montezuma mining company ltd 2017 agm · 2017-11-27 · montezuma mining company ltd 2017 agm ......
TRANSCRIPT
DevelopingAustralia’sLargestOnshoreManganeseResource
ProducingHighPurityManganeseforLi-IonBatteries.
MONTEZUMAMININGCOMPANYLTD2017AGM
LARGEMANGANESERESOURCE HIGHPURITYMANGANESEPRODUCTSINNOVATIVEPROCESSING
For
per
sona
l use
onl
y
ThispresentationcontainsonlyabriefoverviewofMontezumaMiningCompanyLtdanditsassociatedentities(“Montezuma")andtheirrespectiveactivitiesandoperations.Thecontentsofthispresentation,includingmattersrelatingtothegeologyofMontezuma’sprojects,mayrelyonvariousassumptionsandsubjectiveinterpretationswhichitisnotpossibletodetailinthispresentationandwhichhavenotbeensubjecttoanyindependentverification.
Thispresentationcontainsanumberofforward-lookingstatements.Knownandunknownrisksanduncertainties,andfactorsoutsideofMontezuma’scontrol,maycausetheactualresults,performanceandachievementsofMontezumatodiffermateriallyfromthoseexpressedorimpliedinthispresentation.
Tothemaximumextentpermittedbylaw,Montezumadoesnotwarranttheaccuracy,currencyorcompletenessoftheinformationinthispresentation,northefutureperformanceofMontezuma,andwillnotberesponsibleforanylossordamagearisingfromtheuseoftheinformation.
Theinformationcontainedinthispresentationisnotasubstitutefordetailedinvestigationoranalysisofanyparticularissue.CurrentandpotentialinvestorsandshareholdersshouldseekindependentadvicebeforemakinganyinvestmentdecisioninregardtoMontezumaoritsactivities.
Disclaimer
For
per
sona
l use
onl
y
TightCapitalStructureStrongBalanceSheet
CORPORATEOVERVIEW
FinancialInformationASXTicker MZM
SharesonIssue 83.5M
SharePrice $0.27
MarketCapitalisation $22.6M
Cash&Investments(30Sept17) ~12M
Debt Nil
EnterpriseValue ~$10.6M
Top20Shareholders ~67%
Board andManagementSeamusCornelius Chairman
JustinBrown Executive Director
JohnRibbons Non ExecutiveDirector
DaveO’Neill ExplorationManager
SharePricePerformance
MajorShareholdersTop20Shareholders 67%
BoardandManagement 8.2%
JPMorganNomineesAustralia 11.4%
Duketon MiningLtd 6.5%
For
per
sona
l use
onl
y
1Source:UBS Global Research May 2017
StrongLi-IonmarketgrowthwilldrivedemandforTechMetals1,2
2Avicenne Energy Analysis 2014 et al as indicated. Avicenneestimates include China Auto Upside case
§ Over15Melectricvehiclesforecastby2025.§ NonEVLi-Ionbatterydemandtoalsogrowstronglyincluding;
§ GridStorage§ CellularPhones§ Powertools,EBikes,medicalapplicationsetc
§ ChinapushingforZeroEmissionVehicle(ZEV)program:8%EVby2018,12%by2020.§ ForecastCAGRof6.1%to2021.§ Alotmorehighpuritymanganeseisneededforthistohappen.
GrowthinBatterySales(GWh)2
TECHMETALSUPERCYCLE
GrowthinBatteryEV’s
For
per
sona
l use
onl
y
Manganeseispartofabatterypoweredfuturen 3MhasitsownpatentedNMC,basedonworkdoneat
DalhousieUniversity.
n LGChemmakes NMC batteriesusedinthe ChevyVoltandNissanLeaf.
n GeneralElectricusesthe Li-MnO2 systemasitoffersthebestbalanceofsafetyandperformance.
n BMWi3alsouseNMCbatteries.
n Teslasigned5-yearexclusivepartnershipwithDr.JeffDahn,aprominentNMCbatteryresearcher.
