driving towards production and expansion · 3 altura mining - overview altura litihum project is...

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DRIVING TOWARDS PRODUCTION AND EXPANSION

WORLD CLASS - LONG LIFE – LOW COST OPERATION

MARCH 2018

2C h a r g i n g f o r w a r d w i t h L i t h i u m

DISCLAIMER

This presentation has been prepared by Altura Mining Limited (“Altura” or the “Company”). It should not be considered as an invitation or offer to subscribe for or purchase any securit ies in the Company or as an inducement to make an invitation or offer with respect to those securit ies. No agreement to subscribe for securit ies in the Company will be entered into on the basis of this presentation.

This presentation is provided on the basis that none of Altura nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the presentation and nothing contained in the presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law.

The presentation contains forward looking information and prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and may differ materially from results ult imately achieved. All references to future production, production targets and resource targets and infrastructure access are subject to the completion of all necessary feasibility studies, permitt ing, construction, financing arrangements and infrastructure-related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources, Ore Reserves and Exploration Results, as well as the Competent Persons' Statements.

All persons should consider seeking appropriate professional advice in reviewing the presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the presentation nor any information contained in the presentation or subsequently communicated to any person in connection with the presentation is, or should be taken as, constituting the giving of investment advice to any person.

CHARGING FORW ARD W ITH LITHIUM | ASX : AJM

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ALTURA MINING - OVERVIEW

Altura Lit ihum Project is ideally located at Pilgangoora in the Pilbara region of Western Australia

100% owned by Altura Mining Limited and significant global sized Ore Reserve Definit ive Feasibility Study (DFS) completed in September 2016 for Stage 1 production

of 220,000 tpa of 6% grade Li2O – circa 30,000 tpa of Lithium Carbonate Equivalent (LCE)

Strong economics with LOM cash costs of ~A$320 per tonne 1

Mine construction substantially complete and fully funded – first sales scheduled for Q2 2018

Stage 2 expansion DFS to increase production to 440,000 tpa of 6% grade Li2O set for completion in April 2018 – circa 60,000 tpa LCE

Stage 2 Formal Investment Decision (FID) Q2 2018 – first production due 17 months post FID

Offtake partners have significant lithium conversion and battery producers OptimumNano and Lionergy

1 Costs based on Altura’s DFS released in September 2016 (refer to ASX announcement 26 September 2016)

PilgangooraLithium District

Altura Lithium

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LONG LIFE – LOW COST OPERATION

Locat ion• Pilgangoora region of

W.A.• Excellent local and

regional infrastructure• Direct access to north

Asian markets

Management• Experienced project

development and mining team

• Key personnel for process plant already secured

Stage 1 – Altura Lithium Project

• An aggressive timetable has been achieved with commissioning to occur in the coming weeks

• First product sales Q2 2018

• Successful exploration program currently taking place to increase Ore Reserve and Mineral Resource estimate

Stage 2 – Altura Lithium Project

• Definit ive Feasibility Study on plant size duplication to be announced shortly

• Final investment decision to be made shortly after

• Product sales from second plant expected 17 months after FID

Offtake & Product ion

• 100% of Stage 1 production secured by offtake partners Optimum Nano and Lionergy

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Capital Structure (21st March 2018) AUD

Shares on issue 1,819.8M

Share price $0.465

Market capitalisation $846m

Cash $110m

Top 20 Shareholders ~62%

Board and Management 17%

Major Shareholders %

Furui Holdings Limited 16.81%

MT Smith 10.15%

Shazo Holdings Pty Ltd 8.92%

Management 17.1%

Top 20 62.1%

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Altura has recent ly been added to S&P ASX 300 Index

CORPORATE STRUCTURE 12 MONTH SHARE PRICE PERFORMANCE


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Managing DirectorJames Brown

Executive Director, CFOPaul Mantell

Non-executive DirectorAllan Buckler

Non-executive DirectorZhao Tong

Non-executive DirectorDan O’Neill

Mr Brown is a Mining Engineer with extensive mining experience and operational development. Mr Brown has been Managing Director of Altura since September 2010, and previously was the Company’s General Manager. Previous to his role at Altura Mr Brown spent 22 years at New Hope Corporation (ASX:NHC)

Mr Mantell is a qualified accountant and has in excess of 30 years in corporate experience in the mining and associated industries. This included 28 years at New Hope Corporation, with the last 12 years as the Company’s Chief Financial Officer.

