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ALTECH BATTERIES LTD — Investor Presentation 2011
Mar 7, 2011
64444_rns_2011-03-07_6877b2c3-4476-40e6-9742-d7fa86eb846f.pdf
Investor Presentation
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www.ammg.com.au
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Disclaimer
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Certain statements made during or in connection with this communication, including, without limitation, those concerning the economic outlook for the exploration industry, expectations regarding commodity prices, production, cash costs and other operating results, growth prospects and the outlook of Australia Minerals and Mining Group Limited’s (AMMG) operations; contain or comprise certain forward-looking statements regarding AMMG’s exploration operations, economic performance and financial condition.
Although AMMG believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in commodity prices and exchange rates and business and operational risk management. AMMG undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.
The information contained in the Mandarin version of the presentation is for information purposes only and where any inconsistency has arisen through the translation or otherwise, the English version shall prevail.
Competent Person Statement
Technical information in this report is based on information compiled by Mr. Derek Judkins B.Sc. Geology, AMMG Chief Geologist and a member of the Australasian Institute of Mining and Metallurgy. Mr. Judkins has sufficient exploration experience which is relevant to the styles of mineralisation and types 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 Resources and Ore Reserves’ (“JORC 2004”). Mr. Judkins consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.
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Banded iron formation (BIF) outcropping at Bencubbin, E70/3853
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Corporate Overview
BOARD OF DIRECTORS Luke Atkins Non-executive Chairman Ric Dawson Managing Director David Brook Non-executive Director Chris Forrester Non-executive Director DanTenardi Non-executive Director Piers Lewis Company Secretary/ Chief Financial Officer
Major Shareholders as at 31 December 2010
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Top 20
Shareholders
36%
Directors, Founders
52%
& Associates
12%
Remaining
Shareholders
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| ASX CODE: AKA OPTIONS CODE: AKAO |
ASX CODE: AKA OPTIONS CODE: AKAO |
|---|---|
| Ordinary shares | 100.9m |
| Listed options | 42m |
| Unlisted options | 11.5m |
| Market Cap @ 03 Mar 2011 | 24.21m |
| Cash @ 03 Mar 2011 | 7.31m |
| Share Price @ 03 Mar 2011 | 24c |
| Debt | Nil |
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Investment Case
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Experienced board & management team
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- Board level mining and
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corporate experience. - Experienced exploration ,
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technical marketing and management team . - Diverse geological
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experience across various mineral sectors.
Strong business case
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Business case supported
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by China’s expansion in mineral demand.
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Increasing demand from
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India, China and SE Asia for minerals.
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Close shipping distance
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to expanding markets of China.
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Diverse range of Strong relationships
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Australian mineral with Asia projects - Corporate marketing
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- Minerals in increasing focus on South East Asia
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demand from abroad such as and China as part of iron ore, kaolin and corporate growth mineral sands . strategy.
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Strong financial position - No debt. - $7.32m cash as at 31
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December 2010. - ASX listed company.
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Focused project selection criteria
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- Targeting mineral projects
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with historical data and potential access to infrastructure . - Exposure to improving
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markets. - Potential leverage to Asian
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markets. - Potential joint venture
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opportunities.
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Corporate Strategy
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VISION
- To develop a diversified suite of mineral projects securing finite resources to take advantage of emerging markets and create shareholder value.
PRIORITIES
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Our current nearer term priorities are on:
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Increasing and marketing the current JORC-resource at Meckering
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( kaolin ) - achieved 65Mt
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Increasing and marketing the current JORC-resource at Lake Macleod ( gypsum ) – achieved 30Mt
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Advancing the Constance Range project through regional consolidation ( iron ore )
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E70/4043 Kerrigan tenement targeting kaolin
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- Consolidating a Western Australian, South West Yilgarn regional project ( iron ore )
FOCUS
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To secure historical mineral projects , thereby minimising exploration risk; whilst extracting optimal value from the Company’s resources and adding value to the Company.
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To identify an early “mover project” or projects, in the shorter term to raise greater investor awareness of the company with the potential for a possible nearer term cash flow.
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To identify a suitable strategic potential cornerstone joint venture/investor/off take partner to progress the Company’s projects.
