Charging forward Altura Mining Limited (ASX:AJM) w i t h L i t h i u m Annual General Meeting Wednesday 22 November 2017 Altura Lithium
Disclaimer This presentation has been prepared by Altura Mining Limited (“Altura” or the “Company”). It should not be considered as an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an invitation or offer with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation is provided on the basis that none of Altura nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the presentation and nothing contained in the presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The presentation contains forward looking information and prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and may differ materially from results ultimately achieved. All references to future production, production targets and resource targets and infrastructure access are subject to the completion of all necessary feasibility studies, permitting, construction, financing arrangements and infrastructure-related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources, Ore Reserves and Exploration Results, as well as the Competent Persons' Statements. All persons should consider seeking appropriate professional advice in reviewing the presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the presentation nor any information contained in the presentation or subsequently communicated to any person in connection with the presentation is, or should be taken as, constituting the giving of investment advice to any person. C h a r g i n g f o r w a r d w i t h L i t h i u m 1
The Next World-Class Lithium Project Orebody World-class hard-rock lithium resource 34.2 Mt Reserve*, 20+ year mine life Location Pilbara region of WA Excellent local and regional infrastructure Offtake Agreements Binding contracts for 100% planned production Customers are Chinese end-users Funding Solution US$110 million construction facility secured Team to Deliver Experienced project development and mining team First production expected early 2018 * Refer ASX announcements 26 September 2016 and 24 October 2017 C h a r g i n g f o r w a r d w i t h L i t h i u m 2
Project Milestones • Commenced onsite construction March 2017 • Binding Offtake Agreements signed July 2017 • Project funding package secured July 2017 • Plant Commissioning 1 st Quarter 2018 • First production 1 st Quarter 2018 • First spodumene sales 2 nd Quarter 2018 March: Commence April: Published FS and Jan-Mar: Commissioning construction commenced DFS Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q1 2018 Q2 2017 Q3 2017 Q4 2017 < 18 months from ground breaking to expected first production C h a r g i n g f o r w a r d w i t h L i t h i u m 3
Project Highlights 220,000 tpa 6% Li 2 O spodumene – Stage 1 Ore feed of 1.54 Mtpa Altura Lithium Strip ratio 2.9:1 Ore Reserve 34.2 Mt @ 1.04% Li 2 O* 20+ year mine life Pilgangoora Stage 2 - Expansion option to produce Pilgangoora 440,000 tpa Lithium District Mt Marion Strong demand from Offtake partners Significant exploration potential within Mt Cattlin existing exploration tenements Excellent logistics and infrastructure Mining development work has Greenbushes progressed ahead of schedule with three separate stages of mining opened and producing ore *Refer to ASX announcements 26 September 2016 and 24 October 2017 C h a r g i n g f o r w a r d w i t h L i t h i u m 4
Corporate Board and Management James Brown Allan Buckler Paul Mantell Zhao Tong Dan O’Neill Non-executive Director Non-executive Director Non-executive Director Managing Director Executive Director, CFO Geologist +30 years Qualified accountant +35 Mining Engineer +30 Qualified Mine Manager 25 years experience in years corporate international mining years operational and +45 years experience in the international trade of experience in the mining experience across development experience the mining industry, and metals and minerals in various commodities. in the mining industry, and associated industries, is a former Director and China. Director of the Founding director of inc.28 years at New Hope inc. 22 years at New Chief Operations Officer Lithium Division of J&R current Lithium producer Corporation (ASX: NHC), Hope Corporation (ASX: of New Hope Corporation Optimum (SHE:300116) the last 12 years as the Orocobre (ASX: ORE). NHC). (ASX: NHC). since October 2016. Chief Financial Officer. BT Kuan Chris Evans Capital Structure (20 November 2017) AUD Non-executive Director Chief Operating Officer Shares on issue 1,751.4M Mechanical engineer Civil engineer and project Share price $0.40 with +35 years manager. Previously Project Market capitalisation $700.6M experience in logistics Manager for the Mt Webber mine Cash # $37M and development, and development in the Pilbara region management of bulk of Western Australia for Atlas Iron Top 20 Shareholders ~64.4% handling and terminal (ASX:AGO) delivering to an Board and Management * 18% operations. aggressive timetable. # Exclusive of US$110M funding facility; currently fully drawn down Board and Management with a history of successful * Board and management excludes the major shareholder J&R Optimum Energy developments , strong operations and robust dividend returns C h a r g i n g f o r w a r d w i t h L i t h i u m 5
Project Construction Status All key long-lead items on-site and ready for installation. KEY CONTRACTORS SECURED 324 person Pilgangoora Village established 90% of plant & equipment on site Process plant design The Run of Mine (ROM) pad is 90% complete Mining development has progressed ahead of Concrete and civil works schedule and ore is expected to start being stockpiled on the ROM pad in December, ready for plant commissioning 5-year mining, drilling and blasting Stage 1 construction remains on schedule for commissioning in the March Quarter BOO contract for 11MW 2018 and first lithium concentrate sales on power plant – operational target for June 2018. Jan 2018 5-year transport logistics – load, haul, storage and ship loading CONSTRUCTION ~ 50% COMPLETE C h a r g i n g f o r w a r d w i t h L i t h i u m 6
Altura Lithium Mine Site 7
Project Funding Project construction 100% funded Senior secured loan notes issue raising a total of $US110 million Package provided by leading US and Swiss investment management groups Strong interest from international institutions – A$26M raised in October 2017 C h a r g i n g f o r w a r d w i t h L i t h i u m 8
Project Development Update Aerial View of ROM Pad, Power Plant & the Primary & Secondary Crushing Circuits C h a r g i n g f o r w a r d w i t h L i t h i u m 9
Project Development Update Tailings Storage Facility (TSF) C h a r g i n g f o r w a r d w i t h L i t h i u m 10
Project Development Update Conveyor construction underway C h a r g i n g f o r w a r d w i t h L i t h i u m 11
Project Development Update Reflux Classifier C h a r g i n g f o r w a r d w i t h L i t h i u m 12
Project Development Update Ball mill ready for installation C h a r g i n g f o r w a r d w i t h L i t h i u m 13
Project Development Update Mining development continues C h a r g i n g f o r w a r d w i t h L i t h i u m 14
Project Development Update Three stages of mining opened and producing ore C h a r g i n g f o r w a r d w i t h L i t h i u m 15
Offtake Partners – 100% of Production Secured OptimumNano • 100% owned subsidiary of Shenzhen-listed Shaanxi J&R Optimum Energy • Market capitalization ~A$5 billion, Controls 15-20% of Chinese battery market • Producer of lithium power battery systems for EV, large EV and static storage • Customers include Dongfeng Motors, Sunlong Bus, Dayun Group, FAW Group, Haw Tai Motors • Producing +100,000 battery sets in 2017 • Capacity to produce 12GW of batteries, increasing to 20GW capacity by end-2017 Lionergy • 20+ years in Chinese lithium industry with excellent reputations and connections • Exploration, mine development, concentrate sales and distribution • Li2C03 and LiOH manufacturing and sales, lithium metal & cathode manufacturing for Li-ion batteries Offtake Economics • Minimum 100,000 dmt per annum for five years, 6% lithium concentrate • Min. price US$550 / dmt for first 3 years • Max. price US$950 / dmt for first 3 years • Market-linked annual pricing • First sales before 30 June 2018 C h a r g i n g f o r w a r d w i t h L i t h i u m 16
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