Kun-Manie Nickel Sulphide Deposit
Corporate Investor Presentation
March 2019
Kun-Manie Nickel Sulphide Deposit Corporate Investor Presentation - - PowerPoint PPT Presentation
Kun-Manie Nickel Sulphide Deposit Corporate Investor Presentation March 2019 Disclaimer The information contained in this confidential document ( Presentation ) has been prepared by Amur Minerals Corporation (the " Company "). It
March 2019
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 offer for sale or subscription
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 Presentation. This Presentation is not to be disclosed to any other person or used for any other purpose. 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 of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, 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, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. 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
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 offer for sale or solicitation or invitation to buy or subscribe any securities or in the context where its distribution may be construed as such offer, solicitation or invitation, in any such case except in compliance with any applicable exemption. The distribution of this document in or to persons subject to other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction.
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Asia with a JORC Mineral Resource Estimate containing 155.1 million ore tonnes comprising a nickel equivalent grade of 1.02%, equating to a total of 1.58 million equivalent tonnes of nickel
construction period and a 15 year production period with upside potential to extend the LOM
markets of China, Japan and Korea via Sea (Vladivostok) and Land (Rail)
(EV) battery market accounting for up to 80% of the raw materials in NCA batteries
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Robert Schafer Non-Executive Chairman
42 years
experience in the mineral industry. Founder and Managing Director of Eagle Mines Management, a globally active private natural resources corporation. Robin Young Chief Executive Officer Mr. Young is a geological engineer who has worked extensively in the CIS since 1991. He has 41 years
experience including large scale projects in remote areas as well as significant work with junior mining companies. Brian Savage Non-Executive Director
than 37 years
experience in all aspects
Currently Chairman of Sage Management LLC, a privately held company he founded to advise and invest in natural resource projects and companies. Paul Gazzard Non-Executive Director
acted as an external adviser to Amur for four years, has over 12 years
across large institutions in the City of London in his role as a Fund Manager. Ljupco Naumovski Non-Executive Director Mr. Naumovski has more than three decades of experience working in Russia, most recently as Vice President and General Director of the Moscow
Corporation, the largest Canadian investor in Russia.
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Exchange Ticker Share Price* AIM AMC 2.9p Market Cap* 52 Week Range Shares in Issue £ 20.45M 2.5p – 5.8p 705,333,094
Key Shareholders*
Share price graph
(September 2018 to March 2019)
* As of 06 March 2019
7.81% 16.35% 5.16% 11.68% 26.43% 3.62% 4.09% 3.88% 3.67% 0.73% 16.59% BARCLAYSHARE NOMINEES LIMITED HARGREAVES LANSDOWN (NOMINEES) HSBC CLIENT HOLDINGS NOMINEE (UK) HSDL NOMINEES LIMITED INTERACTIVE INVESTOR SERVICES JIM NOMINEES LIMITED LAWSHARE NOMINEES LIMITED VIDACOS NOMINEES LIMITED WEALTH NOMINEES LIMITED DIRECTORS / EXECUTIVES OTHER SHAREHOLDERS
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Nickel Sulphide projects with >20Kt p.a. likely to come into production over the next five years
significant quantities on a yearly basis
Kun-Manie an essential asset to develop
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major nickel markets
existing rail infrastructure
allows shipment of product to China, Japan and Korea, large users of nickel products
Europe via rail to St Petersburg
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and internally through Russia via the Baikal-Amur and Tran Siberian rail lines
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equating to a total of 1.58 million equivalent tonnes of nickel
period with upside potential to extend the life of mine
underground mining operation
path to revenue generation, where the concentrate is sold to a purchaser
an electric furnace / flash smelter converting the concentrate to a low grade matte which allows for the capture of additional revenues from the by-product metals of copper, cobalt, platinum and palladium
