ANNUAL GENERAL MEETING
- 30 MAY 201
Mark V Caruso Mark V Caruso MINERAL COMMODITIES LTD MINERAL - - PowerPoint PPT Presentation
Mark V Caruso Mark V Caruso MINERAL COMMODITIES LTD MINERAL COMMODITIES LTD Executive Chairman ANNUAL GENERAL MEETING - 30 MAY 201 8 DISCLAIMER AND COMPETENT PERSON STATEMENT DISCLAIMER AND COMPETENT PERSON STATEMENT The information in
Subject to any continuing
applicable law or any relevant listing rules of the ASX, MRC disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances
which any statement is
materials shall under any circumstances create an implication that there has been no change in the affairs of MRC since the date of this presentation. The information, if any, in this presentation which relates to exploration results or mineral resources for the Tormin Mineral Sands Project and the Munglinup Graphite Project is based on information compiled by Mr Adriaan du Toit, who is a Member of the Australasian Institute of Mining and Metallurgy (“AusIMM”) and an independent consultant to Mineral Commodities Ltd. Mr du Toit is the director and principal geologist of Aemco Pty Ltd and has over 26 years’ of exploration and mining experience in a variety of mineral deposits and styles. Mr du Toit has sufficient experience which is relevant to the style of mineralisations and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 201 2 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code, 201 2 Edition”). The information from Mr du Toit was prepared under the JORC Code, 201 2 Edition. Mr du Toit consents to inclusion in the presentation of the matters based on this information in the form and context in which it appears. The Ore Reserve referred to and used in this report was prepared by Mr Daniel Hastings, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Hastings is an employee of Hastings Bell Pty Ltd and a consultant to the Company. Mr Hastings has sufficient experience relevant to the type
deposit under consideration to qualify as a Competent Person as defined by the 201 2 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 201 2 Edition). Mr Hastings consents to the inclusion in the report of the matters based
The information in this report that relates to the Ore Reserve Statement, has been compiled in accordance with the guidelines
Mineral Resources and Ore Reserves (The JORC Code – 201 2 Edition). The information, if any, in this presentation that relates to metallurgy for the Munglinup Graphite Project is based
information compiled and reviewed by Mr David Pass, who is a Member of AusIMM. Mr Pass is an employee of Battery Limits Pty
and infrastructure design thereof to qualify as a Competent Person as defined by the JORC Code, 201 2 Edition. Mr Pass consents to the inclusion in the presentation of the matters based on the reviewed information in the form and context in which it appears. The information, if any, in this presentation which relates to exploration results, mineral resources or ore reserves for Xolobeni Mineral Sands Project is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geoscientists (“AIG”), a corporate member
independent consultant to Mineral Commodities Ltd. Mr Maynard is the director and principal geologist of Al Maynard & Associates Pty Ltd and has
experience in a variety of mineral deposit styles. Mr Maynard has sufficient experience which is relevant to the style
mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves” (JORC Code, 2004 Edition). This information was prepared and first disclosed under the JORC Code, 2004 Edition. It has not been updated since to comply with the JORC Code, 201 2 Edition on the basis that the information has not materially changed since it was last reported. Mr Maynard consents to inclusion in the presentation of the matters based on this information in the form and context in which it appears.
This document has been prepared by Mineral Commodities Ltd (MRC
presentation concerning MRC. This is not a prospectus, disclosure document or offering document. This document is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or
does it constitute investment advice, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Certain statements in this presentation are forward looking
use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “target”, “may”, “assume” and words of similar import. These forward looking statements speak only as at the date of this presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number
