Corporate Presentation. September ASX: AOH FSE: A2O ACN

Transcription

1 Corporate Presentation September ACN ASX: AOH FSE: A2O altonamining.com September 2013

2 Disclaimer and JORC Compliance What You Should Know Find out more - This presentation is being used as a presenter s aid with summarised information. See Altona s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at or for more information. Third party information - Altona does not make any representations as to the accuracy or otherwise of third party information, including where projections are given. Forward-looking statements - Within this presentation there may be certain forward-looking statements, opinions and estimates. These are based on assumptions and contingencies which are subject to change without notice and are not guarantees of future performance. Altona assumes no obligation to update such information. Taking action - Please undertake your own evaluation of the information in this presentation and contact your professional advisers if you wish to buy or sell Altona shares. Competent Person Statement The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Alistair Cowden BSc (Hons), PhD, MAusIMM, MAIG who is a full time employee of the Company and has sufficient experience which is relevant to the style of 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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Cowden has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears. Presentation This slide show is the full version of Altona s current corporate presentation. Some slides may be omitted in the verbal presentation. altonamining.com September

3 We Believe in Copper A sustained step change in copper markets in 2005 Post 2005 price averages: US$7,265 (US$3.30/lb) $8,811 $6,731 $7,126 $6,952 $7,540 $7,958 $7,670 Today $5,164 $3,684 $2,868 $1,577 $1,558 $1, YTD altonamining.com September

4 Growing Copper Production and Optionality Outokumpu Project Roseby Project Underground copper-gold mine in Finland Development ready, 40ktpa copper altonamining.com September

5 Altona Overview and Objectives A 8,000ktpa copper producer at Outokumpu in Finland with by-product gold, silver and zinc Considering production expansion at Outokumpu dependent on further reserve/resource growth from current deep drill program Completed a US$250m NPV Definitive Feasibility Study for the Little Eva project, which is within Altona s 100% owned Roseby copper project near Mt Isa, Queensland Little Eva could produce 39,000tpa copper and 17,000oz of gold per year over a mine life in excess of 10 years at a C1 cash cost of US $1.73/lb Pursuing a range of transactions to realise value / develop Roseby, with the overriding objective being to maximise value for its shareholders altonamining.com September

6 An Experienced Team Altona Management Alistair Cowden Managing Director Over 30 years experience as a geologist and mining company executive Instrumental in listing Vulcan Resources, Rox Resources, Archaean Gold and Magnetic Minerals Iain Scott Chief Operating Officer Metallurgist, formerly Straits, Renison 25 years experience in mining and processing 15 years experience at COO and MD levels Eric Hughes Chief Financial Officer Accountant, formerly BHP Billiton 20 years experience in financial management of resources companies 10 years experience as CFO of listed companies Jarmo Vesanto General Manager Finland Geologist 25 years Outokumpu Oyj in Finland, Canada and Australia 6 years as Manager in Finland Altona Board Kevin Maloney Paul Hallam Peter Ingram Steve Scudamore Non-Executive Chairman, founder of The Mac Services. Extensive career in retail banking, finance and resources Non-Executive Director, formerly Director of Operations at Fortescue and EGM Development and Projects for Newcrest Non-Executive Director, 45 years mining industry experience Non-Executive Director, 28 years as a partner at international accounting and financial services firm KPMG altonamining.com September

7 Corporate Snapshot Major Shareholders Australian institutions: 32.0% Foreign institutions: 20.0% Board: 8.7% German/Swiss retail: 7.0% Top 20: 57.0% Market Status ASX (Australia) code: FSE (Frankfurt) code: Share price ( ): Average daily turnover: Shares on issue: Market capitalisation: AOH A2O A$ M shares 532M A$80M Debt: Cash ( ): US$21M A$26M Research coverage: Credit Suisse Source: ASX altonamining.com September

8 Share Price has Outperformed other ASX Coppers Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Altona Hillgrove Ivanhoe Tiger OZ Minerals All Ordinaries Altona commenced trading on 23 February 2010 altonamining.com September

