Wolf Minerals
Content
INVESTOR PRESENTATION JUNE 2013
Cautionary Statement
The information contained in this document has been prepared based upon information supplied by Wolf Minerals Limited (the Company). This Document does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company. While the information contained in this Document has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give any representations or warranties (express or implied) as to the accuracy, reliability or completeness of the information in this Document, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as Information) and liability therefore is expressly disclaimed. Accordingly, to the full extent permitted by law, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained in this Document or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Document. Neither the issue of this Document nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any person. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Document, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Document or to correct any inaccuracies in, or omissions from, this Document which may become apparent. This Document should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Document is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained in this Document necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters. This Document may include certain statements that may be deemed forward-looking statements. All statements in this discussion, other than statements of historical facts, that address future activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. The Company, its shareholders, directors, officers, agents, employees or advisers, do not represent, warrant or guarantee, expressly or impliedly, that the information in this Document is complete or accurate. To the maximum extent permitted by law, the Company disclaims any responsibility to inform any recipient of this Document of any matter that subsequently comes to its notice which may affect any of the information contained in this Document. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
2
Wolf – Investment Highlights
WORLD CLASS, CONSTRUCTION READY TUNGSTEN AND TIN MINE IN THE UK
Hemerdon Project - first production expected in 2015
Planning permissions in place with finance secured to commence construction
DFS indicates solid EBITDA margins and low operating production costs
Positive structural market dynamics for tungsten pricing and demand
Low cost model provides significant leverage to tungsten price upside
Located in a stable and supportive political environment
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
3
Wolf - Corporate Snapshot
WOLF MINERALS Stock Codes Share Price Issued shares Unlisted Options Market Cap Key Management ASX:WLF ASX: A$0.30 198.0 Million 8.0 Million ~A$59M ~£40M MD & CEO – Humphrey Hale Chairman – John Hopkins CFO - Richard Lucas AIM:WLFE AIM: £0.20
0.40 0.35 0.30 0.25 0.20 0.15 ASX:WLF - Share Pricing -Volume 1,500 1,000 500 0 ASX:WLF - Share Pricing
SHARE PRICE (ASX:WLF)
2,000 Thousands
SUBSTANTIAL SHAREHOLDERS Name Resource Capital Fund V Holding 36.4% 19.9% 9.3% Description Mining focused private equity firm.
TTI (NZ) Limited
Traxys Projects LP
Wholly owned subsidiary of Todd Corporation Limited, a major private NZ based company with a diversified portfolio of business interests.
Global leader in financing, marketing, distribution and financial services for the mining, metals and minerals industries.
WOLF Minerals – UK Tungsten ASX:WLF |AIM:WLFE 4
Tungsten – Positive Structural Market Dynamics
OVERVIEW • Critical for industrial development due to its unique properties (melting point / hardness) and limited substitutability • Considered a strategic metal in US, EU and China • Used in manufacture of hard metals (cemented carbines), steels/alloys and mill products • Ammonium Para Tungstate (APT) is the most traded of the tungsten products – current price US$365** • Product prices quoted in metric tonne units or mtu (1 mtu = 10kg) PRIMARY TUNGSTEN DEMAND • China a net importer in 2012 • China holds 60% of known tungsten reserves (USGS) and accounts for +50%* of demand and +80%* of supply • New capacity required to meet Western demand • Forecast demand growth of 6-7% to 2016* • Hemerdon in full production will produce less than 3% of total forecast demand in 2016