“M” is for Manganese
TECHMETALSUPERCYCLE
https://media.gm.com/content/dam/Media/microsites/product/Volt_2016/doc/VOLT_BATTERY.pdfhttp://batteryuniversity.com/learn/article/electric_vehicle_evhttp://fortune.com/2015/06/17/meet-teslas-new-weapon-a-battery-scientist/
For
per
sona
l use
onl
y
Manganeseandnextgenerationbatteries
n Cost,performanceandsafetyarekeyfactorsbatterytechnologies.
n Manganeseisimportantforlowcost,highperformance,saferbatteries.
n Manynext-generationmanganesebatteriesaresaferandperformbetter.
TECHMETALSUPERCYCLE
*https://www.nature.com/articles/s41467-017-00467-x**https://www.sciencedaily.com/releases/2017/07/170706143156.htm
“Asaresultofthesuperiorbatteryperformance,thehighsafetyofaqueouselectrolyte,thefacilecellassemblyandthecostbenefitofthesourcematerials,thiszinc-manganesedioxidesystem isbelievedtobepromisingforlarge-scaleenergystorageapplications.”1 September 2017*
“anovelmanganeseandsodium-ion-basedmaterialmightbecomeacontender,offeringapotentiallylower-cost,moreecofriendlyoptiontofuelnext-generationdevicesandelectriccars.”6 July 2017**F
or p
erso
nal u
se o
nly
High purity manganese makes up;
§ 10% of the global manganese market by volume but;
§ 40% of the global market by value.
MANGANESEMARKET – HIGHPURITYISHIGHVALUE
Apremium product
ManganeseOre17,000,000 tpa
HighPurityManganese1,800,000 tpa
ManganeseOre$5,491,000,000pa
HighPurityManganese$3,600,000,000pa
1UBS Global Research May 2017Assumes EMM price of USD$2,000/t Ref: https://www.metalbulletin.com/My-price-book.html?price=34473Assumes manganese price of USD$3.23/dmtu Ref:https://www.south32.net/docs/default-source/all-financial-results/reports-and-presentations/mamatwan-site-tour-2016.pdf
At100%electriccarpenetration,marketforecasttogrowby240%1,equivalentto+$5B
For
per
sona
l use
onl
y
§ Australia’slargestonshoremanganesedeposit.
§ >180Mtofmanganeseore1.
§ Excellentlocalinfrastructure.
§ Movingtowardsdevelopment.
§ 100%ownedbyMontezuma.
§ Lowriskminingjurisdiction.
BUTCHERBIRD MANGANESE
DEPOSIT
1Reference: Montezuma Mining Company Ltd ASX release dated 12 October 2017
BUTCHERBIRDMANGANESEPROJECTF
or p
erso
nal u
se o
nly
§ InferredResourceEstimatescompletedforeightdeposits.§ Significantupsidepotentialtoincreasetheresourcewithfurtherdrilling.§ Scaleofdevelopmentnotresourceconstrained.
Reference: Montezuma Mining Company Ltd ASX release dated 12 October 2017
WorldClassManganeseResource
BUTCHERBIRDMANGANESEDEPOSIT
Prospect Tonnes (Mt) Mn (%) SiO2 (%) Fe (%) P2O5 (%) Al2O3 (%)
Yanneri Ridge
Inferred 48.0 10.7 43.0 11.1 0.262 10.7
Indicated 22.5 12.0 43.8 11.6 0.297 10.6Additional DepositsInferred 110.3 10.6 44.4 11.9 0.3 11.0
Total 180.8 10.8 43.9 11.7 0.3 10.9
For
per
sona
l use
onl
y
Note: All intersections are approximately true width
SimpleGeology/Favourable Infrastructure
Manganese orebody• Starts at surface• Low strip ratio• Low cost mining
Orestartsatsurface;
§ lowstripratio
§ lowminingcost
Gaspipeline;
§ lowenergycost
Straddlesbitumenhighway;
§ lowinfrastructurecost
PortHeadland550kmnorth;
§ logisticssolutioninplace
BUTCHERBIRDMANGANESEDEPOSITF
or p
erso
nal u
se o
nly
BreakthroughTechnology
§ CSIROflowsheetwillproducehighpuritybatterygrademanganese.