actual results, performances and achievements to differ materially from any expected future results, performance or achievements expressed or implied by such forward looking statements. No representation, warranty or assurance (express or implied) is given or made by MRC that the forward looking statements contained in this presentation are accurate, complete, reliable or adequate or that they will be achieved or prove to be correct. Except for any statutory liability which cannot be excluded, each
related companies and the respective officers, employees and advisers expressly disclaim any responsibility for the accuracy
completeness of the forward looking statements and exclude all liability whatsoever (including negligence) for any director in direct loss
which may be suffered by any person as a consequence of any information in this presentation or any error or
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(1)
(1) Share price at close of business 25 May 2018
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Iran Iran MRK PJSC
MRK PJSC
100% Corporate Entity Gold/Copper Cobalt/Nickel Zinc Potash/Lithium
MRC Exploration MRC Exploration Australia Pty Ltd Australia Pty Ltd
100% Corporate Entity Copper/Gold Channel Iron Ore Hard Rock Lithium/Pegmatites
MRC Graphite Pty Ltd MRC Graphite Pty Ltd
51% Ownership of Munglinup Graphite Project Graphitic Products
Transworld Energy & Minerals Transworld Energy & Minerals Resources (SA) (Pty) Ltd (RSA) Resources (SA) (Pty) Ltd (RSA)
56% Ownership of Xolobeni Mineral Sands Project Ilmenite
Mineral Sands Resources Mineral Sands Resources (Pty) Ltd (RSA) (Pty) Ltd (RSA)
50% Ownership of Tormin Mineral Sands Mine Zircon/Rutile Ilmenite Garnet
Flagship Projects Flagship Projects Location Location Resource Resource Interest Interest Status Status MSR Tormin MSR Tormin South Africa South Africa Mineral Sand Mine Mineral Sand Mine 50% 50% Commenced operation October 2013 Commenced operation October 2013 Identified potential extension of mine life Identified potential extension of mine life TEM Xolobeni TEM Xolobeni South Africa South Africa Mineral Sand Project Mineral Sand Project 56% 56% Rich Ilmenite Mineral Sands Deposit on the Eastern Rich Ilmenite Mineral Sands Deposit on the Eastern Cape of South Africa Cape of South Africa Munglinup Munglinup Australia Australia Graphite Graphite 51% 51% Planned Production Q4 2019 Planned Production Q4 2019 North West Exploration North West Exploration Australia Australia Gold, Copper, Lithium, Channel Iron Ore Gold, Copper, Lithium, Channel Iron Ore 100% 100% Commenced Drill Program at Doolgunna Commenced Drill Program at Doolgunna 4
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BUSINESS DEVELOPMENT
19 years mining experience Ok Tedi | Newcrest | Equinox Allied Gold | Silver Standard
TECHNICAL SERVICES MANAGER
21 years mining experience Atlas Iron | Nautilus Minerals | Ok Tedi Consolidated Rutile Limited
CFO
33 years mining & engineering experience Iluka | WMC Resources
NON-EXECUTIVE DIRECTOR GEOLOGIST
44 years mining experience BHP | Allied Gold | Placer Pacific Nord Resources
GEOLOGIST
26 years mining experience AngloGold Ashanti | Zamanco | Pangea BHP | Shaw River Manganese Barrick Gold Sinosteel Midwest Corporation
IRAN MANAGING DIRECTOR GEOLOGIST
21 years mining experience RioTinto | Normandy Mining
EXECUTIVE CHAIRMAN/ CHIEF EXECUTIVE OFFICER
37 years mining experience Allied Gold | FMG
MARKETING MANAGER
12 years mining experience Syrah Resources Black Mountain Minerals Holding 6
LEGAL COUNSEL
12 years legal advisory & mining experience Ashurst | Hancock Prospecting Pty Ltd
NON-EXECUTIVE DIRECTOR/ COMPANY SECRETARY
23 years corporate, governance & mining experience Allied Gold | Aditya Birla Minerals
NON-EXECUTIVE DIRECTOR/ MINING CONTRACTOR
50 years mining experience Simto Resources Ltd
TORMIN GENERAL MANAGER
20 years mining experience Mount Isa Mines | Xstrata Zinc | Sibelco Lafarge-Holcim
2016: US$27.1 million
2016: US$10.9 million
2016: US$3.8 million
2016: US$2.9 million
2016: US0.93 cents
(Interim: AU0.5 cents paid; Final: AU0.7 cents) 2016: AU1.2 cents
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Share Price $AU Share Price $AU
Closing Share Price Trendline for Closing Share Price
25 May 2018 1 February 2017 30 December 2017
2016: US$27.1 million
2016: US$10.9 million
2016: US$3.8 million
2016: US$2.9 million
2016: US0.93 cents
(Interim: AU0.5 cents paid; Final: AU0.7 cents) 2016: AU1.2 cents
LTI since commencement of operations
Original Original 2.7MT @ 49.7% THM Mined Mined 7.2MT @ 40.2% THM Revised Revised 1 .8MT @ 1 5.9%THM(1
)
0+ years life of mine extension
Eskom grid connection
resolution in 201 8
leadership pro mining development
(1) Refer to ASX release of 28 February 2018
geographically located near Richards Bay
346MT @ 5% THM
construction
Leadership is pro development of Xolobeni Project 8
