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Investor Presentation Presentation Transcript

  • 1. Emerging Strategic Metal & Coal Producer Fortune Minerals Limited Investor Presentation January 2012 TSX-FT
  • 2.
    • FORWARD-LOOKING INFORMATION
    • This document contains certain forward-looking information. This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management’s expectations with respect to, among other things, the size and quality of the Company’s mineral resources, progress in development of mineral properties, timing and cost for placing the Company’s mineral projects into production, costs of production, amount and quality of metal products recoverable from the Company’s mineral resources, demand and market outlook for metals and coal and future metal and coal prices. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the inherent risks involved in the exploration and development of mineral properties, uncertainties with respect to the receipt or timing of required permits and regulatory approvals, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal and coal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, uncertainties related to metal recoveries and other factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update them or revise it to reflect new events or circumstances, except as required by law .
  • 3.
      • Listing: TSX-FT
      • Share Price: $ 0.80
      • Issued Shares: 117.1 million
      • Fully Diluted: 123.4 million
      • Market Cap: $ 94.0 million
      • Working Capital: $ 26.0 million (Q3- 2011 )
      • ($ 3.9 million warrants exercised Dec.)
      • Total Assets: $ 151.2 million (Q3-2011)
    Corporate Information Share Performance
      • China Mining Resources Group Ltd. ~13%
      • Manulife Global Management US ~ 10%
      • Officer & Director Holdings ~21% (includes China Mining)
    As of January 11, 2012 All values in C$ unless otherwise noted Analyst Reports Ownership
      • David Davidson, Paradigm Capital
      • Michael Fowler, Loewen Ondaatje McCutcheon
  • 4. Canada Focus - Operating in mining friendly jurisdictions
    • PROPERTY INTERESTS
    PROPERTY INTERESTS Canada Focus - Operating in mining friendly jurisdictions
  • 5.
    • EMERGING PRODUCER OF GOLD, MET. COAL & SPECIALTY METALS
    • KEY ASSETS
      • Mount Klappan Anthracite Coal Project, British Columbia
        • One of world’s premier metallurgical coal development projects
        • JV partnership with South Korean steel producer POSCO
        • Collaboration with CN Rail to extend railway infrastructure
        • Accelerated development strategy with funding to construction in place
      • NICO Gold-Cobalt-Bismuth-Copper Project, NWT & Saskatchewan
        • 4 million equivalent gold ozs (1) - Significant gold & cobalt - Largest deposit of bismuth in world
        • Mine & Concentrator planned in NWT
        • Vertically integrated metals processing plant planned near Saskatoon, Saskatchewan
        • Golden Giant Mine buildings & equipment purchased & dismantled to reduce costs
        • Potential future mill feed from Sue-Dianne Copper-Silver-Gold satellite deposit
      • Two development projects, Both:
        • Positive definitive feasibility studies >$ 1.3 billion combined base case NPV
        • Successfully test mined & pilot plant processed
        • In permitting
        • Deloitte & Touche engaged to secure strategic partners
        • New reserves & economics pending
      • EXPERIENCED BOARD & MANAGEMENT TEAM
      • Proven records in permitting construction & mine operations
      • (1) Using Metal Price Assumptions: US$ 900/oz Au, US$ 20/lb Co, US$ 10/lb Bi, US$ 2.75/ lb Cu
  • 6.
      • One of world’s largest undeveloped metallurgical coal deposits
      • Advanced project with $ 87 million of work completed
      • Definitive Feasibility Study with robust economics
      • Railway development strategy to port of Prince Rupert - Allows for scalable expansion
      • World-class JV partner secured with POSCO - One of the world’s largest steel producers
      • Supply shortages of metallurgical coals with growing world consumption
    MOUNT KLAPPAN ANTHRACITE COAL PROJECT Railway sub-grade links mine site with CN mainline & Ridley Terminals
  • 7.