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Project Locations
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SHIPPING DISTANCE TO CHINA: ~ 6,000km vs West Africa ~ 20,000km South America
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~ 23,000km
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Priority project focus: 1. Iron Ore 2. Kaolin 3. Gypsum 4. Salt 5. Mineral sands 6. Gold Exploration licences granted or under application covering approximately 7,075km²
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Priority Project Locations
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PROJECT TARGETING
South West, WA (Yilgarn) Iron Ore
Constance Range, QLD Iron Ore
South West, WA (Yilgarn) Kaolin
Lake Macleod, WA Gypsum
East Pilbara, WA Iron Ore
Potential rail, power and water services at Banded iron formation (BIF) outcropping at
Meckering Kaolin Project South West, WA (Yilgarn) Salt E70/3853 Bencubbin
South West, WA (Yilgarn) Mineral Sands
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AMMG representatives inspecting banded iron formation (BIF) outcropping at E70/3853 Bencubbin
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AMMG representatives inspecting kaolin located at E70/3923 Meckering test pit
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Banded iron formation (BIF) outcrop located at
E70/3853 Bencubbin
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Major Project Focus
- Evaluation of potential areas in relatively close proximity to infrastructure (road, rail, port) ongoing.
South West WA – Yilgarn targeting iron ore
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Evaluation of available aeromagnetic data.
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Program of follow up ground magnetics.
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Evaluation of historical data progressing.
– Constance Range iron ore
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Seeking regional ground consolidation.
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Analysis of potential iron ore beneficiation/processing techniques underway.
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Evaluation of historical data advanced.
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Seeking to increase a 65Mt JORC resource over historical work at Meckering.
– SouthWest WA kaolin
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Existing rail network, South West WA
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Aerial view of Constance Range QLD project
- Seeking a JORC resource over historical work at Kerrigan.
– Lake Macleod
gypsum
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Seeking to add an exploration target over historical work at Kellerberrin.
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Evaluation of historical data completed
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Drilling program completed.
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Seeking to increase 30Mt JORC
Kaolin test pit at Meckering
resource.
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Lake Macleod drill rig
South West WA Yilgarn Iron Ore Project
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Geraldton Port
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Kwinana Bulk Terminal
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Bunbury Port
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Proposed Oakajee Port
Esperance Port
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Albany Port
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South West WA Yilgarn Iron Ore Project
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and .
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Targeting haematite/goethite magnetite
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2 exploration licences granted, with 6 applications pending. Total tenement area is 1439km².
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Relatively close proximity to established rail, road
. and port networks
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Targeting magnetic anomalies (potential BIF’s) using aeromagnetic analysis.
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Ground magnetic fieldwork and follow up drilling of granted tenement in preparation with
BIF outcrop at Bencubbin, E70/3853
heritage surveys being planned for Q2, 2011.
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BIF outcrop at Bencubbin, E70/3853
Existing rail line at Bencubbin, E70/3853
BIF outcrop at Bencubbin, E70/3853
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South West WA Yilgarn Iron Ore Project
Pingaring Project Aeromagnetic data shows the geological structure for ~5km strike length
Bencubbin Project Aeromagnetic data shows the geological structure under the surface for ~14km strike length
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Kukerin Project Aeromagnetic data shows the geological structure for ~5km strike length
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Burngup Project Aeromagnetic data shows the geological structure for ~13km strike length
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Constance Range Iron Ore Project
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Iron-rich rock at Constance Range
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Constance Range Iron Ore Project
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Targeting haematite DSO, siderite and magnetite.
China
1 EPM granted , with 5 pending applications.
~5,500
Total tenement area is 696km². kms
Substantial BHP historical database (BHP’s project prior to Pilbara).
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160km to Gulf of Carpentaria (direct) approx 5,500km to China.
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Strong overseas investor interest from a number of suitably qualified and strategically positioned parties.
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Competitive shipping freight
advantage to China.
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Close proximity to China’s MMG
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Century Zinc corridor mine and
associated slurry pipe and port
infrastructure.
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Iron-rich rocks at Constance Range
Aerial view of Constance Range
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South West WA Kaolin Project
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9 tenements held over
three project areas:
1. Meckering
2. Kellerberrin
3. Kerrigan
Distance to
Perth
Approx.130kms
Distance to
Kwinana
Port
Approx.
