wolf minerals
TRANSCRIPT
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INVESTOR PRESENTATION
JUNE 2013
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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 orcompleteness of the information in this Document, or of any other written or oral information made or to be made available to any interestedparty 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 oradvisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory orotherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained in this Document or for anyerrors, omissions or misstatements or for any loss, howsoever arising, from the use of this Document. Neither the issue of this Document norany 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 isreserved 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 doesnot undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Document or tocorrect 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 theCompany after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections oropinions contained in this Document necessarily involve significant elements of subjective judgment, analysis and assumptions and eachrecipient 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 thanstatements 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 reasonableassumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from thosein 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 extentpermitted by law, the Company disclaims any responsibility to inform any recipient of this Document of any matter that subsequently comesto its notice which may affect any of the information contained in this Document. Factors that could cause actual results to differ materiallyfrom those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, marketor business conditions. Investors are cautioned that any forward-looking statements are not guarantees of future performance and thatactual results or developments may differ materially from those projected in forward-looking statements.
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Wolf Investment Highlights
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
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WORLD CLASS, CONSTRUCTION READY TUNGSTEN AND TIN MINE IN THE UK
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Wolf - Corporate Snapshot
WOLF MINERALS
Stock Codes ASX:WLF AIM:WLFEShare Price ASX: A$0.30 AIM: 0.20Issued shares 198.0 MillionUnlisted Options 8.0 MillionMarket Cap ~A$59M ~40M
Key Management
MD & CEO Humphrey Hale
Chairman John Hopkins
CFO - Richard Lucas
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SUBSTANTIAL SHAREHOLDERS
Name Holding Description
Resource Capital
Fund V36.4% Mining focused private equity firm.
TTI (NZ) Limited
19.9%
Wholly owned subsidiary of Todd Corporation Limited, a major private NZ
based company with a diversified portfolio of business interests.
Traxys Projects LP 9.3%Global leader in financing, marketing, distribution and financial services for the
mining, metals and minerals industries.
0
500
1,000
1,500
2,000
0.15
0.20
0.25
0.30
0.35
0.40 SHARE PRICE (ASX:WLF)
ASX:WLF - Share Pricing -Volume ASX:WLF - Share Pricing
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Tungsten Positive Structural
Market Dynamics
Critical for industrial development due to its uniqueproperties (melting point / hardness) and limitedsubstitutability
Considered a strategic metal in US, EU and China
Used in manufacture of hard metals (cementedcarbines), steels/alloys and mill products
Ammonium Para Tungstate (APT) is the most tradedof the tungsten products current price US$365**
Product prices quoted in metric tonne units or mtu(1 mtu = 10kg)
OVERVIEW
China a net importer in 2012
China holds 60% of known tungsten reserves (USGS)
and accounts for +50%* of demand and +80%* ofsupply
New capacity required to meet Western demand
Forecast demand growth of 6-7% to 2016*
Hemerdon in full production will produce less than3% of total forecast demand in 2016
PRIMARY TUNGSTEN DEMAND
5
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
FORECAST TUNGSTEN DEMAND
1989 TO 2016*
*Source: ITIA: Roskill forecast
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*Source: Roskill research
**EU APT price US$365 (Metal Pages)
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Hemerdon 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*
DFS confirms a robust low cost project
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
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*After tin credits
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Hemerdon - Construction Ready
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CURRENT FOCUSCOMPLETED ONGOING
A$212 Million
Funding packageto commenceconstructioncompleted
Binding Offtakeagreementscompleted
DFScompleted
Planningpermission
secured
Water permitsapproved
EPC Contractorappointed
NEXT STEPS
Appoint Senior staff and continue landpurchases
Commence detailed design andprocurement of the plant and
infrastructure Secure remaining environmental approvals
Planning Funding2013
Construction2014
Commissioning2015
Production
2016Increase Mine
Life
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EPC Contract in line with DFS
The 75 million (A$110.6 million) contract is belowthe DFS estimate of ~77 million
Completion includes commissioning the plant &performing a throughput test
Fixed delivery period of 105 weeks from formal
commencement date
Globally experienced firm with a solid history ofexecuting projects on time and in budget
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GR ENGINEERING SERVICES (GRES) APPOINTED AS EPC CONTRACTOR
RECENTLY COMPLETED PROJECTS
CBH Resources Limited
Broken Hill Operations
Rasp Project $76M
750,000 tpa Lead Zinc
Processing Plant
(Design and Construct)
Catalpa Resources Ltd
Edna May Gold Project
$52M
2.8 Mtpa Gold Process
Plant & Infrastructure
(Design and Construct)
Western Areas NL
Cosmic Boy Nickel Project
$35M
250,000 tpa Nickel
Sulphide Process Plant
(Design and Construct)
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Offtake Agreements completed
Confirms saleability of tungsten concentrate
Provides partial guarantee for Senior debt of 75m
Total contracted quantity equal to 80% of scheduledproduction on a 5 year term
Market pricing with no cap or floor
Suitable for German government guarantee
Global Tungsten &Powders (Plansee)
Wolfram Bergbau undHutten (Sandvik)
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TOP TIER OFFTAKE PARTNERS
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Optimise and Increase Mine Life
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POTENTIAL DEVELOPMENT OPTIONS WITH FRESH PLANNING PERMISSIONS
Current DFS is limited only by existing planningpermission
Lateral and vertical pit expansion
Potential for underground expansion
Opportunity to steepen the ultimate pit wallsresulting in an increase in mineable reserve.
