From mine-to-market in beryllium

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Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2011 …

Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2011
Ironmongers' Hall, City of London
17 March 2011
Speaker: Anthony Dutton, IBC Advanced Alloys

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  • 1. RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT From mine-to-market in beryllium Anthony Dutton – CEO, IBC Advanced Alloys IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011 www.ObjectiveCapitalConferences.com
  • 2. IBC Advanced AlloysA Vertically Integrated Berylliumand Advanced Alloys CompanyMarch 2011Corporate Presentation TSX-V:IB
  • 3. HLegal Disclaimer Be• Some statements contained in this presentation or in documents referred to in it are or maybe forward-looking statements. Actual results may differ from those pressed in such statements, depending on a variety of factors.• Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary.• Past performance of the Company cannot be relied on as a guide to future performance. This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in IBC Advanced Alloys Corp., or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis or be relied on in any connection with or act as a inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith. IBC Advanced Alloys TSX-V:IB Page: 3
  • 4. HAt a Glance Be Resources – R&D – Manufacturing • Established 2007 to capitalize on rare metals opportunity • Vertically integrated from mine to market • Strategic supply partnership with Kazatomprom(1) • Copper alloys and Aluminum alloys leaders • Manufacturing in MA, IN, PA, MO • Proprietary beryllium alloy technology • R & D in nuclear fuel, lithium hydride batteries and wind turbine plasma coating • 2010 revenues $14m and 2011 revenue estimated $20m(2) Opportunity: • Acquire market share Opportunity • $2 b global market (Be, Be alloys & nonferrous alloys)(3) exists to grow • Fractured market / two major suppliers current market • Acquisition and consolidation share and • Grow the overall market dramatically • Stimulate Be demand with new products R&D and market growth increase Be • Manufacture high margin profitable applications market size • Prove and develop resources (1) On March 24, 2010, IBC signed a binding three-year supply agreement whereby Kazatomprom’s wholly owned subsidiary, Ulba Metallurgical Plant, will supply beryllium and beryllium alloys to IBC on agreed terms (2) Management estimate based on historical performance (3) Management estimate IBC Advanced Alloys TSX-V:IB Page: 4
  • 5. HAt a Glance BeInception: 2007 Head Office: Vancouver, BCRevenues: 2010- $14m (A) 2011-$20m (E) Operations: Wilmington, MAShares Outstanding: 191,698,821 Franklin, IN(Fully Diluted) 250,256,308 Royersford, PA New Madrid, MOOptions: $.015 to $0.20 – 13,615,000 $.050 to $0.83 – 869,000 Trading: TSX-V: IB Total – 14,484,000 Share Ownership:Warrants: (financing) 39,061,723 Firebird Master Fund 30% (broker) 4,761,764 Other Institutions 40%3 month average vol: (to Feb. 28, 2011) 396,215 Insider Ownership 2.4%3 Month Range: 0.1250 – 0.19 Financings:Market Cap: $33M March 2010 $10.35M May 2009 $1.25M March 2008 $7M July 2007 $10M May 2007 $1.1M Page: 5 IBC Advanced Alloys TSX-V:IB
  • 6. HAt a Glance Be At A Glance IBC Beryllium Advanced Opportunity Alloys IBC Advanced Alloys TSX-V:IB Page: 6
  • 7. HWhat is Beryllium? Beryllium BeBeryllium is a rare metal with unique Rarecharacteristics. NonIt is used as a pure metal or as an Magnetic Strongeralloy with copper and aluminum. and Non than Steel Sparking BeBertrandite and beryl pegmatite arethe two most common berylliumores. Melting 2nd Lightest Point 1278° Metal X-Ray Transpartent IBC Advanced Alloys TSX-V:IB Page: 7
