Transcript
Page 1: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

INVESTOR PRESENTATION RESOURCES RISING STARS

CONFERENCE

TNG Limited wishes to advise that the Managing Director, Paul Burton is currently

attending the Resources Rising Stars Conference held on the Gold Coast. At the

Forum the Company has a booth and a corporate presentation will be made:

Forum 27th-28

th September 2011

Presentation – Wednesday 28th September at 10.10am

Resources Rising Stars, RACV Royal Pines Resort, Gold Coast TNG Booth # 24.

A copy of the presentation is attached for your reference.

TNG LIMITED

28th September 2011

Enquiries:

Paul E Burton,

Managing Director + 61 (0) 8 9327 0900

Nicholas Read,

Read Corporate + 61 (0) 419 929 046

15 February 2011

ASX ANNOUNCEMENT

ASX CODE : TNG

REGISTERED OFFICE

TNG Limited

Level 1, 282 Rokeby Road

Subiaco, Western Australia

6008

T +61 8 9327 0900

F +61 8 9327 0901

W www.tngltd.com.au

E [email protected]

ABN 12 000 817 023

DIRECTORS

Neil Biddle

Paul Burton

Stuart Crow

COMPANY SECRETARY

Simon Robertson

PROJECTS

Mount Peake: Fe-V-Ti

Manbarrum: Zn-Pb-Ag

East Rover: Cu-Au

McArthur: Cu

CONTACT DETAILS

Paul Burton | +61 8 9327 0900

Nicholas Read | +61 419 929

046 Simon Robertson | +61 8 9327 0900

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Page 2: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Presentation September 2011 ASX Code: TNG

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Page 3: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

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Disclaimer Forward-Looking Statements This presentation has been prepared by TNG Ltd. This document contains background

information about TNG Ltd current at the date of this presentation. The presentation is in summary

form and does not purport to be all inclusive or complete. Recipients should conduct their own

investigations and perform their own analysis in order to satisfy themselves as to the accuracy

and completeness of the information, statements and opinions contained in this presentation.

This presentation is for information purposes only. Neither this presentation nor the information

contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the

purchase or sale of TNG Ltd shares in any jurisdiction.

This presentation may not be distributed in any jurisdiction except in accordance with the legal

requirements applicable in such jurisdiction. Recipients should inform themselves of the

restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of

securities laws in such jurisdiction.

This presentation does not constitute investment advice and has been prepared without taking

into account the recipient's investment objectives, financial circumstances or particular needs and

the opinions and recommendations in this presentation are not intended to represent

recommendations of particular investments to particular persons. Recipients should seek

professional advice when deciding if an investment is appropriate. All securities transactions

involve risks, which include (among others) the risk of adverse or unanticipated market, financial

or political developments.

To the fullest extent permitted by law, TNG Ltd, its officers, employees, agents and advisers do

not make any representation or warranty, express or implied, as to the currency, accuracy,

reliability or completeness of any information, statements, opinions, estimates, forecasts or other

representations contained in this presentation. No responsibility for any errors or omissions from

this presentation arising out of negligence or otherwise is accepted.

This presentation may include forward looking statements. Forward looking statements are only

predictions and are subject to risks, uncertainties and assumptions which are outside the control

of TNG Ltd. Actual values, results or events may be materially different to those expressed or

implied in this presentation.

Competent Person’s Statement The information in this report that relates to Exploration Results and Exploration Targets is based

on information compiled by Paul Burton who is a Member of The Australasian Institute of Mining

and Metallurgy and a Director of TNG Limited. Paul Burton has sufficient experience 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’. Paul Burton

consents to the inclusion in the report of the matters based on his information in the form and

context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled

by Jeremy Peters who is a Member of The Australasian Institute of Mining and Metallurgy and a

full time employee of Snowden Mining Industry Consultants Pty Ltd. Jeremy Peters has sufficient

experience 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’. Jeremy Peters consents to the inclusion in the report of the matters based on his

information in the form and context in which it appears.

Mr Damian Connelly, MAAusIMM, Chartered Processional (MET), MMICA, MSME, MSAIMM was

responsible for the preparation of the metallurgical test work results reported herein. Mr Connelly

has sufficient experience 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 the Exploration Results,

Mineral Resources and Ore Reserves. Mr Connelly consents to the inclusion in the report of the

matters based on his information in the form and context in which is appears.

