Australian Silica Quartz Group Limited · ASX:ASQ
Australian Silica Quartz — Bauxite Resources — Investor Presentation (September 2009)
34 slides from Australian Silica Quartz's investor presentation, Sep 16, 2009
Slide 1: ASX release: Competent Person Statement added to presentation
BAUXITE RESOURCES LIMITED ACN 119 699 982 ASX/MEDIA RELEASE 16 SEPTEMBER 2009 COMPETENT PERSON STATEMENT ADDED TO MARKETING PRESENTATION It has been brought to the Company’s attention that the Marketing Presentation released to the market on 8th September 2009 did not include a Competent Persons Sta
Slide 2: Bauxite Resources Ltd Corporate Presentation September 2009
BAUXITE RESOURCES LTD Corporate Presentation – September 2009 The New Force in Bauxite-Alumina A rare investment opportunity
Slide 3: Disclaimer
Disclaimer Forward Looking Statements No representation or warranty, express or implied, is made by Bauxite Resources Ltd that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Bauxite Resources Ltd,
Slide 4: Competent Persons Statements
Competent Persons Statements In accordance with the Australian Stock Exchange requirements, the technical information contained in this report has been reviewed by Mr. Neil Lithgow, a director of the company. The information in the report to which this statement is attached that relates to Explorati
Slide 5: Corporate
Corporate ASX Code BAU Ordinary shares 151.7m Unlisted options 31.8m Market Cap. circa $100 m Share price 12Mth High/low 9.5c-70c Cash Balance $16.5m Debt Nil Debt Nil Shareholding HD Mining 13.0% Big Fish Nom 12.8% Dilkara Noms 11.2% Tailrain Pty Ltd 11.2% Top 20 64.8%
Slide 6: Management Philosophy
Management Philosophy “To be a sustainable generator of economic and Our Vision social prosperity to all stakeholders through the responsible development of resources” To be the bauxite supplier of choice, providing consistent quality and value in use to our customers To be a low cost supplier o
Slide 7: Highly Experienced Leadership team
Highly Experienced Leadership team Daniel Tenardi – Luke Atkins – Paul Fromson- Managing Director Executive Chairman CFO/Company • Experienced mining • Substantial public Secretary executive (40 years), company experience • Over 25 years Rio Tinto, CITIC • Lawyer, corporate experience in Pacific exp
Slide 8: Value proposition: DSO Operations
Value proposition Direct Shipping Ore (DSO) Operations (early cash flow) Extensive resource in world’s premier Bauxite region Experienced and capable Board and Leadership Team Proximity to major growth markets Strong market fundamentals– customer demand /supply side issues Trial
Slide 9: Value proposition: Refinery
Value proposition Refinery (Bringing the customer to the Resource) MOU with Yankuang Group for 50/50 JV 25% free carried interest in a A$1.5B Project (value ca. $375m) and bauxite supply at cost plus 15% Supportive State Government & strong facilitative relationships with all stakeholders
Slide 10: Significant Achievements
Significant Achievements • Mining commenced in less than 21 months since ASX listing • Sustained 300% share price growth • Maiden 18.2Mt JORC compliant inferred bauxite resource • Multiple MOUs with potential strategic off-take partners/investors • Comprehensive tenement holdings securing dominance
Slide 11: Strategy
Strategy 1. Bauxite DSO 2. Value Adding Long term DSO Ops Trial spot shipments Drive value through process Long term DSO off-take improvements, beneficiation Increase production to >3mtpa Shareholder and stakeholder wealth creation 3. Downstream growth 4. Drive value Feasibility study for
Slide 12: It all starts with ore
It all starts with ore MINE REFINERY SMELTER ALUMINA BAUXITE 2 tonnes of ALUMINIUM 1 tonne of Approximately 7 tonnes alumina aluminium of bauxite ore produces which produces • 7 tonnes of Darling Range refinery grade bauxite required for every tonne of Aluminium • Measured in either quantity or valu
Slide 13: Substantial Resources and Upside
Substantial Resources and Upside • Extensive resource and holdings in world’s premier Bauxite region (16,600km2) o Gibbsitic ore – low reactive silica – easy to liberate • Maiden 18.2Mt JORC compliant inferred bauxite resource @ 43.1% defined (Jan 09) o Hosted in 140 km2 area out of 16,600 km2 proje
Slide 14: The market opportunity
The market opportunity • China’s domestic Bauxite supplies exhausted within 9 years o “A matter of life or death” for China to secure off-shore bauxite resources1 o Shandong province 100% reliant on imports and imported 24mt in 2008 supplying 5 major Shandong refineries o Shandong Provincial Bureau
Slide 15: DSO Project Milestones
DSO Project Milestones Event Date Sample Trial Spot Shipments Q4 2009 1 mtpa Bauxite DSO to commence Q1 2010 > 3 mtpa Bauxite 2011 DSO - Early Cash Flow
Slide 16: Refinery Project (800ktpa) Milestones
Refinery Project (800ktpa) Milestones Event Date JV partner (50/50) Q4 2009 Refinery Feasibility Study Q3 2011 Define min. 150 mt JORC resource (50yr refinery feedstock) Q3 2011 Commence Refinery Construction 2012 Commissioning Refinery (50/50 JV with 25% free carried interest) 2013 Refinery - Longe
