Low Cost Tungsten & Tin Producer Building one of the worlds - - PowerPoint PPT Presentation

low cost tungsten tin producer
SMART_READER_LITE
LIVE PREVIEW

Low Cost Tungsten & Tin Producer Building one of the worlds - - PowerPoint PPT Presentation

Low Cost Tungsten & Tin Producer Building one of the worlds largest tungsten mines AIM : WRES November 2019 Disclaimer This presentation was prepared by and is the property of W Resources Plc (W Resources or the Company) . No


slide-1
SLIDE 1

Low Cost Tungsten & Tin Producer

Building one of the world’s largest tungsten mines AIM : WRES November 2019

slide-2
SLIDE 2

Disclaimer

This presentation was prepared by and is the property of W Resources Plc (“W Resources” or “the Company”). No reproduction or distribution this material is permitted to companies or individuals outside of those for whom this is intended. No agents, brokers or investment banks are authorised to present this material to other parties for the purpose of soliciting potential clients or transactions of any kind without prior consent to do so. While the Company is not aware of any inaccuracies, no warranty or representation is made by the Company or their respective employees and representatives as to the completeness or accuracy of the information contained herein. The Company, JLSI and their respective employees and representatives expressly disclaim any liability for damages, direct or consequential, arising out of or related to this presentation or omissions there from, or any other information provided in writing, orally or

  • therwise regarding this potential transaction. Any party considering a transaction with the Company agrees to look solely to its own due diligence and any

representations, warranties and/or covenants set forth in a fully-executed, definitive written agreement with the Company relative to the transaction. Certain matters discussed in this presentation are “forward-looking statements”. These forward-looking statements can often but not always be identified because the context of the statement will include words such as “the Company expects,” “anticipates” or words of similar import. Similarly, statements that describe the Company’s capabilities, future plans, objectives or goals are also forward-looking statements. Such forward looking statements are subject to significant risks and uncertainties, including the financial performance of the Company and the viability of its technology. These risks could cause actual results to differ materially from those currently anticipated. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. Potential investors, customers, suppliers and other readers are urged to consider this factor carefully in evaluating any forward-looking statements. Forward-looking statements made herein are only made as of the date of this presentation and the Company undertakes no obligation to update such forward looking statements to reflect subsequent events or circumstances. Technical information in this presentation has been prepared and approved for inclusion by Mr Fernando de la Fuente, who is a “qualified person” in respect of the AIM Rules for Companies with over 44 years experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and a MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists (Number 49), the Spanish Society of Mineralogy, founder member

  • f the Spanish Society of Geology, member of the Spanish Association of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy and

Exploration, Inc., member of PDAC. The press releases relating to the initial announcements of the technical disclosures in this presentation can be found on the Company website (www.wresources.com). The relevant announcement dates are La Parrilla (25 August 2017, with full FID report on website), Régua (27 October 2015) and São Martinho (8 June 2016).The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

2

slide-3
SLIDE 3

Overview

La Parrilla Régua Tarouca São Martinho

SPAIN PORTUGAL

Madrid Lisbon Porto Seville

Tarouca, Portugal: Former tungsten / tin mine advanced exploration progressing

La Parrilla Mine, Spain: Open-pit tungsten mine development – 2,700 tpa (“T2”) expanding to >4,000 tpa (“T3.5”) JORC Resource of 49mt @ 0.100% WO3 Concentrate JORC Reserves of 29.8mt total

  • Proven 1.2mt @

0.0995% WO3

  • Probable 28.6mt @

0.0928% WO3

  • Total 29.8mt @

0.0931% WO3

Régua, Portugal: Underground tungsten mine development - 1,300 tpa WO3 Concentrate JORC Resource of 5.46mt @ 0.28% WO3 São Martinho, Portugal: Trial Mine Application 111,987oz contained gold; significant upside

Michael Masterman - Chairman

Founding Shareholder & GM - Fortescue Metals Group 8 Years - McKinsey & Company CEO - Po Valley Energy and CFO - Anaconda Nickel

