the life of the mine before “the life of mine”. forward looking statements 2 certain information...
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The Life of the MineBefore “The Life of Mine”
Forward Looking Statements
2
Certain information regarding Morien Resources Corp. ("the Company") contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts,
projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are
beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. Factors that could cause actual results to differ materially
from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or
business conditions. The Company's forward-looking statements are expressly qualified in their entirety by this
cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.
Unless otherwise indicated, all dollar values herein are in C$.
3
What if You Had?
A deposit 30 km from tidewater
Superior ore quality
Pre-spent capital of $100+ mln
Local market for product
Long history of local mining
Ready employment & strong community support
Constructive regulatory environment
4
What if You Had?
Short Transportation DistanceLow Operating Cost
A
F
I
G
E
D
B
J
C
H
K
A
- 400 800 1,200
L
K
J
I
H
G
F
E
D
C
B
A
$- $20 $40 $60 $80 $100
Distance to Port (km)$USD / tonne
5
What if You Had?
0 0.25 0.5 0.750000000000004 1 $-
$20
$40
$60
$80
$100
$120
$140
Cumulative (100% Basis)
$US
D/t
onne
FO
B
Source: BMO Capital Markets, Jan 2012
Among the Lowest FOB Cash Costs Globally
6
What if You Had?
Peer Comparison
Lic. Issued
Explor. 43-101/ JORC
First Nations
PEA/ PFS/
EIS
Rail/ Port Permit
Mining Permit
First Prod
Full Prod
J 2012 [2013] 2014 2018
A 2015 2020F 2016 2018M 2013 2015N 2016 2018A 2016 2021H 2015 2016O unkwn unkwnK unkwn unkwnP unkwn unkwnQ unkwn unkwnR unkwn unkwnS unkwn unkwn
A Mine Ready for Production
Mine Readiness
7
How Long Would You Take to Develop This?
10
8
6
4
2
0
Rel
ativ
e V
alue
(sh
are
pric
e)
High Risk Lowered Risk Full Value
SpeculatorsLeave
OrphanPeriod
InstitutionalInvestment
Speculation
EXPLORATION MINING
Concept Pre-Discovery Discovery Feasibility Development
Startup Deplete
8
How Long Would You Take to Develop This?
10
8
6
4
2
0
Rel
ativ
e V
alue
(sh
are
pric
e)
High Risk Lowered Risk Full Value
SpeculatorsLeave
OrphanPeriod
InstitutionalInvestment
Speculation
EXPLORATION MINING
Concept Pre-Discovery Discovery Feasibility Development
Startup Deplete
GlobalStandard 4-5 Years 1-2 2-3 2 1 10 Years
35 Years4-5 Years 28 7 2 1
9
What is this Deposit?
Donkin Coal Project
10
A Short History in Time
1977-79 DEVCO drill 11 boreholes into the Donkin deposit, the eastern extension of the Sydney Coalfield, and the largest undeveloped
coal deposit in Cape Breton.
1981-87 DEVCO spends $100+ mln boring two, 3.6 km long access tunnels to the coal face at Donkin.
1992 Development plans at Donkin cease due to downturn in global coal economy. Tunnels sealed and allowed to flood.
2001 Last underground coal mine in Cape Breton shuts down; thermal $34/t, met $40/t
2003 With the cessation of coal mining activities, CBDC relinquished their mineral claims back to the Nova Scotia Government.
2004 NS Government begin tender process for sale of Donkin.
2005 A JV consortium between Xstrata Coal (75%) and Erdene Resource Development (25%) win tender to develop the deposit.
2005-12 Xstrata and Erdene invest CAD$50 mln in the Project.
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Massive Resource
− 481 Mt MI&I coal resource
High Quality Coal
− High volatile bituminous-A coking coal; 14,600 BTU, 2.8% Ash, 35% Volatiles, 2.25% Sulphur, 8 CSN, and >20,000 Fluidity
Simple, Predictable Geology
− “Low Type-A” structural complexity; typifies one of the least complex coal deposits in Canada
Easy Access to Ore
− Two, 3.6 km x 7.6 m dewatered tunnels allowing unimpeded access to the Harbour Seam (original $100+ mln)
We Love What we Have
12
We Love What we Have
Engineering Groundwork Complete
− Development plan supports 3.5 to 5 Mtpa ROM
Low Operating Cost
− $58/tonne
Strategic Location
− 30 km from deep water port
World Class Port
− Deepened Sydney Harbor capable of receiving 160,000 dwt vessels
Receptive Local Market
− Two coal-fired generating facilities located 31 km and 65 km away.
− NSPI currently importing ~1.8Mtpa thermal coal
13
Five Superior Attributes...
