Admiralty Resources NL · ASX:ADY
Admiralty Resources NL — Investor Presentation (May 2005)
27 slides from Admiralty Resources NL's investor presentation, May 4, 2005
Slide 1: Press Release
Press Release Admiralty Resources NL ACN 010 195 972 Head Office DMI RALTY RESOU RCES Level 6, 150 Queen Street Melbourne VIC 3000 fi] +61-3-9642 3535 ff] +61-3-9670 8965 Admiralty Resources NL Release Time IMMEDIATE Date Wednesday, 4 May 2005 Contact Phillip Thomas, Managing Director Company Announ
Slide 2: Admiralty Resources NL Presentation
Admiralty Resources NL Presentation Morgan Centre 4 May 2005 Gas. “S82? "ADMIRALTY RESOURCES
Slide 3: Corporate Tree
Corporate Tree *@ somiratty RESOURCES 50% JV lron ore Sickel cithium, Magnesium” Potassium, Borates Sodium Sulphate Lead, Zinc Oxide
Slide 4: Projected Income Streams — Rincon
Projected Income Streams — Rincon ro ear SN er eee ‘Na,S0, 2 _Maci| Total 6,000 25,000 0 0 100,000 131,000 6,000 50,000 0 2,000 100,000 158,000 6,000 50,000 20,000 3,500 100,000 179,500 12,000 100,000 50,000 7,000 100,000 269,000 12,000 100,000 50,000 7,000 100,000 269,000 12,000 100,000 50,000 7,00
Slide 5: Valuation Calculation
Valuation Calculation Pre Tax Operating Profit. __7132] 8825] 19029] 23830] 23830] 23830] 23830 Taxes ; -1070] -1324 —-1504] —-3574] —-3574 -3574| After Tax Profit 6062] 750i] -852al 20255 20255] 20255 : 4280 4280 5750 8350 8350| 8350 8350 -42800 6892| _-2919] _-19726| _28605| 28605] _28605| 28605 N
Slide 6: Rincon Project: Salars of the Puna & Structural Elements
a 24 cL fl & REFERENCE A Detrtol Facies Evapounitic Facies Rincon Salt Loke (ia Salar} BOLIVIA NE Rifts: PERA-ALEPLANO SOS, URE Riots: CALAMUA-OLACAPATA & ARCHIBARCA 27° “NE Tonsler Zone: ARIZARO TZ. Grandes BS ARGENTINA RINCON PROJECT Salars of the Puna & Structural Elements 6 ADMIRALTY RESOURCES
Slide 7: Pictorial view
Pictorial view 4°C, 18 km/h winds, 38 % hum, 3,700m asl, 37mm rain, 3,000 mm/evaporation per annum -— one of the highest evaporation regimes in the world.
Slide 8: Salar del Rincon (continued)
Salar del Rincon (continued) i on Bei) y sya py) sus i ale iia
Slide 9: Inferred Resources
Inferred Resources e On the basis of the average grades in the brines, the inferred resources are: ® 1.2 million tonnes Li; “Recent significant price increases have created much more -@B aj pauparty resouURCES attractive environment for new entrants. Large customers are looking for options within th
Slide 10: Current Status Rincon
Current Status Rincon 3D modelling of Resource from drilling results Testing our extraction methodology — reverse osmosis and membrane. Hydrology for pumping testing and pumping station locations *@ »pmipalTy RESOURCES Hydrometallurgy - 50 tonne first stage plant being installed June 2005 Plant acqu
Slide 11: Argentinean Taxation Regime
Argentinean Taxation Regime e 30 years ‘freeze’ on taxation, ensuring that taxes are capped at their current level. Exemption from import and excise duties. Exemption from GST. Double deductibility of exploration costs. Accelerated depreciation. No time limit to carried forward losses. Tax agreement
Slide 12: Lithium
Lithium e FMC produces 20,000 t/y LiCl from Salar del Hombre Muerto in Argentina. e Soquimich recovers 28,000 t/y of LiCl from Atacama in Chile. e Between both of them, the Puna produces 70% of world’s lithium chloride. ée. *? ADMIRALTY RESOURCES e Lithium Prices increased 14% last year, ceramics, e
Slide 13: Projected Cash Flows
Projected Cash Flows Sodium Sulphate 115 to 125 US $/t. 50-75K tonnes consumed in the domestic market US $1.5-2 million capex investment. Revenue US$6 to 8 million per year. EBIT after capex recouped estimated at US$3 ok ADMIRALTY RESOURCES 4.5 million. e Plant construction/commission 9 to 12 months
