SOYUZNOYE GRAPHITE PROJECT. SHAPING THE FUTURE TODAY Nikolay - - PowerPoint PPT Presentation

Nikolay Tlekhugov

Eastern Economic Forum, 2015

SOYUZNOYE GRAPHITE PROJECT. SHAPING THE FUTURE TODAY

China Russia South Korea Japan USA

PROJECT COMPANY:

Dalgraphite

Birobidzhan, Jewish Autonomous Region

STRATEGIC INVESTOR:

Magnezit Group

Satka, Chelyabinsk Region SYRAH RESOURCES DALGRAPHITE GRAPHITE ONE MASON GRAPHITE ENERGIZER RESOURCES

Mozambique Russian Federation USA, Alaska Madagaskar Canada

7.80 7.75

14.50

12.81

Leader of refractory industry in Russia Main consumer of flake graphite in Russia Historical capex totaled over 19 bln RUB

1

117.30 50.0 123.0 116.0 284.7 1150.0 15,6% 6,3% 12,5% 4,5% 10,2%

ORE GRADE, % CG ORE RESOURCES, MT

2

nd

CONTAINED GRAPHITE, MT

Soyuznoye deposit place in the world

Soyuznoye village, Jewish Autonomous Region

с

PROJECT OVERVIEW

02

TO SECURE GRAPHITE SUPPLY FOR RUSSIAN CUSTOMERS TO FOSTER DEVELOPMENT OF HIGH-TECH GRAPHITE CONSUMERS IN RUSSIA

TO ESTABLISH ADVANCED PLAYER IN THE GROWING NATURAL FLAKE GRAPHITE MARKET

WORLD GRAPHITE CONSUMPTION GRAPHITE IMPORT IN RUSSIA CONSUMPTION OF GRAPHITE FOR HIGH-TECH APPLICATIONS

Russia 0% World 33%

2 TIMES 70% 82%

BY 2020 WORLD GRAPHITE CONSUMPTION WILL INCREASE ASIAN- PACIFIC REGION

MAIN OBJECTIVES

03

TECHNOLOGY TEAM

VITALI MISUTINSKII Project manager Track record: 14+ years

• f management positions at

Zavalievsky Graphite Plant, JCS Uralmekhanobr, JSC Irgiredmet, JSC NII GRAFIT (The Graphite State Research Institute) CHRISTOPH FREY Technical consultant Track record: 20+ years in graphite industry at AMG Mining AG Qingdao Kropfmuehl Graphite Ltd. Qingdao Kropfmuehl Trading Ltd. SGS Hosokawa Alpine MBE Coal & Minerals Technology AKW Apparate + Verfahren

PROJECT TEAM AND TECHNOLOGY PARTNERS

04

2011 2018 2017 2016 2015 2014 2013 2012 2019

PROJECT START START OF PRODUCTION PRESENT DAY Exploration Construction R&D (common graphite grades) R&D (high-tech graphite grades and HVA products)

Production facilities

Site office and camp accommodation Open pit mine Flotation and processing plant Power plant 10 MW Road to production site Housing for personnel Logistics facility at railway station

Infrastructure

40

kt/year kt/year

400

PROJECT SCHEDULE

05

SOLUTIONS

Poor infrastructure Graphite from Russia is unknown outside the country Imported technologies for HVA graphite products

$

Qualified staff shortage on-site Government support (Territories of advanced development, Special government support programs, etc) Engagement of qualified labor from other regions and countries Off-take long-term agreements at investment stage Deep cooperation with Russian R&D institutions

RISKS AND CONSTRAINTS

06

HUGE DEPOSIT

in the world

№2

RESERVES > 300 YEARS

HIGH GRADE ORE (CARBON > 12%)

с

LOW MINING COSTS

PROXIMITY TO KEY MARKETS

LOW LOGISTICS COSTS

EXPERIENCED TEAM

BEST INDUSTRY PRACTICES AND KNOW-HOW

UP-TO-DATE TECHNOLOGIES

WIDE RANGE OF GRADES AND PRODUCTS

KEY ADVANTAGES

07

ANNUAL REVENUE FORECAST BY 2025

(IN 2015 PRICES)

INVESTED AS OF AUGUST 2015 0.65 BLN RUB CAPITAL REQUIREMENTS 5 BLN RUB

EQUITY DEBT

Total investments

PAYBACK PERIOD SINCE START OF PRODUCTION NET PRESENT VALUE INTERNAL RATE OF RETURN

BLN RUB

4 32%

IRR NPV

2.7

BLN RUB

1.3

YEARS

5.6

BLN RUB

%

*All forecasts are based on company’s own estimation as of August 2015

INVESTMENT HIGHLIGHTS

08

FINDING NEW INVESTORS

09

STRATEGIC PARTNERS TECHNOLOGICAL COMPANIES BANKS INVESTMENT FUNDS

Main capital sources

• Debt
• Equity-related and

structured instruments

• Long-term off-take

agreements

• Funding the project with

advances for future shipments

• JV for high-tech graphite

products

• Funding the project with

advances for future shipments

STRATEGIC PARTNERS TECHNOLOGICAL COMPANIES BANKS INVESTMENT FUNDS

Main capital sources

• Debt
• Equity-related and

structured instruments

• Long-term off-take

agreements

• Funding the project with

advances for future shipments

• JV for high-tech graphite

products

• Funding the project with

advances for future shipments

Key success factor of fundraising and project development is government support within special programs for the development of Russian Far East

FINDING NEW INVESTORS

09

THANK YOU

Nikolay Tlekhugov

Contacts

info@dalgraphite.com www.dalgraphite.com