Ian Levy            Chief Executive OfficerConnecting investors to opportunities   www.symposium.net.au
AUSTRALIAN BAUXITE LIMITED                                     19 March 2013           Developing our first bauxite projec...
Forward Looking Statement    Whilst based on information from sources considered reliable, Au stralian Bauxite Limited ( A...
Aluminium market: 45% construction                                45% consumption                                         ...
Market Fundamentals: New Industry Structure        Australia,              China,            Russia, China, India,        ...
China-Australia Trade                                   Russia           Europe                                           ...
Indonesian bans & 20%    Strong Chinese Bauxite Imports                                                 taxes began 9 May ...
Indonesian bans & 20%    22% Bauxite Price Rise May 2012                                            taxes began 9 May 2012...
Australia Will Increase Bauxite Exports     Forecast      30Mtpa   Rio Investing $1.5 Billion: Hi-Temp Bauxite sold       ...
Costs & Timetable For ABZ’s First Projects       Project        Date Tonnes pa     ▪ Tasmania       2014 @0.7-1.5Mtpa     ...
Corporate Details     ASX Code : ABZ        Listed 24 Dec09 at $0.20      Major Shareholders                         Share...
OUR BAUXITE: Low temperature type                                                  • 116 Million tonnes now. +200Mt target...
Good Logistics                          Goulburn NSW      Bell Bay Tasmania     Port Kembla NSW                           ...
Simple start-up in Tasmania                                     Mining leases designed                                    ...
Simple Start-Up Project in Tasmania     Drilling in scrub                                   Jacob Rebek in replanted blue ...
Simple Start-Up Project in Tasmania     The Three Amigos                            Chief Geologist   Snr Mining Engineer ...
Good Landholder Relations      ABZ endorses best practices on agricultural land to leave land & environment      better th...
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Australian Bauxite, CEO, Ian Levy

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March Resources Roadshow 2013 Sydney (ASX:ABZ)

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Australian Bauxite, CEO, Ian Levy

  1. 1. Ian Levy Chief Executive OfficerConnecting investors to opportunities www.symposium.net.au
  2. 2. AUSTRALIAN BAUXITE LIMITED 19 March 2013 Developing our first bauxite project for the booming bauxite market Bauxite is the ore for aluminium and alumina ASX Code “ABZ” Level 2 131 Macquarie St Sydney NSW 2000 Australia Phone: +61 2 9251 7177 Ian Levy, CEO Facsimile: +61 2 9251 7500 Mob: 0407 189 122 E: corporate@australianbauxite.com.au E: ilevy@australianbauxite.com.au AUSTRALIAN BAUXITE LIMITED2 ASX Code ABZ
  3. 3. Forward Looking Statement Whilst based on information from sources considered reliable, Au stralian 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. To the maximum extent permitted by law, ABx disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequent ly comes to its notice, which may affect any of the information contained in this document and presentation. JORC and Competent Person Statement Information herein relating to Exploration Results, Resources an d Resource Targets is based on information compiled by Ian Levy BSc MSc who is a Fellow of The Australasian 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 styl e of mineralisation and type of deposit being reported and to th e activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore ‘ Reserves’ (the JORC Code). This report is issued with the prior written c onsent of the Competent Person as to the form and context in whi ch it appears . Exploration Target Statement ABx has an exploration target of 200 to 300 million tonnes of ba uxite, based on Mineral Resources