Fernando de la Fuente - Country Manager Spain

Anglo American Corporation Rio Algom (Rio Tinto) Phelps Dodge

Aaron Szumilak - Metallurgist & Process Engineer

Fortescue Metals Group Syncrude Composites Innovation Centre

Juan Garcia Valledor - La Parrilla Operations Manager

Rio Tinto Imerys Groups

W Resources Management Team +130 years of experience

Focus:

Tungsten & tin - production, development & exploration in Spain & Portugal

Major Projects:

Tungsten - La Parrilla, Régua, Tarouca Copper Gold - São Martinho

3

slide-4
SLIDE 4

La Parrilla – Key parameters

Low Cost

US$94/mtu

Large Scale

49mt+

Long Life

11+ years

Simple Low

Cost processing

In Production European / USA

Offtake > 80%

4

slide-5
SLIDE 5

La Parrilla - In Production

5

  • La Parrilla completed below budget
  • Production has commenced and will expand to 200t of concentrate per month (net US$3m p.m)
  • La Parrilla expansion creates the foundation for substantial EBITDA and value growth
  • Full support from local authorities with a €5.3m grant
  • BlackRock US$35 million financing
slide-6
SLIDE 6

Building a world class tungsten company

6

ROM Tungsten Capital EBITDA* Timing La Parrilla T2 2.0 Mtpa 2,700 tpa €27.8m US$20.0m Q3 2019 + €20.0m US$20.0m = La Parrilla T3.5 3.5 Mtpa 4,000 tpa €47.8m US$40.0m 2021 Régua 0.1 Mtpa 1,000 tpa €6.0m US$ TBA Q1 2020

* FID Study 3 Year Average published 25 August 2017

slide-7
SLIDE 7

Tungsten – World’s hardest metal with highest melting point

Source: ITIA – Tungsten End Use Analysis 2017

7

Primarily used to make tungsten carbide for cutting tools such as drill bits and machining tools One of the hardest man made materials when mixed with carbon to form cemented tungsten carbide Auto industry is a heavy tungsten user - tyre studs, ball joints, brakes, crank shafts & other parts that see hard usage Highest melting point, lowest vapour pressure of any naturally occurring metal

slide-8
SLIDE 8

High demand, tight supply

(1) Source: International Tungsten Industry Association (2) Source: Roskill

China consumed 60%

  • f world production in

2016, up from 30% in 1996 (2) Current global tungsten demand is approximately

80,000tpa (1)

Supply shortages are expected resulting in

upwards trending price 2022 & beyond

Demand for tungsten has grown 4% per year for the past 10 years

8

slide-9
SLIDE 9

Low operating & capital costs

50 100 150 200 250 300 350 % of total output

China Molybdenum China by-product La Parrilla Nui Phao† China China Drakelands Los Santos Minmetals Jiangxi Tungsten Ind Group Mittersill Chongyi Zhangyuan Xiamen Tungsten Panasquiera China China China 2018 Average WO3 Concentrate Price ($260 / mtu) (1) Source: Argus

Global Tungsten Production Cost Curve Capital Costs - US$m

85 94 117 155 Núi Pháo La Parrilla Barruecopardo Drakelands

Unit Operating Costs - US$ / mtu Low Cost Drivers

  • Excellent location
  • Open-pit mine – limited pre-strip
  • Low cost gravity separation circuit
  • “Fit for purpose” plant
  • Scaled and sensible staging
  • Primary infrastructure already in place

− Power connection − 7km to main highway − Quality water supply

(1) Assuming a 20% discount to the 2018 average European APT tungsten price of US$325 / mtu (Source: Metal Bulletin)

La Parrilla

9

SPAIN SPAIN UK VIETNAM VIETNAM SPAIN SPAIN UK

47 60 250 450 La Parrilla Barruecopardo Drakelands Núi Pháo

slide-10
SLIDE 10

La Parrilla - Strategically located

  • 7km from Seville / Madrid highway
  • Access to quality water supply
  • Established infrastructure
  • Facilities and on-site laboratory operational
  • Connected to the Spanish power grid
  • Short trucking distance from Atlantic & Mediterranean ports