      • POSCO Canada (POSCAN) has acquired 20% interest in Mount Klappan. Highlights:
        • Anticipated total payments & cash contributions of $ 181 million based on current capital cost estimates
        • $ 30 million paid to Fortune, $20 million contributed directly to the JV
        • 20% of total development & capital costs - $154 million under current estimates
        • $ 17.2 million in additional payments at production
        • 20% of operating costs for 20% of production in-kind for their own use
        • Fortune is Project Manager & will be compensated for providing operational, technical & administrative support over life of mine
      • Secures world-class investor & strategic partner
      • Validates Mount Klappan as one of world’s premier metallurgical coal development projects - Key future supplier to global steel industry
      • Accelerates project development - Upfront payment anticipated to provide 100% of funding to complete detailed engineering, permitting & stakeholder consultations for construction
      • Maintains significant upside for Fortune shareholders
        • $601 million post-transaction levered after-tax NPV (8%) for Fortune’s 80% interest at $175 per tonne for PCI based on current reserves
    JOINT VENTURE WITH POSCO
  • 8.
      • World’s 3rd largest steel producer by crude steel production
      • Crude steel production of 35.4 million tonnes in 2010 - Sales for 12 months ended September 30, 2011, totalled US$ 67.0 billion
      • Gwangyang Works - Largest steel mill in world, 22 million tonnes capacity
      • Global expansion plans towards goal of 50 million tonnes total crude steel production
      • Leading innovator in steel production – Finex
      • Headquartered in Seoul, South Korea
      • Listed on Korea (KRX), New York, London & Tokyo Stock Exchanges
    ABOUT POSCO
  • 9.
      • Large license area in northwest B.C. (15,866 Ha)
      • Close proximity to deep water shipping ports
        • Stewart Port (150km)
        • Ridley Terminals in Prince Rupert (330km)
      • Mine site straddles railway right-of-way
        • Track (CN) installed to 150km south of mine
        • Railway road bed largely complete to mine
        • Road access from railway subgrade
        • Support of CN Rail for railway expansion
      • B.C. Government extending electrical grid to area
      • Project in Tahltan and Gitxsan Territories
        • B.C. Government sharing revenues with First Nations
    STRATEGIC LOCATION & INFRASTRUCTURE
  • 10.
      • Mount Klappan Resources (million tonnes) (1)
      • Historical resources included 2.2 billion tonnes in the speculative class, however, speculative resources are no longer
      • considered NI 43-101 compliant and such resources should not be considered current. (2)
      • Lost Fox Metallurgical Coal Reserves (million tonnes) (1)
    MOUNT KLAPPAN RESOURCES & RESERVES (1) Richard Marston, PE is the Qualified Person as defined by NI 43-101 (2) 2.8 billion tonne resource in all classes – estimates by Marston & Marston Inc. as of February 2007
      • Significant potential to upgrade & increase resources & new reserves (expected Q2 2012)
      • Lost Fox deposit remains open for possible expansion
      • Additional coal seams identified below 300 meters & on adjacent lands
    Area Measured Indicated Demonstrated Inferred Lost Fox 107.9 109.5 217.4 91.5 Hobbit-Broatch - 13.5 13.5 258.4 Summit - - - 9.6 Nass - - - - Total 107.9 123.0 230.9 359.5 Run – Of –Mine Coal Reserves 10% Ash Product Reserves Measured Indicated Total In Situ Proven Probable Total Product 89.5 16.8 106.3 51.6 9.2 60.8
  • 11.
    • ANTHRACITE PRODUCTS
      • Highest quality coal with very high carbon & energy content
      • Anthracite only 1% of world coal reserves
      • Metallurgical coal with diverse applications
      • Other products:
        • Blend coal with coking coal for making metallurgical coke
        • Direct coke replacement
        • Urea fertilizers
        • Heating & cooking briquettes
        • Pelletizing
    Source: Company Information.
