MOLYMOLY                               MINES                           1   LIMITEDMINESLIMITED      2011 Annual General Me...
MOLYDisclaimer                                                                                                            ...
MOLY                                                                                                            MINESAnnua...
MOLYHighlights and Achievements from November 2010                                           MINES                        ...
Company Overview – A producer and mine                                                                 MOLY               ...
MOLYCorporate Overview                                                                                                    ...
MOLY                           MINES                       7   LIMITEDSpinifex Ridge Iron Ore Mine
MOLYMine Layout, Reserves and Resources                             MINES                                                 ...
MOLYProcess Flowsheet   9                        MINES                        LIMITED
MOLYOperations                                                                                          MINES             ...
MOLYOperations and Financials                                                                                             ...
MOLYOperations and Financials        MINES                            12   LIMITED
MOLYExplorer to Operator in 6 months        MINES                                   13   LIMITED
MOLYExplorer to Operator in 6 months        MINES                                   14   LIMITED
MOLYExplorer to Operator in 6 months        MINES                                   15   LIMITED
MOLYExplorer to Operator in 6 months        MINES                                   16   LIMITED
MOLYExplorer to Operator in 6 months        MINES                                   17   LIMITED
MOLYExplorer to Operator in 6 months        MINES                                   18   LIMITED
MOLY                                                   MINES                                          19       LIMITED p  ...
MOLY  Molybdenum – a metal for our time                                                       20                          ...
MOLYMolybdenum – a metal for our time                                                           21                        ...
MOLYReserves and Mineral Resources                                                                                        ...
MOLYUS$500M Project Financing Platform                                                                               MINES...
MOLYCompetence and Responsibility                                                                                         ...
MOLY                                                                  MINES                                               ...
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Moly Mines Annual General Meeting Presentation

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Moly Mines Annual General Meeting Presentation

  1. 1. MOLYMOLY MINES 1 LIMITEDMINESLIMITED 2011 Annual General Meeting Presentation 26 May 2011
  2. 2. MOLYDisclaimer MINES 2 LIMITEDThis presentation includes “forward‐looking statements” as that term within the meaning of securities laws of applicablejurisdictions. Forward‐looking statements involve known and unknown risks, uncertainties and other factors that are in somecases beyond Moly Mines’ control. These forward‐looking statements include, but are not limited to, all statements other thanstatements of historical facts contained in this presentation, including, without limitation, those regarding Moly Mines’ futureexpectations. Readers can identify forward‐looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,”“continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “risk,” “should,”“will” or “would” and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines’ actual results,performance, production or achievements to differ materially from those expressed or implied by the forward‐lookingstatements (and from past results, performance or achievements). These factors include the failure to complete andcommission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costscurrently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates betweenthe U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of MolyMines’ suppliers and service providers to fulfil their obligations under construction, supply and tolling agreements; unforeseengeological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment,industrial disputes, labour shortages, political and other factors; the inability to obtain additional financing, if required, oncommercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue relianceon forward‐looking statements. We assume no obligation to update such information.
