TSX-V : RGX
Corporate Presentation July 2013 TSX-V : RGX The information - - PowerPoint PPT Presentation
Corporate Presentation July 2013 TSX-V : RGX The information - - PowerPoint PPT Presentation
Corporate Presentation July 2013 TSX-V : RGX The information presented contains forward-looking statements , within the meaning of the United States Private Securities Litigation Reform Act of 1995, and forward-looking information
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The information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of Argex Mining Inc. (“Argex or the Company”. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; and limitations on insurance coverage. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward- looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws. The technical information contained in the presentation has been reviewed by André Laferrière, Qualified Person for Argex and conforms to National Instrument 43-101 Standards of Disclosure for Mineral Projects. Investors are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The Qualified Person has not done sufficient work to classify the historical resources estimates and the issuer is not treating the historical estimate as current mineral resources The Qualified Person has been unable to verify the information related to the Ni 43-101 mineral resources reported from other companies and included in the presentation Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
TSX-V : RGX
- Game-changing,
patented extraction process for high- purity titanium dioxide (TiO2) production.
- Process
can uniquely convert low grade ilmenite into high purity TiO2.
- TiO2 prices expected to rise
with global economic growth.
- Currently averaging $3,650
US/tonne*.
- NDA ’ s in place with
major end-users and distributors.
- Developing collaborative
partnerships in major sectors (accelerate and de-risk the learning curve.)
- Currently
negotiating purchase and sales agreements with end-users and distributors.
*Source: ICIS April 2013
Patented Extraction Process Economic Growth Potential Developing Industry Relationships
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- TiO2 is the most used white pigment
giving life to a colorful world.
- Safe and environmentally friendly.
- The most important properties are
- ptical:
- Brightness
- Opacity
- Gloss
- Tone
(white) and under-tone (color)
- Weather resistant and durable
- Abrasion (inks, fibers)
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Paint 58% Plastics 22% Paper 9% Specialties 3% Inks 3% Fibres 2% Rubber 2% Food & Pharmaceutical s 1%
Source: TZMI 2012
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22% 20% Others, 15% 13% 10% 9% 7% 4%
*Source: Ti Insight 2012
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6.4 million tonnes per year (2011)* China
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- Current TiO2 price - $3,650 US tonne*
- Prices are expected to double from 2010 to 2015**
**Source: Ti Insight LLC, Dec. 2011 *Source: ICIS Apr. 2013
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(Ref. Ti Insight, LLC - December 2010)
*BRICS = Brazil, Russia, India, China & South Africa
- Average German uses 9lbs
- f TiO2 per year.
- Average North American
uses 7lbs of TiO2 per year.
- BRICS* currently uses on
average 2lbs of TiO2 per year.
- As emerging countries
standard of living increases, so will their use
- f TiO2.
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HISTORY OF TiO2 PRODUCTION
- In 1916, the Titanium Pigment
Corporation of Niagara Falls, New York and the Titan A/S, of Norway simultaneously began commercial TiO2 production with Sulfate Process.
- In 1948 DuPont introduced the
Chloride Process.
- 60 + years later Argex enters the
market with the CTL process.
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ARGEX’S CTL PROCESS
- Patented.
- Proprietary.
- Environmentally friendly.
- The only TiO2 process that can effectively extract
TiO2 from ores containing different contaminates such as MgO, V, Cr, etc.
- Uniquely converts low quality ilmenite or mine
tailings that others cannot use into high purity TiO2.
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- Ongoing refinement has driven TiO2 purity beyond
99.8%.
- Color, brightness and opacity of TiO2 products
meet or exceed those of the industry leaders.
- Environmentally friendly process:
− Closed-loop process. − Every byproduct is saleable. − Low temperatures required for process. − Minimal inert residual (less than 10% of the feed). − Able to utilize ilmenite from mine tailings that
- thers cannot use.
ARGEX’S CTL PROCESS
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ARGEX PLANT AND R&D CENTRE VALLEYFIELD, QC
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Ilmenite Ore Crushing And milling Leaching Atmospheric pressure Filtration Inert solid tails Solvant extraction ( iron circuit) Solvant extraction (titanium circuit) TiO2 precipitation TiO2 recovery (filtration) Surface treatment Finish product TiO2 pigment Regenerated HCl Co-product Iron oxide Co-product Magnesium oxide Regenerated HCl Acid regeneration Acid regeneration Lixiviant Mixed acids HCl recycling system
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ARGEX’S CTL PROCESS
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CTL PROCESS : MULTIPLE ADVANTAGES
Sulphate Chloride CTL
Raw material cost ($/ton of TiO2 feed) Low Ilmenite ($300) High Rutile ($1800) Low Ilmenite ($250) TiO2 final product ($/ton of TiO2) Low purity ($3500+) High purity (~$4500) High purity (~$4500) Capital expenditure Medium High Low Operational costs Medium High Low Environmental High Medium Low Flexibility in processing raw material Limited (Cr, V) Limited (Mn, Mg, size) Complete flexibility Process Condition High temp. High pressure (140-180 0C) Very High temp. High pressure (800-1,400 0C) Low temp.