  • 12. GROWING PCI DEMAND FROM STEEL PRODUCERS
      • Use of PCI reduces the amount of coke required in steel production
      • Steelmakers around the world are expanding PCI use to reduce costs
      • Low-vol PCI typically priced at 70% to 80% of high quality hard coking coal
      • Mount Klappan PCI will achieve a higher price given its ultra-low volatile content
    Source: Macarthur Coal
  • 13. EMERGENCE OF CHINA AS NET COAL IMPORTER Source: China Coal Resource Website, Deloitte Coal & Anthracite Net Imports by China In million mt
      • World 2009 anthracite production: ~ 565 million tonnes
        • China: 483 million tonnes – Net importer of anthracite
        • Vietnam: 43 million tonnes – Reduced exports to utilize production domestically
        • Few new high-quality deposits in mining friendly jurisdictions
      • China became a net coal importer of anthracite in 2004, coking coal in 2007, all coals in 2009
  • 14. SIGNIFICANT FUTURE MET COAL DEMAND GROWTH Global Met Coal Demand Million mt Source: Peabody Global Energy Analytics >500 million mt demand increase over the next decade with limited new production potential
      • Increasing demand for good quality metallurgical coals
        • China’s growth ~10% per yr
        • Japan & South Korea are increasing anthracite imports – New steel technologies - Lower emissions
      • Emerging economies are driving forces for future metallurgical coal demand
        • India’s growth ~8% per yr & - Crude steel production expected to increase from 72.8 million tonnes to 124 million tonnes by 2012 & 293 million tonnes by 2020
        • Brazilian crude steel production expected to increase from 26.5 million tonnes to 103 million tonnes by 2030
    Insufficient supply of metallurgical coals to meet forecast global demand
  • 15.
      • Railway transportation of coal provides lower operational risk over trucking – Allows for scalable expansion of production to take advantage of large resource base
      • CN Rail operates between Prince George & port of Prince Rupert & on Dease Lake Line to Minaret, 150 km south of Mount Klappan
      • Railway road bed largely constructed to mine site – Brownfield extension from Minaret
      • Survey & engineering of railway extension at feasibility level - $ 317.8 million capital cost included in 2010 DFS
      • CN collaborating on railway upgrade & extension to Mount Klappan
    RAILWAY UPGRADE & EXPANSION Existing railway right-of-way & road bed
  • 16.
      • Ice-free, deepwater port 36 hours closer to Asia than port of Vancouver
      • Ridley coal terminal a world-class coal & bulk materials handling facility
        • Capable of handling full Capesize vessels ~US$ 10 per tonne reduction in ocean freight
        • Currently handling ~70% of 16 Mtpa design capacity
        • Expansion to 24 Mtpa in progress – Potential to expand to 50 Mtpa
        • Opportunities for shared cargos & blending of coals with other metallurgical coal producers
    PORT OF PRINCE RUPERT
  • 17.
      • November 2010 update to 2005 & 2008 DFS
      • Based on railway transport of coal to Ridley Coal Terminal in Prince Rupert
      • Initial 3 Mtpa production from Lost Fox deposit open pit mine, wash plant & site infrastructure
      • 60.8 Mt of product coal reserves – 20+ yrs production (only 3.6% of global resource)
      • Premium ultra-low volatile PCI product
      • Can diversify product mix to produce premium products (charge carbon) & sinter
      • Life of mine average free on board vessel cash cost of US$104.79/tonne (C$110.30/tonne)
    2010 DEFINITIVE FEASIBILITY STUDY
      • Pre-Tax NPV (8%)
      • In billions
    BASE CASE Ultra-Low Volatile PCI US$175 / tonne (C$1 = US$ 0.95) PRE-TAX AFTER TAX IRR 25.4% 20.7% NPV (8%) C$ 1,027.8 Million C$ 667.4 Million Capital (Years 1-4) C$ 768.4 Million (includes railway capital)
  • 18.
      • Rail transportation allows for higher annual production than 3 Mtpa
      • DFS reserves only represents 3.6% of total resource
        • Updated reserves in preparation for Lost Fox deposit that can support higher production rates.
