Morien
Resources Corp.
TSX-V: MOX www.MorienRes.com June 2017
2017 Annual General Meeting
Superior Assets è Highly Disciplined Strategy
Morien Resources Corp. 2017 Annual General Meeting Superior Assets - - PowerPoint PPT Presentation
Morien Resources Corp. 2017 Annual General Meeting Superior Assets Highly Disciplined Strategy TSX-V: MOX www.MorienRes.com June 2017 Forward Looking Statements Some of the statements made by Morien Resources financial markets or general
Resources Corp.
TSX-V: MOX www.MorienRes.com June 2017
2017 Annual General Meeting
Superior Assets è Highly Disciplined Strategy
Forward Looking Statements
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Some of the statements made by Morien Resources
"forward-looking information" as defined under applicable securities laws. These statements reflect Morien's current expectations of future revenues and business prospects and opportunities and are based on information currently available to Morien. Morien cautions that actual performance will be affected by a number of factors, many of which are beyond its control, and that future events and results may vary substantially from what Morien currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include risks and uncertainties described in Morien’s annual information form filed with the Canadian Securities regulators on SEDAR (www.sedar.com). Morien cautions that its royalty revenue will be based
manner and timing for the properties forming part of Morien’s royalty portfolio. These third party owners and operators are also subject to risk factors that could cause actual results to differ materially from those predicted herein including: volatility in financial markets or general economic conditions; capital requirements and the need for additional financing; fluctuations in the rates of exchange for the currencies of Canada and the United States; prices for commodities including gold, coal and aggregate; unanticipated changes in production, mineral reserves and mineral resources, metallurgical recoveries and/
unpredictable political or economic developments; loss of key personnel; labour disputes; and ineffective title to mineral claims or property. There are other business risks and hazards associated with mineral exploration, development and mining. Although Morien believes that the forward-looking information contained herein is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Morien expressly disclaims any intention or obligation to update or revise any forward-looking information in this news release, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. Unless otherwise indicated, all dollar values herein are in C$.
Morien Resources Corp.
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Definition:
A Canadian based mining development company that holds royalty interests in two (coal and aggregates) world class, tidewater accessed
aggregate project is expected to commence production in 2020. Morien’s management team exercises ruthless discipline in managing both the top and bottom halves of the financial ledger. Shareholder returns are paramount over corporate size, number or scale of assets and industry recognition.
Corporate Overview
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Ticker symbol TSX-V: MOX Shares outstanding 52.7 mln Shares fully diluted 57.9 mln Market capitalization $28 mln Free float $22 mln Cash $2.8 mln Marketable securities $400k Warrants nil Debt nil Major Shareholders Kameron Collieries 11.3% Morien management & directors 8.7% 7 Shareholders > 1 mln shares 18.4%
Donkin Coal Mine Project - Then
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Donkin Coal Mine Project - Now
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Donkin Mine in Production
Donkin Coal Mine - Update
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§ Owner/Operator Kameron Collieries commenced
production with a single continuous miner unit on February 28, 2017
§ Anticipated that four continuous miners will be
§ Production expected to rise to 2.75 mln tonnes per
year over a 3 to 4 year period 1
§ 25+ year life of mine 2 § 64 employees/contractors now on site; projecting 135
full-time employees at full production
§ Washplant to become operational in Q3-2017 § Significant upside to Morien with increase in coal
price and/or production
1. Production volumes subject to change based on market conditions 2. Based on the Technical Report on the Donkin Coal Project prepared by Marston & Marston, dated June 2011, found on SEDAR and on Morien's website. 3. Valuation is subject to Kameron Collieries’ production plan and coal sales price.$0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 0.50 1.00 2.00 2.75 $70/t USD $100/t USD Coal Price 3 Production (mln tonnes) Annual Royalty Revenue to Morien (Pre-Tax) 3