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Page 4: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Overview:

on track…. .Explorer to Producer building a world class ferrous metals business

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• Cornerstone Investor - strategic partnership with Jiangsu Eastern China Non-Ferrous Metal

Investment Holding Co., Ltd (ECE).

• $13.4m investment to underpin development of Mount Peake Project.

• Scoping Study Forecasts Nett Annual Cashflow of up to A$226M over 24 year Mine life.

• Patented new Hydrometallurgical process TIVANTM provides ability to recover 3 products,

Iron-Vanadium and Titanium at lower CAPEX & OPEX.

• Pre-Feasibility Study progressing on schedule and on budget

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Page 5: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Location & Infrastructure

Stuart Highway

Adelaide to Darwin Railway

Darwin to Alice Gas Pipeline

• Project located close to existing infrastructure

• Darwin Port and Rail access with available capacity.

• cheap gas power to site potentially one of the lowest-cost ferrous projects in Australia.

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Page 6: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

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Exploration Targets

Mount Peake Tenements

• Exploration licence > 2000Km2

•100% owned by TNG

• New targets give potential for

over 500-700Mt1

1The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resources F

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Page 7: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

STRATEGIC METALS

Vanadium-Titanium-Iron:

• JORC inferred resource:

140Mt @ 0.3% V205, 5% Ti02, 24% Fe

• Exploration Target1:

500 – 700Mt (0.2% - 0.4% V205, 5%-9% TiO2, 25% - 35% Fe)

• Commercial grade concentrate produced by coarse crush and LIMS

• Concentrate upgrading:

>1.2% V205, 18% Ti02, 55% Fe

¹ The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resources

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Why STRATEGIC METALS? Vanadium + Titanium

• Primary use in high tech-metals & steel production, batteries and motor vehicles, aircraft

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• FUNDAMENTALS :

• Demand - Vanadium + Titanium forecast to outstrip supply -significant increase with hi- technology advances including (battery cells), and alloy steels / metals production.

• Price - Vanadium & Titanium prices on the rise

V205 - US$8 / llb and Ferro-vanadium – US$30 / lb

….and set to increase further

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Page 9: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Forecast vanadium prices,

2003 to 2015 Source: Roskill

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Forecast vanadium consumption, 2009 to

2015 (tV) Source: Roskill

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30,000

40,000

50,000

60,000

70,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015For

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Titanium: Comparison of world sponge

production with forecast to 2015 Source: Roskill

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Mild steels

10%

Advanced high-

strength steels

50%High-strength

steels

40%

Growth in consumption of advanced high-

strength steels in automobiles, 1995 – 2005 Source: Roskill

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Page 13: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

THE TNG ADVANTAGE

TIVANTM Process

• Hydrometallurgy - successfully extracts vanadium,

titanium and iron

• International patent application lodged

• acid leaching and solvent extraction enables +90%

recovery of V2O5, Fe, TiO2

• Cheaper OPEX and CAPEX

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Page 14: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

The TIVANTM Process

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Page 15: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Product Specification: preliminary data:

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• Vanadium • V205 purity 96.7% V

• 96% Recovery

• Titanium • Ti02 purity >50% in leach

• 78% recovery

• Iron • Fe203 99.9%

• 98% recovery

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Page 16: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

2011 Scoping Study – Key Findings

Mine Life: 24 years

Processing rate (life-of-mine): 5 Mt /annum

Life-of-mine production: 107.1 million tonnes

Process head grade: 0.33% V2O5, 25.39% Fe, 6.04% TiO2

Total metal production: 349kt V2O5, 27,182kt Fe, 6,463kt TiO2

Total operating costs (excluding royalties): $46.6/tonne

Preliminary capital estimate: $370.3M (for Stage 1 – 2Mtpa) Se

$307.6M (for Stage 2 – 5Mtpa)

Nett Cash Flow2 $148.37M / annum

Key assumptions of the Scoping Study included:

Operating costs and pit slope angles related to mining estimated to a Scoping Study level (±50%)

Commodity pricing based on a previous 4 year average

V2O5 price of US$8.00/lb

TiO2 price of US$155.60/tonne

Fe2O3 price of US$200/tonne

Royalty rate of 2.5% per tonne of plant feed

A$/US$ exchange rate of 0.85 US$ = 1A$ 2Nett Cashflow is defined as the average undiscounted cashflow per annum after all CAPEX (pre-strip CAPEX, initial CAPEX, and expansion CAPEX has been deducted),

but ignores cost or source of capital, hedging, tax, depreciation, rehabilitation and salvage.