        • Production can be expanded from adjacent Hobbit – Broatch deposit
        • Current resource only identified to 300 meters – Additional coal seams identified at depth
        • Budget in place for additional drilling
      • 3 rd Party contribution to railway capital costs increases NPV
      • BC Government extending electrical grid & connection lowers power costs & enables use of lower cost mining equipment
      • Lease-to-purchase of mobile equipment fleet lowers upfront capital costs & increases IRR
    SIGNIFICANT UPSIDE POTENTIAL One of world’s largest undeveloped deposits, railway extension to mine site allows for large, scalable project that can be expanded to 6 Mtpa +
  • 19.
      • JV partner now secured & accelerated development program underway
      • Next steps include:
        • Update reserve estimate
        • Complete Front End Engineering & Design Studies on the Lost Fox Mine
        • Complete engineering on railway transportation with CN Rail
        • Continue community & stakeholder engagement
        • Complete environmental permitting process
        • Conduct additional expansion drilling
      • Deloitte engaged to secure 2 nd stage strategic partner
        • Minority equity investor at the project level
        • Provision of debt & equity tied to off-take
        • Expertise in coal end market with strong financial position
        • Objective of announcing fully financed, permitted project at conclusion of currently planned programs
    ACCELERATED DEVELOPMENT STRATEGY
  • 20.
      • 100% Ownership – No 3 rd party royalties
      • Open pit & underground mine & mill in Northwest Territories (NT)
      • Saskatchewan Metals Processing Plant (SMPP)
        • Vertically integrated hydrometallurgical facility to produce gold doré, cobalt & copper cathodes & bismuth cathode or ingot
      • $ 100 million work completed to date, includes:
        • $ 20 million test mining
        • $ 12 million metallurgy & process pilot plants
      • 2007 positive feasibility study & 2008 update
        • 32.3% Pre-tax IRR
        • Pre-tax $ 361 million 8% NPV
        • Significant recent improvements not included
      • 31 Million tonne reserve – 4 Million eq gold ozs *
      • Golden Giant (Hemlo) buildings & equipment purchased & dismantled to reduce capital costs
      • Environmental Assessments advanced for mine & SMPP permitting
      • * Using Metal Price Assumptions: US$ 900/oz Au, US$ 20/lb Co, US$ 10/lb Bi, US$ 2.75/ lb Cu
    NICO GOLD-COBALT-BISMUTH-COPPER PROJECT Test mining 2006/2007
  • 21.
      • 5,140 Ha lease in southern NT
      • Winter access roads
      • All-weather road planned by governments to Hwy (135 km)
        • $18 million in place for stage 1 – realignment, bridges & roadbed
        • Engineering & environmental work underway
      • 450 km from railway at Hay River for transport of concentrates to SMPP
      • 160 km from City of Yellowknife
      • 50 km from Town of Whati
      • 22 km from Snare Hydro
      • Tlicho First Nation – Settled land claim
      • Co-operative Relationship Agreement with Tlicho Government
    MINE LOCATION & INFRASTRUCTURE
  • 22.
      • High concentration ratio of ore using simple flotation
        • 4,650 tonnes of ore per day reduced to only 180 tonnes of concentrate (3.8% sulphide fraction)
        • Allows concentrate to be shipped to Saskatchewan for lower cost processing
      • Hydrometallurgical plant to produce gold doré, cobalt & copper cathodes & bismuth ingot
      • Agreement to purchase lands near Saskatoon
        • Located on CN Rail line - Close to Hwy
        • Inexpensive power (5.7 cents/kWh)
        • Close to natural gas & reagent sources
        • Skilled worker / engineer pool – 85 employees
      • SMPP capital cost ~ $200 million
      • SASKATCHEWAN METAL PROCESSING PLANT (SMPP)
    NICO Saskatoon CN Rail Canadian Route Map
  • 23.
    • DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS
      • Gold the most valuable component by value
      • Front end gold recovery - largest source of revenue in first year of operation
      • Bismuth is second largest by value – Largest bismuth deposit world-wide
      • High purity cobalt (99.8%) commands premium price.
