Potential Uranium & Export Coal Development Company

Transcription

1 Potential Uranium & Export Coal Development Company March 2013

2 Highlights Advanced Uranium Development Project Scoping Study Completed Massive uranium resource large high grade component (300ppm) Significant initial production (3Mlbs pa) with Long Mine Life (+20 years) Inexpensive to mine (ore body is shallow, soft and flat) Low cost operation with high recoveries up to (77%) All infrastructure available Uranium price set to strengthen Major new coal deposits discovered Other Company Highlights Projects based in Botswana (stable and safe jurisdiction) Stable and supportive shareholder base ASX: ACB PAGE 2

3 Uranium Market Overview Positive uranium price forecast of US$60-65 (2014),US$70-75 (2015 onwards) Asian economies committed to nuclear energy Supply of Highly Enriched Uranium ending % of current supply Limited new supply and a tightening of market by 2014 Est. uranium demand in 2030 will be 260mlbs U 3 O 8-48% increase Nuclear energy is essential globally to provide cost effective, base power ASX: ACB PAGE 3

4 Closing Price (A$) Million Shares Corporate Overview Capital Structure Share Price & Volume Current Share Price A$ $0.12 Shares on Issue # 227,604,986 Options on Issue 1 # 14,210,000 $0.30 $0.25 Daily Volume Traded On-Market Daily Close Price Market Capitalisation A$ $27.3 million Cash at bank 2 A$ $1.65 million $ Debt 3 A$ Nil $0.15 Enterprise Value A$ $25.7 million 1. There are million options on issue with a volume weighted average exercise price of $0.429 and a volume weighted time to expiry of 2.2 years 2. As at 31 December 2012 $0.10 $ As at 31 December 2012 $0.00 Mar-12 Jun-12 Sep-12 Dec Board & Management Director Role Ownership Analysis Robert Pett Richard Lockwood Chairman Non-Executive Director 13.51% China Growth Minerals Ltd Praetorian Holding LP Dr Andrew Tunks Non-Executive Director Vemar Pty Ltd Dr Paul Woolrich Executive Director 12.08% Other ACB Share Holders Paul Ingram Harry Stacpoole Non -Executive Director Non-Executive Director 67.31% 7.10% Paul Thomson CEO Anthony Khama Chairman of A-Cap Botswana Pty Ltd Steve Groves General Manager Exploration ASX: ACB PAGE 4

5 Asset Overview +4,000km 2 of U 3 O 8 tenure in Botswana Major new coal deposits discovered ASX: ACB PAGE 5

6 Letlhakane Uranium Project One of largest undeveloped uranium deposits in the world - 350Mlbs Significant higher-grade portion 90Mlbs Resource remains open and still growing Excellent recoveries from heap leach test work combined with high grade resource indicates competitive operating cost per pound Low capital cost estimated at under $400M for 3Mlbs per annum production Poised to meet predicted growing demand for uranium within the next few years ASX: ACB PAGE 6

7 Large Global Resource 1041Mt at 153ppm U 3 O 8 for a contained Mlbs of U 3 O 8 Letlhakane Project at 100ppm cut-off (includes both Gojwane & Serule) Ore Type Category Mt U3O8 ppm U3O8 Mlbs Secondary Indicated Oxide Primary Indicated & Inferred Indicated & Inferred Letlhakane Project at 100ppm cut-off Total Resource ASX: ACB PAGE 7

8 Large High Grade Resource 143.2Mt at 284ppm U 3 O 8 for a contained 89.7Mlbs of U 3 O 8 Letlhakane Project at 200ppm cut-off (includes both Gojwane & Serule) U3O8 U3O8 Mlbs Ore Type Category Mt ppm Secondary Indicated Oxide Indicated & Inferred Primary Indicated & Inferred Total Resource ASX: ACB PAGE 8

9 Ore Body Flat, Shallow, Easy to Mine Secondary Mineralisation 20m 75m Base of Oxidation Oxide Mineralisation Primary Mineralisation 35m 9 km PROTEROZOIC BASEMENT Sediment-hosted deposit (Lower Karoo mudstones and sandstones) Shallow, Flat, Simple, Easy to mine, dips west at one degree Layer cake type deposit - Three ore types: Secondary, Oxide & Primary ASX: ACB PAGE 9

10 Mining A mix of conventional mining equipment and surface miners planned Low cost surface miners planned for the flat lying ore zones Pre Strip using conventional equipment Wirtgen 4200 operating at FMG ASX: ACB PAGE 10

11 Pit Optimisation Optimised in pit resource currently 197ppm Recovery 71.5% across all ore types 20 year production schedule Additional unscheduled in pit resource Gorgon West 13mlbs at 196ppm Mine scheduling currently being optimised to improve head grade and reduce stripping ratio Ample resources available for incorporation into mine schedule with rising uranium price Strip Ratios for Base Case: Yrs 1-5 : 2.91 LOM: 2.86 ASX: ACB PAGE 11

