Admiralty Resources NL · ASX:ADY
Admiralty Resources NL — Investor Presentation (March 2005)
27 slides from Admiralty Resources NL's investor presentation, Mar 29, 2005
Slide 1: ASX Company Announcement
ASX Company Announcement Admiralty Resources NL ACN 010 195 972 DMI RALTY RESOU RCES Level 6, 150 Queen Street Melbourne VIC 3000 ff] +61-3-9642 3535 [fl +61-3-9670 8965 fw} www.ady.com.au 29 March 2005 Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000 P
Slide 2: Admiralty Resources NL Presentation
Admiralty Resources NL Presentation Colonial First State 29 March 2005 “S822 “ADMIRALTY RESOURCES
Slide 3: Strategic Focus
Strategic Focus e ROCE greater than 25% e IRR of NPAT greater than 20% e Premium participant in lithium/energy,. sector. e Maximise cash flow and profits from commodities opportunities eg. iron ore, gold, and industrial minerals. e Risk/Return profile within 1.5-2 standard dev. (75%-95% probability)
Slide 4: Mining Prospects - Portfolio
Mining Prospects - Portfolio Rincon del Salar & others: Lithium carbonate, hydroxide, chloride; Sodium sulphate; Boric acid and boron salts; Potash fertiliser; and Quality salt. Japonesita Group e lron ore - 9 mines. e Copper? Bulman e Lead, zinc oxide - 200 hectares. © © © $ € Mistake Creek, Philip
Slide 5: YTD Year in Review
03 - YTD Year in Review e Jul 2003 - 184 samples taken at Bulman, NT Lead Zinc oxide deposit, negotiation with TLO’s successful, 2006. e Aug 2003 - NILNAV appoints NeuMedix as its global distributor. e Sep 2003 - $2.0mill debt facility Perolin Investments. e Dec 2003 - Joint venture with Cougar Meta
Slide 6: Salar del Rincon
Salar del Rincon Salar del Rincon - Jujuy province Nth Argentina, 3,700 metres altitude, 3,000 mm® per sq cm evaporation per year. Northern Fault sequence - east NaSO, west lithium/boron. 34 leases - 250 sq kilometres. 10 -20 cm of hard salt crust, boron sequences on the side of Salar. ; Pods of lit
Slide 7: Rincon Project: Salars of the Puna & Structural Elements
a 24 cL fl & REFERENCE A Detrtol Facies Evapounitic Facies Rincon Salt Loke (ia Salar} BOLIVIA NE Rifts: PERA-ALEPLANO SOS, URE Riots: CALAMUA-OLACAPATA & ARCHIBARCA 27° “NE Tonsler Zone: ARIZARO TZ. Grandes BS ARGENTINA RINCON PROJECT Salars of the Puna & Structural Elements 6 ADMIRALTY RESOURCES
Slide 8: Pictorial view
Pictorial view 4°C, 18 km/h winds, 38 % hum, 3,700m asl, 37mm rain, 3,000 mm/evaporation per annum -— one of the highest evaporation regimes in the world.
Slide 9: Salar del Rincon (continued)
Salar del Rincon (continued) i on Bei) y sya py) sus i ale iia
Slide 10: Salar del Rincon Economics
Salar del Rincon Economics - Brine (Bittern/Liquor) content e Lithium Carbonate (Chloride) 340-600kg/mega litre (2,500 to 3,300 US$/t indicative price range). e Boron (boric acid) 240-500kg/mega litre (450 to 540 US$/ t). - e Anhydrous Borax (300 to 450 US $/t) " sowsnaury Resources e Potash (Muriat
Slide 11: Inferred Resources
Inferred Resources e On the basis of the average grades in the brines, the inferred resources are: ® ~1.2 million tonnes Li: @ so xpatty RESOURCES e 29 million tonnes of KCI; e ~3 million tonnes B,O,; and @ ~13 million tonnes Mg.
Slide 12: Argentinean Taxation Regime
Argentinean Taxation Regime e 30 years ‘freeze’ on taxation, ensuring that taxes are capped at their current level. e Exemption from import and excise duties. e Exemption from GST. e Double deductibility of exploration costs. e Accelerated depreciation. e No time limit to carried forward losses. e T
Slide 13: 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 14: Flow Diagram of Evaporation - Classical approach
Flow Diagram of Evaporation - Classical approach #,0 H;0 HO Rincon Brine — 4 + ‘ First-stage Solar Second-stage Solar Third~stage Solar Evaporation: > Evaporation: | Evaporation: Concentration ratio Concentration Ratio “| Concentration Ratio of hs of 3.5 of 5.3 NaCl, Na,SO, NaCl, Na,SOq NaCl, MgSO:
Slide 15: Lithium Extraction options
Lithium Extraction options e Membrane/ionisation. e Membrane/solvent extraction. Bs opaarry eesounces e Solvent extraction Mg removal. e Solvent extraction/amberlite.
Slide 16: Projected Cash Flows
Projected Cash Flows e Salar del Rincon — 6 to 18 months lithium feasibility study before stage one completed. Sodium Sulphate 115 to 125 US $rt. 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
Slide 17: 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 18: Borate Market
Borate Market e Boron salts are produced from Centenario, Ratones, Diablillos, Pozuelos and Pastos Grandes. e Argentina is the world’s third largest boron ; producer, with annual production reaching “@® somracry resources 350,000 t/y, all of it being recovered from the Puna. e Resources in the Puna
Slide 19: Minimum Production Scenario of Non-lithium Products
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 20: Minimum Earnings Scenario of Non-lithium Products
Minimum Earnings Scenario of Non-lithium Products - FY 2005/2006 4 . 0) *@ somiratty RESOURCES $6.8 mill 54%
Slide 21: Lithium Production
Lithium Production e Stage One Plant. Capex for Stage One US $ 7-10 million (subject to extraction method). 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 18-36 months
Slide 22: Japonesa Iron Ore JV
Japonesa 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 23: 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 24: 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 25: Bulman Location
Bulman Location wy pS / : q EO PN. Nhulunbuy : 5 H Moe EE J” Darwin, ¢ ' a Bulman ol J mee | ° - Katherine. a * & e Nay ____ McArthur River. @ MLN 726 & 727. ee 7 [#490000 mn ‘ » S ADMIRALTY RESOURCES Bulman.
Slide 26: Capital Raising - Options
Capital Raising - Options e $1.5m working capital loan Perolin Investments standby facility e $30m- Converting notes stillto be __ p laced . *@ »pmipalTy RESOURCES e Option conversion $17.5 million. e $10m from 2" instalment on notes - 10 Feb 2007 e Non-exploration/Project cash burn rate $600,000 pe
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 Stage One Plant planning phase completed for Salar del Rincon and complete engineering feasibility/design. e Finalise Philippines due diligence iron ore prospect. "ADM
Admiralty Resources NL — Investor Presentation (March 2005) on 6ix