      • Gold – 907,000 oz @ $1651/oz
      • Cobalt – 82 Mlbs @ $16.00/lb
      • Bismuth – 109 Mlbs @ $13.25/lb
      • Copper – 27 Mlbs @ $3.35/lb
      • Prices as at Oct 24, 2011
    Value by Metal at Spot Prices
  • 24.
    • GOLD – COUNTER CYCLICAL HEDGE
      • Gold price increased consistently in past 9 years, especially after recent economic downturn
      • While mine supply remains relatively flat, future demand continues to grow:
        • Growing physical demand from Asia & Central banks
        • Growing investment demand based on currency protection & safe haven status
      • Provides a flexible financing opportunity
    Historical & Forecast Gold Price Source: Bloomberg; Energy & Metals Consensus Forecasts, Oct 2012
  • 25. COBALT – ROBUST MARKET WITH INCREASING DEMAND World cobalt production (in tonnes) Wide application of industrial usage
    • Vast majority of cobalt sourced from regions that are politically unstable or prone to export restrictions
    • Congo currently accounts for 51% of global supply
    • China has the largest refining capacity (43% in 2010) but limited mine supply
    • LME initiated futures market trading for cobalt in 2010, resulting in a more liquid market
    • Wide metallurgical & chemical market applications in: batteries, high strength alloys, cutting tools, catalysts, etc.
    • Largest growth is in lithium ion & nickel metal hydride batteries for electronic devices & hybrid/electric vehicles
    • High purity cobalt (99.8%) used in aerospace applications
    • 76,500 t market with demand growing by approximately 10% per year
    Source: USGS Industry Survey Source: Cobalt Development Institute
  • 26. BISMUTH – ENVIRONMENTAL FRIENDLY WITH GROWTH POTENTIAL Bismuth prices continue to increase World reserves (in tonnes) Growing number of applications Bismuth Prices 3 Years
    • Bismuth prices have risen over the last 2 years, supported by steady demand & constrained supply
    • China is the principal source of bismuth & has total reserves of 240Kt, accounting for 80% of world reserves
    • China has closed 20% of its production due to environmental concerns
    • NICO contains over 48Kt of bismuth, equivalent to 15% of world reserves & the world’s largest deposit
    • Traditionally used in fusible alloys, cosmetics, chemicals etc.
    • New markets focus on super conductors, CDs & auto anti-corrosion materials
    • Environmentally safe replacement for lead in plumbing & electronic solders, brass, ceramic glazes, free cutting steel, hot dip galvanizing & paint pigments
    • Global framework to eliminate lead could increase bismuth consumption by 25%
    Source: MetalPrice.com Source: USGS Industry Survey 2010 Source: USGS Industry Survey
  • 27. NICO MINERAL RESERVES (TO BE UPDATED SHORTLY) Reserve estimate by P&E Mining Consultants Inc., Eugene Puritch, P.Eng. & Fred Brown, CPG PrSciNat, Qualified Persons as defined by NI-43-101 Underground Mineral Reserves Tonnes Au (g/t) Co (%) Bi (%) Cu (%) Proven 1,403,000 2.23 0.16 0.22 0.04 Probable 767,000 2.92 0.17 0.19 0.03 Total 2,170,000 2.47 0.16 0.21 0.03 Open Pit Mineral Reserves Tonnes Au (g/t) Co (%) Bi (%) Cu (%) Proven 15,019,000 0.85 0.12 0.16 0.04 Probable 13,797,000 0.71 0.12 0.15 0.03 Total 28,816,000 0.79 0.12 0.15 0.04 Combined Mineral Reserves Tonnes Au (g/t) Co (%) Bi (%) Cu (%) Proven 16,422,000 0.97 0.12 0.16 0.04 Probable 14,564,000 0.83 0.12 0.15 0.03 Total 30,986,000 0.91 0.12 0.16 0.04 Contained Metal 907,000 ounces 82 million pounds 109 million pounds 27 million pounds
  • 28.
