Australian Silica Quartz Group Limited · ASX:ASQ
Australian Silica Quartz — Bauxite Resources — MB Bauxite & Alumina Conference Miami 2014
20 slides from Australian Silica Quartz's conference presentation, February 2014
Slide 1: MB Bauxite & Alumina Conference Miami
MB Bauxite & Alumina Conference Miami February 2014 1
Slide 2: Forward Looking Statements
Forward Looking Statements These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, or other similar w
Slide 3: Bauxite - A new horizon
Bauxite - A new horizon BRL and Partner projects and timing How will current bauxite supply/demand dynamic impact new developers? Barriers to entry – why BRL is positioned well Will new parties enter? Constraints on growth - infrastructure challenges and environmental concerns. How are the
Slide 4: Company Profile
Company Profile Stock Code: BAU Ordinary Shares 232m Market Cap $30m (12/02/14) ROB NASH Bank Debt $0 Current cash $42.7m (31/12/13) PETER CANTERBURY Resource 338 Mt bauxite Chair Rob Nash LUKE ATKINS CEO Peter Canterbury Major Shareholders % JOHN SIBLY HD Mining & Inv PL 8.4% Yankuang Res PL 8.4% N
Slide 5: BRL & Partners Resource Growth
BRL & Partners Resource Growth 350 300 250 200 Measured 150 Indicated Inferred 100 50 0 Current joint bauxite resource of 338 million tonnes Bauxite Resources Trial Mine Site 2013 – BRL Trial Mining 2009/10 ready for hand back 5
Slide 6: 3 Project Groupings
3 Project Groupings BRL 100% Tenements Currently 1,845km2 exploration licences in Northern and Eastern Darling Range Focus area is the Fortuna deposit – 39.5Mt resource located on 2 private cleared farms 14 km from existing rail siding – 120km by existing rail to Kwinana bulk port facilities
Slide 7: 3 Project Groupings cont'd
3 Project Groupings cont’d Bauxite Alumina Joint Venture (BAJV) with Yankuang Resources (YK) Bauxite and Alumina rights covering some 6,591km2 YK to fund 70% of all bauxite exploration costs for 70% bauxite resource Current resources 267Mt with 219Mt located on single Felicitas deposit Felic
Slide 8: BRL Darling Range Resources Location & Distribution
BRL Darling Range Resources Location & Distribution Resources on private cleared farmland with no native title Tenements close to existing infrastructure, roads and rail With direct access to bulk Bauxite Resource Tenement handling ports Ownership Holdings Established export routes Solely BRL 39
Slide 9: Resources Summary
Resources Summary Resource Size Al2O3 Available Al2O3 Reactive SiO2 Al2O3 avail:SiO2 Depth of Summary reactive overburden Max Bauxite Bulk Density Mt % % % (m) Thickness (m) BRL 100% Fortuna 39.5 37.3 28.8 1.6 18 2 13 2.17 BRL 100% Sub total 39.5 37.3 28.8 1.6 JV with Bauxite Alumina JV (Yankuang Gr
Slide 10: Northern Darling Range
Northern Darling Range Existing resource of 258.2Mt (Felicitas & Fortuna) Further resource upside Recent drilling results at Dionysus 10
Slide 11: Dionysus
Dionysus Significant intersections include: 9m @ 32.2% available alumina, 43.0% total alumina, 2.1% reactive silica from 2.5m 7m @ 38.3% available alumina, 49.1% total alumina, 2.3% reactive silica from 12km to rail 1m 5.5m @ 35.7% available alumina, 48.8% total alumina, 3.3% reactive silica f
Slide 12: Eastern Darling Range
Eastern Existing resource of 15Mt Darling (Ceres) Recent drilling results from Range Wandering-Pingelly area Supportive community Albany Port 280km from project area 12
Slide 13: Wandering-Pingelly
Wandering-Pingelly Significant intersections include: 7m @ 38.1% available alumina, 43.6% State Agreement total alumina, 2.9% reactive silica from 0.5m 28km to rail 13.5m @ 33.3% available alumina, State Agreement 46.6% total alumina, 1.8% reactive silica from 1m 7.5m @ 35.8% available alumina
Slide 14: BRL's Bauxite
BRL’s Bauxite BRL and partner resource Inventory now stands at 338 million tonnes Felicitas/Fortuna Deposits most advanced Working with Yankuang to move Felicitas into next stage of development Fortuna Deposit – BRL moving towards development with preliminary environmental and scoping study
Slide 15: New Bauxite Sources – Barriers to Entry
New Bauxite Sources – Barriers to Entry Distance from Market – BRL 4,300nm Infrastructure Requirements – Mine to Port – BRL close to existing rail facilities to deep water ports (Panamax capable) Scale to support low cost extraction – BRL and Partners have 338Mt and growing Environmental cha
Slide 16: Bauxite – New Demand driven out of China
Bauxite – New Demand driven out of China Construction driven CRU expects primary aluminium consumption to increase by 6.4% pa between 2012 and 2022 and aluminium consumption per capita is set to rise modestly 1.3% pa over the same period. Beyond 2022, China is on track to achieve the highest alumini
Slide 17: Supply not keeping up with Demand – Why?
Supply not keeping up with Demand – Why? Lack of investment in Bauxite/Alumina outside China Uncertainty in development in India and Indonesia Third party bauxite demand and supply, 2000 to 2035 180.0 Supply gap* Possible Probable Committed 160.0 Operating Closed Demand 140.0 Production (m tpy) 12
Slide 18: Where will the demand for Bauxite be sourced from?
Where will the demand for Bauxite be sourced from? Indonesian export bans – What will happen? Australia the key due to logistics “China is expected to source a greater proportion of its bauxite requirements from Australia and West Africa over the next decade” Chinese bauxite imports in 2012 and 20
Slide 19: BRL – Why we are moving forward
BRL – Why we are moving forward Demand from China will require multiple new bauxite sources Australia is logical supply source BRL has large resource of efficient bauxite Infrastructure – Use of existing infrastructure means low capital entry with near term potential Location – Large Bauxi
Slide 20: Thank-you
BAUXITE RESOURCES LIMITED | a > ” Thank-you Guinea fa 15% Govt. stake in all projects 1 Se — 11,113 nm! Indonesia 20% Export tax Planned ban in 2014 Brazil 10,931 nm Expected royalty — increase to 4%
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