  3. 3. MOLY MINESAnnual General Meeting Results 3 LIMITED Resolution For Against Proxy  Abstain Excluded Holder  Discretion 1 – Remuneration Report 7,550,332 917,249 536,971 228,946 ‐ 2 – Re‐election of David Craig 8,322,542 286,735 571,321 52,900 ‐ 3 – Re‐election of Steven Xiao 6,002,318 2,620,609 548,221 62,350 ‐ 4 – Re‐election of Andy Zhmurovsky 8,260,541 340,136 547,321 85,500 ‐ 5 – Approval of issue of options to Hanlong  7,517,445 1,065,477 539,995 110,581 ‐ Mining Investment Pty Ltd 6 –Moly Mines limited Performance Rights  Resolution withdrawn Plan
  4. 4. MOLYHighlights and Achievements from November 2010 MINES 4 LIMITED  Spinifex Ridge Iron Ore Mine  Construction complete within 6 months of  development decision p  Operations commence December 2010  Long term port access secured at Utah  Point, Port Hedland to September 2015 P i t P t H dl d t S t b 2015  Mining operations ramp up ahead of  schedule  Operating costs meet budget expectations  5 shipments completed  Strong reliable cashflow at current iron Strong, reliable cashflow at current iron   Spinifex Ridge Molybdenum Project – ore prices US$500M Finance Facility  China Development Bank approve China Development Bank approve  US$500 million in financing facilities  EPC contract agreed with CACS and  GRES  Loan documentation advanced
  5. 5. Company Overview – A producer and mine MOLY MINES developer 5 LIMITED Spinifex Ridge Iron Ore Mine  5 shipments completed Australia  High quality DSO  Life of mine access secured at Utah Point Spinifex Ridge Molybdenum Project Broome  US$500M in project finance facilities approved by China Development Bank  Funding secured through major strategic Karratha Port Hedland shareholder Spinifex Ridge Strategic partner cornerstone growth plans Marble Bar  Vision to build a major world class mining group Newman  Hanlong Group US$6.5 billion credit lines Carnarvon WESTERN AUSTRALIA 200kms
  6. 6. MOLYCorporate Overview MINES 6 LIMITEDCapital Structure at 26 May 2011 ShareholdersASX/TSX Ticker MOL Hanlong Group 56.8%Market CapMarket Cap A$365M Australian Register g 35.3%Ordinary Shares 384.9M Canadian Register 7.9%Unlisted Options 54.1M Unlisted Options TCW (1) 4.8M Institutions 13.8M Hanlong (2) Hanlong  35.5M 35 5M(1) TCW have advised that the the warrant holders wish to exercise 19 million warrants in MOL which will be issued after  today’s AGM (2) Hanlong options to be approved by shareholders at today’s AGM
  7. 7. MOLY MINES 7 LIMITEDSpinifex Ridge Iron Ore Mine
  8. 8. MOLYMine Layout, Reserves and Resources MINES 8 LIMITED Waste Dump NORTH Auton Port Hedland (170kms) Dalek Gallifrey Spinifex Ridge Molybdenum‐Copper Molybdenum Copper Deposit (500m) ROM Pad, Crushing, Ore Stockpile Marble Bar(50kms) M bl B (50k ) 50% Fe cut‐ 50% Fe cut‐off
  9. 9. MOLYProcess Flowsheet 9 MINES LIMITED
  10. 10. MOLYOperations MINES 10 LIMITED  Operations run by Moly site management contracting key services of mining, crushing, haulage and  camp administration  BGC mining contractor  drill, blast, load and haul   40 BGC employees primarily on a 2 and 1 roster  Mining operations run day shift only, drill operations run double shift Mining operations run day shift only, drill operations run double shift   1 x Hitachi 1900 Excavator  5 x Komatsu 785 (90t) dump trucks  A ill Ancillary equipment i t  Rapid Crushing and Screening  3 stage crushing plant to deliver a single Fines product of < 10 mm  Day shift operation currently operating to an annual production rate of  1 million tonne per annum  Bullbuck Transport  24 hour haulage g  2,800 tonnes per day  Agreement to use Utah Point shiploader and pad 13 through to September 2015
  11. 11. MOLYOperations and Financials MINES 11 LIMITEDLife of Mine Reserve Production 2011 Operations ‐ Forecast Ore  4.3‐4.6Mt  Production: 822,000t Strip ratio Strip ratio 3.3 33  Cost of production: A$65/t shipped C t f d ti A$65/t hi d DSO hematite Fe Grade  59.0%  Total revenue, after shipping, marketing and royalties  FOB operating cost $65/T based on current spot prices (1) : A$125/tStrong Life of Mine Operating Performance to Date 4 months ended April 2011 ‐ Actual  Tonnes shipped: 203,000 5 shipments dispatched from Utah Point for 326,000 tonnes  Stocks on hand: 59,000 Strong reconciliations to geological and mine models  Low grade stocks on hand: 86,000 Production outperforming budget  Operating cost: A$73.4/t shipped Operating costs outperforming budget p g p g g  Total revenue, after shipping, marketing and royalties: Grade performing to budget A$120.8/t US$ sales price performing to budget, offset by strongly appreciating A$ (1) Based on Platts IODEX 58% and 62% Fe CFR North China May 2011