announced in mid 2010 of 35 million tonnes of bauxite at Inverell 4,5 from 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 1,2,3 from approximately 50% of the bauxite targets on Exploration Lease EL 7357 in southern NSW . In accordance with the JORC Code, readers are advised that the “ potential quality and grade is conceptual in nature, that therehas been insufficient exploration to define full Mineral Resources and that it is uncertain if further exploration 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 to . - vary its exploration target. JORC Code Compliant Public Reports The Company advises that this presentation contains summaries of Exploration Results and Mineral Resources as defined in the 2004 Edition of the ‘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. These references can be viewed on the ASX website and the Company will provide these reports, free of charge, to any person who requests it. Reference Reference Issue Date Issue Date Title of Notice as lodged with ASX 1 28/07/2012 12/10/2011 Binjour Maiden JORC Resource to 24.5 Million Tonnes JORC Resource Upgrade 2 15/08/2011 Guyra Maiden JORC Resource 6.0 Million Tonnes 3 30/05/2012 12/05/2011 Taralga Bauxite Resource Doubled to 25 Million Tonnes Tonnes Increased 50% to 37.8 Million 4 08/05/2012 06/12/2010 Inverell Taralga JORC Resource Update 38.0 Million Tonnes 5 02/09/2010 08/11/2012 Tasmania Maiden JORC Update Inverell JORC Resource Resource 5.7 Million Tonnes 6 15/11/2011 Maiden QLD Mining Lease JORC Resource 3.5 Million Tonnes Direct Shipping Ore 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 Resource and it is uncertain if further exploration will result in the de termination of a Mineral Resource. AUSTRALIAN BAUXITE LIMITED3 ASX Code ABZ
  4. 4. Aluminium market: 45% construction 45% consumption Source: LME Al price = Cu price Al price = 30% Cu price Source: IAI Aluminium cost advantage is increasing against copper & steel Fastest growing metal demand but flat prices &4 Bauxite is booming ! Why ? AUSTRALIAN BAUXITE LIMITED ASX Code ABZ
  5. 5. Market Fundamentals: New Industry Structure Australia, China, Russia, China, India, Indonesia India Middle East: Modern Giant New Smelters Figure: Alumina Limited 1 tonne • New Smelters 30% more efficient (lower power costs) • Aluminium Oversupply: new smelters buying market share • China’s bauxites declining; • Indonesian bans/taxes tightening: in 2012 & more in 20145 => Strong demand for Oz bauxite in China AUSTRALIAN BAUXITE LIMITED ASX Code ABZ
  6. 6. China-Australia Trade Russia Europe North Asia America Country risk & US supply & transport limits transport Africa Hi limits Australian low temp bauxite Lo temp will replace Indonesian temp bauxite strongly in 2014 variable, South looming America bans & Australia taxes Australia will supply China’s 38 large refineries Indonesian reductions, especially from 2014 ABZ bauxite deposits Other bauxite deposits AUSTRALIAN BAUXITE LIMITED6 Alumina Refineries ASX Code ABZ
  7. 7. Indonesian bans & 20% Strong Chinese Bauxite Imports taxes began 9 May 2012 Bauxite imports into China - million tonnes/month 7 Indonesian export bans & 20% tax imposed Million tonnes per month 6 5 4 3 2 1 0 Indonesia Australia India Other Sources: C&M, MBC & China Customs Indonesian supply will reduce further in 2014 as export bans & taxes increase AUSTRALIA’S & ABZ’S OPPORTUNITY IS NOW AUSTRALIAN BAUXITE LIMITED7 ASX Code ABZ
  8. 8. Indonesian bans & 20% 22% Bauxite Price Rise May 2012 taxes began 9 May 2012 Average Cost of Chinese Bauxite Imports US$/tonne Indonesian export bans & 20% tax imposed $70 US$ per tonne CIF China $60 $50 $40 $30 $20 Sources: C&M, MBC & China Customs Indonesian export tax on bauxite increases from 20% to 50% in 2014 = + US$60/t AUSTRALIA’S & ABZ’S OPPORTUNITY IS NOW AUSTRALIAN BAUXITE LIMITED8 ASX Code ABZ