- Atm. pressure
(70 0C) TiO2 Pigment production Rutile/Anatase Rutile Rutile/Anatase
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White Pigment RI Plastic RI
Rutile TiO2 2.73 Polystyrene 1.60 Anatase TiO2 2.55 Polycarbonate 1.59 Antimony Oxide 2.09 – 2.29 SAN 1.56 Zinc Oxide 2.02 Polyethylene 1.50-1.54 Basic Carbonate, White Lead 1.94 – 2.09 Acrylic 1.49 Lithopone 1.84 Polyvinyl Chloride 1.48 Clay 1.65 Magnesium Silicate 1.65 Barytes (BaSO4) 1.64 Calcium Carbonate (CaCO3) 1.64
OPTICAL PROPERTIES : REFRACTIVE INDEX
- Refractive Index (RI) = scattering and reflection of light.
- Argex’s CTL = Rutile TiO2 - the highest refractory index.
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HIGH QUALITY TiO2 = BETTER OPTICAL PROPERTIES
- Higher quality TiO2 produces better paints.
- Higher Refractory Index means less or thinner coats of paints for the same result.
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ARGEX’S TiO2 LIGHT REFLECTING QUALITIES
Argex’s TiO2 (0.2 - 0.3 microns) reflects light at optimal level for paint.
Argex’s CTL Product Competitive Product 1 Competitive Product 2
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Argex’s CTL Product Competitive Product 1 Competitive Product 2
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RGX™ 100 Series RGX™ 200 Series Pigments for Cosmetics, Food and Pharmaceuticals
RGX™ 171: very high purity grade designed for food, cosmetics and pharmaceuticals applications.
RGX™ 300 Series Pigments for Plastics
RGX™ 220: high durable grade designed for plastics applications like PVC, plastisols, polyolefins, masterbatches and advanced plastics.
Pigments for Coatings
RGX™ 330: high durable grade designed for coatings applications like architectural (indoor and
- utdoor), industrial paints
(water-bone and solvent) and consumer, coil coating, powder coatings.
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- State of the art, off-the-shelf, proven equipment:
- Solvent extraction equipment has been used for
many years for uranium, copper, nickel, rare earths,
- etc. on much larger scales than we are planning.
- Filtering, rotary kilns, coating and finishing are proven
TiO2 technologies.
- Existing building and infrastructure at Valleyfield, QC.
- Solvent extraction typically scales up 15,000 to
100,000 times, Argex will only be scaling up 15,000 times.
- All other equipment selection is based on off the shelf
designs already being used in the industry to minimize redesign and scale up risks.
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- 1. Technical
Collaboration
- 2. Purchase & Supply
Agreement
Began collaborating in late 2011 and will continue. Argex will be a significant TiO2 supplier to PPG.
2012
Two Parts To The Agreement:
Announced their joint efforts to develop a TiO2 product meeting conventional standards for architectural paint.
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END-USER COLLABORATION
- NDA’s are currently in place with major end-users and distributors.
- ARGEX is developing collaborative partnerships in the following sectors
to accelerate and de-risk the learning curve:
- Architectural Paint and Coatings
- Cosmetics, Food and Pharmaceuticals
- Plastics
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- End-user agreements.
- Feasibility-stage study.
- Secure industrial plant location.
- Sign agreement for supply of ilmenite.
- Project financing of first industrial-sized module.
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SHARE STRUCTURE
Recent Price
- $1.18
52 Week High
- $1.45
52 Week Low
- $0.78
Market Cap
- ~$143 million
Outstanding
- 121,393,171
Options
- 11,174,500
Warrants
- 11,254,000
Fully Diluted
- 143,821,671
As of July 5, 2013 Capitalization Market Performance
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Full Coverage:
- Byron Capital
- Mackie Research
- Cormark Securities
ANALYST COVERAGE
Mention:
- Wells Fargo
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EXPERIENCED ADDITIONS
- September 2012 – Ian Cox, Head of Engineering and Construction
- October 2012 - Philippe Guillemaille, Marketing and Sales Manager
- May 2013 - Peter Waugh, Team Leader, TiO2 Pigment Development
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Roy Bonnell - President & CEO, Director, Founder
- CFO, Vice President, Corporate Development and Corporate Secretary of Argex 2007 to 2011.