9 Outokumpu Copper Project in Finland I metre Massive copper sulphide ore in development face altonamining.com September

10 Our Success is Built on Our People altonamining.com September

11 Finland is a Leading Mining Destination Euro zone country with a history of mining and mining equipment manufacturing, a stable tax regime (20.0%) and no royalties. Major miners include Agnico Eagle, Anglo American and First Quantum. Altona s projects are in eastern Finland. Geology is similar to other Archaean and Proterozoic terrains in Australia and Canada. altonamining.com September

12 6 Altona s Finnish Assets Kylylahti Underground Mine Producing at 550,000tpa, reserves increasing and considering expansion Luikonlahti Mill Guidance of 7,600-8,400t copper and 8,000-9,000oz gold in concentrates for Regional Resources 2 past producing mines and 4 unmined deposit within 30km of mill have 9 million tonnes of resources Nickel Deposits Nickel-Copper-PGE deposits in eastern Finland altonamining.com September

13 Mill, Mine and 5 Deposits in Historic Outokumpu Past or present mine Resource Prospect Keretti mine produced 1Mt copper and 1 Moz gold from 1914 to 1989 altonamining.com September

14 Kylylahti Underground Mine All infrastructure in place altonamining.com September

15 Kylylahti Mine Key Facts Luikonlahti Mill Interior Status Mine Life of mine average production Mining cost Mine life Reserves Resources Steady state 550,000tpa, expansion under consideration 5.5m x 5.5m decline tunnel, longhole open stopes with cemented waste fill Ore: 550,000tpa Copper: 8,000tpa Gold: 8,400ozpa Zinc: 1,600tpa 32/tonne including trucking 7.6 years 4.2Mt at 1.6% Cu, 0.7g/t Au, 0.6% Zn 7.7Mt at 1.3% Cu, 0.7g/t Au, 0.5% Zn altonamining.com September

16 Kylylahti Mine Open at Depth Deep drilling underway to expand resources altonamining.com September

17 Luikonlahti Mill altonamining.com September

18 Luikonlahti Mill Key Facts Interior Luikonlahti Mill Hall Status Products Sales 91.5% copper recovery 71.5% gold recovery 91% availability Copper-gold concentrate Zinc concentrate Boliden s Harjavalta smelter 400km by truck, monthly payments Plant capacity 550,000tpa Pebble mill 1 in action Milling cost Expansion 15/tonne plus 3/tonne concentrate transport Can expand to 800,000tpa for approx. A$7.5M capital altonamining.com September

19 Mine and Mill Movie To view the mine and mill movie see altonamining.com September

20 Quarterly Production Performance A solid start 3,000 2,500 2,000 1,500 1, Q Q Q Q Q Q Q Copper (tonnes) Gold (ounces) Copper (tonnes) - FCST Gold (ounces) - FCST C1 cost (USD/lb)* C1 cost (USD/lb)* - FCST * C1 cash cost calculated per Brook Hunt methodology. Cost data during commissioning period not meaningful FY2014 guidance of tonnes of copper per quarter at average of US$ /lb used in forecast for Q altonamining.com September

21 ASX Copper Producers (June Quarter) 4.00 C1 Cash Cost US$ / lb Altona s C1 Cash cost calculated as per Brook Hunt methodology. Refer to websites of above companies for their calculation method. Source: March quarterly activities reports of the respective companies, except Hillgrove which is for the quarter ended 31 July. altonamining.com September

22 Increasing Resources and Reserves Copper Tonnes Copper Grade % 0 Feasibility Study June 2012 December 2012 June Production depletion Ore Reserves Cu t Reserve Grade altonamining.com September

23 Outokumpu Growth opportunities Reserve expansion from deep drilling and definition drilling Surface Can increase throughput from 550,000 to 800,000tpa if sufficient reserves Accumulating US$50 million per annum in metal in cobalt-nickel concentrate in storage Scoping studies have demonstrated technical feasibility of producing cobalt-nickel product able to be sold to refineries Regional Resources and exploration may provide a second mine _ 100m Grade distribution at Kylylahti altonamining.com September

