Corporate Presentation September 2013 www.altonamining.com ASX: AOH FSE: A2O ACN 090 468 018 altonamining.com September 2013
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 www.asx.com.au or www.altonamining.com, 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 2. September 2013
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 $7,958 $7,670 $7,540 $7,126 $6,952 $6,731 Today $5,164 $3,684 $2,868 $1,780 $1,577 $1,558 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD altonamining.com 3. September 2013
Growing Copper Production and Optionality Outokumpu Project Roseby Project Underground copper-gold mine in Finland Development ready, 40ktpa copper altonamining.com 4. September 2013
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 5. September 2013
Corporate Snapshot Major Shareholders Market Status ASX (Australia) code: AOH Australian institutions: 32.0% FSE (Frankfurt) code: A2O Foreign institutions: 20.0% Board: 8.7% Share price (29-08-2013): A$0.15 German/Swiss retail: 7.0% Average daily turnover: 0.5M shares Top 20: 57.0% Shares on issue: 532M Market capitalisation: A$80M Debt: US$21M Cash (30-06-2013): A$26M Research coverage: Credit Suisse Source: ASX altonamining.com 6. September 2013
Outokumpu Copper Project in Finland I metre Massive copper sulphide ore in development face altonamining.com 7. September 2013
Finland is a Leading Mining Destination Euro zone country with a history of mining and Altona’s projects are in eastern Finland. mining equipment manufacturing, a stable tax regime (20.0%) and no royalties. Geology is similar to other Archaean Major miners include Agnico Eagle, Anglo and Proterozoic terrains in Australia and American and First Quantum. Canada. altonamining.com 8. September 2013
Our Success is Built on Our People altonamining.com 9 September 2013
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 10. September 2013
Kylylahti Underground Mine All infrastructure in place altonamining.com 11. September 2013
Kylylahti Mine Key Facts Status Steady state 550,000tpa, Luikonlahti expansion under consideration Mill Interior Mine 5.5m x 5.5m decline tunnel, longhole open stopes with cemented waste fill Life of mine Ore: 550,000tpa average Copper: 8,000tpa production Gold: 8,400ozpa Zinc: 1,600tpa € 32/tonne including trucking Mining cost Mine life 7.6 years Reserves 4.2Mt at 1.6% Cu, 0.7g/t Au, 0.6% Zn Resources 7.7Mt at 1.3% Cu, 0.7g/t Au, 0.5% Zn altonamining.com 12. September 2013
Kylylahti Mine Open at Depth Deep drilling underway to expand resources altonamining.com 13. September 2013
Increasing Resources and Reserves 90000 1.80 80000 1.60 70000 1.40 60000 1.20 Copper Grade % Copper Tonnes 50000 1.00 40000 0.80 30000 0.60 20000 0.40 10000 0.20 0 0.00 Feasibility Study June 2012 December 2012 June 2013 Production depletion Ore Reserves Cu t Reserve Grade altonamining.com 14. September 2013
Luikonlahti Mill altonamining.com 15. September 2013
Luikonlahti Mill Key Facts Interior Luikonlahti Mill Hall 91.5% copper recovery Status 71.5% gold recovery 91% availability Copper-gold concentrate Products Zinc concentrate Boliden’s Harjavalta Sales smelter 400km by truck, monthly payments Plant capacity 550,000tpa € 15/tonne plus € 3/tonne Milling cost concentrate transport Expansion Can expand to 800,000tpa for approx. A$7.5M capital Pebble mill 1 in action altonamining.com 16. September 2013
Mine and Mill Movie altonamining.com 17. September 2013
Quarterly Production Performance – A solid start 3,000 2.5 2.3 2,500 2.1 1.9 2,000 1.7 1,500 1.5 1.3 1,000 1.1 0.9 500 0.7 - 0.5 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 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 1900-2100 tonnes of copper per quarter at average of US$1.70-1.85/lb used in forecast for Q3 2013. altonamining.com 18. September 2013
Outokumpu – Growth opportunities Reserve expansion from deep Surface drilling and definition drilling Can increase throughput from 550,000 to 800,000tpa if sufficient reserves, cost approx € 7m 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 100m _ _ _ _ _ refineries Regional Resources and exploration may provide a second mine Grade distribution at Kylylahti altonamining.com 19. September 2013
Roseby Copper Project Little Eva Looking north-west from Green Hills altonamining.com 20. September 2013
Roseby is a Strategic Asset altonamining.com 21. September 2013
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 22. September 2013
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 23. September 2013
DFS Update DFS costs were top of market Mining contractor rates down 5-10% − from DFS estimates Engineering margins down − Resource/Reserves Incorporate post DFS drilling at − Turkey Creek, Lady Clayre and Ivy Ann Little Eva resource/reserve re- − modelling Outlook − Lower operating costs Lower capital costs − − Longer mine life (>11 years) altonamining.com 24. September 2013
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 25. September 2013
Recommend
More recommend