Mineralisation is open at depth to 400m and alongstrike providing the opportunity to expand pit designfurther and extend mine life by many years.
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Next Steps
Provide site access to EPC contractor
Secure remaining environmental approvals
Commence detailed design and procurement ofplant and infrastructure
Appoint Senior staff and continue land purchases
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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
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APPENDICES
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Competent Persons
Statement
The information in this report relates to Exploration Results, Mineral Resources or Ore reserves is based oninformation compiled by Mr. H. Hale BSc. (Hons), MAIG. Mr. Hale has sufficient experience that is relevant tothe style of deposit under consideration and to the activity which he is undertaking to qualify as CompetentPerson as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, MineralResources and Ore reserves. Mr. Hale consents to the inclusion in the report of the matters based on thisinformation 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 andMineral Resources is based on information compiled by Phil Jankowski, who is a Member of the AustralasianInstitute of Mining and Metallurgy. Phil Jankowski is a full-time employee of SRK Consulting (Australasia) PtyLtd (SRK), and has sufficient experience which is relevant to the style of mineralisation and type of depositunder consideration and to the activity which he is undertaking to qualify as a Competent Person as defined inthe 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and OreReserves. Phil Jankowski consents to the inclusion in the report of the matters based on his information in theform 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 theAustralasian Institute of Mining and Metallurgy. Mr de Klerk is a full time employee of Cube Consulting and hassufficient experience which is relevant to the activity which he is undertaking to qualify as a Competent Personas defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resourcesand Ore Reserves. Mr de Klerk consents to the inclusion in the report of the matters based on his informationin the form and context in which it appears.
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Hemerdon Mineral and
Ore Reserves
ORE
RESERVESPROVEN PROBABLE TOTAL
Mt WO3 % Sn % Mt WO3 % Sn % Mt WO3 % Sn %
Granite 18.9 0.18 0.03 2.4 0.18 0.03 21.3 0.18 0.03
Soft Granite 4.6 0.19 0.03 0.9 0.21 0.03 5.5 0.21 0.03
Total 23.5 0.19 0.03 3.2 0.19 0.03 26.7 0.19 0.03
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MINERAL RESOURCES TONNAGE (MT) WO3 GRADE (%) SN GRADE (%)Measured 76.8 0.15 0.02Indicated 40.3 0.13 0.02Measured and Indicated 117.1 0.14 0.02Inferred 284.2 0.13 0.02Measured, Indicated & Inferred 401.4 0.13 0.02
Tables reported at a cutoff grade of 0.063% WO3
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DFS Headline Outcomes
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RESULT UNITS BASE CASE UPPER CASE
APT Price** US$/mtu 360 415
Operating Period Yrs 9.25 9.25
Annual Throughput Mtpa 3 3
Tungsten Production mtu/pa 345,000 345,000
Tin Production t/pa 462 462
Average Cash Cost* US$/mtu 105 105
CAPEX M 104 104
Operating SurplusM
338 424
EBITDA M 29 37
Project NPV
(post tax ungeared)
M74M 114M
IRR % 21% 26%
Payback Years 3.25 2.75
*After tin credits
**EU APT Price 7/3/13 US$365 (Metal Pages)
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Capital and Operating Costs
CAPITAL COST ESTIMATES
ITEM 000s
Process plant 65,366
Infrastructure 8,491
Land purchases 10,548
Owners costs 10,403
Contingency 9,314
Total 104,122
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OPERATING COST ESTIMATES
ITEM US$ /mtu
Mining 66.99Processing 53.10
General Administration (Inc. marketing & royalties) 15.52
C1 Cash Cost for operating period 122
Total Cash cost (After tin credits) 105.18
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DFS Data Sources
STUDY AREA CONSULTANTS
Mineral resources and Geology SRK Consulting Perth
Ore Reserves and Mining Plan Cube Consulting Perth
Mining Cost Estimates Cutback Consulting
Hydrogeology Aquaterra
Client Metallurgical Representative Coffey Mining
Metallurgical Testwork Ammtec managed by GR Engineering Services
Process Plant Design GR Engineering Services
Plant Capital GR Engineering Services
Plant Operating Costs GR Engineering Services
Treatment and Refining Traxys
Infrastructure and Services GR Engineering ServicesEnvironmental MRH Associates
Tailings and Storage Facilities Coffey Mining
Planning and permitting Mineral Planning Associates UK
Archaeological Groundwork Archaeology Ltd
Geological Consultant Richard Scrivener
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FOR FURTHER INFORMATION:Humphrey Hale - Managing Director
P: +61 8 6364 3776
W: www.wolfminerals.com.au
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