KUN-MANIE NICKEL AND COPPER SULPHIDE DEPOSIT PROACTIVE INVESTORS ONE2ONE FORUM
JANUARY 2016
KUN-MANIE NICKEL AND COPPER SULPHIDE DEPOSIT PROACTIVE INVESTORS - - PowerPoint PPT Presentation
KUN-MANIE NICKEL AND COPPER SULPHIDE DEPOSIT PROACTIVE INVESTORS ONE2ONE FORUM JANUARY 2016 2 Disclaimer The information contained in this confidential document ( Presentation ) has been prepared by Amur Minerals Corporation (the "
JANUARY 2016
The information contained in this confidential document (“Presentation”) has been prepared by Amur Minerals Corporation (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation does not constitute or form part of, and should not be construed as, an
connection with any contract or commitment whatsoever. This Presentation has not been approved by any of the Company’s professional advisers, nor by any authorised person pursuant to Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any other person who receives this Presentation should not rely or act upon it. By accepting this Presentation, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the
While the information contained herein has been prepared in good faith none of the Company nor any of its shareholders, directors, officers, agents, employees or professional advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any
contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors,
Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent. Certain forward looking statements may be contained in the presentation which include, without limitation, expectations regarding metal prices, estimates of production, operating expenditure, capital expenditure and projections regarding the completion of capital projects and pre feasibility studies as well as the financial position of the company. Although Amur believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be accurate. Accordingly, results could differ from those projected as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. Neither this Presentation nor any copy of it may be (a) taken or transmitted into Australia, Canada, Japan, the Republic of Ireland, South Africa or the United States of America, their territories or possessions; (b) distributed to any U.S. person (as defined in Regulation S under the United States Securities Act of 1933 (as amended)) or (c) distributed to any individual outside Australia, Canada, Japan, the Republic of Ireland or South Africa who is a resident thereof in any such case for the purpose of
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1st phase (feasibility study): 2016 2nd phase (project design): 2016-2017 Construction: 2017-2019
1 2 3 4
1,993 1,990 1,941 1,869 1,884 1,934 2,044 2,054 1,779 1,846 1,881 1,937 1,981 2,033 2,076 2,121 262 407 467 398 302 204 171 104 500 1,000 1,500 2,000 2,500 2013 2014 2015F 2016F 2017F 2018F 2019F 2020F World mine production, kt Total world nickel use, kt Reported total commercial stocks, kt
Nickel Supplies Deficit Nickel oversupply
In the mid-term, new market entrants projected to benefit from projected tightening nickel supply and increasing prices
214 145 60
15,034 16,891 12,318 14,125 16,000 18,364 18,500 20,864
10,000 15,000 20,000 25,000 2013 2014 2015F 2016F 2017F 2018F 2019F 2020F
50 100 150 200 250 Refined Nickel Market Balance Average LME Cash Nickel Price, $/t Wood Mckenzie
17 37 39 55 58 70 99 169 203 274 275 50 100 150 200 250 300 PT ANTAM (Persero) Tbk Anglo American Plc Kun-Manie* Eramet SA Sumitomo Metal Mining Co. Sherritt International Corp BHP Billiton Ltd Jinchuan Group Ltd Glencore International MMC Norilsk Nickel Vale SA
Largest Nickel Producers in the world (2014, kt)