  12. 12. MOLYOperations and Financials MINES 12 LIMITED
  13. 13. MOLYExplorer to Operator in 6 months MINES 13 LIMITED
  14. 14. MOLYExplorer to Operator in 6 months MINES 14 LIMITED
  15. 15. MOLYExplorer to Operator in 6 months MINES 15 LIMITED
  16. 16. MOLYExplorer to Operator in 6 months MINES 16 LIMITED
  17. 17. MOLYExplorer to Operator in 6 months MINES 17 LIMITED
  18. 18. MOLYExplorer to Operator in 6 months MINES 18 LIMITED
  19. 19. MOLY MINES 19 LIMITED p g y ppSpinifex Ridge Molybdenum / Copper Project Transportation of mill sections, Perth  China  Information
  20. 20. MOLY Molybdenum – a metal for our time 20 MINES LIMITED Consumption  Supply  Driven by stainless steel, full alloy and tool  10 producers account for 55% of global mine steels, high strength low alloy, carbon steels output and catalysts d t l t  Decades of industry under investment  Anti‐corrosive properties, provides resistance  Primary producers now the dominant contributor to abrasion and imparts hardness to steels to global mine output  Different applications can use between 0.5%  2010 mine output has rebounded as existing to 8% Mo mines have restored capacity from 2008/2009  Used in high pressure applications in extreme shut downs temperature conditions  At 5‐6% growth the market requires 10,000 tonnes  Consumers are price insensitive and unwilling (22mlb) of new production per annum to maintain to b tit t i t substitute given it i its importance t structural t to t t l equilibrium integrity  Limited growth in by‐product mines, copper  Forecast demand for molybdenum set to grow production being sourced outside of traditional at 5 6% yoy through 2015 5‐6% h h South American countries ‐ the world needs new primary molybdenum mines  Energy applications, pipeline development, nuclear power plants, desalination, high sulphur fuels, motor vehicles
  21. 21. MOLYMolybdenum – a metal for our time 21 MINES LIMITED Prices  Limited western world demand through GFC, however end 2008 and early 2009 price levels prove unsustainable as higher cost marginal producers in China withdraw from market  F d a fl at US$15 00/lb Found floor t US$15.00/lb  Prices stable through 2010 as mine output reacted to and matched strong Chinese domestic economy ‐ China currently the dominant player and net importer  Market currently in balance ‐ global inventories less than 1 months production  Under investment in moly projects will create supply tightness as global demand recovers  China export quota’s and potential rationalization of domestic production could contribute to western p q p p supply shortfall  As new primary molybdenum mines are brought into production during this decade, the marginal cost of production will reflect their cost structures including capital payback  Supply and demand side factors could both contribute to rising price landscape this decade
  22. 22. MOLYReserves and Mineral Resources MINES 22 LIMITED Reserves Relative Competitiveness JORC / NI43‐101  Mt Mo% Cu% Ag g/t MoEq%1  Top 5 primary molybdenum  classification resource globally by             resource globally by Proven reserves 199.7 0.06 0.10 1.5 0.09 contained metal  Mo Equiv. reserve grade is  Probable reserves 251.1 0.04 0.07 1.1 0.06 comparable to other  comparable to other TOTAL 450.8 0.05 0.08 1.3 0.07 western world primary  molybdenum projects First 10 yrs Resources 45 yr mine life y 0.10% 0 10%  Complemented by Iron Ore p y JORC / NI43‐101   Fully permitted ready to  Mt Mo% Cu% Ag g/t MoEq% build classification Measured resources M d 206.8 206 8 0.06 0 06 0.10 0 10 1.5 15 0.09 0 09 Indicated resources 445.4 0.04 0.07 1.1 0.06 TOTAL 652.2 652 2 0.04 0 04 0.08 0 08 1.2 12 0.07 0 07 Note—Reserves are a sub‐set of Resources Inferred resources 399.0 0.04 0.07 1.1 0.06 0.02% Mo cut‐off assumed for resources 0.03% Mo cut‐off assumed for reserves Capacity for life extension & expansion 1 – Mo equivalent calculated on contained metal @  4QCY10 average metal prices