producers
nickel
additional by-product revenues
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 TS Option $3.10 $3.14 $3.28 $3.88 $3.64 $4.17 $4.37 $4.06 $4.40 $5.10 $4.33 $4.38 $3.97 $3.56 $2.83 FFS Option $1.75 $1.74 $1.95 $2.76 $2.22 $2.73 $2.96 $2.64 $3.01 $3.46 $2.72 $2.80 $2.48 $2.10 $1.62 1 2 3 4 5 6 C1 Nickel Cash Cost (US$/lb) Year
Annual C1 Nickel Cash Cost
Nickel Cash Cost (US$/lb) Paid Nickel (kt)
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 0.0 25% 50% 75% 324 648 971 1,295
TS OPTION (US$3.87/lb) FFS OPTION (US$2.34/lb)
2018 Nickel Cash Cost Curve
Source: SNL Market Intelligence
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Resource Classification Ore Ni Cu Co Pt Pd Eq Ni Ni Cu Co Pt Pd Eq Ni Mt % % % g/t g/t (%) (1000’s t) (1000’s t) (1000’s t) (t) (t) (1000’s t) Measured 11 0.7 0.2 0.01 0.2 0.3 0.99 80 20 1.3 3 3 111 Indicated 107 0.7 0.2 0.02 0.2 0.2 1.00 787 217 16.2 16 17 1,075 M+I 118 0.7 0.2 0.02 0.2 0.2 1.00 867 237 17.5 19 20 1,186 Inferred 37 0.8 0.2 0.02 0.2 0.2 1.08 290 81 6.0 6 7 398 TOTAL 155 0.8 0.2 0.02 0.2 0.2 1.02 1,157 319 23.5 25 18 1,582
flow during the first 10 years of production when reduced Metals Royalty and Net Profits Tax are available
Kun-Manie Resource Estimate
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Detailed Engineering
DRILLING RESULTS MI&I PRE-FEASIBILITY STUDY DEFINITIVE FEASIBILITY STUDY 2021 – DEVELOPMENT 2023 – START-UP PRODUCTION
AMUR MINERALS
2007 Ni-341,000tn, Cu-95,500tn 2008 2014 2009 2010 2011 2012 Ni-650,600tn, Cu-178,400tn 2013 2015 2016 2017 Ni-769,000tn, Cu-206,000tn, Co-15,000tn
LICENCED UNTIL 2035
Finalised Q1 2019 Outotec & RPM extended Concentrate or matte being assessed 2018 Ni-1,157,000tn, Cu-319,000tn, Co-23,500tn Pt-25tn, Pd-18tn Infrastructure & Environmental Work Metallurgical Work CONSTRUCTION START
2023 2022
ONGOING
TEO Submitted TEO Approved
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Pre-Feasibility Study released in February 2019 Confirms attractive economics and viability of Kun-Manie Ongoing conversations with industry players Amur to target EV battery manufacturers and nickel supply chain participants Discussions underway with international lenders Significant appetite to provide project finance debt for construction of Kun-Manie Project Production scheduled to come online during rising demand for nickel sulphide product
Project
Offtake Financing Production
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has so far not yet responded
52% of the battery raw material
cathodes
next seven years, an unprecedented feat and counter to current trends – a new Kun-Manie every year!
combat utilisation of cobalt
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Sources: Nornickel Group, Reuters, Wood Mackenzie, UBS
term but anticipate a large long term deficit
needed to match anticipated demand by 2035
driver and anticipated to grow from 3% of total demand in 2018 to 33.7% by 2035, representing a CAGR of 17.4%
metal prices projecting them to exceed the US$12/lb mark by 2030
2027 and Consensus Economics estimate to exceed US$8/lb by 2024
5 6 7 8 9 10 11 12 13 14 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Nickel Price (US$/lb) Woodmac - nickel CRU - nickel Consensus Economics - nickel All forecasts predict a rise in the nickel price
Nickel Price Forecasts
Medium Term Nickel Market Balance, 2015-2023
A tight nickel market in the short / medium term Large long term deficit predicted
Nickel Metal Supply Gap 2015-2035
1.79 Mt
Source: CRU Consulting; Wood Mackenzie; Consensus Economics
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In development and moving towards BFS Production scheduled to start at the beginning of a sustained nickel supply requirement Strong management and Board with experience in project development in Russia Government support for the project and associated infrastructure Nickel to be the major component
batteries for many years Nickel price set to rise in line with rising EV demand No substitution for nickel in EV battery technology Ideally positioned to supply China, Korea and Japan, the biggest consumers of nickel
LOCATION
The largest proven nickel sulphide deposit in Asia PFS released in February 2019
tax NPV(10%) $614.5 million, post tax IRR 29.3%, total post tax free cashflow $2,041 million
tax NPV(10%) $987.4 million, posy tax IRR 34.7%, total post tax free cashflow $2,980 million
SUPPORT TIMING SIZE COMMODITY
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Robin Young, CEO Paul McKay, CFO info@amurminerals.com
Lindsay Mair Soltan Tagiev +44 (0) 20 3470 0470
Tim Blythe Megan Ray +44 (0) 20 7138 3203 @amur_minerals