* Average for the Kun-Manie mine during first 5 years 200 400 600 800 Nickel Copper Inferred Indicated Measured 15.7 37.8 67.3 0.1 0.2 0.3 0.4 0.5 0.6 20 40 60 80 Measured Indicated Inferred Resources Ni Grade, % Cu Grade, % Kt Mt 10 20 30 40 50 Platinum Palladium Inferred Indicated Measured 651 178 Kg 17 18
15.7 37.8 67.3 Measured Indicated Inferred 121 Mt Kun-Manie projections indicated a potential top global nickel producer
1 Deposit and
concentrator
2 Access road 4 Zeya hydro
power plant Legend
3 Smelter
ZAO “Kun-Manie” mining license
20% 40% 60% 80% 100%
92 92 67 63 53 51 51 49 47 44 43 41 39 36 36 23 33 29 26 26 11
Koniambo (New Caledonia) Ambatovy (Madagascar) Ramu (Papua New Guinea) Goro (New Caledonia) Barro Alto (Brazil) Turnagain (Canada) Weda Bay (Indonesia) Onça Puma (Brazil) Taganito (Philippines) Ravensthorpe (Australia) Wingellina (Australia) Sheba's Ridge (South Africa) Araguaia (Brazil) Dumont (Canada) Decar (Canada) Kun-Manie Santa Rita (Brazil) Wellgreen (Canada) Mayaniquel (Guatemala) Kalgoorlie (Australia)
$/ Ni t (Ni-equivalent t)
$/ Ni t (Ni-equivalent t) 6,083 5,128 7,298 6,056 20,504 17,848 5,000 10,000 15,000 20,000 25,000 1-5 years (Ni only) 1-5 years (Ni-eq) Life of mine (Ni) Life of mine (Ni-eq) Cash Cost Historic Ni Price (2006-2015 average) Forecast Ni price (real terms)
56 494 334 436 Mining Smelting Refining Infrastructure
($/t)
Infrastructure construction potentially subsidized by the government
585 56 10 27 17 Nickel Copper Cobalt Platinum Palladium
$mm
Production Ni, kt Cu, kt Co, kt Pt, MOz Pd, MOz TOTAL 407 119 4 256 291
15.1 6.0 6.0 1-8 years 9-15 years Mining, Mt Strip mining, Mt Low-grade Matte (LGM) High-Grade Matte (HGM) Cathode Precipitate Metal
A LGM would contain approximately 25% combined nickel, copper and cobalt suitable for on-sale and future smelting and refining A HGM would contain approximately 70% combined nickel, copper and cobalt and would (typically) be sold to a refinery for onward processing The final product - the recovered metal would include nickel and copper cathodes, cobalt precipitate and platinum and palladium metals 695 1-5 years
$695 mm
Project Implementation Timeline Stages 2015 2016 2017 2018 2019 2020
Key information
focused on base metal projects in the Far East of Russia. The company’s principal asset is the Kun-Manie sulphide nickel, copper project located in Amur Oblast
and allows the AMC’s subsidiary, ZAO Kun-Maine, to recover all revenues from 100% of the mined metal
Virgin Islands. Currently its market capitalization amounts to $59,1mm*
program and metallurgical test work results in order to prepare a Definitive Feasibility Study for the development and ultimate production at Kun-Manie
Source: AMC, LSE * As of November 13, 2015
Market Data AMC Shareholders Share Price Dynamics
5 10 15 20 25 30 35 40 20 40 60 80 100 120 19-Nov-2010 19-Feb-2011 19-May-2011 19-Aug-2011 19-Nov-2011 19-Feb-2012 19-May-2012 19-Aug-2012 19-Nov-2012 19-Feb-2013 19-May-2013 19-Aug-2013 19-Nov-2013 19-Feb-2014 19-May-2014 19-Aug-2014 19-Nov-2014 19-Feb-2015 19-May-2015 19-Aug-2015 Trade Volume, mm Share Price, GPb
Kun-Manie Production Licence Awarded AMC received a positive update from Rosnedra related to its application for a mining licence
Ticker AMC.L Share price (13/01/2016) 6,9GBX Shares Outstanding 460.25 mm Options 55,9 mm Market Capitalization £31.76mm Resources Ni-eq (JORC compliant) 831 kt 16% 13% 11% 11% 11% 5% 5% 4% 1% 24% TD Direct Investing Nominees Hargreaves Lansdown (Nominees) Investor Nominees Limited HSDL Nominees Limited Barclayshare Nominees Limited HSBC Client Holdings Nominee (UK) Wealth Nominees Limited Lawshare Nominees Limited Менеджмент Прочие
mm shares GBX