Slide 14: Cash flows continued: Boric Acid
Cash flows continued: Boric Acid « Boric Acid - $450 to 540 US$/t 5-10K tonnes local demand. Spot prices quoted as high as $900-925 per tonne. US $2 to $3 million capex investment. Revenue US$ 2.7 to 3.2 million per annum. EBIT $1.8 to 2.1 million after capex recovery. Plant construction/commission
Slide 15: Minimum Production Scenario of Non-lithium Products - FY 5/2006
Minimum Production Scenario of Non-lithium Products - FY 2005/2006 5,000 12,000 450-540 140-160 230 80 630,000 375,000 *@ somiratty RESOURCES
Slide 16: Lithium Production
Lithium Production e Stage One Plant. Capex for Stage One US $ 7-10 million (subject to extraction method - membrane). e Stage One plant to produce 500 to 2000 t | LiCl in 18 months (US $7.5 million in “@ ‘spmiracry resources revenue). e Full scale plant US $30 million plus. e Full scale plant in 18
Slide 17: Santa Barbara Iron Ore JV
Santa Barbara Iron Ore JV e Compania Minera Santa Barbara 50% ownership. e 9mines - Chilean Geol. estimate of , reserves 41 million tonnes-tobe proved to JORC standards. e 55km from Ports, good access to power, road, rail, skilled staff. e Finalising negotiations, permits.
Slide 18: Geological cross-section
Geological cross -section venosITO COLUVIAL
Slide 19: Status
Status e Plant — final quotations received crushers, magnetic separators, conveyors, laboratory weighting “Task Name t tang isms 708 iene iane 1306 jaar iow ie? "Construccion Planta Movil Proyecto Santa Barbara | “Module 3&4 Fabricaciin 02 Harneros Banana 7x15" Fabricacién Semi Remolque (02) Fabrica
Slide 20: TEST BORING
TEST BORING 30 ' 1 Sample No. SECTION (m) (%) Drilling Data pow tLe 3857 a 2 17,28 5852 2 4 14,83 5853 4 6 12,97 5854 & 8 1a, D2 5B55 8 10 11,25 5856 is 42 11,62 5857 12 14 41,92 5858 1a 16 10,73 ~ $859 16 18 21,33 5860 18 20 42,70 5862 20 22 14,31 $862 22 24 14,08 5863 24 26 19,81 586d 26 28 15,14
Slide 21: Plant Configuration
Plant Configuration hich cil iil IMIRALTY RESOURCES
Slide 22: Sales and Costs
Sales and Costs e Sales currently CIF ex Brazil US $ $72 per tone, translates to $35-$37 per tonne FOB. e Targeting 1 million tonnes plus production commencing September 2005. e Revenue of $36 million, EBIT estimate $13m per mill tonnes is ADY share. *@ »pmipalTy RESOURCES
Slide 23: Cost of Production - FOB
Cost of Production - FOB e Plant - USD7.0 per tonne e Trucking - USD2.50 per tonne e Port Loading — USD 3.50 per tonne 0. joc cescurces e Total USD $13.00 per tonne
Slide 24: Transport
Transport e 100 truck loads per day carrying 30 tonnes per load e 27 rail hoppers two times per day e Stockpile at port of Huasco between 150,000 and 250,000 tonnes e Guocolda coal loading facility *@ »pmipalTy RESOURCES
Slide 25: Bulman
Bulman e MLN's726 and 727 (Marumba) form the Bulman Zinc-Lead Project in Southern Arnhem Land, Northern Territory. e In the 1950's CRA estimated there was 375,000 tonnes @ 15% Zn and 2% Pb of mainly oxide @ smn resources material. e The Bulman Leases and five nearby Zn-Pb occurrences historically we
Slide 26: Capital Raising - Options
Capital Raising - Options $6.0m working capital loan facility secured Operating Financing lease for equipment _ $30m- Converting notes still to be placed. nr ssoues Option conversion - $17.5 million. $10m from 2" instalment on notes - 10 Feb 2007 Non-exploration/Project cash burn rate $600,000 per a
Slide 27: Focus for 2005
Focus for 2005 e Commence production of iron ore. e Complete planning and start construction of sodium sulphate and. borate plants. e Completion of 50 tonne p.a. testing plant €& ‘ADMIRALTY RESOURCES
Admiralty Resources NL — Investor Presentation (May 2005) on 6ix