Mr Buckler holds over 40 years experience in the mining industry which includes being a former Director and Chief Operations Officer at New Hope Corporation. Mr Buckler has been directly responsible for the commercialisation of several projects which begun from resource identification all the way through to production

Mr Zhao Tong brings over 25 years experience in the international trade of metals and minerals. Mr Tong has been the director of the Lithium Division of J&R Optimum, an offtake partner of Altura since October 2016

As an exploration geologist and founding director of current lithium producer Orocobre Limited (ASX:ORE), Mr O’Neill brings over 30 years’ experience in international mining across Australasia, Africa, Asia and North America. Mr O’Neill has served as a director of Altura since December 2008

BT Kuan

Mr Kuan has been a director of Altura since November 2007 and brings a wealth of experience in logistics, specifically the development and management of bulk handling and terminal operations. Mr Kuan is a qualified mechanical engineer

Non-executive Director

BOARD & MANAGEMENT


Board and

Management with a

history of successful

developments, strong

operat ions and robust

dividend returns

BOARD

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BOARD & MANAGEMENT

MANAGEMENT

Chief Operating OfficerChris Evans

Mr Evans is an experienced civil engineer and project manager. Prior to commencing as COO at Altura, Mr Evans was Project Manager for the Mt Webber mine development in the Pilbara region of Western Australia for Atlas Iron, and delivered on an aggressive t imetable for the project

General Manager Development Marc Rowley

Mr Rowley is a seasoned management professional covering all phases of project lifecycles spanning from scoping studies through to commissioning and handover.With 15 years working in WA for a number of t ier 1 engineering consultants, Mr Rowley holds experience in both small scale scoping studies and Definit ive Engineering Studies on projects with a value over $1b. Mr Rowley has assumed the posit ion of Project Director to take the Stage 1 study through to implementation and commissioning.

Maintenance Superintendent Graham Aust in

Mr Austin holds over 30 years experience on all fixed plant equipment and has been involved with greenfield and brownfield projects throughout Africa, Asia and Australia.Mr Austin has held various Maintenance Superintendent posit ions in the gold, copper and nickel mining processes Mr Austin begun his career in Zimbabwe, before moving to Botswana where he worked for various mining organisations, then moving to Singapore taking up a posit ion of Service Engineer with National Oilwell

Processing Superintendent Brady Jenkins

Mr Jenkins is a Metallurgist with over twenty years experience in the Australian mining industry. He has extensive processing experience in a wide range of commodities including nickel, gold, mineral sands, coal and iron ore.In recent years Mr Jenkins has focused primarily on operational readiness, commissioning and ramp up of large scale processing operations with t ier 1 mining companies. Mr Jenkins has assumed the role of Commissioning Manager for the Pilgangoora project.

Processing ManagerWalter Madel

Mr Madel is a metallurgist and a mineral process engineering and design professional, with 17 years of practical processing engineering experience in a wide variety of minerals and metals on projects in Australia and internationally, and also holds 10 years of experience in mineral plant operations.Mr Madel played a key role in the design of the processing plant and supporting infrastructure from conceptual and study stage through to detail design of the Pilgangoora project.

Registered ManagerPhil Robinson

Mr Robinson brings to Altura a solid background in Mining and Processing operations, working on a number of greenfield mining developments such as Atlas Abydos Mine and Arrium’s Southern Iron Project, with experience also working on a number of business transformation projects such as Cockatoo Island Redevelopment, Woodie WoodieManganese Mine development, and Arrium’s redevelopment of its Whyalla group of Mines.Mr Robinson is an experienced Mining Operations and Construction Manager with over 20 years experience.

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STAGE 1 ALTURA LITHIUM PROJECT

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ALTURA LITHIUM PROJECT - STAGE 1

• Published FS and Commenced DFS on Altura Lithium Project

• DFS completed and delivers excellent results

• Construction commences

• Board and Management set an aggressive project t imetable

• Binding offtake agreements signed

• Project funding package secured

• Commissioning begins

• First spodumene sales

Q2 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q2 2018

The board and management set an

aggressive t imetable to posit ion Altura as a

major hard-rock lithium producer by 2018



ALTURA LITHIUM PROJECT - STAGE 1

• Commissioning of the crushing circuit scheduled for March, with the wet plant following in April/ May

