Ian Levy - Australian Bauxite


Published on

The 3rd annual Resources & Energy Investment Symposium (REIS) is on 19-22 May, once again held in the unique city of Broken Hill; Last year’s event exceeded the expectations of all that attended - including over 350 delegates, 12 keynote speakers and more than 30 resource companies presenting their investment opportunities.

A focus for this year’s symposium will be on the current economic climate including its challenges and opportunities, not only in the Australian resources industry, but Australia’s position in the international market.

Published in: Education, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Ian Levy - Australian Bauxite

  1. 1. AUSTRALIANBAUXITEASXCodeABZAUSTRALIAN BAUXITE LIMITEDABZDeveloping our first bauxite mineStrong bauxite marketBauxite is the ore for aluminiumLevel 2 131 Macquarie StSydney NSW 2000 AustraliaPhone: +61 2 9251 7177Facsimile: +61 2 9251 7500E: corporate@australianbauxite.com.auIan Levy, CEOMob: 0407 189 122E: ilevy@australianbauxite.com.au
  2. 2. AUSTRALIANBAUXITEASXCodeABZ2JORC Code Compliant Public ReportsThe Company advises that this presentation contains summaries of Exploration Results and Mineral Resources as defined in the 2004 Edition ofthe ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”).The following table references the location of the Code -compliant Public Reports or Public Reporting on which the summaries are based. Thesereferences can be viewed on the ASX website and the Company will provide these reports, free of charge, to any person who requests it.Reference Issue Date Title of Notice as lodged with ASX1 12/10/2011 Binjour Maiden JORC Resource2 15/08/2011 Guyra Maiden JORC Resource3 12/05/2011 Taralga Bauxite Resource Doubled to 25 Million Tonnes4 06/12/2010 Taralga JORC Resource Update5 02/09/2010 Inverell JORC Resource UpdateReference Issue Date Title of Notice as lodged with ASX1 28/07/2012 Binjour JORC Resource Upgrade to 24.5 Million Tonnes2 15/08/2011 Guyra Maiden JORC Resource 6.0 Million Tonnes3 30/05/2012 Taralga Bauxite Resource Increased 50% to 37.8 Million Tonnes4 08/05/2012 Inverell JORC Resource Update 38.0 Million Tonnes5 08/11/2012 Tasmania Maiden JORC Resource 5.7 Million TonnesForward Looking StatementWhilst based on information from sources considered reliable, Australian Bauxite Limited ( ABx), its directors, employees and consultants do not represent,warrant or guarantee, expressly or impliedly, that the information in this document and presentation is complete or accurate. Tothe maximum extent permittedby law, ABx disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequent ly comes to its notice, whichmay affect any of the information contained in this document and presentation.JORC and Competent Person StatementInformation herein relating to Exploration Results, Resources and Resource Targets is based on information compiled by Ian Levy BSc MSc who is a Fellow of TheAustralasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Levy is employed by ABx as Chief Executive Officer.Mr Levy has more than five years experience relevant to the style of mineralisation and type of deposit being reported and to th e activity which he is undertakingto qualify as a Competent Person as defined in the 2004 Editionof the‘ Australasian Code for Reporting of Exploration Results, Mineral Resources and OreReserves’ (the JORC Code). This report is issued with the prior written consent of the Competent Person as to the form and context in which it appears.Exploration Target StatementABx