Process Plant Infrastructure Initial Mining Area Operational Tailings Dam

Madrid / Seville Highway

10

slide-11
SLIDE 11

La Parrilla – Plant Complete

11

Initial Mining Area Crushing Plant Concentrator Plant Site Offices Jig&Mill Plant Laboratories

slide-12
SLIDE 12

12

La Parrilla – Mineralisation

  • The thickness of the veins varies from a fraction of a millimetre to more than 3m, with an average of

about 10cm

  • The reefs are arranged in a series of packages of 10m to 45m in width and showing a good

continuity up to 300m deep and several hundred meters in the direction

slide-13
SLIDE 13

13

La Parrilla – Mineralisation

Mineralized quartz veins contain scheelite (often coarse-grained), arsenopyrite, cassiterite, muscovite, and smaller amounts of wolframite, pyrite, tourmaline Greisenized granite fingers show high-grade intersections of up to 55 m at 0.73% WO3

slide-14
SLIDE 14

La Parrilla - Mining operations

14

Infrastructure created:

  • Ramp access to RoM Pad
  • Contractor platform
  • Main access track

Mine equipment in situ First blasting carried out

slide-15
SLIDE 15

La Parrilla - Simple open pit mining & processing

Open Pit Mining Mining Underway Crushing & Screening Plant 350tph - €3.2m Commissioned & Operational Crushed Ore Bin 6,000t - €300k Fully Operational Jig & Mill Pre-Concentration Plant 350tph - €5.5 Commissioned on Ore Shaking Table Cleaning 12tph Spiral Concentration 155tph Sulphide Flotation 3tph Electrostatic Separation 0.5tph

15

slide-16
SLIDE 16

La Parrilla - In production

Crusher Plant Operating at Design

16

slide-17
SLIDE 17

La Parrilla - 3D Model of crusher

17

Completed Design

slide-18
SLIDE 18

La Parrilla - In production

Jig & Mill Plant Operating Near Design

18

slide-19
SLIDE 19

La Parrilla - In production

Concentrator Commissioning Commenced

19

slide-20
SLIDE 20

La Parrilla - In production

LNG Power Station Commissioned & Delivering Power

20

slide-21
SLIDE 21

La Parrilla - In production

Production Start

21

slide-22
SLIDE 22

La Parrilla - In production

Shipments Underway - Payment at Mine Gate

22

slide-23
SLIDE 23

Development timeline - nearing completion

23

Crusher Plant Completion First Shipments Crusher Plant First Ore Jig & Mill Plant Completion Jig & Mill Plant Commissioning Production Underway Concentrator Plant Completion Ramp-up to T2 Production

       

slide-24
SLIDE 24

Project financial overview

24 PRODUCTION Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 RoM Feed Rate (kt) 2,004 2,004 3,200 3,477 3,500 3,489 WO3 production (MTU) 184,265 181,496 236,051 279,409 252,073 253,274 SN production (t) 125 138 363 274 272 241 Tungsten price - APT (US$ / MTU) 245 263 288 313 313 313 Tin price (US$ / t) 18,500 19,500 20,000 20,000 20,000 20,000 INCOME STATEMENT Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Net Revenue 34,001 36,055 53,819 66,480 60,326 60,152 Opex (18,784) (17,445) (30,360) (24,261) (20,517) (21,160) EBITDA 15,216 18,610 23,460 42,219 39,808 38,992

Source: Financial Investment Decisions Report summary as announced on 25 August 2017. Note: Assumes Argus Forecast for tungsten APT price; Note that all debt figures and related coverage ratios are for illustrative purpose only

(US$000’s)

slide-25
SLIDE 25

4.9x 4.0x 3.2x 13.6x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x Year 1 Year 2 Year 3 Year 4 Year 5 CFADS / Interest Expense