Man-hours worked since last LTI 474,960 Lost Time Injuries ("LTI") 1
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Note: Note: average foreign average foreign exchange rate exchange rate for the 2017 year: for the 2017 year: AUD 1 to RAND 9.3 AUD 1 to RAND 9.3 USD 1 to RAND 12.0 USD 1 to RAND 12.0
Resource Resource Resource Resource Million Million Tonnes Tonnes Total Total Heavy Heavy Mineral Mineral 1 % Ilmenite Ilmenite % in % in Resource Resource Zircon Zircon % In % In Resource Resource Rutile Rutile % In % In Resource Resource Garnet Garnet % In % In Resource Resource
Indicated Resource
2.70 49.40% 10.60% 3.40% 0.70% 25.30% Tonnes Mined Tonnes Mined - 2014 2014 1.07 1.07 53.83% 53.83% 17.26% 17.26% 4.76% 4.76% 0.65% 0.65% 31.16% 31.16%
Inferred Resource
2.70 38.14% 10.05% 2.21% 0.46% 25.22% Tonnes Mined Tonnes Mined - 2015 2015 1.62 1.62 49.57% 49.57% 16.15% 16.15% 3.88% 3.88% 0.60% 0.60% 28.94% 28.94%
Inferred Resource
2.70 28.01% 6.97% 1.56% 0.55% 18.54% Tonnes Mined Tonnes Mined - 2016 2016 1.81 1.81 45.97% 45.97% 12.97% 12.97% 2.78% 2.78% 0.61% 0.61% 29.21% 29.21%
Inferred Resource
1.80 28.80% 6.15% 1.65% 0.53% 18.99% Tonnes Mined Tonnes Mined - 2017 2017 2.05 2.05 27.57% 27.57% 5.81% 5.81% 1.10% 1.10% 0.50% 0.50% 19.40% 19.40%
Inferred Resource
1.80
2
15.92% 2.72% 0.79% 0.43% 11.45%
Tonnes Mined Tonnes Mined - 2018 YTD 2018 YTD March 2018 March 2018
0.66 0.66 18.48% 18.48% 3.14% 3.14% 0.64% 0.64% 0.40% 0.40% 13.94% 13.94%
(1) Includes other valuable minerals e.g. Leucoxene and Magnetite (2) 5% Heavy Mineral cut
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Production Tonnes Production Tonnes - Gross Gross 2014 2014 2015 2015 2016 2016 2017 2017 Garnet Conc 254,816 284,990 270,802 435,590 Ilmenite Conc 100,437 109,959 211,704 217,019 Zircon/ Rutile Conc 42,668 44,489 35,813 22,111 Total Total 397,921 397,921 439,438 439,438 518,319 518,319 674,720 674,720
30.17% on 30.17% on Prior Yr Prior Yr
Production Tonnes Production Tonnes - Net Net 2014 2014 2015 2015 2016 2016 2017 2017 Garnet Conc 254,816
(1) (1)
284,990 (1)
(1)
254,693 211,394 Ilmenite Conc 100,437
(1) (1)
109,959(1)
(1)
162,123 138,913 Zircon/ Rutile Conc 42,668 44,489 35,813 22,111 Total Total 397,921 397,921 439,438 439,438 452,629 452,629 372,418 372,418(2)
(2)
17.72% on 17.72% on Prior Yr Prior Yr (1) In 2014 and early 2015, concentrates were stockpiled on the beach. Losses resulting from tidal erosion have not been quantified (2) Does not include a substantial build-up in available Heavy Mineral Concentrate stockpiles of 103,379 tonnes
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Sales Tonnes Sales Tonnes 2014 2014 2015 2015 2016 2016 2017 2017 Garnet Conc
130,308 243,962 Ilmenite Conc 21,920
282,098 Zircon/ Rutile Conc 42,042 45,240 38,408 23,152 Total Total 63,962 63,962 337,712 337,712 172,786 172,786 549,212 549,212
217.86% on 217.86% on Prior Yr Prior Yr
Stockpile Tonnes Stockpile Tonnes 2014 2014 2015 2015 2016 2016 2017 2017 Heavy Mineral Conc 85 914 228 93,421 Garnet Conc
(1) (1)
17,536 303,050 543,839 684,882 Ilmenite Conc 24,097 84,085 182,785 31,042 Zircon/ Rutile Conc 1,791 2,476 1,280 500 Total Total 43,508 43,508 390,526 390,526 728,132 728,132 806,249 806,249
(1) Total tonnes - Tormin, Koekenaap, Saldanha Bay, in transit or held on behalf of third party under the offtake agreement
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Area/Location Area/Location Type of Type of Right Right Status Status Applied Applied
Graauwduinen Graauwduinen Prospecting Prospecting Under Application Under Application 22 22-Dec Dec-16 16 Geelwal Karoo Geelwal Karoo Prospecting Prospecting Under Application Under Application 22 22-Dec Dec-16 16 De Punt De Punt Prospecting Prospecting Under Application Under Application
Bank Guarantee submitted, Bank Guarantee submitted, Environmental Environmental Authorisation Issued Authorisation Issued
8-Apr Apr-16 16 Klipvley Karookop Klipvley Karookop Prospecting Prospecting Under Application Under Application 19 19-Sep Sep-16 16 Geelwal Karoo Inland Geelwal Karoo Inland Section 102 Section 102 Expanded Expanded Mining Mining Right Right Application Application Under Application Under Application
Scoping Report Submitted Scoping Report Submitted
20 20-Mar Mar-18 18 Northern Beaches Northern Beaches
MINING ONSHORE DEPOSIT ALLOWS BEACH TO REPLENISH MINING ONSHORE DEPOSIT ALLOWS BEACH TO REPLENISH
Section 102 EMP Area
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(1)production of:
):
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(1) Specific annual production guidance will be provided upon completion of the Tormin Expansion Pre
esent expected capacity only.