*Source: Roskill research **EU APT price US$365 (Metal Pages)
100000
90000 80000 70000 60000 50000 40000 30000 20000 10000 0
1990
FORECAST TUNGSTEN DEMAND 1989 TO 2016*
2006
1989
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2007
2008
2009
2010
2011
2012
2013
2014
2015
*Source: ITIA: Roskill forecast
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
2016
5
Hemerdon Project
DFS confirms a robust low cost project • Large, high quality reserve base • 26.7mt @ 0.19%W03 (tungsten) and 0.03%Sn (tin) of proven and probable reserves • Low cash cost of US$105/mtu* A$212M in funding to commence construction Permitted to 2021 with potential to extend Stable UK location with existing infrastructure
EPC contract in line with DFS
Production expected in 2015
*After tin credits
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
6
DFS Headline Outcomes
Existing china clay operations
DFS HEADLINE OUTCOMES
Units Tungsten Production Tin Production Average Cash Cost* mtu/pa mtu/pa US$/mtu £m UNITS APT Price** Operating Surplus
Hemerdon approved pit rim limit
Production Assumption 345,000 462 105 104 BASE 360 338 UPPER 415 424
Hemerdon approved planning permission limits
Capex
US$/mtu £m
Project NPV
EBITDA Payback
£m
£M/pa Years
74
29 3.25
114
37 2.75
7
*After tin credits **EU APT Price 24/5/13 US$370 (Metal Pages)
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
Hemerdon - Construction Ready
COMPLETED
Planning Funding
CURRENT FOCUS
2013 Construction 2014 Commissioning
ONGOING
2015 Production
2016 Increase Mine Life
DFS completed A$212 Million Funding package to commence construction completed
NEXT STEPS
• Appoint Senior staff and continue land purchases • Commence detailed design and procurement of the plant and infrastructure • Secure remaining environmental approvals
Planning permission secured
Water permits approved
Binding Offtake agreements completed
EPC Contractor appointed
WOLF Minerals – UK Tungsten ASX:WLF |AIM:WLFE 8
A$212 Million Funding Package
FUNDING FROM LEADING INSTITUTIONS TO BEGIN CONSTRUCTION
SHAREHOLDER EQUITY $20.3 MILLION COMPLETED JANUARY 2013 RESOURCE CAPITAL FUND V US$82 MILLION** Executed ING, UNICREDIT, CAT FINANCIAL £75 MILLION Executed £75m of senior debt including £5m project bond facility Drawdown triggers payback of Bridge Finance Facility US$7m consideration for purchase of 2% royalty on future gross revenues
12 month secured US$75m Bridge Finance Facility Supported by strategic investors - Resource Capital Fund V, Traxys and Todd Corporation
Tenor 7.5 years with 5.5 year repayment term
*Exchange rates GBP 1/AUD 1.505, AUD 1/USD 1.04
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
9
EPC Contract in line with DFS
GR ENGINEERING SERVICES (GRES) APPOINTED AS EPC CONTRACTOR
The £75 million (A$110.6 million) contract is below the DFS estimate of ~£77 million
Completion includes commissioning the plant & performing a throughput test
RECENTLY COMPLETED PROJECTS CBH Resources Limited Broken Hill Operations Rasp Project $76M Catalpa Resources Ltd Edna May Gold Project $52M Western Areas NL Cosmic Boy Nickel Project $35M
ASX:WLF |AIM:WLFE
750,000 tpa Lead Zinc Processing Plant (Design and Construct) 2.8 Mtpa Gold Process Plant & Infrastructure (Design and Construct) 250,000 tpa Nickel Sulphide Process Plant (Design and Construct)
10
Fixed delivery period of 105 weeks from formal commencement date
Globally experienced firm with a solid history of executing projects on time and in budget
WOLF Minerals – UK Tungsten
Offtake Agreements completed
TOP TIER OFFTAKE PARTNERS
Confirms saleability of tungsten concentrate
Provides partial guarantee for Senior debt of £75m Global Tungsten & Powders (Plansee)
Total contracted quantity equal to 80% of scheduled production on a 5 year term
Market pricing with no cap or floor
Suitable for German government guarantee
Wolfram Bergbau und Hutten (Sandvik)
ASX:WLF |AIM:WLFE 11
WOLF Minerals – UK Tungsten
Optimise and Increase Mine Life
POTENTIAL DEVELOPMENT OPTIONS WITH FRESH PLANNING PERMISSIONS
Current DFS is limited only by existing planning permission
Lateral and vertical pit expansion
Potential for underground expansion
Opportunity to steepen the ultimate pit walls resulting in an increase in mineable reserve.
Mineralisation is open at depth to 400m and along strike providing the opportunity to expand pit design further and extend mine life by many years.