  • 8. HWhere is Be Used? Beryllium BePure Beryllium: Government and Strategic• Nuclear• Aerospace• DefenseBeryllium Alloy: Commercial and Industrial• Telecom• Computing• Electronics• Medical• Oil & Gas• Automotive• Aerospace IBC Advanced Alloys TSX-V:IB Page: 8
  • 9. HBeryllium Market Beryllium Be‘Global Beryllium Demand to Reach465 Metric Tons by 2015” GlobalIndustry Analysts, Inc. 2010Growing Be supply/demandImbalance favors suppliers• Only three primary sources globally (BW, Ulba, US gov’t)• No spot market• Dramatic price rise (44%) between 2006 and 2008 (up to $500kg) WORLD BERYLLIUM CONSUMPTION (METRIC TONS)• High price has prevented wider use of Be Source: Beryllium – A Global Strategic Business Report, Global Industry• One source (US Govt. stockpile) Analysts, Inc. decreased availability 2008 / 2009 IBC Advanced Alloys TSX-V:IB Page: 9
  • 10. HIBC Divisions IBC Be Mineral Properties R&D Manufacturing IBC Advanced Alloys TSX-V:IB Page: 10
  • 11. H IBC Value Chain IBC BeMineral Properties Processing Manufacturing Distribution Copper Alloys •Product Dev Customers: •Market Dev Honda Utah •R&D Toshiba Kazatomprom NGK ColoradoRESOURCES •Nuclear fuels DISTRIBUTION Brazil (Ulba) •LiBe Hydrides US National Labs •Plasma coatings Honeywell General Dynamics Raytheon Aluminum Alloys IBC Advanced Alloys TSX-V:IB Page: 11
  • 12. H Management & Directors IBC BeAnthony Dutton Simon J. Anderson Denis Brady Lee R. Rice Dal S. Brynelsen Ian Slater Jim MaloneDirector, Chief Financial Director Director / VP Director, Director CA and Vice PresidentPresident & Officer Previous owner Exploration President and past Managing Nuclear FuelsCEO Chartered of Nonferrous Registered CEO of Vangold Partner of Ernst & Chair, IBCFinance & Accountant with Products. professional Resources Ltd., Young’s Canadian Nuclear FuelsStrategic public and private Manufacturing engineer, Corporate mining practice Advisory BoardAdvisory company Expertise geologist and Finance Former VPBackground experience as 43-101 Nuclear Fuels for director / officer qualified Exelon Corp. Douglas Veitch Mark Wolma Rajeev Jain Vice President of Business President of IBC Nonferrous Vice President of Sales Development Previously VP Operations Formerly at Hussey Copper Formerly with Brush Wellman Scherer Industrial Group IBC Advanced Alloys TSX-V:IB Page: 12
  • 13. HPlant Locations IBC Be Beralcast Nonferrous Manufacturing headquarters Manufacturing headquarters Massachusetts Indiana Prototyping 48,800 sq. ft. Being relocated Owned 12 acre property Freedom Alloys Two facilities: Pennsylvania and Missouri Owned/Leased 42,500 sq. ft. IBC Advanced Alloys TSX-V:IB Page: 13
  • 14. HBusiness Strategy IBC Be Expand Be market and attract market share • Expand sales and marketing team / aggressively pursue new business • Increase business growth through existing customer base • Develop new markets and offer competitive products Continue manufacturing consolidation • Move Beralcast to larger facility (est. April 2011) • Increase margins • Improve production efficiencies • Seize highly accretive acquisition opportunities Develop exploration resources • Prove up resource base to NI 43-101 • Acquire other world class beryllium ore bodies Continual investment in beryllium R&D • Nuclear fuels / wind power / new products • Objective to increase demand for Be resource IBC Advanced Alloys TSX-V:IB Page: 14
  • 15. HIBC’s Competitive Advantage IBC Be Close customer relationships• Close customer relationships – Best lead times in the industry Dependable sources• Dependable sources of raw material of raw material – Long term strategic relationship with Kazatomprom Proprietary – Approved buyer from DOD technology & patents• Proprietary technology Processing &• Processing and metallurgical expertise metallurgical expertise• Specialized market Specialized market• Unique structure (vertically integrated) Unique structure IBC Advanced Alloys TSX-V:IB Page: 15