      • 38 holes drilled in 2010
      • Drilling successfully expanded deposit & intersected high-grade gold intervals
        • 51.3m averaging 2.2 g/t Au & 0.11% Co, including 3m averaging 15.59 g/t Au, 0.46% Co, 0.05% Bi & 0.20% Cu
        • 8.00m averaging 4.74 g/t Au & 0.16% Bi, including 1m grading 35 g/t Au
        • 3.38m averaging 11.59 g/t Au, 0.37% Co, 0.16% Bi & 0.14% Cu, including 1.67m averaging 20.04 g/t Au, 0.36% Co, 0.24% Bi & 0.13% Cu
        • 5.00m averaging 4.84 g/t Au, including 2.5m averaging 9.21 g/t Au
        • 20.1m averaging 0.38% Co & 0.37% Bi
      • New Mineral Reserve estimates pending
    2010 DRILL PROGRAM
  • 29.
    • UNDERGROUND TEST MINING & PILOT PLANTS
      • Mining conditions, geometry & grades for deposit confirmed
      • Environmental impacts assessed
      • Portal, decline ramp & 2 mine levels established with ventilation raise to surface
        • ~$ 20 million pre-production development completed
      • Large sample collected for $ 8 million pilot plant tests
        • Proved process flow sheet
        • Verified production of high value metal products
        • Increase in metal recoveries over feasibility study
      • Tangible demonstration of successful project to governments & communities
      • Reduced project risk
  • 30.
    • GOLDEN GIANT MINE (HEMLO) MILL, ONTARIO
      • Buildings, equipment & spare parts acquired from Newmont Canada
      • Relocation to NICO for significant reduction in capital costs & project risk
      • No environmental liability for Hemlo site
      • Dismantling & removal completed for net cash cost of ~$ 19 million
      • Demonstration of project execution on budget & schedule
  • 31.
      • Micon, Met-Chem, Golder, SGS Lakefield & metallurgical & engineering experts
      • Results:
        • Pre-tax IRR 32.3%
        • Pre-tax C$361 million 8% NPV
        • Pre-production capital cost C$213 million
        • Cash Cost US$1.41/lb Co (1)(2)
        • Cash Cost US $259/oz Au equivalent (2)
        • April 2008 metal price sensitivity increases IRR to 97.2% & NPV (8%) to $1.5 billion (3)
      • Study now out of date – New reserves & operational improvements not included – Capital costs will be higher
    2008 DEFINITIVE FEASIBILITY STUDY (1) Net of credits for gold and bismuth sales (2) Base Case metal prices of US$750/oz Au, US$20/lb Co, US$10/lb Bi and US$/C$ 0.97 (3) April 2008 metal prices of US$900/oz Au, US$50/lb Co, US$16/lb Bi and US$/C$ 0.97
  • 32.
      • 43% increase in reserves to 31 Mt – 18 Yr mine life - Excludes results of 2010 drilling
      • 16% production rate increase to 4,650 tpd
      • More efficient mine plan - Eliminated underground backfilling
      • Identification of low strip starter pit – Eliminates pre-stripping
      • Co-disposal of waste rock & tails – Reduces dam structures & reclamation costs
      • Commodity price assumptions higher:
      • Improved recoveries from pilot plant:
        • Gold 56-85%, Averages 76%
        • Cobalt 84%
        • Bismuth 73%
        • Copper 58% - Not previously included
      • Higher value metal products:
        • Bismuth 99.5% cathode or 99.9% ingot – Feasibility study assumed concentrate
        • Copper 99.99% cathode – Not included in feasibility study
      • Hydrometallurgical process plant relocated to Saskatoon
        • Lower OPEX (~$7 million per yr) – Mitigates capital cost increase (~$30 million)
    POST-DEFINITIVE FEASIBILITY STUDY IMPROVEMENTS
  • 33.
      • Higher forecast annual metal production
        • Gold yrs 1 & 2 of mine life ~70,000 ozs, yrs 3-18 ~35,000 ozs
        • Cobalt ~ 3.4 million lbs (1,550 tonnes)
        • Bismuth ~ 3.65 million lbs (1,650 tonnes)
        • Copper ~ 770,000 lbs (350 tonnes)
      • Approximate cost per tonne $ 60 per tonne, $ 102 million per yr
      • Approximate revenue $ 110 per tonne, was $ 190 million per yr
      • Capital costs expected to be sub $400 million
      • Updated economics pending receipt of Front End Engineering & Design (FEED) Study by Jacobs Engineering & other engineering Co.’s
    RESULTS OF NICO PROJECT IMPROVEMENTS
  • 34.
