Metals Processing Emin Eyi Al Al Lawati CEO SPMP CFO SPMP - - PowerPoint PPT Presentation

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Metals Processing Emin Eyi Al Al Lawati CEO SPMP CFO SPMP - - PowerPoint PPT Presentation

Strategic & Precious Metals Processing Emin Eyi Al Al Lawati CEO SPMP CFO SPMP Lisbon, May 19 th 2016 Disclaimer The information contained in this document (Presentation) has been prepared by SPMP (the Company). While the


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Strategic & Precious Metals Processing

Emin Eyi Al Al Lawati CEO SPMP CFO SPMP Lisbon, May 19th 2016

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Disclaimer

The information contained in this document (“Presentation”) has been prepared by SPMP (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or 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.

This Presentation may contain forward-looking statements that involve substantial risks and uncertainties, and actual results and developments may differ materially from those expressed or implied by these statements. These forward-looking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as of the date of this Presentation and the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Presentation.

This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary.

Neither this Presentation nor any copy of it may be (a) taken or transmitted into Australia, Japan, the Republic of Ireland, the Republic of South Africa or the United States of America (each a “Restricted Territory”), 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 a Restricted Territory 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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Welcome to SPMP

CORE VALUES

Environment: Protection of our permits and our environment.

Our People: Protection and health of our people and community.

Integrity: In dealings with all those that interact with us.

Excellence: In technology, innovation, quality and service.

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Our Partners

 The People of Oman  Our shareholders & banks  Our EPCM Engineers  Our Trading Partners – suppliers & consumers  Our Community local and international both in

antimony & in gold

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Introduction to the Oman Antimony Roaster (OAR)

Located in Sohar Freezone in Oman.

50,000 tonne per annum feedstock capacity modern antimony roaster, with easy future scalability built into design & layout.

Designed to the best available technologies and above to produce cleanly, high quality antimony metal and products for the international and growing GCC market place

Gold recovery capabilities designed in with modern better than BAT waste management.

Low cost energy sources, zero tax, zero duties and modern industrial infrastructure to support industrial mineral processing businesses of scale.

Modern and large scale industrial waste management facilities near site, allowing for a truly clean and environmentally compliant manufacturing process to highest international standards to be achieved full cycle.

Funded and permitted

EPCM awarded to Worley Parson Oman Feb 2016 with expected commissioning Q3 2017.

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Oman resources industry

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Oman Strategic Location

 Location.  Availability of raw materials  Politic Stability.  Infrastructures.  Open investment policies.

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MAGAN Early Oman Commodity transporting vessel and civilisation. Sohar was

  • nce the richest city in the region during the Bronze Age

Magan vessel carrying copper buns for trade with Mesopotamia Source of tin to make bronze remains a mystery (Cornwall?) Traders funded by Temples who charged 20% - 33% rates 5,000 years ago. Sohar once the richest settlement in the Gulf based on copper trade. Developed specialist smelter skills to double smelt ‘black copper’ ores and import tin to make bronze. Traded with Indus, Europe &

  • Mesopotamia. Ended when Turkey had more firewood

and sourced copper from Cyprus.

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Oman today

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Minerals in the National Economy

 The Government policy document “Vision 2020” states that

industrial diversification can be an instrument to achieve the development targets set by the Government. Also, in the These targets include increasing the contribution of the non-oil sectors. Minerals sector on of the government focuses. As a result numbers of minerals plants corporations come up like :-

 Oman is the second largest country after Saudi Arabia in the GCC

region with an excellent geology of minerals

 Oman’s mining industry is an important sector in the country’s

diversification program.

Oman is the first GCC producer and exporter of ferrochrome.

 Oman is home to large deposits of gypsum, limestone, marble and

  • ther carbonate-based minerals.

