nic limb, mineral deposits limited: an update on grande côte mineral sands project - senegal, west...
DESCRIPTION
Nic Limb, Executive Chairman, Mineral Deposits Limited delivered the presentation at the 2014 Mineral Sands conference. The Annual Australian Journal Mining's Mineral Sands Conference is the key meeting place for Australia's Mineral Sands industry. The event gives delegates the chance to hear from industry experts as they share their perspectives on the hot topics for the mineral sands industry. For more information about the event, please visit the website: http://www.informa.com.au/mineralsandsconferenceTRANSCRIPT
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Titanium mining and processing
INVESTOR PRESENTATION February 2014 AJM PRESENTATION
MARCH 2014
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Statements
Forward Looking Statements • Certain informa>on contained in this presenta>on, including any informa>on on MDL’s plans or future financial or opera>ng performance and other statements
that express management’s expecta>ons or es>mates of future performance, cons>tute forward-‐looking statements. Such statements are based on a number of es>mates and assump>ons that, while considered reasonable by management at the >me, are subject to significant business, economic and compe>>ve uncertain>es. MDL cau>ons that such statements involve known and unknown risks, uncertain>es and other factors that may cause the actual financial results, performance or achievements of MDL to be materially different from the company’s es>mated future results, performance or achievements expressed or implied by those forward-‐looking statements. These factors include the inherent risks involved in explora>on and development of mineral proper>es, changes in economic condi>ons, changes in the worldwide price of zircon, ilmenite and other key inputs, changes in mine plans and other factors, such as project execu>on delays, many of which are beyond the control of MDL.
• Nothing in this presenta>on should be construed as either an offer to sell or a solicita>on to buy or sell MDL securi>es.
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Mineral Deposits – corporate snapshot
CapitalisaDon 10 years in Senegal
Lis>ng ASX (MDL)
12 mth price range A$4.21 – $1.70
Shares 103.5M
Market cap US$216M
Cash (31/01/2014) US$52M
Investments 19% World Titanium Resources US$5M
2002 Started evalua>ng Grande Côte
2004 Awarded Sabodala gold project
2007 -‐ 2009 Constructed Sabodala mine
Mar 2009 First gold poured at Sabodala
2011 -‐ 2013 Construc>on of Grande Côte
Shareholder Structure (Dec 2013)
Dec 2010 Sabodala gold assets “demerged” into Teranga Gold Corpora>on (TSX/ASX: TGZ)
Oct 2011 Commencement of TiZir – JV with Eramet – combining Grande Côte and ilmenite upgrading plant
Corporate TransacDons
Australian Institutions
53%
UK/Europe 27%
USA 8%
Other Institutions
8%
Retail 4%
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Via 50% of TiZir, we own two highly strategic mineral sands assets
Smelts ilmenite to produce a high-‐TiO2 Dtanium slag and high purity pig iron
Tyssedal (Norway) Ilmenite upgrading plant
• Opera>onal since 1986 • 1 of only 5 such assets globally (only one in Europe) • Access to compe>>vely-‐priced hydro power and close to customer base
• 2013 EBITDA = US$52m
A major new mineral sands mine
Grande Côte (Senegal)
• Construc>on complete, produc>on to commence March 2014
• 20+ year mine life – poten>al for significantly longer
• Expected to produce ≈7% of global zircon & ≈5% of >tanium feedstock
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Tyssedal ilmenite upgrading facility
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Tyssedal – What does it do?
Smelts ilmenite to produce a Dtanium-‐rich slag and pig iron co-‐product
Ilmenite Electric Furnace
Titanium Slag
Pigment Producers
High Purity Pig Iron Foundries
~345ktpa mostly sourced from Tellnes mine (Norway) containing ~44% TiO2
~200ktpa containing ~80% TiO2
~110ktpa
Input SmelDng Outputs Customers
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Tyssedal opDonality creates market flexibility
Ilmenite source
Sulphate Process
70% Tellnes (44% TiO2) 30% Grande Côte (54% TiO2)
235kt Sulphate Slag (80% TiO2)
Chloride Process
100% Grande Côte (54% TiO2)
185kt Chloride slag (87% TiO2) 45kt Chloride fines (87% TiO2)
Slag type
Pigment producDon feedstock source
OpDon OpDon
Smelt Smelt
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IndicaDve earnings potenDal of the two operaDons
Grande Côte (2015+) Tyssedal (2016+)
Volumes 85kt zircon, 575kt ilmenite, 16kt ru>le/leucox
Pricing Zircon = US$1,300/t, sulphate ilmenite = US$195/t, chloride ilmenite = US$265/t
AssumpDons:
Volumes 185kt chloride slag, 45kt chloride fines, 100kt pig iron
Pricing Chloride slag = US$950/t, chloride fines = US$700/t, pig iron = US$500/t
AssumpDons:
Assumed 20% capacity upgrade as part of 2015 shutdown and producing chloride slag
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Senegal
Grande Côte
Concession:
25 years extendable
Ownership:
TiZir 90%, Senegal Govt. 10%
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Grande Côte Geology
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• No overburden • Minor vegeta>on
• Free flowing sands – no hard lenses
• Minimal (<1.0%) slimes
• Shallow water table
• Deeper aquifer for makeup water • Uniform grain size and mineral assemblage
A simple ore body
Zircon & Dtanium minerals are of approximately equal monetary value
in the ore
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Grande Côte – What makes it special?
Large Scale
Grande Côte 20+ year mine life
Excellent logistics
Simple ore body
Top quartile on Revenue / Cost
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Grande Côte … a 2+ year build cosDng $650m
• Conven>onal wet mining opera>on … large throughput with a highly sophis>cated control system
• Purpose-‐built, flexible mineral separa>on plant
• Own 36MW power sta>on
• Own railway system
• Own port facili>es
• Quality/experienced opera>onal team
What have we built …
• A very well engineered project built specifically for the ore body
• Scale/simplicity = high revenue/cost ra>o (nearly 2x at current prices)
• Power self-‐sufficiency
• Logis>cs self sufficiency
• 20+ year mine life
… with the result being
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2014Q 4 Q 1Q 4Q 3Q 2Q 1Q 4Q 3Q 2Q 1 Q 2
2011 2013Q 3
2012
DREDGE
Engineering & Procurement
Engineering & Procurement
Offsite Construction
WET CONCENTRATOR
PLANT
Construction
Site Re-
Assem
blyConstruction
Comm
ission
Ore
Comm
issionCom
mission
Comm
ission
Construction
PRODUCTION RAMP-UP
RAIL & PORT
POWER STATION
MINERAL SEPARATION
PLANT
Comm
ission
Engineering & Procurement
Construction & RefurbishmentEngineering & Procurement
ProducDon to commence late-‐2013
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