Key project financial metrics

Key Financials Leverage Interest Coverage Operating Cash Flow

($ in millions)

1.8x 1.4x 1.1x 0.0x 0.0x 0.2x 0.4x 0.6x 0.8x 1.0x 1.2x 1.4x 1.6x 1.8x 2.0x Year 1 Year 2 Year 3 Year 4 Year 5 Total Debt / EBITDA $17.6 $20.0 $24.2 $42.8 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Year 1 Year 2 Year 3 Year 4 Year 5 Operating Cash Flow

Source: Financial Investment Decisions Report summary as announced on 25 August 2017. Note: Assumes Argus Forecast for tungsten APT price; Note that all debt figures and related coverage ratios are for illustrative purpose only

25

38.0 40.3 60.1 74.2 67.4 15.2 18.6 23.5 42.2 39.8 10 20 30 40 50 60 70 80 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Gross Revenue EBITDA

slide-26
SLIDE 26

Régua tungsten project - Portugal

26

Low Capital Cost

€4-6m

High Grade 0.3%

3 times LP

Long Life

20+ years

Simple Low

Cost processing

First Ore

Q1 2020 Low cost

underground mining using adits

slide-27
SLIDE 27

Régua

27

  • High-grade, low-capital cost development with significant scope to increase the resource base
  • Contract signed for ore haulage and crushing at Régua with Francisco Pereira Marinho Imaos
  • Existing Concentrator Plant at La Parrilla to be moved to Régua in Q4 2019
slide-28
SLIDE 28

Régua – Low capital cost development

28

slide-29
SLIDE 29

São Martinho, Portugal - gold resources

São Martinho Gold Project

  • JORC resource estimate 3mt @ 1.04g/t gold containing 111,987oz
  • SMD-009 intersection: 56.4m grading 2.34 g/t gold from surface
  • Near term target 250,000oz

29

slide-30
SLIDE 30

Management team +130 years of experience

30

Celestino Parejo Government Relations / Mining Mining engineer with over 30 years’ experience in the technical direction

  • f mining projects

in the Extremadura region of Spain and internationally Fernando de La Fuente General Manager Geologist with more than 43 years’ experience in the exploration and mining geology industry in Europe, Africa and North America and Latin America Mechanical process engineer with 10 years’ experience in mineral processing and resource

  • development. Aaron

has worked for Fortescue Metals Group, Syncrude and Composites Innovation Centre. Aaron Szumilak Metallurgist & Process Engineer Michael Masterman Chairman Mr Masterman has an exceptional track record in establishing and financing new resources companies. He has been a founding shareholder at Fortescue Metals Group, Po Valley Energy & Atacama Metals Juan Garcia Valledor Operations Manager Mining Engineer with 25 years of experience in management of industrial processing plants and design, planning, management and rehabilitation of open pit mines

slide-31
SLIDE 31

%

  • M. Masterman*

17.58 Beronia Investments Pty Ltd (B. Pirola)** 5.00 Miton Group 3.25

Substantial Shareholders (15 November 2019)

Corporate snapshot

31 Michael Masterman – Chairman Byron Pirola – Non Executive Director David Garland – Non Executive Director Jim Argalas – Non Executive Director Pablo Neira – Non Executive Director

Board of Directors Share Price Performance (29 Aug 18 to 29 Aug 19) Financial Information (31 October 2019)

Share price 0.37 GBX 52 week range 0.32 - 0.59 GBX Number of shares (undiluted) 6,288,427,640 Outstanding Warrants 779,033,998 Market Capitalisation £23.27m / US$29.02m Cash US$170k * Debt US$45.8m

* Includes Symmall Pty Ltd ** Includes related party interests Price GBX

0.35 0.4 0.45 0.5 0.55 0.6 0.65 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19

* Cash figure prior to recent placing

slide-32
SLIDE 32

Why invest in W Resources?

Construction

Funded

Large low

cost mines

Construction

Completed

Skilled ‘can do’ team Significant earnings growth from 2019 Broker valuations

US$70-80m vs US$37m market cap

32