      • New reserve estimates pending – Focus on expansion of gold
      • Front End Engineering & Design Studies completed – Currently reviewing draft
        • Revised capital & operating costs & financial model
      • Environmental Assessments advanced for mine & SMPP permitting
        • Developers Assessment Report submitted - No deficiencies
        • Saskatchewan Environmental Impact statement submitted for SMPP
      • Expanding management team
      • Production targeted in 2014
      • Deloitte engaged to secure strategic partner – Ideal partner:
        • Minority equity investor at the project level
        • Ability to arrange & guarantee project finance facility
        • Expertise in cobalt or specialty metal end markets/off-take partner
        • Committed to an accelerated development plan
    DEVELOPMENT STRATEGY
  • 35.
      • Mount Klappan
        • Revised Project Description submission to BC EAO (Q1)
        • New reserves (Q2)
        • Revised economics (Q2)
        • MOU with CN Rail (Q2)
        • MOU with BC First Nations (Q2)
        • Second stage strategic partner(s) and project financing
      • NICO
        • New reserve estimates (Q1)
        • Revised economics (Q1)
        • Initiate Tlicho IBA Negotiations (Q2)
        • SMPP permits (Q3)
        • NICO water licence and land use permits (Q4 2012 to Q1 2013)
        • Strategic partner(s) and project financing
    2012 TARGETED MILESTONES
  • 36. Directors Mahendra Naik, B Comm, CA Chairman, Director CFO Fundeco - Founding director & former CFO, IAMGOLD George Doumet, MSc, MBA Honorary Chairman, Director Chemical Engineer – President & CEO, Federal White Cement Robin Goad, MSc, PGeo President & CEO, Director Geologist - 30 yrs mining & exploration experience David Knight, BA, LLB Secretary, Director Partner, Macleod Dixon specializing in securities & mining law James Excell, BASc Director Metallurgical Engineer – 35 yrs mining experience BHP-Billiton William Breukelman, BASc, MBA, Peng Director Chemical Engineer – Chairman, Gedex James Currie, BSc (Hons), PEng Director Mining Engineer – former Executive Vice President & COO, New Gold The Honorable Carl L. Clouter Shou Wu (Grant) Chen, MSc, MBA Director Director Commercial pilot - former owner of charter airline in NWT Geologist – Deputy Chairman & CEO, China Mining Resources Group Management Julian Kemp, BBA, CA VP Finance & CFO Chartered Accountant – 20+ yrs mining financial experience Thomas Rinaldi, BSc VP Operations Mining Engineer – 30 yrs engineering & operations experience Michael De Carlo, BSc, BBA Bill Shepard Project Manager Logistics Manager Mining Engineer – 40+ yrs engineering & managerial experience 15 yrs experience in procurement and logistics Dr. Richard Schryer, PhD Adam Jean, HBA, CA Director Regulatory & Environmental Affairs Controller Aquatic Scientist –20+ yrs experience in mine permitting & environmental assessments Chartered Accountant previously with Ernst & Young James Mucklow, MESc, PEng Keith Lee, BSc Manager Env.& Community Senior Process Engineer Geological Engineer – 20+ yrs geological & environmental experience 25 yrs operations, engineering & mineral processing experience
  • 37. Emerging Strategic Metal & Coal Producer For further information, please contact: Robin Goad, President & Chief Executive Officer Troy Nazarewicz, Investor Relations Manager 140 Fullarton Street, Suite 1902 London, Ontario, Canada N6A 5P2 Tel. (519) 858-8188 Fax. (519) 858-8155 E-mail. tnazarewicz @fortuneminerals.com Website. www.fortuneminerals.com TSX-FT