168kms
Distance to
Albany Port
Approx.
400kms
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*The term “Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve
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Meckering Kaolin Project
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AMMG exploration licence E70/3923 granted with initial JORC kaolin resource of 65Mt comprising 16.77Mt indicated and 48.28Mt inferred.
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Granted tenement E70/3923 traversed by:
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Trans-Australian standard gauge railway and Great Eastern Highway
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Kalgoorlie goldfields water pipeline
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SWIS Kalgoorlie Goldfields power line
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Resource exploration upgrade activities planned to commence early 2011.
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Kaolin classed as “bright” by industry standards.
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Private freehold land – Native Title extinguished – Key landowner agreement in place
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Mediterranean moderate to dry climate – year round accessibility
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Low average annual rainfall (~341mm) – limited dewatering
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Cleared broad farms (wheat, sheep) – lower environmental impact
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Gently undulating flat terrain and near surface deposit – low stripping ratio
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Approx 135km to Western Australian capital city, Perth
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Low rural population density – low environmental impact
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Electricity Water
Rail
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Available rail, water and electricity services
Meckering Kaolin Project
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JORC Resources
| Tonnage | %-45 micron1 | Brightness2 | |
|---|---|---|---|
| Indicated resource | 16,770,000 | 42.3% | 83.2% |
| Inferred resource | 48,280,000 | 41.8% | 83.5% |
| Total resource base | 65,000,000 | 41.9% | 83.4% |
JORC: Joint Ore Reserves Committee, common reference to the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves, 1999
Kaolin Sample Mineral Analysis (dry screened -45μm micron metres )
38% alumina (Al203)
Low impurity, iron (Fe2O3), titanium (TiO2)
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SiO ₂ Al203 Fe2O3 TiO2 CaO MgO Na2O K2O MnO P2O5 Ig.loss Total
% % % % % % % % % % %
45.86 38.32 0.43 0.56 0.05 0.17 0.45 0.27 0.00 0.05 13.83 100.00
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lg.loss: removal of moisture
Meckering Kaolin Project
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Meckering Kaolin test pit
75kms
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AMMG’s Kaolin Exploration Target
| Indicated (Mt) |
Inferred (Mt) |
Exploration Target (Mt)* |
Land Holding Grant/App (km²) |
|
|---|---|---|---|---|
| Meckering | 16.77 | 48.28 | 75-130 | 966 |
| Kerrigan** | - | - | 100-150 | 459 |
| Kellerberrin | - | - | 70-110 | 408 |
| TOTAL | 16.77 | 48.28 | 265-390 | 1,833 |
*The term “Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve
** Substantial Rio Tinto (CRA) historical database and drilling results from Kerrigan (Bradley) including historical bulk sample testing.
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Lake Macleod Gypsum Project
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TO
PERTH
913km
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Lake Macleod Gypsum Project
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1 granted tenement and four exploration licence applications.
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30Mt JORC inferred resource delineation by external consultant Reynard Australia.
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Total tenement area is 990km².
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Distance to coast approximately ~30km.
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Distance to North West Coastal highway ~20kms.
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Potential to use existing infrastructure (subject to negotiations).
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Substantial historical drilling database.
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First phase drilling completed.
Drilling rig used at Lake Macleod E09/1572
- Detailed market research underway, and discussions ongoing with potential off-take customers.
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| INFERRED RESOURCES, LAKE MACLEOD NORTH | INFERRED RESOURCES, LAKE MACLEOD NORTH | INFERRED RESOURCES, LAKE MACLEOD NORTH |
|---|---|---|
| Gypsum Cut Off | >85% | >90% |
| M Tonnes | M Tonnes | |
| North (Block 1) | 4.9 | 3.5 |
| South (Block 2) | 26.1 | 9.8 |
| Total | 30.9 | 13.2 |
| Overall Grade | 89.5% | 92.1% |
Gypsum samples at E09/1572
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East Pilbara WA Iron Ore Project
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East Pilbara WA Iron Ore Project
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Six exploration licence applications in the Pilbara Mineral Field of WA.
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Total tenement area is 1190km².