§ ProductsincludeElectrolyticManganeseDioxide(“EMD”),Metal(“EMM”),andmanganesesulphate (batteriesandfertiliser).
§ Highpuritymanganeseisahighvalueproductwhichsellsfor>USD$2,000/dmt*(EMM).
LOWCOSTPLANTFEEDFROM100%OWNEDMANGANESERESOURCE
INNOVATIVE,NOVELPROCESSTOPURIFYOREANDADDVALUE
HIGHPURITYPRODUCTSFORLi-IonBATTERIES,HIGHVALUE:>US$2000/t*
*https://www.metalbulletin.com/My-price-book.html?price=34473
BUTCHERBIRDMANGANESEDEPOSITF
or p
erso
nal u
se o
nly
Keydifferentiators
§ Lowercostoreminedatsurface
§ Fastleachatambienttemperatureand
atmosphericpressure.
§ Exothermicreactionproducesenergy.
§ Nosulphuric acidplant.
§ Simple,novelpurificationpathway.
§ PurifiedsolutioncanproduceEMM,EMD
ormanganesesulfateforLi-Ionbatteries.
BUTCHERBIRDMANGANESEDEPOSIT
§ Requireshighgradeimported
manganeseore.
§ ReductionRoastingto800-1000ºC
consumesenergy.
§ Sulphuric acidleach.
§ Potentiallymorecomplexpurification.
§ Productionoffinalproductsusing
toxicselenium.
ButcherbirdProject* CurrentProducers(China/SouthAfrica)
Loweremissions,lowerenergy,lowercostdisruptivenewtechnology
Highemission,highenergy,highcost,oldtechnology
*Reference: Montezuma Mining Company Ltd ASX releases dated 31 July 2017 and 22 November 2017
For
per
sona
l use
onl
y
InvestmentCaseSummaryn Worldclass,verylargemanganesedeposit.
n Technologybreakthroughonprocessing.
n Simplegeologyandflowsheet.
n Lowproductioncostsanticipated.
n Strongdemandgrowthfrombatteryrevolution.
n Commercialstudiesunderway.
n Strongbalancesheet,tightcapitalstructure.
n TheonlyASXlistedexposuretothissector.
LARGERESOURCE
HIGHPURITYPRODUCTS
INNOVATIVEPROCESSING
For
per
sona
l use
onl
y
Note:TheinformationinthispresentationthatrelatestoExplorationResults,andMineralResourcesisbasedoninformationcompiledbyMr JustinBrownwhoisafull-timeemployeeoftheCompanyandisamemberoftheAustralasianInstituteofMiningandMetallurgy.
JustinBrownhassufficientexperiencewhichisrelevanttothestyleofmineralisation andtypeofdepositunderconsiderationandtotheactivitywhichheisundertakingtoqualifyasaCompetentPersonasdefinedinthe2012Editionofthe‘AustralasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves’.JustinBrownconsentstotheinclusioninthereportofthemattersbasedonhisinformationintheformandcontextinwhichitappears.
Pleasenotewithregardtoexplorationtargets,thepotentialquantityandgradeisconceptualinnature,thattherehasbeeninsufficientexplorationtodefineaMineralResourceandthatitisuncertainiffurtherexplorationwillresultinthedeterminationofaMineralResource.
TheinformationinthisreportthatrelatestoMineralResourcesisbasedoninformationcompiledbyMrMarkGlassockwhoisamemberoftheAustralasianInstituteofMiningandMetallurgy.AtthetimethattheMineralResourceswerecompiled,MrGlassockwasa consultanttoMontezumaMiningCompanyLtd.MrGlassockisageologistandhassufficientexperiencewhichisrelevanttothestyleofmineralisation andtypeofdepositunderconsiderationandtotheactivitywhichheisundertakingtoqualifyasaCompetentPersonasdefinedinthe2012editionofthe‘AustralasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves’.MrGlassockconsentstotheinclusionofthisinformationintheformandcontextinwhichitappearsinthisreport
COMPETENTPERSON’SSTATEMENTF
or p
erso
nal u
se o
nly