24 Roseby Copper Project Little Eva altonamining.com September 2013 Looking north-west from Green Hills 24.

25 3 Elements to the Roseby Project Little Eva: A Development Ready Project Fully permitted with DFS completed on a simple 39,000tpa copper open pit mine and flotation plant Major Resource Inventory 1.52Mt copper including 0.84Mt copper in deposits outside Little Eva Project Exploration 1,500km² of exploration tenure prospective for copper, gold, molybdenum, uranium and zinc-lead-silver altonamining.com September

26 Roseby is a Strategic Asset altonamining.com September

27 Little Eva May 2012 Definitive Feasibility Study DFS to bankable standard by GR Engineering Services Large, simple and well drilled resource Straightforward open pit mining and processing for 11 years Simple processing route Quality copper-gold concentrate Stable, skilled mining jurisdiction Native title, environmental permits and mining leases all in place A$252m NPV A$320m capital cost US$1.70/lb cash cost Ernest Henry Mine Truck altonamining.com September

28 What Little Eva Could Be For animated movie of Little Eva development see altonamining.com September

29 Little Eva is a Large Deposit 1.3km long, m wide Drilled up to 300m deep (511 drillholes, 76km) Large bulk IOCG style deposit similar to Ernest Henry Strip ratio of 1.8:1 after 15Mt pre-strip Reserve: 53Mt ore at 0.6% copper, 0.1g/t gold Additional 6Mt reserves in 3 small satellite pits 15Mt of low grade ore stockpiled and treated at end of mine life 11 year mine life Underground potential altonamining.com September

30 Little Eva Site Layout altonamining.com September

31 Straightforward Plant and Processing Simple and rapid flotation with coarse grind. 96% copper and 85% gold recoveries to a clean 25% copper and 4g/t gold concentrate. altonamining.com September

32 Logistics and Permits 9km from MMG s $1.2 billion Dugald River zinc development 220 man camp 7km from sealed highway and 60km from Cloncurry airport Concentrate trucked 65km to Cloncurry rail siding in sealed half containers, rail to Townsville port Power via 12km spur line from Dugald River proposed 220KV line Native title complete, environmental authority granted and mining licences granted Minor modifications to Environmental Management Plan may be required to reflect Definitive Feasibility Study altonamining.com September

33 Little Eva Financial Performance Key Financial Assumptions Unit Long term copper price 2.75 US$ per pound Long term gold price 1,300 US$ per onuce Long term exchange rate 0.81 AUD/USD altonamining.com September

34 DFS Update DFS costs were top of market Mining contractor rates down 5-10% from DFS estimates Engineering margins down Resource/Reserves Outlook Incorporate post DFS drilling at Turkey Creek, Lady Clayre and Ivy Ann Little Eva resource/reserve remodelling Lower operating costs Lower capital costs Longer mine life (>11 years) altonamining.com September

35 Copper-only Deposits 7 copper-only deposits (137Mt ore) for 800,000t copper These deposits are not considered in current DFS Copper only deposits comprise Native copper ore in weathered rocks overlying fresh copper sulphide ore Sulphide ore is conventional and will be treated as per Little Eva Native copper ore has lower (60%) flotation recovery Studies will be delayed until Little Eva developed altonamining.com September

36 Can Roseby be bigger than 2Mt copper? Altona has grown resource 60% to 1.52Mt of copper metal in 2 years Plan of deposits and prospects at central Roseby area 4 Reserves, 7 Resources and many prospects and workings Turkey Creek discovery in August 2012 highlights prospectivity All deposits open and growing, many targets for extensions Dugald River zinc and Mary Kathleen uranium highlight that exploration potential not limited to copper Major reconnaissance RAB program highlights targets at Companion altonamining.com September

37 What Next for Roseby? Altona needs a partner to develop Little Eva Altona advisor Credit Suisse pursuing partnering, sale and corporate opportunities that flow from having a large development ready copper asset China has bought up the Mt Isa area Inova: Shanxi Donghui bid A$160 million for 18,000tpa copper miner with major undeveloped projects altonamining.com September