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Page 17: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

FeV Scoping study – a value add product

Mine Life: 24 years

Processing rate (life-of-mine): 2 Mt/annum

Total FeV metal production: 105,000 tonnes

Total operating costs (excluding royalties): $5.36/tonne

Primary Capital Estimate3: $43.8M (for Stage 1-2Mtpa)

Nett Cash Flow4: $78M/annum

New Total Nett Cashflow4: $226M/annum

Key assumptions of the Scoping Study included: 3 FeV plant capacity capital cost estimate supplied by Snowden and METS includes both direct and Indirect costs (at a Scoping Level Study of ±35%). 4 Nett Cashflow is defined as the average undiscounted cashflow per annum after all CAPEX (pre-strip CAPEX, initial CAPEX, and expansion CAPEX has been deducted), but ignores

cost or source of capital, hedging, tax, depreciation, rehabilitation and salvage.

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Page 18: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Quality & Quantity Australian Vanadium Deposits (Relative size in contained V2O5)

Te

no

r (%

V2O

5 i

n M

ag

ne

tite

Co

nc

en

tra

te

Reed Resources Barrambie

Atlantic Windimurra

Aurox Balla Balla

TNG

Expl Target

TNG

Mount Peake

Million Tonnes

¹ The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resources

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140

177

502

Speewah

Speewah

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Page 19: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Corporate Comparison Company Market Capitalisation (m) comparison

Reed Resources

Atlantic

Speewah

TNG 22

50

Jorc resources

Ma

rke

t C

ap

ita

l (S

m)

ET 500-700mt

ET = Exploration Target

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Cornerstone Investor

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Platform for growth of company and projects

Strategic partnership with Jiangsu Eastern China Non-Ferrous Metal

Investment Holding Co., Ltd (ECE).

30% investment for $13.4M

Due Dilligence completed

Jiangsu Government Approvals received

FIRB and Shareholder approval – Completion expected by November

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Page 22: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Shares on Issue

Cash

Investments

Receivables

Major Shareholders

WWB Investments

CBH

JP Morgan

ASX Code:

Top 20 Shareholders hold 35.9% of Issued Capital

285m

TNG

$4.51m

8.50%

4.98%

3.25%

Corporate Summary

21

387m

17.9m (15.9m)

ECE 30%

POST TRANSACTION

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Page 23: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Board and Management

Chairman/Non–Executive Director – Mr Neil Biddle • A geologist with over 25 years experience in precious metal, base metal and iron ore exploration throughout Australia

and overseas, as well as in the establishment, development and management of listed mining and exploration

companies.

Managing Director – Mr Paul Burton • With over 20 years experience in exploration and mining throughout Australia and overseas, Mr Burton has managed

successful mineral exploration and feasibility study programs for a range of different commodities including base-metals,

precious-metals, diamonds and ferrous metals.

Non–Executive Director – Mr Stuart Crow • Mr Crow has more than 25 years experience in all aspects of corporate finance and investor relations in Australia and

international markets, and has owned and operated his own businesses in these areas for the last twelve years. He

brings extensive working knowledge of capital markets to the Board.

Company Secretary - Mr Simon Robertson • Mr Robertson currently holds the position of Company Secretary for a number of publically listed companies and has

experience in corporate finance, accounting and administration, capital raisings and ASX compliance and regulatory

requirements.

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Page 24: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Presentation

July 2011

ASX Code: TNG

23

Future Milestones:

JORC Resource Upgrade – Indicated / Measured

Pre-Feasibility Study completion

FIRB approval

Completion of ECE transaction

Completion of metallurgical optimisation

Completion of Pilot Plant test work

Commercialisation of TIVAN

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Page 25: INVESTOR PRESENTATION RESOURCES RISING STARS · INVESTOR PRESENTATION RESOURCES RISING STARS ... • $13.4m investment to underpin development of Mount Peake Project. ... FeV Scoping

Presentation

July 2011

ASX Code: TNG

24

THANK YOU

ASX:TNG

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