- Managing Director, Atwater Financial, 2003-2010.
- M.Sc. Accounting & Finance (London School of Economics), MBA (McGill), L.L.B. (Western), B.A.
(Queen’s). Enrico Di Cesare - COO, VP Technology
- Metallurgy, operations, know-how transfer, and management; Severstal, Danieli, Sammi Atlas Steel,
Hoogovens/Corus/Hatch.
- Metallurgical Engineer from McGill University.
Mark Billings - CFO, Director, Founder
- Chief Financial Officer and Founder of Argex; President from 2007-2009.
- BA (Honours) from Carleton University and an MBA from the Harvard Business School; Chartered
Financial Analyst. André Laferrière - VP Mining and Geology
- Argex’s NI 43-101 Qualified Person.
- Professional registered geologist with over 15 years experience in exploration and mineral
development projects for various commodities, including mineral resource estimation and NI 43-101 reporting.
- M.Sc. in geology (Université de Montréal).
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Geneviève Marchand - General Counsel and Corporate Secretary
- Counsel and Partner, Davies Ward Phillips and Vineberg, from 2000-2005.
- LLM from London School of Economics; LLB from Laval University.
- Member of the Quebec Bar.
Ian Cox - Head of Engineering and Construction
- Over 30 years’ experience, held executive positions in technology companies, construction and
technology equipment providers to the metallurgy industry.
- BS (Honours) from Leeds University.
- Academic studies also include the University of Tennessee, Massachusetts Institute of Technology
(MIT), and Harvard Business School.
- Has published over 20 technical papers on the design, construction and operation of metallurgical
furnaces. Philippe Guillemaille - Manager, Sales and Marketing
- Regional Business Manager, Europe & Africa for Kronos, a leading TiO2 producer company, from
1998-2011.
- Graduate from the University of Chemistry of Lyon.
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Robert Guilbault - Chairman of the Board of Directors
- Former President and CEO of Aluminerie Allouette Inc., Sept-Îles, Quebec.
- General Manager of BHP Billiton’s Hillside Aluminum at Richard’s Bay, South Africa.
- Has worked in the mining production field for twenty years.
Normand Bergeron - Director
- Executive Counsellor at Samson Bélair/Deloitte & Touche since October 2011.
- Chief Executive Officer of Infrastructure Québec from its creation in March 2010.
- Deputy Minister, Québec Department of Natural Resources and Wildlife, from May 2005 to July 2009.
- Member of Hydro-Québec’s Board of Directors (2005-2009).
Mazen Haddad - Director
- Former President of Township Capital Inc.
- Received a B.A. degree in Economics from Emory University of Atlanta, Georgia.
Florian Rais – Director
- Founder of Far Investments Inc. a private equity and corporate finance firm
- Partner at Tangent Venture, a private equity investment firm in London, England
- Director of Blue Wall Shipping Limited and China Motors Ltd.Received a BA and MBA from University of
Lausanne Business School
TSX-V : RGX
- Game-changing,
patented extraction process for high-purity titanium dioxide (TiO2) production.
- Process can uniquely
convert low grade ilmenite into high purity TiO2.
- TiO2 prices expected to
rise with global economic growth.
- Currently
averaging $3,650 US/tonne*.
- NDA ’ s in place with
major end-users and distributors.
- Developing collaborative
partnerships in major sectors (accelerate and de- risk the learning curve.)
- Currently
negotiating purchase and sales agreements with end-users and distributors.
*Source: ICIS April 2013
Patented Extraction Process Economic Growth Potential Developing Industry Relationships
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- Completion of Bankable Feasibility Study
- End-user agreements
- TSX Listing
- Development of Valleyfield R&D and Production Centre
- Project financing of the first industrial-sized module
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MANAGEMENT TEAM
Roy Bonnell, President & CEO roy@argex.ca
- Tel. : +1 514-788-8932
Mark Billings, CFO mark@argex.ca
- Tel. : +1 514-296-1641
Enrico Di Cesare, COO enrico@argex.ca Tél. : +1-514-843-5959 x141
CORPORATE HEADQUARTERS
630 Sherbrooke Street West, Suite 410 Montreal, Quebec H3A 1E4, Canada Fax : +1.514.843.9208 www.argex.ca
- Auditors: BDO Dunwoody
- Legal Counsel: Heenan, Blaikie LLP
- Transfer Agent: Canadian Stock Transfer
Company Inc.
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All of Argex’s public filings can be found on SEDAR (www.sedar.com)
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