WOLF Minerals – UK Tungsten ASX:WLF |AIM:WLFE 12
Next Steps
Appoint Senior staff and continue land purchases
Commence detailed design and procurement of plant and infrastructure
Secure remaining environmental approvals
Provide site access to EPC contractor
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
13
Wolf – Summary
High quality, open pit 3Mtpa construction ready tungsten and tin project in the UK
EPC contract secured in line with DFS estimates
Financing from top tier investors to commence construction and offtake agreements
Low cost model provides significant leverage to tungsten price upside
2015 production schedule in line with projected forecast increase in Western tungsten demand
Fourth largest tungsten deposit globally with significant future development options
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
14
APPENDICES
WOLF Minerals – UK Tungsten ASX:WLF |AIM:WLFE
Competent Persons Statement
The information in this report relates to Exploration Results, Mineral Resources or Ore reserves is based on information compiled by Mr. H. Hale BSc. (Hons), MAIG. Mr. Hale has sufficient experience that is relevant to the style of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves. Mr. Hale consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
“The information in the report to which this statement is attached that relates to Exploration Results and Mineral Resources is based on information compiled by Phil Jankowski, who is a Member of the Australasian Institute of Mining and Metallurgy. Phil Jankowski is a full-time employee of SRK Consulting (Australasia) Pty Ltd (“SRK”), 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 Resources and Ore Reserves’. Phil Jankowski consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.”
The Ore Reserve estimate is based on work completed by Mr Quinton de Klerk, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr de Klerk is a full time employee of Cube Consulting and has sufficient experience which is relevant 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’. Mr de Klerk consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
16
Hemerdon Mineral and Ore Reserves
ORE RESERVES
Mt Granite Soft Granite Total 18.9 4.6 23.5
PROVEN
WO3 % 0.18 0.19 0.19 Sn % 0.03 0.03 0.03 Mt 2.4 0.9 3.2
PROBABLE
WO3 % 0.18 0.21 0.19 Sn % 0.03 0.03 0.03 Mt 21.3 5.5 26.7
TOTAL
WO3 % 0.18 0.21 0.19 Sn % 0.03 0.03 0.03
MINERAL RESOURCES
Measured Indicated Measured and Indicated Inferred Measured, Indicated & Inferred
TONNAGE (MT)
76.8 40.3 117.1 284.2 401.4
WO3 GRADE (%)
0.15 0.13 0.14 0.13 0.13
SN GRADE (%)
0.02 0.02 0.02 0.02 0.02
Tables reported at a cutoff grade of 0.063% WO3
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
17
DFS Headline Outcomes
RESULT APT Price** UNITS US$/mtu BASE CASE 360 UPPER CASE 415
Operating Period
Annual Throughput Tungsten Production Tin Production Average Cash Cost* CAPEX Operating Surplus EBITDA Project NPV₈ (post tax ungeared) IRR Payback
Yrs
Mtpa mtu/pa t/pa US$/mtu £M £M £M £M % Years
WOLF Minerals – UK Tungsten
9.25
3 345,000 462 105 104 338 29 £74M 21% 3.25
ASX:WLF |AIM:WLFE
9.25
3 345,000 462 105 104 424 37 £114M 26% 2.75
*After tin credits **EU APT Price 7/3/13 US$365 (Metal Pages)
18
Capital and Operating Costs
CAPITAL COST ESTIMATES
ITEM Process plant Infrastructure Land purchases Owners costs Contingency Total £ 000s 65,366 8,491 10,548 10,403 9,314 104,122
OPERATING COST ESTIMATES
ITEM Mining Processing General Administration (Inc. marketing & royalties) C1 Cash Cost for operating period Total Cash cost (After tin credits) US$ /mtu 66.99 53.10 15.52 122 105.18
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
19
Board & Management
Humphrey Hale, Executive Managing Director • 20 years in mining industry • Previously with AngloGold Ashanti • Geologist with Exploration and Mining Consultants John Hopkins (Non-Executive Chairman) • Chairman of Midas Resources Ltd and Universal Coal PLC, NED Thundelarra Exploration Ltd. • Former Chairman of gold producer Adamus Resources Ltd Jonathan Downes (Non-Executive Director) • Founding director of Hibernia Gold (now Moly Mines Limited) and Siberia Mining Corporation (now owned by Monarch Resources Limited) • Current N.E.D of Corazon Metals Limited, Sabre Resources and Managing Director of Ironbark Zinc Limited Richard Lucas, CFO and Company Secretary • Ex CFO of Geotech Group and experience at Lihir Gold mine in PNG • Previously Director at PWC. Don Newport (Non-Executive Director) • Former head of Standard Bank's Global Mining Finance Business • Led Barclays Capital Mining Sector Team. Jim Williams (Non-Executive Director) • Chartered Engineer and Fellow of AusIMM • Founding Head of Mining for Fortescue Metals Group Ltd • Previously Chief Mining Engineer at Bechtel Australasia, Principal Mining Consultant for Minproc Engineers and CEO for Laverton Gold.
