CBH Resources | RIS2014 Broken Hill Investor Presentation
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CBH Resources | RIS2014 Broken Hill Investor Presentation

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CBH Resources - Investor presentation delivered at the 4th annual Resources Investment Symposium held in Broken Hill NSW Australia, 26-28 May 2014.

CBH Resources - Investor presentation delivered at the 4th annual Resources Investment Symposium held in Broken Hill NSW Australia, 26-28 May 2014.

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  • 1. CBH Resources Resources and Energy Investment Symposium Broken Hill, May 25-28, 2014
  • 2. Corporate Profile CBH is a private company owned by Toho Zinc of Japan Toho’s upstream mining assets are held through CBH Current Operations Zinc, lead and silver from the Endeavor and Rasp Mines in NSW Owner/operator of the ConPorts minerals export facility at Newcastle Exploration projects in NSW , including Mallee Bull copper polymetallic discovery (50%) near Cobar Total Production (2014 f) 123,000 tonnes of zinc concentrate 67,500 tonnes of lead concentrate 907k/ozs silver Total Revenue( 2014 f ) $ 254m
  • 3. Board : Tatsuya Tejima ( President of Toho) , Fujio Hattori, Toshio Shimamura, Lewis Marks , Visko Sulicich , Stephen Dennis Technical Advisor : Ian Plimer Management : Stephen Dennis (MD) , Visko Sulicich (COO), Rob Williamson (GM Rasp) , Denver D’Angelo ( GM Endeavor ) , James Dunstan (CFO), Gwen Wilson (OHE&S) Employees : 348 ( down 60 from 2013), complimented by technical secondments from Toho CBH Board and Management
  • 4. Chigirishima Lead Refinery (100 ktpa lead metal) Onahama Zinc Roaster (16ktpa zinc oxide) Fujioka Works (electrolytic iron) Annaka Zinc Refinery (140ktpa electrolytic zinc) Toho’s Domestic Operations
  • 5. Toho – Overview Annaka Electrolytic Zinc Refinery ( est 1937) Formation 1937 - production commences at Annaka Primary Listing Tokyo Stock Exchange ( Code 5707) Market cap AUD 495m ( ranked 904 out of 3425) Annual Turnover AUD1,250 m ( ranked 739 out of 3425) Employees 1196 ( excl CBH )
  • 6. CBH Australian Operations
  • 7. Endeavor Mine A great turnaround in 2013
  • 8. Rasp Mine Improved Outlook after Difficult Startup
  • 9. 12 Rasp Mine 2012 2013  Lower ore grades from Western Mineralisation(WM)  Delayed access to higher grade Main Lode (ML) remnant ore  Sequencing and development inefficiencies operating WM at 58,000 tonnes per month  Oxidisation of Main Lode ore in upper levels Early Challenges
  • 10. Rasp Mine Interim Operating Strategy WM operating at 38,000-40,000tpm Focus on sustainable development to access high grade ML ore targets at depth, opening up mine 1 km to south Personnel reduced from 190 to 140 Upskilling of professional staff in Mining & Metallurgy Expected return to full production in 2015
  • 11. Combined Metal Production Endeavor and Rasp 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Lead 2012 Lead 2013 Lead 2014 (f) Zinc 2012 Zinc 2013 Zinc 2014 (f) Metaltonnes Rasp Zn Endeavor Zn Rasp Pb Endeavor Pb 38,800 Pb in 2014 60,900 Zn in 2014 Combined Metal Production Endeavor + Rasp
  • 12. ConPorts Shiploader Newcastle
  • 13.  Port logistics/concentrate handling for 4 NSW mines : Endeavor Mine (CBH, Zn) CSA Mine ( Glencore, Cu ) Tritton Mine ( Straits, Cu ) Rasp Mine (CBH, Zn & Pb)  Annual throughput capacity ~ 500 ktpa  Capacity to expand retained ( option held on southern port land )  30 year lease with Newcastle Port Corp ConPorts Shiploader
  • 14. ConPorts Shiploader Environmental Upgrade completed ($2.5m ) New adjoining NAT grain terminal commissioned No immediate impact from recent sale of Newcastle Port expected
  • 15. Exploration – Cobar District Region BOONA & MT. MCKELLAR CBH 100% LOWAN CBH 80%, GOLDEN REEF ENTERPRISES 20% YELLOW MOUNTAIN CBH 40% GOLDEN CROSS RESOURCES 30%, PARADIGM METALS 30% (farm-in for additional 21%) ENDEAVOR NORTH / SOUTH & BURRI CBH 100%, JOGMEC (farm-in for 30%) GILGUNNIA (Mallee Bull) CBH 50%, PEEL RESOURCES 50% ENDEAVOR MINE LEASES CBH 100%
  • 16. Exploration – Broken Hill RASP MINE & EXPLORATION LEASES CBH 100% ARAGON JV CBH 15% (free carried), SILVER CITY MINERALS LTD 85% WILLYAMA – NATIVE DOG JV CBH 25% (free carried), SILVER CITY MINERALS LTD 75% STIRLING VALE JV CBH 49% PERILYA BROKEN HILL LTD 51% (farm-in for additional 19%) RILDAR – LYNOR JV CBH 25% SILVER CITY MINERALS LTD 75%
  • 17. Exploration-Mallee Bull  Initial $8.3m farm-in completed by CBH in March 2014  JV 50/50 underway between CBH and Peel Mining  Initial resource estimate expected in June  Scoping study parameters under consideration  Cooperative relationship with Peel Mining team continues
  • 18. “ 2.2 Mt/a of new production capacity is required by 2019....to offset expected closures and attrition at base case operations and to meet demand growth” “ Developing ...new capacity in a timely fashion will be a significant challenge for the zinc industry in the near to medium term ....as todays metal prices and economic environment are not particularly supportive to the financing of new mine capacity “ Zinc Market – Best fundamentals in a long time Wood Mackenzie , April 2014 “$7 billion is needed to finance 2 Mt/a Zn of project capacity “
  • 19. $1,910 $2,093 $2,750 $3,800 0 100 200 300 400 500 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2013 2014 2015 2016 DeficitTonnes‘000s USD ZINC PRICE ANNUAL ZN DEFICIT Consensus is for metal deficits and higher zinc prices Source: Wood Mackenzie , April 2014
  • 20. CBH Priorities Profitability and costs (including removal of carbon tax ! ) Future for Endeavor Mine ( replacement feed , leveraging infrastructure ) Development of high grade Main Lode ore sources at Rasp, and return to design throughput in 2015 The next orebody - exploration to remain focussed on areas within vicinity of existing CBH mines Business development opportunities (Targets Zn , Pb, Cu , Cu/Au ) Positioning for higher zinc and lead prices
  • 21. Pleased to Sponsor the Resources and Energy Investment Symposium