12 U Extraction, % Metallurgy Metallurgical work ongoing for past 3 years World best expertise in metallurgy and process design engaged Results confirm primary ore (83% of total 352Mlbs of U3O8 resource) can achieve uranium recoveries of up to 77% Leach kinetics positive with majority of uranium recovered in first 20 days These recoveries, when applied to high grade resources are very positive for operating costs per pound and overall project economics Corrected Uranium Extraction v Time OT-1 OT-2 OT Time (days) 12 ASX: ACB PAGE 12

13 Standard Heap Leach Process Acid leach processing with some Alkali leach for surface calcrete to produce uranium tetroxide Extensive test work show recoveries of up to 77% with average of 71% over all ore types Solvent extraction employed to produce U 3 O 8 ASX: ACB PAGE 13

14 Major Infrastructure in Place Rail, Road, Power & Water Available ASX: ACB PAGE 14

15 Feasibility Team Technical Director: Dr Paul Woolrich Lead Consultant: Lycopodium Minerals Ltd, Perth Geology and Resource Estimation: Optiro, H&S Consultants, David Wilson - Probe Calibration Mining, Pit Optimisation and Scheduling: David Cairns Perth, CUBE Consulting, Wirtgen, Germany Mineralogy and Geology: Rob Bowell SRK Consulting U.K. Metallurgical Testing: Mintek, South Africa and SGS, Perth Engineering: Lycopodium and Knight Piesold, Perth Environmental (EIA): SLR Consulting South Africa & Ecosurv Botswana Well Field Surveys: Water Surveys Botswana Metallurgy & Process Plant Design: - Alta Metalurgical Services Alan Taylor - Orway Mineral Consultants Grenvil Dun - Kappes Cassidy & Associates Randall Pyper ASX: ACB PAGE 15

16 Uranium Scoping Study Complete 90Mlbs of uranium at 284ppm U3O8 at a cut off of 200ppm within a global resource of 352Mlbs 9Mtpa open pit heap leach project to produce 3mlbs U3O8 A mine life in excess of 20 years Operating costs estimated at US$42/lb in the first 5 years and US$48/lb in the first 10 years Capital costs for plant and infrastructure of US$309M Production capability 1H 2016 Uranium price forecast 2015 and beyond over US$70/lb ASX: ACB PAGE 16

17 Operating Costs OPERATING COSTS PER POUND YEARS 1-5 Option Recovered Mlbs U 3 O 8 Grade ppm U 3 O 8 Operating Cost US$/lb U 3 O 8 Mlbs pa Base Case Increased Recovery 3% % Increase in grade Increase of 3% rec & 5% grade OPERATING COSTS PER POUND YEARS 1-10 Option Recovered Mlbs U 3 O 8 Grade ppm U 3 O 8 Operating Cost US$/lb U 3 O 8 Mlbs pa Base Case Increased Recovery 3% % Increase in grade Increase of 3% rec & 5% grade ASX: ACB PAGE 17

18 Capital Cost AREA Cost (US$m) EPCM + Contingency (25%) (US$m) Total (US$m) Treatment Plant $ $51.59 $ Infrastructure $41.17 $10.29 $51.46 Total $ $61.88 $ Additional Capital Requirements Owners Pre-production Costs incl. Project Management Team $3.21 $0.80 $4.01 Preproduction Mining $56.00 $14.00 $70.00 Mobilise Mining Contractor $3.10 $0.78 $3.88 Preproduction Manning $0.71 $0.18 $0.89 Insurance $0.43 $0.11 $0.54 Medium/Heavy Equipment $0.47 $0.12 $0.59 First Fills Consumables $4.21 $1.05 $5.26 Total $68.13 $17.04 $85.17 Estimated CAPEX for the Letlhakane Project ASX: ACB PAGE 18

19 The Road to Production Letlhakane has all of the key ingredients for a successful project Letlhakane is one of the largest undeveloped deposits in the world Of the few capable of production in the next three years, Letlhakane is one of the ONLY deposits: With plant CAPEX estimated at less than $400M With competitive operating costs In a stable political and permitting friendly environment ASX: ACB PAGE 19

20 Mlbs Worlds Largest Uranium Deposits Letlhakane at 352Mlbs is well inside top Viken Elkon Haggan Husab Cigar Lake Letlhakane Imouraren Kvanefjeld Jabiluka Itatira Etango Resources compiled from Individual Company Data. Olympic Dam omitted Many of these will not be capable of production by 2016 ASX: ACB PAGE 20

21 The Road to Production Pre Feasibility Study (PFS) and Bankable Feasibility Study (BFS) PFS complete Q BFS complete Q Water & Power Well field exploration complete, abstraction permit granted Water access capable by Q Power available Q Mining Licence Initiated on final ESIA & EMP acceptance Q Mining Licence approval capable by Q Construction & Production Construction capability Q Production capability Q ASX: ACB PAGE 21