Adrian Byass (Non-Executive Director)
• ASX Competent Person • Founder of Siberia Mining Corporation and Hibernia Gold • Executive Director of Ironbark Zinc Limited, Plymouth Minerals and Corazan Mining Ltd.
WOLF Minerals – UK Tungsten
Chris Corbett (Non-Executive Director)
• Resource Capital Fund (RCF) representative • Mine development, production and construction experience with Byrnecut Mining and corporate and business development roles with Wesfarmers Limited.
ASX:WLF |AIM:WLFE 20
DFS Data Sources
STUDY AREA
Mineral resources and Geology Ore Reserves and Mining Plan Mining Cost Estimates Hydrogeology Client Metallurgical Representative Metallurgical Testwork Process Plant Design Plant Capital Plant Operating Costs Treatment and Refining Infrastructure and Services Environmental Tailings and Storage Facilities Planning and permitting Archaeological Geological Consultant SRK Consulting Perth Cube Consulting Perth Cutback Consulting Aquaterra Coffey Mining Ammtec managed by GR Engineering Services GR Engineering Services GR Engineering Services GR Engineering Services Traxys GR Engineering Services MRH Associates Coffey Mining Mineral Planning Associates UK Groundwork Archaeology Ltd Richard Scrivener
WOLF Minerals – UK Tungsten ASX:WLF |AIM:WLFE 21
CONSULTANTS
FOR FURTHER INFORMATION: Humphrey Hale - Managing Director P: +61 8 6364 3776 E: [email protected] W: www.wolfminerals.com.au
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
22
Cautionary Statement
The information contained in this document has been prepared based upon information supplied by Wolf Minerals Limited (the Company). This Document does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company. While the information contained in this Document has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give any representations or warranties (express or implied) as to the accuracy, reliability or completeness of the information in this Document, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as Information) and liability therefore is expressly disclaimed. Accordingly, to the full extent permitted by law, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained in this Document or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Document. Neither the issue of this Document nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any person. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Document, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Document or to correct any inaccuracies in, or omissions from, this Document which may become apparent. This Document should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Document is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained in this Document necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters. This Document may include certain statements that may be deemed forward-looking statements. All statements in this discussion, other than statements of historical facts, that address future activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. The Company, its shareholders, directors, officers, agents, employees or advisers, do not represent, warrant or guarantee, expressly or impliedly, that the information in this Document is complete or accurate. To the maximum extent permitted by law, the Company disclaims any responsibility to inform any recipient of this Document of any matter that subsequently comes to its notice which may affect any of the information contained in this Document. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
2
Wolf – Investment Highlights
WORLD CLASS, CONSTRUCTION READY TUNGSTEN AND TIN MINE IN THE UK
Hemerdon Project - first production expected in 2015
Planning permissions in place with finance secured to commence construction
DFS indicates solid EBITDA margins and low operating production costs
Positive structural market dynamics for tungsten pricing and demand
Low cost model provides significant leverage to tungsten price upside
Located in a stable and supportive political environment
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
3
Wolf - Corporate Snapshot
WOLF MINERALS Stock Codes Share Price Issued shares Unlisted Options Market Cap Key Management ASX:WLF ASX: A$0.30 198.0 Million 8.0 Million ~A$59M ~£40M MD & CEO – Humphrey Hale Chairman – John Hopkins CFO - Richard Lucas AIM:WLFE AIM: £0.20
0.40 0.35 0.30 0.25 0.20 0.15 ASX:WLF - Share Pricing -Volume 1,500 1,000 500 0 ASX:WLF - Share Pricing
SHARE PRICE (ASX:WLF)
2,000 Thousands
SUBSTANTIAL SHAREHOLDERS Name Resource Capital Fund V Holding 36.4% 19.9% 9.3% Description Mining focused private equity firm.