• Altura to adopt an owner-operator model for the processing plant

• Key personnel for the process plant operation already secured

• Civil works have been completed

• Construction of the Run-Of-Mine (ROM) Wall completed

• Practical completion issued on the Tailings Storage Facility

• The Mine Operations Centre is fully operational and occupied by both Altura and NRW workforce

• First phase of commissioning has begun (crushing circuit)

• 21 of 25 key staff recruited for owner-operator model for stage 1, with the remaining offers in the final phase


Key DFS Details $AUDTotal Revenue 2.074BTotal EBITDA 1.064BNet Present Value 411M

LOM Cost 316/ tIRR 58.1%Payback period 1.8 years

Stage 1 remains on schedule for f irst lithium concentrate sales in the June

Quarter 2018

“For further information refer to ASX announcement on 26 September 2016”


STAGE 1 OFFTAKE TERMS - 100% OF PRODUCTION SECURED

• Altura have secured offtake for 100% of Stage 1 production of 220,000 tpa @ 6% Li2O via partners OptimumNano and Lionergy

• Offtake economics agreed between the parties are outlined below:

• Minimum 100,000 dmt per annum for five years, 6% lithium concentrate

• Min. price US$550 / dmt for first 3 years

• Max. price US$950 dmt for first 3 years

• Market-linked annual pricing

• First sales before 30 June 2018

• Stage 2 duplication to double output to 440,000tpa

• Offtake terms for Stage 2 will reflect current terms for Stage 1 up until the end 2022



Descript ion Altura Floor

NeometalsPrice

Tawana Price

Galaxy Price

Altura Ceiling

Selling Price – 6% Li2O US$dmtFOB 550 810 880 905 950

Average Annual FOB Revenue 1st 5yrs A$M 172 253 275 283 297

Average Annual EBITDA 1st 5yrs A$M 82 156 176 183 196

Assumptions:Based on Altura's estimated average revenues and costs* during its first 5 years of production (y/ e 30 June 2019 to 30 June 2023)Based on an average AUD:USD exchange rate of 0.7500 during first 5 years of productionPrice A - based on Altura’s floor price as per its offtake agreements for the first 5 year contractsPrice B - based on Neometalspricing for September 2017 Qtr of US$841 CIF China, adjusted to an estimated FOB equivalent (NMT ASX release 5 July 2017)Price C - based on Tawana Resources pricing for 2018 and 2019 FOB Esperance (TAW ASX release 26 April 2017)Price D - based on Galaxy Resources FOB pricing for Calendar 2017 (GXY ASX release on 14 December 2016)Price E - based on Altura’s ceiling price as per its offtake agreements for the first 5 year contracts

* Costs based on Altura’s DFS released in September 2016 updated for current estimates (refer to ASX announcement 26 September 2016)

Examples of indicative Revenue and EBITDA based on market pricing

STAGE 1 REVENUE FORECASTS



• 100% owned subsidiary of Shenzhen-listed Shaanxi J&R Optimum Energy

• Market capitalizat ion ~A$5 billion, Controls 15-20% of Chinese battery market

• Producer of lithium power battery systems for EV, large EV and static storage

• Customers include Dongfeng Motors, SunlongBus, Dayun Group, FAW Group, Haw Tai Motors

• Producing +100,000 battery sets in 2017• 2017 production in excess of 5GW and continue

to expand

Lionergy

• 20+ years in Chinese lithium industry with excellent reputat ions and connect ions

• Exploration, mine development, concentrate sales and distribution

• Li2C03 and LiOH manufacturing and sales, lithium metal & cathode manufacturing for Li-ion batteries

• Purpose build lithium carbonate and lithium hydroxide conversion plant under construction – commissioning Q3 2018

OFFTAKE PARTNERS –100% OF STAGE 1 PRODUCTION



ALTURA LITHIUM PROJECT -STAGE 1

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ALTURA LITHIUM PROJECT -STAGE 1

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STAGE 2 ALTURA LITHIUM PROJECT

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ALTURA LITHIUM PROJECT – STAGE 2

• Scoping Study confirms duplicating plant size of production plant to double output as best expansion option

• Key criteria of NPV, anticipated time to market and minimising disruption to Stage 1 led to the decision

• Definit ive Feasibility Study in progress to examine doubling of capacity to 440,000tpa of lithium concentrate – Due for completion by April

• Key milestones achieved thus far include:• Confirmation of the second stage plant• Commencement of the design of the second stage plant• Revised mining schedule has also commenced to support the upgraded production target

