New Age Exploration Limited · ASX:NAE
New Age Exploration — Investor Presentation (April 2017)
29 slides from New Age Exploration's investor presentation, Apr 26, 2017
Slide 1: Investor Presentation April 2017
For personal use only Investor Presentation April 2017
Slide 2: NAE Highlights
NAE Highlights Advanced Coking Coal and Tin-Tungsten Projects in the UK – a low risk jurisdiction with world class infrastructure For personal use only Redmoor Tin Tungsten Project, UK Lochinvar Coking Coal Project, UK ü Redmoor High Grade Resource is one ü Ideal location to supply the of the worlds
Slide 3: Lochinvar Coking Coal Project, UK
For personal use only Lochinvar Coking Coal Project, UK 3
Slide 4: Lochinvar - Key Achievements to Date
Lochinvar - Key Achievements to Date Large resource and scoping study provides strong foundation for advancement to production For personal use only Lochinvar license Phase 1 Drilling Indicated and Project on hold Recommencement secured Inferred Resource due to low coking of activities as Maiden Inf
Slide 5: Coking Coal – Prices
Coking Coal – Prices Whilst volatile, HCC prices continue to strengthen at levels very supportive of Lochinvar development For personal use only • HCC prices highly volatile over past year • Stepped improvement in HCC price from 2014-2016 cyclical low levels • 7Yr Average Coking Coal Price US$175/t
Slide 6: Ideal Location to Supply European Steel Industry
Ideal Location to Supply European Steel Industry Clear sea freight advantage to Europe For personal use only (~3% price premium vs competing US coking coal) 6
Slide 7: Lochinvar - World Class Supply Chain to European Market
Lochinvar - World Class Supply Chain to European Market • Majority of customers within For personal use only 1,000 km • Regular smaller deliveries from local supplier benefits customers • Existing UK rail and port infrastructure with excess capacity: • Short 7km connection into mainline • Short UK r
Slide 8: Growing European Demand for Coking Coal
Growing European Demand for Coking Coal Wood MacKenzie forecast a 50% growth in European demand for Lochinvar Style High Volatile Hard Coking Coals (HV HCC) over Life of Mine For personal use only • Europe Total Met Coal imports: 58Mt in 2017 (1.4Mtpa Lochinvar = 3% Market Share) • Europe High Volat
Slide 9: Lochinvar – A Low Cost Competitive Supplier
Lochinvar – A Low Cost Competitive Supplier 1st Quartile of Global Seaborne Metallurgical Coal Cost Curve For personal use only US$/t FOB Lochinvar Metallurgical Coal 58 ü Low rail costs (short distance) ü Low labour costs ü Low royalties ü Favourable exchange rates 0 Mt 50 Mt 100 Mt 150 Mt 200 Mt 2
Slide 10: Lochinvar Scoping Study
Lochinvar Scoping Study The Scoping Study has confirmed that a modern underground longwall mine, wash plant and short rail connection at Lochinvar is a potentially attractive project For personal use only • 111Mt Total Indicated and Inferred Resource (49Mt Indicated and 62Mt Inferred) 1 & 2 • 31-64M
Slide 11: Lochinvar - Attractive Economics
Lochinvar - Attractive Economics US$410M NPV, 27% IRR , 4 Year Payback Period, (+/-40% accuracy) 1, 2 & 3 For personal use only • Economic Evaluation based on US$160/t HCC Benchmark Price / US$150/t Lochinvar Realised Price • Robust to changes in Coking Coal Price and other key assumptions (Break Ev
Slide 12: Lochinvar Staged Work Program
Lochinvar Staged Work Program Indicative timeline of 4 years to commencement of production subject to funding.… For personal use only 12
Slide 13: Redmoor Tin Tungsten Project, UK
For personal use only Redmoor Tin Tungsten Project, UK
Slide 14: Redmoor Key Achievements to Date
Redmoor Key Achievements to Date JV partner attracted and £1M farm in payment made to fund 2017 drilling JV company formed - Cornwall Resources Limited For personal use only Acquisition No Activity – No Activity – High Grade lodes JV signed with (Exploration NAE focused on NAE focused on Identified
Slide 15: Redmoor - Tin and Tungsten Outlook
Redmoor - Tin and Tungsten Outlook Tin and Tungsten Prices have performed well over the past 18 months & are expected to continue to rise Tin Tungsten For personal use only 25,000 250 20,000 200 +28% +18% US$ / MTU APT 15,000 +20% 150 US$/ T 10,000 100 5,000 50 - 0 01-Oct-15 01-Apr-16 01-Oct-16 01-A
Slide 16: Redmoor - Geology and Resource