  9. 9. Australia Will Increase Bauxite Exports Forecast 30Mtpa Rio Investing $1.5 Billion: Hi-Temp Bauxite sold mainly to Hi-Temp Refineries Gove Weipa 5 to 10 Mtpa by ABZ Mitchell Plateau Lo-Temp Bauxite sold to (Dormant) Lo-Temp Refineries World’s largest alumina refineries 3 Binjour Project Eastern World’s largest bauxite & alumina production Australian Mainly too Darling Bauxite low grade Ranges Province 2 Goulburn Projects to export. ABZ bauxite deposits (36) Others’ Bauxite Projects (6) Aluminium Smelters (6) 1 Tasmanian Project Alumina Refineries (8) Rio exports high temperature bauxite to China’s high temp. refineries ABZ will supply low temperature bauxite to low temperature refineries AUSTRALIAN BAUXITE LIMITED9 ASX Code ABZ
  10. 10. Costs & Timetable For ABZ’s First Projects Project Date Tonnes pa ▪ Tasmania 2014 @0.7-1.5Mtpa Binjour Capex A$10 million Project Opex A$27 / t FOB ▪ Goulburn Sth 2015 @ 1-2Mtpa Inverell-Guyra Discoveries Capex A$20 million Opex A$30 / t FOB Goulburn ▪ Goulburn Nth 2017 @ 2-3Mtpa Goulburn South & Capex A$90 million Goulburn North Opex A$37 / t FOB Tasmania ▪ Binjour QLD 2018 @ 1-5Mtpa Also: Toondoon granted, 25 year10 Mining Lease near Binjour AUSTRALIAN BAUXITE LIMITED ASX Code ABZ
  11. 11. Corporate Details ASX Code : ABZ Listed 24 Dec09 at $0.20 Major Shareholders Shares % Shares 113.8 million Hudson Resources 47.7 million 41.9% Options 3.7 million State One Capital 7.8 million 6.9% Market Cap ($0.22) $25 million Soul Pattinson 4.0 million 3.5% Cash (19 Mar13) $2.8 million = 1.5yrs budget Top 20 Holders 74.9 million 65.8% Share range $0.22 to $0.84 Avg Daily Volume 65,000 share turnover Shareholders 998 ABZ Shares 6 Months A$ Board of Directors 1 John Dawkins Non-executive Chairman Peter Meers Exec Dir & Vice Chairman Ian Levy CEO & Managing Director 2 Jacob Rebek Executive Director & CG 3 Ken Boundy Non-executive Director Wei Huang Non-executive Director Henry Kinstlinger Company Secretary 1. Past Australian Treasurer & Minister for Finance 2. Chief Geologist Rebek is ex CRA (Rio) Chief Geol. Led the . discovery teams at Century Zinc 93 & Eastern Australian Bauxite 06-09 3. Investor in Tasmanian tourism. Holds senior public positions 2012 2013 AUSTRALIAN BAUXITE LIMITED11 ASX Code ABZ
  12. 12. OUR BAUXITE: Low temperature type • 116 Million tonnes now. +200Mt target • Surface, easy mined, thickest bauxite in Australia • Low-temperature, gibbsite bauxite, low silica, boehmite-free + 42% Al2O3 3% SiO2 & 23% LOI Penrose NSW – old quarry. 14 December 2011 >36metres Section Australia’s Thickest Bauxite AUSTRALIAN BAUXITE LIMITED12 ASX Code ABZ
  13. 13. Good Logistics Goulburn NSW Bell Bay Tasmania Port Kembla NSW Railways & highways deliver to export ports, all with large spare capacity AUSTRALIAN BAUXITE LIMITED13 ASX Code ABZ
  14. 14. Simple start-up in Tasmania Mining leases designed 2 months early LEGEND ABx Bauxite Lease Major Export Port Aluminium Smelter Bell Bay Bulk Port Potential Barge Port Coal Mines Major Roads N Bridport Rail Lines 10 km Bridport Burnie Bell Bay Scottsdale Scottsdale DL-130 Bauxite Deposits Launceston Meadowbank Hobart DL-130 Bauxite Rosevale Deposit Bauxite Deposit N 0 kilometres 100 Nile Road & Fingal Rail Bauxite Deposit Bauxite Deposits AUSTRALIAN BAUXITE LIMITED14 Aluminium Smelter ASX Code ABZ
  15. 15. Simple Start-Up Project in Tasmania Drilling in scrub Jacob Rebek in replanted blue gums High Grade Bauxite at surface Bauxite at surface AUSTRALIAN BAUXITE LIMITED15 Bauxite at surface Drilling in plantation trees ASX Code ABZ
  16. 16. Simple Start-Up Project in Tasmania The Three Amigos Chief Geologist Snr Mining Engineer Chief Operating Officer Jacob Rebek Drago Panich Leon Hawker Bauxite Ridges; Gorse Weeds CN-073 Mining Lease Application AUSTRALIAN BAUXITE LIMITED16 ASX Code ABZ
  17. 17. Good Landholder Relations ABZ endorses best practices on agricultural land to leave land & environment better than we find it. We only operate where welcomed. AUSTRALIAN BAUXITE LIMITED17 ASX Code ABZ

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