 The discovery of deposits of copper, chromite has attracted foreign

investments over the last few years

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Vision 2020 continued

The Government policy document “Vision 2020” states that industrial diversification can be an instrument to achieve the development targets set by the Government. Also, in the These targets include increasing the contribution of the non-oil sectors. Minerals sector on of the government focuses. As a result numbers of minerals plants corporations come up like :-

 Aluminium  Chromium  Antimony  Copper and Gold  Iron and Steel  Manganese 

MDO ‘Minerals Development of Oman’ – precursor to a major resources renaissance in and around Oman.

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Environment our First Priority

 SPMP believes that responsible environmental

management and superior environmental performance is integral to an efficient and successful company.

 This will be achieved through leadership and the use of

a superior Environmental Management System (EMS) to provide reliable, timely and accurate information.

 Reporting in a transparent manner, to support effective

decision making.

 Access, review and challenge BAT to be “Better than

BAT”

 To set environmental objectives to be achieved though

construction and SPMP operations

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True Sustainability

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Foundations of True Sustainability

 Identify legal standards and obligations:

Local/EU/EPA/WHO and aim to beat the best

 Access all available technologies that don’t just meet

standards but aim to beat them

 Develop creative processes that are “Better than BAT”

for long term stability in operations

 Store, recycle and reuse is better than disposal  Insert environmental considerations into all aspects of

the company’s activities

 Supporting supplier operations to develop superior,

responsible and environmentally compliant systems to provide superior provenance

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Social

 Our families, communities and wider stakeholders are

the engine of SPMP and its growth

 A Clean and Safe Environmental which all stakeholders

live and work are one of the foundations that make SPMP operations truly sustainable

 Long term welfare, health and support are interlinked

with the other pillars of sustainability

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Environment

ISO 14001 compliant ensuring best practice throughout the company. The key elements

Environmental commitment by SPMP through the Environmental Policy

Environmental planning to identify objectives and standards to be achieved by SPMP and stakeholders

Implementation and operation identify, plan and manage the

  • perations and activities in line with the policy,

Monitor objectives, targets, and significant aspects of operations taking corrective action if necessary

Identify and create new systems allowing all stakeholders input to be “Better then BAT”

Safeguard the Environment and stakeholders for generations

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Economic

 Maintaining a healthy balance with the environment  Creating wealth for stakeholders whilst preserving

ability for future generations to access wealth

 Developing and investing in future generations to

maintain systems

 Ensuring fair trade for materials to develop peripheral

stakeholder communities

 Ultimately, transmitting these values through to

customers through branding and service

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Summary

 SPMP meeting the best standards (EU/EPA/WHO/OMAN) 

Dynamic Environmental Management Systems

 Technology and Process better than BAT driven  Sociably acceptable from sources to sink  Environment at the core of business ISO 14001  Economic growth support for social and environmental

growth

 True Sustainability

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SPMP Technical Approach

Differentiation of SPMP technical approach to branding, sustainability and provenance.

  • Safety. No harm to anyone in the pursuit of our goals.

Sustainability of operational effectiveness over entire product life cycle, long term contract.

Procurement under transparent conditions, HSE provenance of feedstock, diligence and assessing supplies.

SPMP Product Branding - Safety In Design - QAQC

Long-term sustainability and provenance of waste disposal in coordination with Oman authorities.

Maximum efficiency to recovery all potential products. Minimisation of waste production.

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Quality lead by design & testing

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Technical ‘the future’

 Long journey with many due diligence reviews and

technical milestones achieved successfully

 Technical direction driven by:

 Safety  Efficiency  Environmental BAT and better  Low Emissions  Sustainability  Branding & Quality – by Design  Provenance through diligence  Learning to improve for the future - Refractory Gold

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WorleyParsons in brief

Global, Oman and South Africa

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Our global business

  • Major Projects | focusing on

large complex projects and

  • ffering selective delivery in

PMC, EPCM, EPC.

  • Services | delivering locally

based on a deep understanding

  • f local markets and customers’

expectations.

  • Improve | optimizing the

performance of operating assets.

  • Advisian | WorleyParsons

consulting combining commercial and technical expertise.