TTI (NZ) Limited
Traxys Projects LP
Wholly owned subsidiary of Todd Corporation Limited, a major private NZ based company with a diversified portfolio of business interests.
Global leader in financing, marketing, distribution and financial services for the mining, metals and minerals industries.
WOLF Minerals – UK Tungsten ASX:WLF |AIM:WLFE 4
Tungsten – Positive Structural Market Dynamics
OVERVIEW • Critical for industrial development due to its unique properties (melting point / hardness) and limited substitutability • Considered a strategic metal in US, EU and China • Used in manufacture of hard metals (cemented carbines), steels/alloys and mill products • Ammonium Para Tungstate (APT) is the most traded of the tungsten products – current price US$365** • Product prices quoted in metric tonne units or mtu (1 mtu = 10kg) PRIMARY TUNGSTEN DEMAND • China a net importer in 2012 • China holds 60% of known tungsten reserves (USGS) and accounts for +50%* of demand and +80%* of supply • New capacity required to meet Western demand • Forecast demand growth of 6-7% to 2016* • Hemerdon in full production will produce less than 3% of total forecast demand in 2016
*Source: Roskill research **EU APT price US$365 (Metal Pages)
100000
90000 80000 70000 60000 50000 40000 30000 20000 10000 0
1990
FORECAST TUNGSTEN DEMAND 1989 TO 2016*
2006
1989
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2007
2008
2009
2010
2011
2012
2013
2014
2015
*Source: ITIA: Roskill forecast
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
2016
5
Hemerdon Project
DFS confirms a robust low cost project • Large, high quality reserve base • 26.7mt @ 0.19%W03 (tungsten) and 0.03%Sn (tin) of proven and probable reserves • Low cash cost of US$105/mtu* A$212M in funding to commence construction Permitted to 2021 with potential to extend Stable UK location with existing infrastructure
EPC contract in line with DFS
Production expected in 2015
*After tin credits
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
6
DFS Headline Outcomes
Existing china clay operations
DFS HEADLINE OUTCOMES
Units Tungsten Production Tin Production Average Cash Cost* mtu/pa mtu/pa US$/mtu £m UNITS APT Price** Operating Surplus
Hemerdon approved pit rim limit
Production Assumption 345,000 462 105 104 BASE 360 338 UPPER 415 424
Hemerdon approved planning permission limits
Capex
US$/mtu £m
Project NPV
EBITDA Payback
£m
£M/pa Years
74
29 3.25
114
37 2.75
7
*After tin credits **EU APT Price 24/5/13 US$370 (Metal Pages)
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
Hemerdon - Construction Ready
COMPLETED
Planning Funding
CURRENT FOCUS
2013 Construction 2014 Commissioning
ONGOING
2015 Production
2016 Increase Mine Life
DFS completed A$212 Million Funding package to commence construction completed
NEXT STEPS
• Appoint Senior staff and continue land purchases • Commence detailed design and procurement of the plant and infrastructure • Secure remaining environmental approvals
Planning permission secured
Water permits approved
Binding Offtake agreements completed
EPC Contractor appointed
WOLF Minerals – UK Tungsten ASX:WLF |AIM:WLFE 8
A$212 Million Funding Package
FUNDING FROM LEADING INSTITUTIONS TO BEGIN CONSTRUCTION
SHAREHOLDER EQUITY $20.3 MILLION COMPLETED JANUARY 2013 RESOURCE CAPITAL FUND V US$82 MILLION** Executed ING, UNICREDIT, CAT FINANCIAL £75 MILLION Executed £75m of senior debt including £5m project bond facility Drawdown triggers payback of Bridge Finance Facility US$7m consideration for purchase of 2% royalty on future gross revenues
12 month secured US$75m Bridge Finance Facility Supported by strategic investors - Resource Capital Fund V, Traxys and Todd Corporation