  • 16. HSuperior Patented Product IBC Be• Beralcast is a Be alloy with superior capabilities to other metals High Performance Automotive HIGHER Recreation Computers Automated Assembly PRICE SENSITIVE Commercial Aerospace Military Aerospace Tailored alloys to meet Stiffness to weight (108 inches) Satellites performance cost objectives LOWER HIGHER PERFORMANCE SENSITIVE LOWER IBC Advanced Alloys TSX-V:IB Page: 16
  • 17. HPotential of the Beryllium Market IBC BeOpportunities for growthPotential applications: • Nuclear fuel • Wind turbine components • Golf club shafts • Engine blocks • Disc drives • Wheel rimsHuge market potential to for materials substitution IBC Advanced Alloys TSX-V:IB Page: 17
  • 18. HCustomer Base Provides Strong Foundation for Growth Be Metals & Industrial Supplies US Navy Defense Contractors Aerospace Defense Contractors Oil & Gas Industries Supplier to the Nuclear Power Industry Technology, Energy & Media Company • Leverage increased business with existing customers • Marketing program to reach new customers • Recent expansion has expanded capacity IBC Advanced Alloys TSX-V:IB Page: 18
  • 19. HGrowth Drivers OPPORTUNITY Be Future Acquisitions & Joint New R&D Ventures Alternative Materials Energy Performance NewAerospace Technologies IBC Advanced Alloys TSX-V:IB Page: 19
  • 20. HExploration – Mineral Properties OPPORTUNITY BeBrazil, Minas Gerais State Colorado, Lake George• 2,432 Acres • 10,680 Acres• Well mineralized region with historical • Includes Boomer Mine beryl production • Second largest historical beryllium mine in US• World’s largest pegmatite provinces • Staked additional 517 beryllium mining claims• 3 year research licenses with 3 year totaling 10,000 acres renewal• Research license allows mapping, soil sampling, definition drill and trenching IBC Advanced Alloys TSX-V:IB Page: 20
  • 21. HExploration – Mineral Properties OPPORTUNITY BeJuab County, Utah – Spor Mountain:• 371 claims over 7,630 Acres• Adjacent to the world’s biggest beryllium deposit and mine – operated by Brush Wellman• USGS confirmed Beryllium mineralization• IBC properties located on extension of geologic system currently being mined• Significant potential in excess of Spor Mountain mine• Exploration program targeted for 2010 leading to NI 43-101 IBC Advanced Alloys TSX-V:IB Page: 21
  • 22. HNuclear Fuel – R&D Partnership OPPORTUNITY BeNuclear fuels research with Purdue and TexasA&M UniversitiesNuclear Fuel development MOU with GNF (GEElectric) Provisional Patents FiledExpected Benefits:• Increased MWdays per tonne – Utility cost savings• Lengthened fuel cycle Nuclear fuels market currently – Less waste $25 billion, projected $35 – Less uranium required billion by 2020(1) Nuclear Fuels Advisory Board:• Lower core temperature lower temperature Dr. Alvin Solomon - Professor Emeritus, gradient Purdue – Increased reactor safety Joel Gingold - Retired VP, GM and Director of Stoller NF James Malone – IBC VP Nuclear Fuels, Former Senior VP NF, Exelon Corp. IBC Advanced Alloys TSX-V:IB Page: 22
  • 23. HIBC Conclusion Be IBC represents an excellent investment opportunity • Profitable and growing manufacturing operations; • Widening rare metal portfolio with new applications; • Global presence and strong growth fundamentals; • Additional consolidation potential; • Strong management and board of directors; • Value added opportunities through R&D and synergies; • Significant barriers to entry; • Attractive valuation to peers. IBC Advanced Alloys TSX-V:IB Page: 23
  • 24. IBC Advanced Alloys Thank You IBC Advanced Alloys