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Tenements in relatively close proximity to the Mt Goldsworthy rail
line and Port Hedland . port facilities
- Negotiations with native title groups are underway.
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Magnetics, radiometrics and Landsat imagery available for identifying targets* with potential magnetite iron ore mineralisation.
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One tenement has the “along strike” potential from the Mt Ridley magnetite deposit.
Rio Tinto’s Pilbara Rail
*The term “Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.
South West WA Salt Project
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Existing salt operations on adjoining ground
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Railway on salt lake edge
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Salt lake surface
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Salt lake surface
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3 joint venture tenements granted , with a further two applications pending.
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Natural lake recharge.
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Adjacent to existing salt operations.
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Adjacent to rail services connected to ports.
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Total tenement area is 436km².
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Sample analysis program planned for the year.
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Target chlor-alkali market
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South West WA Mineral Sands Project
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Two exploration licence applications pending.
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Total tenement area approx. 156km².
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Previously reported BHP as
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by containing ilmenite and zircon.
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Targeting coastal shoreline deposits, previously mined by BHP.
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Field and surveys
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potential air-core drilling planned for the year.
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South West WA Projects Relatively Close Proximity to Road, Rail & Ports
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Why Invest in Australia?
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Western democracy – stability for overseas investors
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Western Australia one of the world’s richest mineral
provinces
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Pro-mining Western Australia State Government with mandate to expedite approval processes
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Low sovereign risk vs. other high risk nations Skilled mining workforce Mining-based economy Close proximity to emerging markets and competitive shipping freight advantage
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- Same time zone as China
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Well developed legal system
Why Invest in AMMG?
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Diverse range of Australian mineral projects
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Strong business case
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Experienced board, corporate, exploration & management team
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Focused project selection criteria
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Strong relationships with Asia
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Extensive tenements holdings
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Strong financial position
Mr Wang Xin Mr Luke Atkins Mr Jiang Daming Chairman Non-executive Yankuang Group Chairman Governor of Shandong Province AMMG Shandong Province
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Western Australia – The Place To Be WA’s Share of World Mineral Output
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SELECTED WA COMMODITIES RELATIVE TO WORLD PRODUCTION 2009, BY QUANTITY
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Alumina
Diamonds
Garnet
Gold
Ilmenite
Iron ore
LNG
Nickel
Rutile
Salt
Tantalum
Zircon
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Western Australia Rest of Australia Rest of World
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Source: DMP, ABARE and USGS
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China’s Iron Ore Imports
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Source: Interfax China Ltd
Million tonnes
300
250
200
150
100
50
0
Australia Brazil India South Ukraine Canada Russia Iran Indonesia Mauritania Peru Others
Africa
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Australia exported $23.7 billion AUD in 2009 of iron ore to China
China imported 261.9 million tonnes of iron ore from Australia in 2009
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Western Australia Mineral Exports 2009-2010
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Other Source: DMP
A$73.7 billion Gold 1% Petroleum
19%
21%
Alumina
5% Heavy Mineral
Sands
Base Metals
1%
2%
Nickel
6%
Diamonds
0.4%
Iron Ore
45%
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Iron ore being loaded onto a ship at Cape Lambert port, Pilbara, WA
Port Hedland port, North West, WA
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Opportunities for Strategic Co-operation Investment with AMMG
Opportunity for:
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Direct investment by way of issue of new shares
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Strategic co-operation for exploration
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Strategic co-operation for project development
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processing facilities and infrastructure development
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Strategic co-operation for off-take sales
agreements
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Thankyou from the AMMG corporate management team
Piers Lewis BComm CA
Highly experienced Chartered Accountant.
Company Secretary/CFO of several ASX listed resource companies.
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Summer Qi ME(ChemEng) Born in Weifang, Shandong Province, China. Manages research and development in mineral processing technologies, feasibility studies, technical and overseas marketing.
Jane Carew-Reid BA(Comm) Qualified in communications, marketing, and administration.
Derek Judkins BSc(Geol.) AusIMM Highly experienced geologist, with over 30 years experience in the mining industry.
Manages exploration, geological investigations, historical data and project planning.
Manages project and corporate marketing, human resources, IT support, and accounts.
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