Slide 17: Market Guidance
Market Guidance Bauxite 2009 2010 2011 Planned Production mtpa Trial Spot Shipments 2-3,000,000 3,000,000 Increase in bauxite price and demand China Bauxite Imports and Price (CIF to Chinese Port) Source: Antaike Sept 09
Slide 18: Priorities and Focus – next 12 months
Priorities and Focus – next 12 months Sustainable earnings growth Negotiating long-term Bauxite DSO off-take agreements Finalising critical infrastructure and logistics arrangements (rail, port, handling operators) Leveraging strategic relationships with customers and investors L
Slide 19: Capital Requirements
Capital Requirements Infrastructure investment to drive costs down Range* Activity $ million Port Infrastructure 15 - 20 Rail Infrastructure 10 - 15 Mining Infrastructure 5 - 10 Bankable Feasibility Study for 150mt Resources and 10 - 15 Refinery Engineering 40 - 60 * Range depends upon a number of
Slide 20: Summary
Summary • Extensive world class resource with exploration upside • Experienced and capable Board and Leadership Team • Proximity to major growth markets • Trial bauxite shipments commencing in Q4 2009 • Finalising long term DSO off-take – early cash flow • Bauxite market strengthening – supply issue
Slide 21: Appendices
BAUXITE RESOURCES LTD Corporate Presentation – September 2009 APPENDICES
Slide 22: Dan Tenardi Managing Director
Dan Tenardi Managing Director 40 Years experience in Mining Operations Extensive experience in: • Dealing with Chinese Corporations • Hands on Management • Port/Shipping Facilities • Refineries • Mining • Managing Large Workforces • Strategic Planning • Capex & Procurement Former Roles CITIC Pacific
Slide 23: Top 20 Shareholders as at 30 September 2009
Top 20 Shareholders as at 30 September 2009 Holder Name Current Units % of issued Comments HD Mining & Investment P/L 19,700,000 12.98 SDGM strategic alliance partner Big Fish Nominees Pty Ltd 17,666,666 11.64 Related interest of Director, Neil Lithgow Tailrain Pty Ltd 17,016,667 11.21 Related inter
Slide 24: DSO Grade Bauxite Specifications
DSO Grade Bauxite Specifications Element Indicative % Total Alumina 48 Silica 7 Reactive Silica 3 Iron (III) Oxide 17 Loss On Ignition 23
Slide 25: Mining Methodology
MINING METHODOLOGY BRL will utilise surface mining machines thereby eliminating drill and blast operations significantly reducing costs and environmental impacts and fixed plant processing. Not only is the surface miner environmentally friendly, but creates a flat mining floor that requires minimal
Slide 26: Bauxite Metallurgy
BAUXITE METALLURGY High silica zone 22% SiO2 • Observed grades better than historical information due to improved grade delineation in BRL drilling programs (10% diamond core) • Grades of 50% alumina can be extracted for Direct Shipping ORE (DSO) with 40% available alumina. • Reactive silica is low
Slide 27: DSO logistical supply chains for Kwinana, Bunbury and Albany ports
DSO has 3 logistical supply chains for the Ports of Kwinana, Bunbury and Albany For example Kwinana DSO consists of: 1. Truck to Mooliabeenie Siding in Bindoon - Consists of 15 kilometers to rail siding secured by BRL - Interim arrangement involves utilizing existing rail siding - Long term involves
Slide 28: Proven Region of Low Cost Refineries
PROVEN REGION OF LOW COST REFINERIES Darling Range Refineries produce ~20% of total world alumina production Potential to support fifth refinery Alcoa - Kwinana Refinery Alcoa - Wagerup Refinery Potential to support first smelter BHP – Worsley Refinery Alcoa - Pinjarra Refinery
Slide 29: Collie Coal Mine
COLLIE COAL MINE
Slide 30: Kemerton Industrial Park
BAUXITE RESOURCES LTD Kemerton Industrial Park Preferred site for BRL refinery and smelter Location – 17km Northeast of Bunbury, 140 km South of capital city Perth Land – 5,400 hectares with expansion to 7,500 hectares, zoned specifically for alumina smelter operations, planned to match industry req
Slide 31: Kemerton Industrial Park map
,) ae f $y : “ Cad = | 2 > I : éf rT A > x \ ¢ , + of P- ~ e on > = = eS 7 . &e 4 . 5 . ’ = ~a a i. a f~ my = Kemerto’ meg : - rd Kejustrial Park = é = . TH Proposed Railway Corridar } -s $< Bunbury Port i ——» _Sustralind wT. eZ * & 4 q Bunbury
Slide 32: Refining in Western Australia
REFINING IN WESTERN AUSTRALIA Lowest quartile alumina refinery cost producers in the world. Home to 3 Alcoa and 1 BHP refineries Largest bauxite producing region in the world. Huntley largest bauxite mine in the world 3 of the Darling Range refineries are in the world’s top 10 most cost efficient re
Slide 33: Refinery Production Cost Comparison
REFINERY PRODUCTION COST COMPARISON 500 Production Cost per Tonne (US$) 450 400 350 300 250 200 150 100 50 0 Darling Range Refineries Selected Refineries
Slide 34: Our Sustainability Commitment
Our Sustainability Commitment • A sustainable generator of economic and social prosperity. • A valued partner to our communities. • Best practice rehabilitation and improvement to maximise environmental and economic outcomes. • Innovative environmental programs to create safe habitats for critically
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