has an exploration target of 200 to 300 million tonnes of bauxite, based on Mineral Resources announced in mid 2010 of 35 million tonnes of bauxite atInverell4,5from 15% to 20% of the known bauxite deposits on Exploration Lea se EL 6997 in northern NSW and 25 million tonnes of bauxite at Taralga 1,2,3fromapproximately 50% of the bauxite targets on Exploration Lease EL 7357 in southern NSW . In accordance with the JORC Code, readers are advised that“ thepotential quality and grade is conceptual in nature, that therehas been insufficient exploration to define full Mineral Resources and that it is uncertain if furtherexploration will result in the determination of a Mineral Resource”. As first- pass drilling has proceeded across most of its tenements, ABx has seen no reason tovary its exploration target.In this presentation all references to direct shipping ore ( DSO ) refers to the company ’s exploration objective of defining DSO grade mineralisation.The potential quantity and grade of exploration targets is conce ptual in nature, there has been insufficient exploration to defi ne a Mineral Resourceand it is uncertain if further exploration will result in the de termination of a Mineral Resource.Direct Shipping OreMaiden QLD Mining Lease JORC Resource 3.5 Million Tonnes6 15/11/2011
  3. 3. AUSTRALIANBAUXITEASXCodeABZ3AUSTRALIAN BAUXITE LIMITED• First Mine Lease Application lodged• 3 Tasmanian mines each producing ~0.8 mill tonnes pa• Highways, rail, ports already exist• $10 million capital cost funded by offtake partner• Operating costs $25 to $29 per tonne FOB• Margin $15 to $20 per tonne• 114 million shares @ 20c = $23 million market cap• $3.1 million cash @ 8 April + $2.4 million pendingFully funded if all goes to plan
  4. 4. AUSTRALIANBAUXITEASXCodeABZ4AUSTRALIAN BAUXITE LIMITED• Joint Venture with Xinfa Group - in due diligence• $0.5 million 5 month exclusivity payment received• Xinfa to fund all project capital costs to earn 50%• ABx can refund Xinfa and lock-in 50:50 JV• Xinfa to take a $2 million placement at 38 centsWhilst Xinfa has fully-funded the capital costs:• Xinfa can take up to 70% of production each year• Xinfa can buy 20% of project to have 70% of project31 AUGUST 2013 – DECISION TO PROCEED?
  5. 5. AUSTRALIANBAUXITEASXCodeABZ5Aluminium use: 40% construction, 45% consumptionSource: IAI
  6. 6. AUSTRALIANBAUXITEASXCodeABZ6Aluminium cost advantage over copper & steelSource: LMEAluminium consumption growing fast, butAluminium prices are flat& yet bauxite is booming ! Why ?
  7. 7. AUSTRALIANBAUXITEASXCodeABZ7Market Fundamentals: New Industry StructureChina China, Middle EastGiant New SmeltersAustralia,Indonesia1 tonneFigure:AluminaLimited• New Smelters use 30% less electricity per tonne aluminium• New Chinese smelters taking more market share• China must import 40% of bauxite used• Indonesian bans/taxes tightening: in 2012 & more in 2014=> Strong demand for Oz bauxite in China
  8. 8. AUSTRALIANBAUXITEASXCodeABZ8SouthAmericaAsiaABZ bauxite depositsOther bauxite depositsAlumina RefineriesChina-Australia TradeAustralia will supply China’s 38 large refineriesIndonesian reductions, especially from 2014EuropeAmericaNorthEuropeAfricaRussiaAustraliaAustralian low temp bauxitewill replace Indonesianbauxite strongly in 2014HitempLotempvariable,loomingbans &taxesCountry risk &transport limitsUS supply &transportlimits
  9. 9. AUSTRALIANBAUXITEASXCodeABZ0123456MilliontonnespermonthMilliontonnespermonthBauxite imports into China - million tonnes/monthIndonesia Australia India Other9Strong Chinese Bauxite ImportsSources: C&M, MBC & China CustomsIndonesian supply will reduce further in 2014 as export bans & taxes increaseAUSTRALIA’S & ABZ’S OPPORTUNITY IS NOWIndonesian export bans &20% tax imposed
  10. 10. AUSTRALIANBAUXITEASXCodeABZ10Sources: C&M, MBC & China CustomsIndonesian export tax on bauxite increases from 20% to 50% in 2014 = + US$60/tAUSTRALIA’S & ABZ’S OPPORTUNITY IS NOWStrong Chinese Bauxite Prices$20$30$40$50$60$70US$pertonneCIFChinaAverage CIF Price of Chinese Bauxite Imports US$/tonneIndonesian export bans &20% tax imposed
  11. 11. AUSTRALIANBAUXITEASXCodeABZ11Alumina Refineries (8)Australia Will Increase Bauxite ExportsForecastWorld’s largestalumina refineriesAluminium Smelters (6)World’s largest bauxite &alumina productionGoveRio Investing $1.5 Billion: Hi-Temp Bauxite.Selling to Hi-Temp RefineriesDarlingRangesMitchellPlateau(Dormant)Others’ Bauxite Projects (6)ABZ bauxite deposits (36)EasternAustralianBauxiteProvinceBinjour ProjectGoulburn ProjectsMainly toolow gradeto export.Rio exports high temperature bauxite to China’s high temp. refineriesABZ will supply low temperature bauxite to low temperature refineries30Mtpa5 to 10 Mtpa by ABZLo-Temp Bauxite sold toLo-Temp RefineriesTasmanian ProjectWeipa123
  12. 12. AUSTRALIANBAUXITEASXCodeABZCosts & Timetable For ABZ’s First ProjectsInverell-GuyraDiscoveriesBinjourProjectTasmaniaGoulburn South &Goulburn NorthGoulburnProject Date Tonnes pa1 Tasmania 2014 @0.7-1.5MtpaCapex A$10 millionOpex A$27 / t FOB2 Goulburn Sth 2015 @ 1-2MtpaCapex A$20 millionOpex A$30 / t FOB3 Goulburn Nth 2017 @ 2-3MtpaCapex A$90 millionOpex A$37 / t FOB3 Binjour QLD 2018 @ 1-5Mtpa12
  13. 13. AUSTRALIANBAUXITEASXCodeABZ13Corporate Details2012 2013Board of DirectorsJohn Dawkins1Non-executive ChairmanPeter Meers Exec Dir & Vice ChairmanIan Levy CEO & Managing DirectorJacob Rebek2Executive Director & CGKen Boundy3Non-executive DirectorWei Huang Non-executive DirectorHenry Kinstlinger Company Secretary2. Chief Geologist Rebek is ex CRA (Rio) Chief Geol. Led the. discovery teams at Century Zinc 93 & Eastern Australian Bauxite 06-091. Past Australian Treasurer & Minister for Finance3. Investor in Tasmanian tourism. Holds senior public positionsABZ Shares 6 Months A$ASX Code : ABZ Listed 24 Dec09 at $0.20 Major Shareholders Shares %Shares 113.8 million Hudson Resources 32.7 million 28.7%Options 3.7 million Gleneagles Securities 8.0 million 7.0%Market Cap ($0.20) $23 million State One Capital 8.0 million 7.0%Cash (31 Dec12) $3.1 million = 2 yrs budget Soul Pattinson 6.3 million 5.5%Share range $0.19 to $0.84 Top 20 Holders 74.9 million 65.8%Avg Daily Volume 65,000 Shareholders 998
  14. 14. AUSTRALIANBAUXITEASXCodeABZ14OUR BAUXITE: Low temperature type• 116 Mill tonnes JORC Resource +200Mt target• Surface, easy mined, thickest bauxite in Australia• Low-temperature, gibbsite bauxite, low silica,42% Al2O3 3% SiO2 23% LOIPenrose NSW – old quarry. 14 December 2011>36metresSectionAustralia’s Thickest Bauxite at Mt Rae
  15. 15. AUSTRALIANBAUXITEASXCodeABZSimple start-up in TasmaniaBell BayBulk PortLEGENDABx Bauxite LeaseMajor Export PortAluminium SmelterCoal MinesMajor RoadsRail LinesHobartScottsdaleLauncestonBell BayBurnie100kilometres0NBridportMeadowbankDL-130Bald Hill Bauxite Projectnear Campbell Town
  16. 16. AUSTRALIANBAUXITEASXCodeABZ16Bald Hills Bauxite Project, TasmaniaThe Three Amigos
  17. 17. AUSTRALIANBAUXITEASXCodeABZ17Good Landholder RelationsABZ endorses best practices on agricultural land to leave land & environmentbetter than we find it.We only operate where welcomed.