Tenor 7.5 years with 5.5 year repayment term
*Exchange rates GBP 1/AUD 1.505, AUD 1/USD 1.04
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
9
EPC Contract in line with DFS
GR ENGINEERING SERVICES (GRES) APPOINTED AS EPC CONTRACTOR
The £75 million (A$110.6 million) contract is below the DFS estimate of ~£77 million
Completion includes commissioning the plant & performing a throughput test
RECENTLY COMPLETED PROJECTS CBH Resources Limited Broken Hill Operations Rasp Project $76M Catalpa Resources Ltd Edna May Gold Project $52M Western Areas NL Cosmic Boy Nickel Project $35M
ASX:WLF |AIM:WLFE
750,000 tpa Lead Zinc Processing Plant (Design and Construct) 2.8 Mtpa Gold Process Plant & Infrastructure (Design and Construct) 250,000 tpa Nickel Sulphide Process Plant (Design and Construct)
10
Fixed delivery period of 105 weeks from formal commencement date
Globally experienced firm with a solid history of executing projects on time and in budget
WOLF Minerals – UK Tungsten
Offtake Agreements completed
TOP TIER OFFTAKE PARTNERS
Confirms saleability of tungsten concentrate
Provides partial guarantee for Senior debt of £75m Global Tungsten & Powders (Plansee)
Total contracted quantity equal to 80% of scheduled production on a 5 year term
Market pricing with no cap or floor
Suitable for German government guarantee
Wolfram Bergbau und Hutten (Sandvik)
ASX:WLF |AIM:WLFE 11
WOLF Minerals – UK Tungsten
Optimise and Increase Mine Life
POTENTIAL DEVELOPMENT OPTIONS WITH FRESH PLANNING PERMISSIONS
Current DFS is limited only by existing planning permission
Lateral and vertical pit expansion
Potential for underground expansion
Opportunity to steepen the ultimate pit walls resulting in an increase in mineable reserve.
Mineralisation is open at depth to 400m and along strike providing the opportunity to expand pit design further and extend mine life by many years.
WOLF Minerals – UK Tungsten ASX:WLF |AIM:WLFE 12
Next Steps
Appoint Senior staff and continue land purchases
Commence detailed design and procurement of plant and infrastructure
Secure remaining environmental approvals
Provide site access to EPC contractor
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
13
Wolf – Summary
High quality, open pit 3Mtpa construction ready tungsten and tin project in the UK
EPC contract secured in line with DFS estimates
Financing from top tier investors to commence construction and offtake agreements
Low cost model provides significant leverage to tungsten price upside
2015 production schedule in line with projected forecast increase in Western tungsten demand
Fourth largest tungsten deposit globally with significant future development options
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
14
APPENDICES
WOLF Minerals – UK Tungsten ASX:WLF |AIM:WLFE
Competent Persons Statement
The information in this report relates to Exploration Results, Mineral Resources or Ore reserves is based on information compiled by Mr. H. Hale BSc. (Hons), MAIG. Mr. Hale has sufficient experience that is relevant to the style of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves. Mr. Hale consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
“The information in the report to which this statement is attached that relates to Exploration Results and Mineral Resources is based on information compiled by Phil Jankowski, who is a Member of the Australasian Institute of Mining and Metallurgy. Phil Jankowski is a full-time employee of SRK Consulting (Australasia) Pty Ltd (“SRK”), 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 Resources and Ore Reserves’. Phil Jankowski consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.”
