Earths Energy Ltd · ASX:EE1
Earths Energy — Cradle Resources — Indaba (February 2014)
16 slides from Earths Energy's conference presentation, February 2014
Slide 1: Indaba Presentation
Indaba Presentation February 2014
Slide 2: ASX Capital Structure
ASX Capital Structure Issued Shares* 128,675,017 Unlisted options (May 2016 at 26.7c) 7,687,500 Listed options (January 2015 at 26.7c) 17,962,506 Total Options 25,650,006 * Included in Issued Shares is 37,500,000 performance shares: • Half subject to the completion of a scoping study • Half subject
Slide 3: Project Ownership
Project Ownership • Cradle owns 50% of the Panda Hill Project with management control • Cradle has an option to purchase the remaining 50% before March 2017 • The option exercise price is ~US$14 million*, of which US$9 million is payable in cash and US$5 million in shares or capped royalty. * The pr
Slide 4: Board and Management Team
Board and Management Team • Craig Burton Chairman • Grant Davey Managing Director • Didier Murcia Non-Executive Director • Evan Cranston Non-Executive Director • Keith Bowes Project Director - Metallurgist • Neil Inwood Resource/Exploration Geologist A strong, capable team with the right experience
Slide 5: What is Niobium?
What is Niobium? Niobium (Nb) is used as an alloy to make steel harder Nb steel is known as high strength, low alloy steel (HSLA) Niobium Properties: • Strengthens steel and lightens • Corrosive resistant properties • High temperature tolerance Millau Viaduct, France Main growth industries: • Automo
Slide 6: Niobium Demand
Niobium Demand • HSLA is a well known, commonly used steel product: • About 20% of steel produced in developed countries is HSLA • Compared to about 10% of steel in developing countries • Solid demand growth is expected over the next six years (~30%) • Growth in Nb demand is a combination of: • Gene
Slide 7: Niobium Supply
Niobium Supply • Only three existing producers (CBMM, IAMGOLD, Anglo American) • No new producers since 1976, even though market has grown several fold • Limited suppliers result in highly stable Nb prices • Panda Hill will initially add only 4% to annual supply • No greenfields supply under constru
Slide 8: Panda Hill Niobium Project
Panda Hill Niobium Project • Located in Mbeya region, Tanzania • Excellent local infrastructure (grid power, roads, rail) • 98 holes drilled 1950 – 1990s • 13 confirmatory holes drilled 2013 Panda Hill, Mbeya 8
Slide 9: 2013 Updated JORC Resource by Coffey Mining
2013 Updated JORC Resource by Coffey Mining 2013 Panda Hill 2013 Resource – Reported Above a 0.3% Nb2O5 Lower Cut-off^ Combined Lower Cut-off Million Tonnes Nb2O5 % Nb2O5 Content (KT) (Nb2O5%) Indicated 5.4 0.62 33 Inferred 76.4 0.51 390 Total 81.8 0.52 423 Weathered Carbonatite Lower Cut-off Millio
Slide 10: Scoping Study Results
Scoping Study Results Average Cash Average Mill Cost ($/kg Nb) Initial Option Niobium Mine Life Payback Throughput Cash cost at Capital Production mine gate Base Case 2Mtpa 4.80M kg pa US$16.67 28yrs 2.8yrs US$185M 1Mtpa building in 2.65M building Staged Case US$19.86 / $16.17 27yrs 4.5yrs US$125M y
Slide 11: Scoping Study Results
Scoping Study Results • Great Infrastructure • Resource • 50% increase in metal content • Total resource – 82mt @ 0.52% Nb2O5 • Indicated 5.4mt @ 0.62% Nb2O5 • Inferred 76.4mt @ 0.51% Nb2O5 • Metallurgy Testwork • 65% recovery for + 55% grade Nb2O5 in fresh carbonatite • 50% recovery for 50% grade N
Slide 12: Feasibility Planning Schedule
Feasibility Planning Schedule Project Activities Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q3 2015 Prefeasibility Study Project Planning / Contracting Resource/ Infill Drilling Mineral Resource / Mining Metallurgical Testwork Preliminary Engineering Environmental and Social Impact Assessment Reporting DFS 12
Slide 13: Project Summary
Project Summary • Financing negotiations currently taking place for DFS and project construction • Feasibility to focus on a modular processing plant: • Optimise and reduce upfront capital (~$125 million) • Enter the niobium market responsibly – lower initial production in first 3 - 4 years • Main f
Slide 14: Estimated Cost to DFS
Estimated Cost to DFS Drilling Program US$4.0M Metallurgical Test work US$2.2M ESIA US$0.7M Engineering US$1.5M Corporate US$1.6M Total US$10.0M PFS completed in 3rd Quarter 2014 ~US$6M 14
Slide 15: Disclaimer and Competent Person
Disclaimer and Competent Person The summary information contained herein has been provided by Cradle Resources (“Cradle” or the “Company”). No representation, express or implied, or warranty as to the accuracy or completeness of the information contained herein is made by any party and nothing conta
Slide 16: For additional information contact
For additional information contact: Grant Davey Managing Director [email protected] +61 8 9389 2000