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WorleyParsons in brief

WorleyParsons 134 offices | 44 countries | 28,300 people Europe Middle East and Africa (EMEA) 9 locations | +6,500 people WorleyParsons Oman 2 offices | +1,000 people WorleyParsons RSA 15 offices | + 900 people

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WorleyParsons Oman – in brief

Focused on achieving In-Country Value and supporting the development of Oman

Multiple customer sector business:

Hydrocarbons

Power

Minerals, Metals & Chemicals

Infrastructure & Environnent

Complete project lifecycle capability:

Concept, FEED, detailed design, construction, commissioning , maintenance and operations support

In-Country delivery with support of WorleyParsons’ global delivery centers

Recognized Omanisation leader

EPCM, EPC and PMC execution models

1000

people

25+

Years of expertis e

140

Process engineers

50+

pipeline specialists

15m+

engineering manhours since 1992

2

Offices: Muscat & Sohar

50+

EOR Projects

50+

pipeline specialists

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WorleyParsons RSA - in brief

Over 35+ years of operations in Minerals, Metals and Chemicals (MMC) sector

RSA considered a centre of excellence for:

precious metals processing and underground mine development;

Minerals, Metals & Chemicals project delivery centre in Sub Saharan Africa

Acquisition of TWP in 2013 made WorleyParsons RSA one of the largest specialised EPCM companies in Africa

Complete project lifecycle capability across the mining value chain from “Exploration and Evaluation” to “Environment and approvals”;

Strong expertise in power and infrastructure as well as hydrocarbons in the region;

1,500+ refining, chemicals and petrochemicals projects

100+ years of experience in Power

+90

people

35+

Years of expertise in MMC

30+

mega mining projects run from RSA

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  • ffices

850k

engineering manhours in MMC in FY2016

60+

years of expertise in Hydrocarbons

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The Mining Value Chain supporting customers at every step of the way

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Quick look back at our Benchmarking analysis – March 2015

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Industry Cost Curve

Without by product credits

85% of industry cost curve point requires a sustainable metal price of U$9,300/t based

  • n current global energy prices

and current U$ strength (weakness in producer currencies). Both could change to lift this 85% point higher in future. Therefore, the future sources will require precious metal co- values to prosper, or prices will have to sustainably above the 85 percentile.

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Antimony price cycles in the past

The Industry destocking fears (Fanya and global markets) is reminiscent of the destocking after WW1 where Sb metal in ammunition stocks brought prices down to 5c/lb, it settled to 8c/lb after the stock fears (kind of where we are heading to now) and was volatile thereafter rising to 19c/lb following

  • year. The actual units don’t matter, but the trough to peak of 3.8x is worth
  • remembering. This last peak to trough cycle has also been a 3.8x.

Compared with Copper since 1900, the average ratio of 1.5x is presently at 1.0x despite Sb being 300x more scarce than copper.

Compared with Gold since 1897 required 8.7 ounces of gold to buy a tonne of antimony, today its nearer 4.7 ounces – all time lows.

Clearly, industry cost push cannot be ignored for long.

However, the Demand price resistance is just as important a Governor on the future long-term price for Antimony…..unless it is finds or improves the value added uses in the future.

The relative cheapness of Sb compared to its much higher scarcity has left it in a commoditised demand segment (5x more scarce than tungsten for example and by far a greater diversity and ubiquitous uses).

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Future Sources – regional example

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Future Consumers – regional example

  • Middle plastics production growth CAGR +8%pa 2020,

chemicals basin c 11% world market share.

  • Indian polyester production to double by 2030
  • Indian plastics industry CAGR +13% pa past 5 years
  • 3rd largest consumer of polymers behind China & USA

+16% pa

  • Indian plastics consumes only 10kg per capita 2015,

China 38 kg, Europe +100 kg.

  • Yet, Indian plastics production still only represents 3% of

world plastics capacity, major new capacity increases ahead.

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Thank you www.spmp.co.om

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