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graphite deposit
5.9% TGC (201 2 JORC compliant)(1
)
directions
available nearby
adding processing optionality currently being assessed
(1) Refer to ASX releases of 30 May 2018
)
capital costs
and flake distribution scenarios
39m(1
) Midcase
(2)
completed
201 8
Q4 201 8
201 9
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(1) Refer to ASX release of 30 May 2018 (2) Subject to final decision to proceed and assumes no EPBC or EPA review requirement
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05km west by sealed road from the port of Esperance
process testing
5.3% TGC (1 0% cut-off) with mineralisation open in all directions(1
)
concentrate (>98% TGC)(2)
8 months
Status
development strategy
costs quartile for global flake graphite deposits
(1) Refer to ASX releases of 11 and 13 September 2017 (2) Refer to ASX releases of 8 February 2018 and 15 March 2018
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)(2)
)
)
)
)
)
)
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(1) Refer to ASX releases of 30 May 2018 (2) Discount rate of 8% real after tax
(% TGC)
(US$m) (US$/t)
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Traditional markets are still the main source of demand. Demand in the battery market is growing however overall the battery market remains relatively small. Canaccord estimate the market for natural graphite to grow from ~640ktpa in 201 5, ~1 .1 Mtpa in 2020, and to +2.0Mtpa by 2025, representing CAGR’s of 5% and 1 2% respectively. Demand growth is driven by batteries. Graphite prices are up 32 to 38 per cent year on year depending on flake size due to:
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production of battery anode material at Kwinana using high grade Munglinup concentrate
graphite production
2 months due to extensive battery cycle testing requirement
thermal purification and spheroidisation for battery anode applications
and US$3,850 depending on size of particles
* facility in Kwinana already fully permitted with easy access to infrastructure and other requirements
* BenchmarkMineral Intelligence Feb2018 ** ASXReleasedated 13 th Dec 2017– MOU with Doral – Spheroidisation & Purification of Graphite
commenced
test work underway to determine exact Munglinup product specifications for various markets
bulk marketing sample (+200kgs) commenced in Q1201 8
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planes
expanded graphite
infrastructure and other requirements to produce pre-treated graphite for expandable markets
suffocation
buildings
* ASXReleasedated 13 th Dec 2017– MOU with Doral – Spheroidisation & Purification of Graphite. ** ASXReleasedated 8 May 2018- Munglinup expandable graphite testwork resultspositive
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Scanning Electron Microscope photo
expanded Munglinup Graphite
concentrate can be used to produce graphene. First set of detailed results expected late May
products
composites and construction additives (green concrete)
conductivity, elasticity, transparency), typically in a matrix/composite
to few layers
pristine (low defects) graphene targeted
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8 US$1 .0m(1
)
diversification
areas
gas infrastructure
(1) Subject to exploration approval
Five applications have been made
YANDEYARRA
8(1
)
GLEN FLORRIE
8(1
)
DOOLGUNNA
/1 766
CAVE HILL
/1 867
) (2) (1) Subject to granting (2) Remaining 2018 Budget of US$0.5m for a total 2018 Budget of US$1.0m
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Executive Management have set investment criteria in which each project is currently under review
7 MRC
Tehran
has been formed
Investment Licence is under review
Currently undertaking a review of circa 31 projects in Iran with the following commodities:
US$2.0m expenditure budgeted for 201 8 TUZLAR PROJECT
.1 m ASBKHAN GOLD PROJECT
SEMNAN
IMPASCO
ALB TALKHAN
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FOR AGAINST ABSTAIN CHAIRMAN’S UNDIRECTED VOTES
(CHAIRMAN’S DISCRETION)
UNDIRECTED VOTES
(OTHER PROXY HOLDER'S DISCRETION)
RESOLUTION 1 Adoption of Remuneration Report 170,640,081 111,371,916 25,945 453,234 2,353 RESOLUTION 2 Re-election of Director - Mr Joseph Caruso 365,080,855 190,890 21,219 453,234 2,353 RESOLUTION 3 Re-election of Director - Mr Peter Torre 365,080,935 190,810 21,219 453,234 2,353