Redmoor - Geology and Resource 2.3Mt High Grade Inferred Resource and 13.3Mt Total Inferred Resource 1 & 3 Redmoor Project – 3D View Looking East For personal use only Redmoor 2015 Inferred Mineral Resource Estimate 1, 2 & 3 Description Tonnage (Mt) Sn (%) WO3 (%) Cu (%) SnEq (%) Johnson's Lode 0.8
Slide 17: Redmoor - Brownfields Site, Significant Exploration Upside
Redmoor - Brownfields Site, Significant Exploration Upside The High Grade Exploration Target is 2 to 3 times the size of the High Grade Resource highlighting the exciting exploration potential of the highly mineralised Redmoor Area For personal use only Redmoor Mine Area Mineral Rights Area • High G
Slide 18: Redmoor – Comparable Tin Projects
Redmoor – Comparable Tin Projects The Redmoor High Grade Resource is one of worlds highest grade new tin new projects The 2017 drilling aims to increase the size of the Redmoor High Grade Resource For personal use only off-chart - Bisle= 4.7Mt @ 4.0% Sn 2.6 2.4 San Rafael 2.2 2.0 South Crofty Resour
Slide 19: Redmoor Project Advantages
Redmoor Project Advantages A simple underground mine and processing plant with low impact is planned at Redmoor… For personal use only ü High grade deposit ü ‘Narrow vein’ underground mine planned with minimal surface impact ü Excellent metallurgical characteristics / simple process flowsheet - high
Slide 20: 2017 Redmoor Exploration Program
2017 Redmoor Exploration Program Phased drilling program commenced in March 2017 For personal use only The objective of the 2017 drilling program is to increase the High Grade resource at Redmoor Phase 1 • 13 holes, 2 rigs, commenced 21 March 2017 • Completion expected 2017 Q3 • Preliminary results
Slide 21: Otago South Gold Project, New Zealand
For personal use only Otago South Gold Project, New Zealand
Slide 22: Otago South Gold (OSG) Project - Highlights
Otago South Gold (OSG) Project - Highlights Early stage gold exploration project with first mover advantage exploring the Southern Otago Schist Belt for Macraes style deposits For personal use only Geological Cross section - Otago Schist Belt & Southern Shear Zone Gold Exploration Targets (cross sec
Slide 23: OSG Project – Work Program
OSG Project – Work Program Soil Sampling Survey Work Completed To Date Soil sampling program targeting airborne survey For personal use only • conductivity highs completed over 55 of 61 planned lines (783 samples). Results to date are inconclusive in identifying anomalous levels of arsenic (a pathfi
Slide 24: NAE Investment Highlights
1. Diversified commodity portfolio (Coking Coal, Sn, W & Au) to maximise value throughout commodity cycles For personal use only 2. Lochinvar Coking Coal Project ideally located to supply the European Steel Industry with growing regional demand for Lochinvar type coking coal. Lowest quartile operati
Slide 25: NAE Corporate
NAE Corporate Experienced Management Team and Supportive Major Shareholder (RCF 34%) For personal use only Alan Broome AM Chairman Gary Fietz Managing Director Mike Amundsen Director A metallurgist with over 40 years’ experience in A mining executive with over 30 years’ A corporate advisor with over
Slide 26: Competent Persons Statement
Competent Persons Statement Lochinvar The Lochinvar Resources estimate is based on information compiled by Dr John Bamberry, who is a Member of the Australasian Institute of Geoscientists For personal use only (Member No. 4090). Dr Bamberry is the Principal Geologist at Palaris. He has sufficient ex
Slide 27: Lochinvar Scoping Study Cautionary Statements
Lochinvar Scoping Study Cautionary Statements Information in relation to the Lochinvar Coking Coal Project, including production targets and financial information, included in this presentation is extracted from the NAE Scoping Study Update announcement dated 15 March 2017. The Company confirms that
Slide 28: Disclaimers
Disclaimers Forward Looking Statements - This report contains “forward-looking information” that is based on the Company’s expectations, estimates and forecasts as of the date on which the statements were made For personal use only This forward-looking information includes, among other things, state
Slide 29: New Age Exploration Limited
For personal use only New Age Exploration Limited ABN 64 004 749 508 Level 3, 480 Collins Street Melbourne, VIC 3000 Australia Phone: +61 3 8610 6494 Fax: +61 3 8610 6334 Email: [email protected] Website: nae.net.au
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