Morien 2% to 4% Royalty
Global Coal Trade
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Source: AME Group
Coal Demand Growth - 2015 to 2030
Thermal Coal Demand Metallurgical Coal Demand
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Coal Type Coal Quality $USD / tonne (June 2017) $USD / tonne (June 2016)
Australian Premium Low-Vol Metallurgical
(CFR basis, capesize freight to Rotterdam)
21% VM, 71% CSR $188 $99 US High-Vol A hard coking coal
(FOB US East Coast)
32% VM, 30,000 Fluidity, 0.85% S, 7% Ash $190 $91 US Low-Vol hard coking coal
(FOB Central Appalachians)
19% VM, 58% CSR, 0.8% S, 8% Ash $175 $89 US High-Vol B hard coking coal
(FOB US East Coast)
34% VM, 25,000 Fluidity, 1% S, 8% Ash $158 $83 Thermal coal
(CIF Rotterdam, from US East Coast)
10,800 BTU, 11% Ash, 0.7% S $78 $60
§ Kameron expects Donkin to be marketable as both a high-energy thermal coal and as a high quality metallurgical coal with the following washed coal quality: 13,500+ BTU, 3.5% Ash, 37% Volatile Matter, 1.5-2.0% Sulphur, 8% Crucible Swelling Number, and 20,000+ ddpm Fluidity
Source of information in table: S&P Global Platts, 11-May-2017
Coal Pricing
Black Point Aggregate Project
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Black Point Aggregate Project
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§ Owner/Operator - Vulcan Materials ($17 bln
market cap)
§ Massive Resource: 400+ mln tonnes of Class-A
construction aggregate 1
§ 50+ year life of mine 1 § Fully permitted in Q2-2016 § Project received positive federal and provincial
environmental permitting decisions in Q2-2016
§ Capital Expenditure: $80 to $110 mln, with start-
up scheduled for 2018
§ Weight based production royalty § Anticipated Annual Royalty: $250k to $750k over
50 years 2
2 4 6 8 10 12 14 16
Playa del Carmen, Vulcan Top Quarry, Mexico Balcones, Cemex Top Quarry, Texas Beckmann, Martin Marietta Top Quarry, Texas Susan Lake, Canada's Top Quarry, AlbertaBlack Point 5.0 mln T capacity
Black Point Peer Comparison
Annual Production (mln T)
Where are we in the Black Point Process?
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April 2016
environmental permits Apr 2016 – 2018
permitting continues
Fun Fact
Per Capita Aggregate Consumption in Vulcan Served Markets
5 to 7 tons per person per year
Spring 2018
Spring 2021
2070+
Vulcan in the Recovery Phase
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Morien’s Project Generation
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§ Focused on acquiring additional royalties to compliment existing portfolio § Morien does not compete where it can’t compete § Commodity Types:
Industrial minerals Specialty / minor metals Bulk commodities Oil and gas
§ Jurisdictions
Americas, Europe
§ Project Stage
Producing or near-to-production assets
§ Owner
Proven operating track record
P/NAV Multiple Comparison to Royalty Peers
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0.0 0.5 1.0 1.5 2.0 2.5 3.0
Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Morien
Morien Precious Metals Focus
Normal Course Issuer Bid
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§ 7.0 mln shares purchased since March 2015 at an average cost of $0.26/share § Morien continues to utilize its NCIB
$0.19 $0.24 $0.29 $0.34 $0.39 $0.44 $0.49 $0.54
400,000 600,000 800,000 1,000,000 1,200,000
Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Aug-16 Nov-16 Dec-16 Apr-17 May-17 Jun-17
Number of Shares Share Price
The Next 18 Months
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§
First export of Donkin coal and receipt of $1.5 mln milestone payment
§
First royalty cheque from Kameron
§
Pursue accretive acquisitions to enhance royalty portfolio
§
Minimum quarterly royalty payment from Vulcan commencing in Q3 2017 1
§
Prospective sale of 1,054 acres in Georgia USA
§
Final Black Point milestone of $400,000 from Vulcan Materials
§
Potential dividend on portion of royalty cash flow from Donkin
§
Continued share buy backs
Share Performance
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0% 50% 100% 150% 200% 250%
Morien; 148% Aurico; 129% Eurasian; 74% Solitario; 12% Altius; -28% Terraco; 8% Sandstorm; 11%
Share performance against royalty companies with less than $1 bln market capitalization21
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Contact
TSX-V: MOX
www.MorienRes.com info@MorienRes.com Metropolitan Place 99 Wyse Road, Suite 1480 Dartmouth, N.S. Canada, B3A 4S5 Tel: 902-466-7255
John P.A. Budreski
President & CEO
Mike MacDonald
Vice President, P.Geo
Mike O’Keefe
CFO
Dawson Brisco
VP Corporate Development, P.Geo dbrisco@MorienRes.com