South Korea: vying with China for access to 'strategic metals'
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South Korea: vying with China for access to 'strategic metals'

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Objective Capital's Global Resources Investment Conference 2011...

Objective Capital's Global Resources Investment Conference 2011
Stationers' Hall, City of London
27-28 September 2011
Day 1- Session 5: Asia focus
Speaker: Brian Wesson, Woulfe Mining

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South Korea: vying with China for access to 'strategic metals' Presentation Transcript

  • 1. South Korea: vying with China for access to 'strategic metals'
    Brian Wesson – Woulfe Mining
  • 2. @Objectivelive
    GLOBAL RESOURCESINVESTMENT CONFERENCE 2011
    Lead sponsor:
    Media partners:
    Other sponsors & participating organisations:
  • 3. 3
    Objective Capital London
    September 2011
  • 4. 4
    Disclaimer
    Statements in this presentation other than purelyhistorical information, including statements relating to Woulfe Mining’s future plans, objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to the risks and uncertainties inherent in Woulfe Mining’s business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements. Note that Woulfe Mining refers to historical resource estimates in this presentation. Source, date, relevance, reliability and explanations on categories are presented with the historical estimates.
    A qualified person has not done sufficient work to classify the historical resources as current mineral resources. The issuer is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon.
    This PowerPoint presentation was prepared to assist interested parties in making their own assessment of Woulfe Mining and its mineral properties, and does not purport to contain all of the information that a prospective investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company, its assets and the information provided in this presentation. Any and all statements, forecasts, projections and estimates contained in this presentation are based on management’s current knowledge and no representation or warranty is made as to their accuracy and/or reliability.
    Unless otherwise stated, all resource and reserve estimates in the document are historical in nature and do not comply with the current NI 43-101 reporting standards.
    This presentation/powerpoint does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (“the U.S. Securities Act”) or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
  • 5. 5
    South Korea - The Country
    50M people (15M in Greater Seoul)
    In the heart of world growth
    11th largest economy
    Member of WTO, OECD, G-20
    Success stories - Samsung, Hyundai, Kia, LG, POSCO
    Moody’s ‘A1’; S&P ‘A’
    Educated work force 98% literacy and 93% pass high school
  • 6. 6
    South Korea - Open for Business
    100% foreign ownership of business
    Tax incentives for foreign companies
    No royalties or export tax on Woulfe Resources
    Transportation advantage, close to market and supply chain
    Developed country with superior technology, skills, power, roads and infrastructure
    “Resource Priority” policy by incumbent government
    Lead/Zinc
    Seoul
    SANGDONG TUNGSTEN-MOLYBDENUM MINE
    MUGUK GOLD MINE
    Tungsten
    Uranium/Vanadium
    SOUTH KOREA
    Daegu
  • 7. 7
    Woulfe Mining Corp. (TSX-V:WOF)
    100%
    100%
    100%
    Yeonwha Mining Corp
    Sangdong Mining Corp
    Muguk Gold Corp
  • 8. 8
    Fundamentals of Tungsten
    Market
    “Strategic Metal”
    Demand driven by world economic expansion & industrialization
    China supplies 80%+ of tungsten products
    China has implemented controls on exports (Ban on new tungsten mines to end 2012)
    60% of tungsten used for machine tools
    New growth applications in high tech electronics, LCD & LED panels, space industry, medical instruments, etc.
    Metal Properties
    Highest melting point of all metals : 3,422 C°
    Wear resistant : 100 times of steel including abrasion and erosion