• First production from the duplicated plant is expected to be achieved within 17 months after the investment decision will be made

• Timeframe could be brought forward by using the design and majority of parameters from Stage 1

• Strong interest from current partners for further offtake – further interest

For further information please refer to ASX announcement on 13 November 2017


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• Altura to rapidly accelerate Stage 2 of the Altura Lithium Project to double current forecasted production• Minimal disruption expected to Stage 1 plant operations• Mine life to remain greater than 10 years • First production expected 17 months after final investment decision, but can be brought forward with early

ordering of long-lead items• Mine resource extension drilling is currently underway, and aimed at proving up additional resources and

increasing life-of-mine

C h a r g i n g f o r w a r d w i t h L i t h i u m

ALTURA LITHIUM PROJECT – STAGE 2


• Scoping Study Completed and confirms duplicating plant size as best option

• Definitive Feasibility Study commences immediately to examine doubling of capacity to 440,000tpa

• Key milestones achieved including confirmation of second plant and design of second stage plant

• DFS on Stage 2 complete and first sales from Stage 1 expected

• Final investment decision to be made on Stage 2 of the Altura Lithium Project

• 17 months after FID first production from duplicated plant

Q4 2017 Q4 2017 Q1 2018 Q2 2018 Q2 2018 2019

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EXPLORATION – SOUTHERN RIDGE & UTARA

C h a r g i n g f o r w a r d w i t h L i t h i u m

Drilling on the Southern Ridge

Please refer to the announcements dated 14 December 2017 & 13 March 2018 for further information Utara Prospect Drill Hole Intersects (October 2016)

• Southern Ridge drill campaign to focus on increasing the Ore Reserve and Mineral Resource estimate at the Altura Lithium Project

• Campaign consists of 4,650m of RC drilling for 41 holes

• Results from the first 17 holes have been received which delivered strong lithium intersections including:

• 21m @ 1.22% Li2O from 37m (P18RC0004)• 41m @ 1.20% Li2O from 60m (P18RC0006)• 59m @ 1.34% Li2O from 77m (P18RC0008)• 19m @ 2.05% Li2O from 144m (P18RC0008)

• Drilling program to continue with further results to follow

• Utara Prospect to be drilled in 2018 to define the extent of lithium mineralisation identified by mapping and previously limited drilling

• Mapping work identified three separate occurrences of spodumene-bearing pegmatite

• Three drill holes were previously drilled by Altura in October 2016, and two of these holes intersected spodumene-bearing pegmatites



Southern Ridge Deposit Area Southern Ridge Cross Sect ion

EXPLORATION – SOUTHERN RIDGE



UPCOMING MILESTONES

Commissioning Stage 1

Product Sales

Final Investment Decision on Stage 2 expansion to 440,000 tpa 6% Li2O

Continued regional exploration to increase Ore Reserve and Mineral Resource Estimate

Continued work on Stage 2 production plant with first production expected 17 months after FID

Offtake secured for Stage 2 production of a further 220,000 tpa



DRIVING TOWARDS PRODUCTION AND EXPANSION

• Commissioning at the Altura Lithium Project has commenced and will continue over the next months

• First spodumene sales to commence in Q2 2018

• Ongoing regional exploration program to increase Ore Reserve and Mineral Resource estimate

• Definit ive Feasibility Study on Processing Plant Duplication to be released over the coming weeks

• Key milestones surrounding the design and planning of duplicated processing plant have been achieved

• Final Investment Decision to be made on plant duplication with production expected 17 months after

• Further offtake discussions to take place if posit ive investment decision is made on plant duplication

• Altura is set to derive substantial cashflows from spodumene product sales in 2018



COMPETENT PERSONS STATEMENT

The information in this report that relates to the Exploration Targets and Exploration Results is based on informationcompiled by Mr Stephen Barber. Mr Barber is a Member of the Australasian Institute of Mining and Metallurgy. Mr Barber isthe Senior Resource Geologist at Altura Mining Limited and has sufficient experience that is relevant to the style ofmineralisation under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. MrBarber consents to the inclusion in the report of the matters based on this information in the form and context in which itappears.

The Company confirms that it is not aware of any new information or data that materially affects the information included inthe ASX announcements on 14 December 2017 and 13 March 2018.


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A SIGNIFICANT GLOBAL PRODUCTION ASSET IN 2018

THANK YOU

ASX:AJM

driving towards production and expansion · 3 altura mining - overview altura litihum project is...

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