USA
CAD
14
Positioned to Proceed
2007 Access tunnels dewatered, partially refurbished
Q4 2008Environmental Assessment approval to mine 2,000 tonnes/day of “development coal” by way of a single continuous miner
operation
Q2 2011Positive Pre-Feasibility Study completed
Q2 2012Xstrata announces intent to sell its 75% interest in Donkin
Q2 2013Full environmental permit expected
Q3 2013Tunnel remediation to be initiated
2014 First ‘exploration’ coal production expected
15
Xstrata announced intent to sell 75% in Donkin in April 2012
Project timelines maintained during sale process
Erdene has a 60-day Right of First Refusal to acquire
Xstrata’s 75% by matching any offer
Sale process expected to be complete 1Q 2013
Xstrata Sale Process
16
Superior Coal Quality
Pre-Production Peers Producing
Company Cardero Carabella Cline Bathurst Consol Corsa Gloucester
Project Donkin C. Creek Grosv. West New Elk Buller Bailey Wilson Creek Duralie
Country Canada Canada Aus USA NZ USA USA Aus
BTU 14,500 14,500 13,700 14,000 13,778 12,950 14,200 14,360
Ash 2.8 6 10 9.3 4 7.2 9.3 10
FSI 8 5 7.5 8 9 7.8 8.5 8
Sulphur 2.25* 0.9 0.60 0.50 0.70 1.79 1.05 2.30
Moisture 1.6 1.0 1.5 3.3 1.1 1.0 2.0 1.5
Volatiles 35 27 28 37 37 34 20 35
Fixed Carbon 55 67 61 45 59 52 71 55
Fluidity >20,000 <1000 4,000 29,000 10,000 15,000 <1,000 5,000
* Average based on the following data; 1977-79 boreholes, 1985 channel sample & bulk sample, 1986 pilot plant scale study, 2006 museum sample, & 2007 strip sample
Washed, ad basis
17
Markets for Donkin Product
Buyer Type Comment
Americas CokingCollective growth, coking coal demand in Brazil set to double in 4-5 yrs adding >20 Mtpa demand
Germany Coking/Steam Worlds 4th largest coal consumer. Nuclear phase out
W. Europe Coking/Steam Steady imports of ~120 Mtpa
E. Europe Coking/SteamUS 2011 exported 5.6 Mt. Growing demand from Poland & Ukraine. Supply from Russia diminishing
Asia Coking/SteamImport demand steadily increasing for top consumers; China, India, and Japan
UK Steam No.2 importer at >50 Mtpa (85% steam coal)
Nova Scotia Power Inc
SteamCurrent demand of 1.8 Mtpa. Demand forecast to remain steady for next 20 years
New Brunswick Power Inc
Steam Current demand of 0.8-1.0 Mtpa
Sources: BHP Billiton (April 2012) and internal research
18
Project Benefits
Creates one of eastern Canada’s larger construction projects
$1.24 bln in Provincial taxes over 30 years ($42 mln annually)
$1.15 bln in Federal taxes over 30 years ($38 mln annually)
Brings industry and jobs back to industrial Cape Breton
382 direct jobs and 428 indirect jobs over 30 years
Cape Breton is expected to capture 63% of the employment (505
jobs) & annual GDP ($42 mln) from Donkin
19
Key Take-Aways
Inherited capital expenditures eliminate preparatory mining – revenue
generating from day one
Massive resource of competitive, high quality coal
Low quartile extraction and transport-to-tidewater costs, attractive royalties,
no related burdens
Capesize capable harbour facilitates easy access to global seaborne markets
Prospective off-take, long term, "base production" with local utilities
Likely first to production amongst "development" comps
Carried interest and "leg-in" capital program provide for capital efficiency
Permitted for early production, full permit expected Q2 2013
Ability to expand mining plan and incorporate longwall production
Management & Board
20
John P.A. BudreskiPresident & CEO & Director
Over 25 years experience in the resource & resource financing industries. Former Vice Chairman of Cormark Securities, and prior to that President & CEO of Orion Securities. Director of Sandstorm Gold, Metals & Energy, and Alaris Royalty Corp.
Ken MacDonaldCFO
Over 25 years in finance for corporations in the resourcesector. CFO and Director of Erdene Resource DevelopmentCorp since 2003
Mike MacDonald, P.GeoVP Technical & Government Affairs
Geologist with over 35 years experience in the resource sector.Former Executive Director of the Mineral Resources Branchfor the Province of Nova Scotia
MANAGEMENT
Peter AkerleyChairman
CEO & President of Erdene Resource Development Corp.Over 25 years of exploration & mining industry
Charles Pitcher
President & COO of Wilson Creek Coal LLP, wholly ownedsubsidiary of Corsa Coal. Former CEO of Western Coal Ltd.
John Byrne
President of Petroleum Corporation of Canada Exploration Ltd.Brings more than 30 years of investment banking and corporatefinance experience to Morien
Philip Webster
Montreal based investor and businessman. President of ImperialWindsor Group Inc & Emster Holdings Inc.
BOARD OF DIRECTORS
21
Who Are We?
Newly formed Morien Resources Corp.
Spin-out company from Erdene Resource Development Corp.
Inherited Assets;
− 25% interest in the Donkin Coal Project
− Black Point Marine Aggregates Project
November 2012 listing on TSX-V under symbol MOX
Expected trading by November 2012
Shares Outstanding - 49.2 mln
Market Capitalization - ~$10-15 mln (to be determined by market post split)
Cash - approx. $1.6 mln
22
TSX-V: MOXwww.morienres.com
Morien Resources Corp.
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