    Expansion : lowest of all metals
  • 9. Tungsten Markets – Demand & Supply
    9
    Widening gap between demand & supply
    100
    80
    60
    40
    China
    Non-China
    20
    Case A
    Case B
    0
    kMT
    2000
    2002
    2004
    2006
    2008
    2010
    2012
    2014
    2016
    2018
    2020
    Source: Mitsui Co., Ltd.
    - Case A: Total demand to increase by 5% p.a. after 2010
    - Case B: Demand for automobile to decrease by 5%p.a. after 2015  
  • 10. Tungsten Markets Tightening
    10
    Woulfe is developing its tungsten/ Molybdenum mine and have started unlocking value of the high grade gold/ silver Muguk mine.
    Global Financial Crisis
    • Price increases on fundamentals
    • 11. Resilient to economic volatility
    • 12. Short to medium term hikes expected
    • 13. Tungsten price to stabilize around $400
    Source: Roskill forecast - Tungsten Market Study (2010. November)
  • 14. Sangdong Mineral Resources…
    11
    Historical resource
    0.4% MoS2 ,16 Mt
  • 15.
  • 16. Valuation
    13
  • 17. 14
    Timetable
  • 18. 15
    Management
    Woulfe Management
    Brian Wesson – CEO / President FAusIMM, MBA
    Amelia Wesson – VP Admin / Corporate
    Bill Kable – VP Technical, MAusIMM
    Mark Gelmon – CFO, CA Canada
    Sangdong Mining
    Tiger Kim – CEO / President with 28 years in investment banking and corporate restructuring in Korea and Hong Kong
    External Advisors
    Wardrop Engineers UK
    AMC Vancouver
    Frontline Business Korea
    Technical
    AlindNandBSc Aus – Chief Geologist 20 years international experience
    Arne Rahnel – Project Manager 35 years experience in plant design
    Dr. Kun-Joo Moon PhD – Achieved PhD from Tasmania working on the Sangdong deposit
    Bog-Gon Kim – Geologist 30 years service at Sangdong Mine
    Matt BoluP.Eng – Metallurgist 30 years experience in tungsten industry
  • 19. 16
    Appendix - Muguk Gold
    Hatched areas, mined
    Muguk gold and silver project, formerly Korea’s largest gold mine
    Historically produced 580,000 ounces at average 11 g/t
    1.4Mt at 13.5 g/t Au (approx 620,000 oz) and 72.8 g/t Ag (approx 3,322,000 oz) at 10 g/t cutoff (historical high-grade resource not NI 43-101 compliant)
    Free milling ore
    AMC Minerals completed 3D model
    AMC Appointed to review data and update NI43-101 on basis of 3 g/t cutoff
    Drilling in progress to prove down dip extensions
    Historical Reserve, 1994, some mining took place 1994 to 1997
  • 20. Fundamentals of investment
    17
    Secure title and recourse
    • Korea is OECD country with German legal system
    Minerals in the ground
    • Known mineralization; mined and processed 40 years
    • 21. Grade up 25%, 80 years of resources, 25 M drill spacing
    Market fundamentals & competitiveness
    • Easy mining above valley floor
    • 22. Strong cash flow, quick return on capital
    • 23. Tax advantage
    • 24. Inputs to production low cost from Asia
    Position on cost curve
    • Twice grade of China with no tax
    • 25. Tungsten has large ore body, mechanised mined
    • 26. Gold 13.5 grams per tonne and silver 72.8 g/t
  • Woulfe Mining Corp Contacts
    18
    East Coast North America
    Barbara Komorowski Renmark
    Financial communications
    bkomorowski@renmarkfinancial.comp +1 (514) 939-3989
    Brian Wesson
    brian.w@woulfe.com.au
    p+61 4144 06611
    IR Woulfe Mining Corp
    Nick Smith, San Francisco
    nsmith@nicolastreetcapital.comp +1 (415) 829-7865
    Germany
    Value Relations GmbH
    P+49 (69) 959246
    E-Mail: Info@vrir.de
    ChristophBrüning
    Korea
    Tiger Kim
    tigerkim@woulfe.co.kr
    P +82 10-9128-8881
    Objective Capital London
    gabriel@objectivecapital.com
    +448700802965
    Corporate office Canada
    Marion McGrath Corporate Secretary
    mcgrath@iocorporate.com408-837 West Hastings Street,Vancouver, BC, V6C 3N6, Canadap +1 604 684 6264F +1 604 684 6242
    Edison Investment Research
    Lincoln House, 296-302 High Holborn, London, WC1V7JHTel: +44 (0)20 3077 5700
    www.woulfemining.com