22 New Coal Discoveries AFR s SESE COAL PROJECT RESOURCE AREA 2.5 BT Indicated Resource Three new coal discoveries, Mea, Bolau and Letlhakane Amendments to Uranium PL s to include coal awarded to A-Cap Bolau Project is the extension of African Energy Sese Deposit New coal discovery at Mea of excellent quality Potential to export higher quality coal on existing infrastructure Coal also discovered above and below uranium deposits at Letlhakane A-Cap transformed into a multicommodity energy company ASX: ACB PAGE 22

23 High Quality Coal Discovery at Mea Initial JORC resource of tonnes 335 million At least 95 million tonnes of export quality coal calorific values of 26.43Mj/kg (6313kcalkg) Some of the best quality coal discovered in the region Coal seams from surface Potential for resource growth with only one third of the known coal area drilled Close proximity to road, rail, power and no settlements within the resource area Development options being evaluated using existing infrastructure ASX: ACB PAGE 23

24 Bolau Coal Project Interpreted as the up and down dip extensions of AFR s Sese Coal Project which extends directly onto A-Cap s ground Coal thickness averages at 20m in two seams - upper seam ~4m and lower seam ~16m Interpreted to be sub-bituminous thermal coal with potential to produce both domestic and export quality products* AFR have reported a JORC compliant Indicated Mineral Resource of 2.5Bt * (based on AFR s published results) ASX: ACB PAGE 24

25 Letlhakane Uranium and Coal Significant coal measures identified above and below uranium horizons at Letlhakane Work underway to evaluate size and quality of resource and Potential economic synergies with mining and processing of uranium Coal will inevitably be mined in tandem with uranium at Letlhakane ASX: ACB PAGE 25

26 Highly Experienced Technical Team Highly experienced technical and operational team World best expertise in geology, mining, process design and development engaged Team with project development, infrastructure & construction expertise Board and management with strong track record of taking projects from exploration to production ASX: ACB PAGE 26

27 Botswana Botswana ranks #1 in Africa for political stability, democracy and rule of law No land access issues Skilled mining work force English speaking No BEE / tribal issues GDP per capita is $16,000 Mining accounts for 40% of current GDP and is critical for continued economic growth Simple Mining Law with demonstrable track record e.g. Debswana Botswana a safe and secure place to invest ASX: ACB PAGE 27

28 Summary Scale Very large uranium deposit with strong leverage on rising uranium price - with high grade resource defined Metallurgy - Excellent recoveries from heap leach test work with high grade resource indicates competitive operating cost per pound Capex - low capex, estimated at under $400M for 3Mlbs p.a. production Uranium Price - timing of production aligned with uranium market demand Comparative Advantage - one of the few new sources of production with capex less $400m, competitive operating costs and low sovereign risk Strong Register - support from major shareholders Newsflow - significant milestones to be achieved over next 12 months Coal Assets - major new coal discoveries made and being evaluated Strategic - on going discussions with strategic partners Botswana - a safe and stable investment destination ASX: ACB PAGE 28

29 Appendix ASX: ACB PAGE 29

30 Uranium Price Forecasts Forecaster CONSERVATIVE US$/lb US$/lb US$/lb US$/lb US$/lb Raymond James Ltd $75.00 $70.00 $70.00 $70.00 $70.00 Morgan Stanley (Base) $67.00 $69.00 $71.00 $73.00 $74.50 Average $71.00 $69.50 $70.50 $71.50 $72.25 CONSERVATIVE Average of RJL and Morgan Stanley Forecast Uranium (U3O8) Prices Forecaster OPTIMISTIC US$/lb US$/lb US$/lb US$/lb US$/lb Raymond James Ltd $75.00 $70.00 $70.00 $70.00 $70.00 Morgan Stanley (Bull) $77.05 $79.35 $81.56 $97.60 $89.40 Average $76.03 $74.68 $75.78 $83.80 $79.70 Average of RJL and Morgan Stanley Forecast Uranium (U3O8) Prices ASX: ACB PAGE 30

31 Disclaimer This presentation has been prepared by and issued by A-Cap Resources Limited ( A-Cap ) to assist it in informing interested parties about the Company and its progress. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview of A-Cap does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation and making any investment decision. This presentation includes certain Forward- Looking Statements. The words forecast, estimate, like, anticipate, project, opinion, should, could, may, target and other similar expressions are intended to identify forward looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results, future expansion plans and development objectives of A-Cap are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement has been presented in accordance with the JORC Code and references to Measured Resources, Inferred Resources and Indicated Resources are to those terms as defined in the JORC Code. Information in this presentation relating to Exploration results, Mineral Resources or Ore Reserves is based on information compiled by Mr Steven Groves (an employee of A-Cap) who is a member of The Australian Institute of Geoscientists and Mr Ian Glacken of Optiro. Mr Glacken is a Fellow of the AusIMM, and a Chartered Engineer. Both Mr Groves and Mr Glaken have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Groves and Mr Glacken consent to the inclusion of the data in the form and context in which it appears. ASX: ACB PAGE 31

32 A-Cap Resources Ltd Level 16 AMP Building, 140 St Georges Terrace Perth Western Australia 6000 Telephone: Facsimile: CEO: pthomson@a-cap.com.au BD: pcallander@a-cap.com.au Web: