Nic Limb, Mineral Deposits Limited: An update on Grande Côte Mineral Sands Project - Senegal, West Africa


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Nic Limb, Executive Chairman, Mineral Deposits Limited delivered the presentation at the 2014 Mineral Sands conference.
The Annual Australian Journal Mining's Mineral Sands Conference is the key meeting place for Australia's Mineral Sands industry.

The event gives delegates the chance to hear from industry experts as they share their perspectives on the hot topics for the mineral sands industry. For more information about the event, please visit the website:

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Nic Limb, Mineral Deposits Limited: An update on Grande Côte Mineral Sands Project - Senegal, West Africa

  1. 1. Titanium  mining  and  processing   INVESTOR   PRESENTATION   February  2014   AJM  PRESENTATION   MARCH  2014   1  
  2. 2. Statements   Forward  Looking  Statements   •  Certain  informa>on  contained  in  this  presenta>on,  including  any  informa>on  on  MDL’s  plans  or  future  financial  or  opera>ng  performance  and  other  statements   that  express  management’s  expecta>ons  or  es>mates  of  future  performance,    cons>tute  forward-­‐looking  statements.  Such  statements  are  based    on  a  number   of  es>mates  and  assump>ons  that,  while  considered  reasonable  by  management  at  the  >me,  are  subject  to  significant  business,  economic  and  compe>>ve   uncertain>es.  MDL  cau>ons  that  such  statements  involve  known  and  unknown  risks,  uncertain>es  and  other  factors  that  may  cause  the  actual  financial  results,   performance  or  achievements  of  MDL  to  be  materially  different  from  the  company’s  es>mated  future  results,  performance  or  achievements  expressed  or   implied  by  those  forward-­‐looking  statements.  These  factors  include  the  inherent  risks  involved  in  explora>on  and  development  of  mineral  proper>es,  changes   in  economic  condi>ons,  changes  in  the  worldwide  price  of  zircon,  ilmenite  and  other  key  inputs,  changes  in  mine  plans  and  other  factors,  such  as  project   execu>on  delays,  many  of  which  are  beyond  the  control  of  MDL.   •  Nothing  in  this  presenta>on  should  be  construed  as  either  an  offer  to  sell  or  a  solicita>on  to  buy  or  sell  MDL  securi>es.   2  
  3. 3. Mineral  Deposits  –  corporate  snapshot   10  years  in  Senegal   CapitalisaDon   Lis>ng   ASX  (MDL)   2002   Started  evalua>ng  Grande  Côte   12  mth  price  range   A$4.21  –  $1.70   2004   Awarded  Sabodala  gold  project   Shares   103.5M   2007  -­‐  2009   Constructed  Sabodala  mine     Market  cap   US$216M   Mar  2009   First  gold  poured  at  Sabodala   Cash  (31/01/2014)   US$52M   2011  -­‐  2013   Construc>on  of  Grande  Côte   Investments   19%  World  Titanium  Resources  US$5M   Shareholder  Structure    (Dec  2013)   Other Institutions 8% USA 8%     Corporate  TransacDons   Dec  2010   Retail 4% Australian Institutions 53% Sabodala  gold  assets  “demerged”  into   Teranga  Gold  Corpora>on  (TSX/ASX:  TGZ)   Oct  2011   Commencement  of  TiZir    –  JV  with  Eramet  –   combining  Grande  Côte  and  ilmenite   upgrading  plant   UK/Europe 27% 3  
  4. 4. Via  50%  of  TiZir,  we  own  two  highly  strategic  mineral  sands  assets   Tyssedal  (Norway)  Ilmenite  upgrading  plant   Smelts  ilmenite  to  produce  a  high-­‐TiO2  Dtanium  slag  and  high  purity  pig  iron   •  Opera>onal  since  1986   •  1  of  only  5  such  assets  globally  (only  one  in  Europe)   •  Access  to  compe>>vely-­‐priced  hydro  power  and  close  to  customer  base   •  2013  EBITDA  =  US$52m   Grande  Côte  (Senegal)   A  major  new  mineral  sands  mine   •  Construc>on  complete,  produc>on  to  commence  March  2014   •  20+  year  mine  life  –  poten>al  for  significantly  longer   •  Expected  to  produce  ≈7%  of  global  zircon  &  ≈5%  of  >tanium  feedstock   4  
  5. 5. Tyssedal  ilmenite  upgrading  facility   5  
  6. 6. Tyssedal  –  What  does  it  do?   Smelts  ilmenite  to  produce  a  Dtanium-­‐rich  slag  and  pig  iron  co-­‐product   Input   SmelDng   sourced  from  Tellnes   mine  (Norway)   containing  ~44%  TiO2   Pigment   Producers   High  Purity   Pig  Iron   ~345ktpa  mostly   Customers   Titanium   Slag   Ilmenite   Outputs   Foundries   Electric   Furnace   ~200ktpa   containing  ~80%  TiO2   ~110ktpa   6  
  7. 7. Tyssedal  opDonality  creates  market  flexibility   OpDon   Sulphate  Process   Ilmenite  source   70% Tellnes (44% TiO2) 30% Grande Côte (54% TiO2) Smelt   Slag  type   235kt Sulphate Slag (80% TiO2) OpDon   Chloride  Process   100% Grande Côte (54% TiO2) Smelt   185kt Chloride slag (87% TiO2) 45kt Chloride fines (87% TiO2) Pigment  producDon   feedstock  source   7  
  8. 8. IndicaDve  earnings  potenDal  of  the  two  operaDons   Grande  Côte  (2015+)   Tyssedal  (2016+)   Assumed  20%  capacity  upgrade  as  part  of  2015  shutdown   and  producing  chloride  slag   AssumpDons:   AssumpDons:   Volumes   85kt  zircon,  575kt  ilmenite,  16kt  ru>le/leucox   Volumes   185kt  chloride  slag,  45kt  chloride  fines,  100kt  pig  iron   Pricing   Zircon  =  US$1,300/t,  sulphate  ilmenite  =  US$195/t,   chloride  ilmenite  =  US$265/t   Pricing   Chloride  slag  =  US$950/t,  chloride  fines  =  US$700/t,   pig  iron  =  US$500/t   8  
  9. 9. Grande  Côte   Senegal   Ownership:     TiZir  90%,  Senegal  Govt.  10%   Concession:       25  years  extendable   9  
  10. 10. Grande  Côte  Geology   10  
  11. 11. A  simple  ore  body   •  •  •  •  •  •  •  No  overburden   Minor  vegeta>on   Free  flowing  sands  –  no  hard  lenses   Minimal  (<1.0%)  slimes   Shallow  water  table   Deeper  aquifer  for  makeup  water   Uniform  grain  size  and  mineral  assemblage   Zircon  &  Dtanium  minerals  are  of   approximately  equal  monetary  value   in  the  ore   11  
  12. 12. Grande  Côte  –  What  makes  it  special?   Large Scale Excellent logistics 20+ year mine life Grande Côte Top quartile on Revenue / Cost Simple ore body 12  
  13. 13. Grande  Côte  …  a  2+  year  build  cosDng  $650m   What  have  we  built  …   •  Conven>onal  wet  mining  opera>on   …  large  throughput  with  a  highly   sophis>cated  control  system   •  Purpose-­‐built,  flexible  mineral  separa>on   plant   •  Own  36MW  power  sta>on   •  Own  railway  system   •  Own  port  facili>es   …  with  the  result  being   •  A  very  well  engineered  project  built   specifically  for  the  ore  body   •  Scale/simplicity  =  high  revenue/cost  ra>o   (nearly  2x  at  current  prices)   •  Power  self-­‐sufficiency   •  Logis>cs  self  sufficiency   •  20+  year  mine  life   •  Quality/experienced  opera>onal  team   13  
  14. 14. ProducDon  to  commence  late-­‐2013   2011 Q3 2012 Q4 Engineering & Procurement Construction Construction Construction Q3 Q4 Commission Engineering & Procurement Engineering & Procurement Q2 Q1 Q2 Commission RAIL & PORT Offsite Construction Engineering & Procurement Q1 PRODUCTION RAMP-UP Commission POWER STATION Q4 2014 Ore Commission MINERAL SEPARATION PLANT Q3 Commission WET CONCENTRATOR PLANT Q2 Site ReAssembly DREDGE Q1 2013 Construction & Refurbishment 14  
  15. 15. 15