38 The Altona Advantage PRODUCTION & CASHFLOW De-risked copper-gold-zinc mine and mill in Finland with strong growth profile COPPER LEVERAGE 1.66Mt (3.7mlbs) copper and 0.76Moz gold in resources STRATEGIC ASSET Little Eva copper-gold deposit nearing decision to build / value realisation STRONG Cash in bank, no net debt and positive cashflow EXPLORATION UPSIDE We control two major copper fields altonamining.com September

39 APPENDICES 2011 was a turbulent year, 2012 will be Altona s year to shine Termite mounds watching summer storms at the Blackard deposit altonamining.com September

40 Top 10 Shareholders (51.5%) Rank Shareholder Country No. of Shares % 1 Perpetual Investments Australia 63,735, % 2 L1 Capital Australia 52,450, % 3 German retail clients through Clearstream Luxembourg Germany 37,715, % 4 Kevin Maloney (Chairman) Australia 35,348, % 5 Thomas Roeggla and clients Monaco 29,626, % 6 BT Investment Management Australia 15,175, % 7 Colonial First State - Growth Australian Equities Australia 11,200, % 8 Finnish Industry Investment Finland 10,261, % 9 Dr Alistair Cowden (MD) Australia 10,010, % 10 Pareto Growth Norway 7,399, % altonamining.com September

41 Roseby Resource Estimates TOTAL CONTAINED METAL MEASURED INDICATED INFERRED DEPOSIT Tonnes Grade Copper Gold Tonnes Grade Tonne Grade Tonnes Grade million Cu (%) Au (g/t) tonnes I metre ounces million Cu (%) Au (g/t) million Cu (%) Au (g/t) million Cu (%) Au (g/t) COPPER-GOLD DEPOSITS Little Eva , , Ivy Ann ,000 17, Lady Clayre ,000 85, Bedford ,000 11, Sub-total , , COPPER ONLY DEPOSITS Blackard , Scanlan , Longamundi , Legend , Great Southern , Caroline , Charlie Brown , Sub-total , TOTAL ,515, , See ASX release of 26 July 2011, 19 December 2011, 23 April 2012, 3 July 2012 and 22 August 2012 for full details of resource estimation methodology and attributions. Note: All figures may not sum exactly due to rounding. Little Eva is reported above a 0.2% copper lower cut-off grade, all other deposits are above 0.3% copper lower cut-off grade. altonamining.com September

42 Little Eva Project - Resource and Reserve Estimates Tonnes (m) Copper (%) Gold (g/t) Contained Copper (t) Contained Gold (oz) RESOURCES Measured ,000 90,000 Indicated , ,000 Inferred , ,000 Total , ,000 RESERVES Proven ,000 85,000 Probable ,000 90,000 Sub Total , ,000 Probable (stockpile) ,000 31,000 Total , ,000 Mining Inventory ,000 14,000 See ASX release of 14 May 2012 for full details of Reserve estimation methodology and attribution and 26 July 2011, 19 December 2011, 23 April 2012 and 22 August 2012 for full details of Resource estimation methodology and attribution. Little Eva Project comprises Little Eva, Bedford, Lady Clayre and Ivy Ann. altonamining.com September

43 Outokumpu Resource and Reserve Estimates Deposit Classification Tonnes (m) Copper (%) altonamining.com September Gold (g/t) Zinc (%) Cobalt (%) Nickel (%) Saramäki Inferred Vuonos Inferred Measured Hautalampi Indicated Inferred Total Riihilahti Indicated Valkeisenranta Indicated Särkiniemi Indicated Sarkalahti Inferred TOTAL Kylylahti Tonnes (m) Copper (%) Gold (g/t) Zinc (%) Cobalt (%) Nickel (%) RESOURCES Measured Indicated Inferred TOTAL Contained metal (t) 100, ,850oz 40,360 18,000 15,900 RESERVES Proven Probable TOTAL Contained metal (t) 66,700 97,700oz 26,100 11,100 6,900 See ASX release of 29 August 2013 for full details as required by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).