For personal use only

Transcription

1 Astron Corporation Limited Donald Mineral Sands Project March 2013 Simon Peters, Development Manager ASX Code: ATR 1

2 Disclaimer, Forward Looking Statements and Competent Person s Statement This presentation has been prepared by Astron Corporation Limited (the Company or Astron ). 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. This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. The Company has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws Astron makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview 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 before making any investment decisions. Competent Person s Statement The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Dr Boris Matveev, who is a Member of The Australian Institute of Geoscientists. Dr Matveev is a fulltime employee of Astron Ltd 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves. Dr Matveev consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 2

3 Presentation Agenda Introducing Astron Donald Mineral Sands Project, Murray Basin, Australia Project Fit & Market Dynamics Conclusion 3

4 Introducing Astron 4

5 History 5

6 A Corporate Snapshot Listed on ASX since 1983 holding company Astron Corporation Limited domiciled in HK Dedicated focus on mineral sands mining and processing Tier 1 Donald Project in Murray Basin, Australia Near-term production project in Niafarang, Senegal Approx. ~$115m of cash; no debt 25 years in China strong presence and reputation in mineral sands processing and marketing Operate a Chinese mineral sands trading business with close relationships to all key customers Technology leader significant research and technology development 6

7 Location of Operations 7

8 Astron Corporation Limited - Overview Share Price Performance Financials A$ ,000 2,500 2,000 1,500 1, ASX Code Market Cap Ordinary Shares Enterprise Value Net Asset Value ATR A$134m 122m A$19m A$198m Trading at a ~30% discount to net asset value Avg Volume Astron S&P ASX 200 (rebased) Shareholder Structure Asset Value Per Share* Firback Finance Ltd (50%) PT Arafua (26%) Other Top 20 shareholders (15%) Remaining Shareholders (9%) $/share A$m Cash and term deposits Donald (including water rights) Niafarang PPE & land use rights Investments Net current assets *As at 31 December

9 Donald Mineral Sands Project 9

10 Donald Mineral Sands Project One of the largest undeveloped deposits in the world Next Generation Tier 1 resource 4 billion tonnes of resource at 4.8% THM JORC reserve of 150mt Stage 1 to produce 950ktpa of HMC; 30 year mine life World class location Murray Basin Close to existing infrastructure: port, rail and road Standard open-cut mining operation 10

11 World Class Location Intergenerational resource sits within 300km from port Road and water networks in place 300km to ports 70km to rail hub Skilled workforce 50km from regional city of Horsham 11

12 Astron Tenements 5595 sq. km licenses Held by subsidiaries Donald Mineral Sands & Sovereign Gold Donald & Jackson two of the largest WIM type deposits in the region Known extensions of WIM deposits Historically identified strandline HM mineralisation

13 WIM Style Deposits - Geology Geology Hosts Massive multi commodity Resource Large, lobate, sheet-like Laterally extensive individual heavy mineral lenses separated by barren sand Relatively uniform grade over large areas 13

14 Value of titanium feedstock products WIM Style Deposits - Opportunities Next Generation Product Supply Large ore tonnages Good grade Favourable assemblage High-quality Ti content Rare Earth Credits provide multiple opportunities $1,400 Rutile $1,200 High zircon, high-grade titania concentrates $1,000 Synthetic Rutile High value in ground relative to other mining opportunities relative to other feasible projects $800 $600 $400 $200 Sulphate Ilmenite Murray Basin fine concentrates Basis: Rutile price = US$1330/t FOB Zircon price = US$2200/t FOB Ilmenite price = US$200/t FOB $0 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% % TiO2 14

15 Resource Geology 4.8% HM Measured + Indicated + Inferred Mineral Resource * 5.9% HM Proved + Probable Ore Reserve ** Includes 5.8% HM Proved Ore Reserve * ASX announcement dated 1 December 2011 ** ASX announcement dated 15 June 2012 AREA AVERAGE GRADE HM% RESOURCE* (MT) AVERAGE STRIP RATIO** ML ML * combined Measured + Indicated + Inferred Mineral Resource at 1% HM cut-off ** calculation: tonnes below 1% HM / tonnes above 1% HM 15

16 Previous Challenges now overcome Secured long term high security water supply Developed process flow with adequate recoveries based on proven technologies Developed Hot Zircon Wash process to decrease impurities of Fe U & Th Value Adds Monazites and Tertiary Zircon Products 16

17 Project Fit & Dynamics 17

18 Total Heavy Minerals (%) Saleable production (Ktpa) Revenue / Cost (times) Peer Comparison Highly Competitive Mineral Commodities Diatreme Resources Gunson Resources Miatilda Zircon Image Resources Pathfinder Minerals Sheffield Resources World Titanium Resources Astron Base Resources Mineral Deposits Sierra Rutile Kenmare Resources Iluka Resources EV / Zircon Eq ($A/t) IMA SFX GUN DRX ATR (D) ATR (N) MDL WTR BSE ILU 8.8% 1,600 1, % 1,200 1, % % SFX GUN MDL MZI DRX BSE KMR SRX PFP ATR IMA ILU WTR 0 MZI DRX GUN IMA SFX BSE WTR MDL ATR PFP Average Average *ATR (stage 2) SFX Sheffield Resources GUN Gunson Resources MDL Mineral Deposits MZI Matilda Zircon DRX Diatreme Resources BSE Base Resources KMR Kenmare Resources SRX Sierra Rutile PFP Pathfinder Minerals ATR Astron Corporation IMA Image Resources ILU Iluka Resources WTR World Titanium Resources Source: Bell Potter, Astron 18

19 Donald s Position & Fit Comments Major Suppliers Major Others 43% TiO2 units (6.5Mt) BeMax 4% 4% 13% 8% Iluka 16% 12% Exxaro Kenmare QIT (Rio 80%) RBM (Rio 74%) Astron 4% India Others QIT (Rio 80%) 2% 2% 9% Kenmare 3% BeMax 4% Indonesia China Summary of Development Projects 5% 7% Exxaro 13% Zircon (1.5Mt) 16% 39% Iluka RBM (Rio 74%) Astron 8% 8% world supply of Zircon and 4% of Ti02 80% of revenue from high value materials (Zircon and Rutile) Largest new Zircon project to come on stream Rio Tinto forecast titanium dioxide market to grow 46% to 9.5Mtpa in 2020 F/Production TiO 2 ('000t/pa) Zi ('000t/pa) Zi Ratio Rank Zi:TiO 2 Funding $Am (D/E) Financed Grand Còte Senegal (Mineral Deposits JV with Eramet) Late /305 Kwale, Kenya (Base) Late /140 Being Financed Coburn (Gunson) Donald (Astron) Niafarang (Astron) Nil debt Toliara Sands (WTR)

20 Market Dynamics Short Term Long Term Outlook for pricing has deteriorated Producer inventories have increased Producers managing production to limited further inventory build Outlook for Ti02 is better than zircon Downstream inventories remain low

21 Market Dynamics Short Term Long Term Fundamentals underlying strong zircon demand growth expectations, in particular in China, remain intact Global zircon production will decline unless new resources are brought on stream Titanium markets to grow 40-50% by 2020 Growth to come from China

22 Conclusion 22

23 The Astron Value Proposition Extensive history in Chinese marketplace 25 year record Massive resource base Well advanced path to production Major Permits in place with Active mineral sands import and trading business in China Robust long term product demand Robust balance sheet Understand key requirements of customers and Chinese market dynamics 23

24 For further information please contact Simon Peters Development Manager Tel: Website: 24