  23. 23. MOLYUS$500M Project Financing Platform MINES 23 LIMITED 10 MT/A Resource  Pit Shell Hanlong US$200M equity and debt injection ‐ completed April 2010 Chinese engineering study completed, China Development Bank credit committee approvals July 2010 Sichuan Provisional Development and Reform Commission financing proposal acceptance August 2010 Term Sheet negotiation initiated Term Sheet negotiation initiated September 2010 September 2010 • Corporate facility, 12 year loan term, US LIBOR plus margin equivalent to <5% interest rate 20Mtpa  • Negotiations with preferred Chinese and Australian engineering construction contractors Resource • Parent company guarantees and asset pledges from Hanlong 0.02% Mo Shell  Pit Shell National Development Reform Commission approval for funding to be made available December 2010 China Development Bank issues commitment letter for up to US$250M January 2011 China Development Bank extends approval to US$500M April 2011 Commencement of full project finance facility documentation February 2011 • Construction contracts the major new contractual conditions required for facility completion • Banking and legal due diligence Award of EPC contract to CACS and GRES May 2011 Target date for completion of Facility Agreement documentation End June 2011 Expected availability of funds and decision to proceed with project 2nd half 2011 0.09% Mo Shell 0.09% Mo Shell ‐ High Grade Core
  24. 24. MOLYCompetence and Responsibility MINES 24 LIMITEDMolybdenum Copper l bdThe information in this release that relates to drill data and geological interpretation is based on information compiled by Dr Derek Fisher, Mr Ben Cairns who are Members of the Australasian Institute of Mining and Metallurgy. The information in this release that relates to Mineral Resources is based on information compiled by Mr Clay Gordon who is a Member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Dr Fisher is employed by Trillium Investments Pty Ltd which is contracted to provide management services to Moly Mines, Mr Cairns  p y y y p g yis a full‐time employee of Moly Mines and Mr Gordon is employed by Mining Assets Pty Ltd.Each of Dr Fisher, Mr Cairns and Mr Gordon have sufficient experience which is relevant to the style of mineralization 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 They consent to the inclusion in this release of the matters based on their Reporting of Exploration Results Mineral Resources and Ore Reserves’. They  consent to the inclusion in this release of the matters based on theirinformation in the form and context in which it appears.Iron OreThe information in this presentation that relates to drill data and geological interpretation is based on information compiled by Mr Ben Cairns who is a Member of the Australian Institute of Geoscientists. The information in this presentation that relates to Mineral Resources is based on information  pcompiled by Mr Clay Gordon who is a Member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists.  Mr Cairns is a full‐time employee of the company and Mr Gordon is employed by Mining Assets Pty Ltd.Both Mr Cairns and Mr Gordon have sufficient experience which is 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 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 ofExploration Results, Mineral Resources and Ore Reserves’. Both Mr Cairns and Mr Gordan are Qualified Persons within the meaning of such term under National Instrument NI43‐101 . Mr Cairns and Mr Gordon consent to the inclusion in this presentation of the matters based on their information in the form and context in which it appears.The information contained in this presentation that relates to Mineral Reserves is based on information compiled and verified under the supervision of Mr Roger Pooley who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Pooley is a Senior Mining Consultant with SRK Consulting (Australasia) Pty Ltd, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person for purposes of National Instrument 43‐101 and as a  Competent Person as defined in the 2004 edition of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves under JORC. p g p ,Mr Pooley consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears in this document.
  25. 25. MOLY MINES 25 LIMITED50 Kings Park Rd, West Perth, WA, 6005, AUSTRALIATelephone: +61 8 9429 3300    Fax: +61 8 9429 3399 Telephone: +1 416 371 7541 Email: info@molymines.com Website: http://www.molymines.com Stock market codes: ASX: MOL, TSX: MOL, FWB: HJ1 Moly Mines Contact Details

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