The Ore Reserve estimate is based on work completed by Mr Quinton de Klerk, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr de Klerk is a full time employee of Cube Consulting and has sufficient experience which is relevant 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’. Mr de Klerk consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
WOLF Minerals – UK Tungsten
ASX:WLF |AIM:WLFE
16
Hemerdon Mineral and Ore Reserves
ORE RESERVES
Mt Granite Soft Granite Total 18.9 4.6 23.5
PROVEN
WO3 % 0.18 0.19 0.19 Sn % 0.03 0.03 0.03 Mt 2.4 0.9 3.2
PROBABLE
WO3 % 0.18 0.21 0.19 Sn % 0.03 0.03 0.03 Mt 21.3 5.5 26.7
TOTAL
WO3 % 0.18 0.21 0.19 Sn % 0.03 0.03 0.03
MINERAL RESOURCES
Measured Indicated Measured and Indicated Inferred Measured, Indicated & Inferred
TONNAGE (MT)
76.8 40.3 117.1 284.2 401.4
WO3 GRADE (%)
0.15 0.13 0.14 0.13 0.13
SN GRADE (%)
0.02 0.02 0.02 0.02 0.02
Tables reported at a cutoff grade of 0.063% WO3
WOLF Minerals – UK Tungsten
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DFS Headline Outcomes
RESULT APT Price** UNITS US$/mtu BASE CASE 360 UPPER CASE 415
Operating Period
Annual Throughput Tungsten Production Tin Production Average Cash Cost* CAPEX Operating Surplus EBITDA Project NPV₈ (post tax ungeared) IRR Payback
Yrs
Mtpa mtu/pa t/pa US$/mtu £M £M £M £M % Years
WOLF Minerals – UK Tungsten
9.25
3 345,000 462 105 104 338 29 £74M 21% 3.25
ASX:WLF |AIM:WLFE
9.25
3 345,000 462 105 104 424 37 £114M 26% 2.75
*After tin credits **EU APT Price 7/3/13 US$365 (Metal Pages)
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Capital and Operating Costs
CAPITAL COST ESTIMATES
ITEM Process plant Infrastructure Land purchases Owners costs Contingency Total £ 000s 65,366 8,491 10,548 10,403 9,314 104,122
OPERATING COST ESTIMATES
ITEM Mining Processing General Administration (Inc. marketing & royalties) C1 Cash Cost for operating period Total Cash cost (After tin credits) US$ /mtu 66.99 53.10 15.52 122 105.18
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Board & Management
Humphrey Hale, Executive Managing Director • 20 years in mining industry • Previously with AngloGold Ashanti • Geologist with Exploration and Mining Consultants John Hopkins (Non-Executive Chairman) • Chairman of Midas Resources Ltd and Universal Coal PLC, NED Thundelarra Exploration Ltd. • Former Chairman of gold producer Adamus Resources Ltd Jonathan Downes (Non-Executive Director) • Founding director of Hibernia Gold (now Moly Mines Limited) and Siberia Mining Corporation (now owned by Monarch Resources Limited) • Current N.E.D of Corazon Metals Limited, Sabre Resources and Managing Director of Ironbark Zinc Limited Richard Lucas, CFO and Company Secretary • Ex CFO of Geotech Group and experience at Lihir Gold mine in PNG • Previously Director at PWC. Don Newport (Non-Executive Director) • Former head of Standard Bank's Global Mining Finance Business • Led Barclays Capital Mining Sector Team. Jim Williams (Non-Executive Director) • Chartered Engineer and Fellow of AusIMM • Founding Head of Mining for Fortescue Metals Group Ltd • Previously Chief Mining Engineer at Bechtel Australasia, Principal Mining Consultant for Minproc Engineers and CEO for Laverton Gold.
Adrian Byass (Non-Executive Director)
• ASX Competent Person • Founder of Siberia Mining Corporation and Hibernia Gold • Executive Director of Ironbark Zinc Limited, Plymouth Minerals and Corazan Mining Ltd.
WOLF Minerals – UK Tungsten
Chris Corbett (Non-Executive Director)
• Resource Capital Fund (RCF) representative • Mine development, production and construction experience with Byrnecut Mining and corporate and business development roles with Wesfarmers Limited.
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DFS Data Sources
STUDY AREA
Mineral resources and Geology Ore Reserves and Mining Plan Mining Cost Estimates Hydrogeology Client Metallurgical Representative Metallurgical Testwork Process Plant Design Plant Capital Plant Operating Costs Treatment and Refining Infrastructure and Services Environmental Tailings and Storage Facilities Planning and permitting Archaeological Geological Consultant SRK Consulting Perth Cube Consulting Perth Cutback Consulting Aquaterra Coffey Mining Ammtec managed by GR Engineering Services GR Engineering Services GR Engineering Services GR Engineering Services Traxys GR Engineering Services MRH Associates Coffey Mining Mineral Planning Associates UK Groundwork Archaeology Ltd Richard Scrivener
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CONSULTANTS
FOR FURTHER INFORMATION: Humphrey Hale - Managing Director P: +61 8 6364 3776 E: [email protected] W: www.wolfminerals.com.au
WOLF Minerals – UK Tungsten
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