t 2m @ 7.4g/t Vicks Pit Undergro
Slide 9: The Mount Cross Section
The Mount Cross Section 2m @ 24.47g/t Au at 300m vertical 9 8
Slide 10: Dreadnought Project Drilling
Dreadnought Project Drilling Empress Underground Mine North West Zone Dreadnought East Lode Lode 10 9
Slide 11: Directors & Senior Management
Directors & Senior Management Directors 11 years with CRA Ltd Donald Taig Past director of Metals Exploration Ltd Chairman Present director of Clover Corporation Ltd, Nu-Mega Ingredients Pty Ltd (FAICD) MD of Balfours Australia Pty Ltd & Chairman of Prudential Investment Company of Australia
Slide 12: ATX Nickel Assets
ATX Nickel Assets Nepean JV with Consolidated Minerals Sipa JV CSM earning 65% interest through SRI earning 70% interest through A$6m exploration spend A$1.4m exploration spend Historic production 1.1mt nickel ore Some promising early results @ 3% Ni from original Nepean mine SRI have righ
Slide 13: CGP Assets to be Acquired
CGP Assets to be Acquired Three Mile Hill Processing Plant 13 12
Slide 14: CGP Acquisition
CGP Acquisition Timeline Terms Option granted 4 Feb 05 The CGP assets include: A$100k Option fee paid by MXN ¾ 1.2 million tonne per annum (mtpa) 3 June 2005 option exercise gold treatment plant Purchase price - $4.7m in cash and ¾ 100 km2 of tenements which ATX shares to a value of $400k
Slide 15: Resources in CGP Acquisition
Resources in CGP Acquisition JORC Compliant Resources - Gold (Coolgardie JV) Grade Name Tonnes Ounces (g/t) Lindsays 5,845,000 1.70 315,000 Greenfields 1,450,000 1.40 63,000 King Soloman Extd 800,000 1.90 48,000 Queen of Sheba 600,000 2.10 40,000 Empress/Alicia 550,000 1.50 27,000 Others 305,000 1.6
Slide 16: Matador Exploration Inc
Matador Exploration Inc Description TSX-V:MXN Share Price Performance* JV with Matador Exploration Inc (MXN) $1.20 Listed Toronto Stock Exchange (TSXV) MXN to pay half of A$5.5m for CGP $1.00 MXN to fund A$8m exploration over three years for a 50% interest MXN will manage the exploration p
Slide 17: ATX goals for the next two years
ATX goals for the next two years Goal Required Funding Source A$0.5m Convertible note offer targeting Conclude acquisition & A$0.5m to get to July completion 11 May 2005 JV 2005 (accepting A$0.5m oversubscriptions) Add ounces… ~50% of exploration spend MXN to supply under JV A$5.4m at A$2.7m per far
Slide 18: Current Exploration Plan (Subject to Change)
Current Exploration Plan (Subject to Change) Deposit Likely Start Planned Length Likely Spend Objectives Tindals/Empress May 05 2-3 months A$450k Underground drilling – additional oz Exploration Review May 05 3 months N/A Prioritisation The Mount June 05 2 months A$350k Resource conversion & optimis
Slide 19: Capital Plan
Capital Plan Increases shares on issue to A$0.5-1.0m target raising by 11 380.7m (assuming $7.5m raised in May 2005 total) $6-8m capital raised in June/July Post money market cap of $20.9m 2005 @ assumed $0.055*/share Re-name and re-launch company $3m EV attributed to nickel assets Inc
Slide 20: How the next two years may play out
How the next two years may play out Possible Share Price (A$)* Enterprise Value per Resource oz Finding Costs A$/oz** $40/oz $60/oz $80/oz $100/oz 16 $0.088 $0.141 $0.193 $0.246 (169k extra oz) 14 $0.089 $0.143 $0.197 $0.250 (193k extra oz) 12 $0.092 $0.146 $0.201 $0.256 (225k extra oz) 10 $0.095 $0
Slide 21: Application of Funds April 05 – June 07
Application of Funds April 05 – June 07 Sources of Funds Application of Funds May Convertible Notes $0.5-1.0m CGP Acquisition Cash Costs $2.19m June/July Raising $6-8.0m JV Mgt + Plant C&M $1.25m Current creditors $0.10m Total $6.5-9.0m Mount payments $0.60m Buldania payment $0.04m C
Slide 22: Disclaimer
Disclaimer • This presentation has been prepared by Austminex Limited (“ATX” or the “Company”) and Azure Capital Pty Ltd (“Azure Capital”) in connection with a proposed capital raising by ATX. • This presentation is being provided to investors for the sole purpose of providing preliminary background