EPANKO GRAPHITE PROJECT

Transcription

1 EPANKO GRAPHITE PROJECT ASX:KNL FSE:FMK

2 D I S C L A I M E R Securities Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, or solicit to purchase, any securities. Such offer can be made only through proper subscription documentation and only to investors meeting strict suitability requirements. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. Forward looking Statements Various statements in this presentation constitute statements relating to intentions, future acts and events. Such statements are generally classified as forward looking statements and involve known and unknown risks, uncertainties and other important factors that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed herein. The company gives no assurances that the anticipated results, performance or achievements expressed or implied in these forward looking statements will be achieved. Competent Person The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew Spinks, who is a Member of The Australasian Institute of Mining and Metallurgy included in a list promulgated by the ASX from time to time. Andrew Spinks is a director of Kibaran Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Andrew Spinks consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resources is based on information compiled by Mr David Williams, a Competent Person, who is a Member of The Australasian Institute of Mining and Metallurgy. David Williams is employed by CSA Global Pty Ltd, an independent consulting company. Mr Williams has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. David Williams consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to the Ore Reserve has been compiled by Mr Steve O'Grady. Mr O'Grady, who is a Member of the Australasian Institute of Mining and Metallurgy, is a full time employee of Intermine Engineering and produced the Mining Reserve estimate based on data and geological information supplied by Mr Williams. Mr O'Grady has sufficient experience that is relevant to the estimation, assessment, evaluation and economic extraction of Ore Reserve that he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr O'Grady consents to the inclusion in this report of the matters based on his information in the form and context that the information appears. 2

3 L A T E S T N E W S - G E R M A N Y V I S I O N ELECTRIC VEHICLES 23 MAY 2017 Daimler announces acceleration of electric car plans by 3 years, will spend $11 billion on 10 models by

4 G R A P H I T E F O R L I T H I U M I O N B A T T E R I E S A B O U T G R A P H I T E A N D F U T U R E D E M A N D GRAPHITE : An industrial mineral with unique physical and chemical properties which includes superior thermal and electrical conductivity Major Raw Material for Battery Technologies Lithium-Ion Battery Electric Vehicle ( EV ) Solar Panels to Energy Storage Systems ( ESS ) 4

5 O U R V I S I O N O U R V I S I O N To become a major producer of high-value, premium quality large flake graphite in Tanzania as a long-term stable supplier of graphite for the high growth battery market 5

6 O V E R V I E W T H E C A S E F O R K I B A R A N Epanko is positioned as one of the most advanced graphite projects globally Debt Financing requires Bankable Feasibility Study completed to the highest technical and financial standards complies with stringent IFC Equator Principles for Social & Environmental Upgraded BFS expanded production case to 60ktpa Comprehensive announcement expected Q2 Robust marketing strategy Offtake and sales agreements secured with blue-chip European and Japanese Groups Strategy matches the reality of prevailing graphite markets 6

7 O V E R V I E W T H E C A S E F O R K I B A R A N Epanko is positioned as one of the most advanced graphite projects globally Debt Financing requires Bankable Feasibility Study completed to the highest technical and financial standards complies with stringent IFC Equator Principles for Social & Environmental Upgraded BFS expanded production case to 60ktpa Comprehensive announcement expected Q2 Robust marketing strategy Offtake and sales agreements secured with blue-chip European and Japanese Groups Strategy matches the reality of prevailing graphite markets Growth opportunities to enhance project returns Battery Grade Feasibility Study underway Project economics do not include product sales into the high growth lithium-ion battery markets 7

8 B I N D I N G O F F T A K E A N D S A L E S A G R E E M E N T E P A R T N E R S F O R D E V E L O P M E N T I N G R O W I N G M A R K E T S R I G H T O F F T A K E 8

9 F U N D I N G S T R A T E G Y - S U P P O R T I V E P A R T N E R S Specialist financier for the German and European export industry German Government loan guarantee Epanko (Large Flake) Africa s largest investment bank 9

10 S U P P O R T E D B Y E X I S T I N G I N F R A S T R U C T U R E 10

11 K I L O M B E R O B R I D G E C O M P L E T E D Kilombero Bridge 2017 Kilombero Bridge

12 J O R C C O M P L I A N T - M I N E R A L R E S O U R C E MINERAL RESOURCE 30.7 MILLION TONNES AT 9.9% TGC FOR 3 MILLION TONNES GRAPHITE JORC Classification Tonnage (Mt) Contained Graphite (t) Measured ,900 Indicated ,280,000 Inferred ,030,600 Total ,049,500 ASX announcement 31 st MARCH 2017 A SUBSTANTIAL AMOUNT OF GRAPHITE MINERALISATION EXISTS WITHIN THE REPORTED MINERAL RESOURCE AT LOWER TGC CUT-OFF GRADE AT 5% TGC. THERE ARE 113.3MT AT 7.2 %TGC FOR 8.1MT OF CONTAINED GRAPHITE. 12

13 V T E M - E N O R M O U S C O N D U C T I V E B O D Y DRILLED AREAS EXTENSIONS TO EAST ZONE 13

14 W E S T E R N Z O N E 14

15 S I M P L E M I N E R A L O G Y - C H E E T A H T E X T U R E S 15

16 S I M P L E & L O W C O S T P R O C E S S High level of independent testwork to support BFS including pilot scale and 200t bulk sample testwork 16

17 In-situ resource grade (%TGC) B O T H G R A D E & F L A K E S I Z E A L L O W E P A N K O T O S E L L I N T O A L L M A R K E T S E P A N K O H A S T H E F L E X I B I L I T Y T O A C C E S S H I G H V A L U E S 14% Epanko has both grade and flake size distribution 12% 10% Balama (SYR.ASX) Montepuez (BAT.ASX) Epanko (KNL.ASX) 8% 6% Duwi (SVM.ASX) Mahenge (BKT.ASX) 4% 2% Namangale (VRC.ASX) Nachu (MNS.ASX) 0% 0% 20% 40% 60% 80% 100% Large flake (>150 microns) product (% total prod) Bubble size = Average annual production target (ktpa graphite concentrate) Source: Company exchange releases 17

18 M A R K E T I N G S T R A T E G Y O U T S I D E O F C H I N A AN Europe is the largest refractory market Japan and Korea is the largest battery graphite market USA an emerging market 18

19 G L O B A L D E M A N D F O R F L A K E G R A P H I T E R I G H T O F F T A K E P A R T N E R S F O R D E V E L O P M E N T I N G R O W I N G M A R K E T S Epanko production matched to demand and targeting growth markets REGION North South END-USE Asia Europe Others TOTAL America America Refractories Foundries Batteries Friction Lubricants Expandable and Others Total (kt)*

20 G L O B A L D E M A N D F O R F L A K E G R A P H I T E R I G H T O F F T A K E P A R T N E R S F O R D E V E L O P M E N T I N G R O W I N G M A R K E T S Epanko production matched to demand and targeting growth markets REGION North South END-USE Asia Europe Others TOTAL America America Refractories Foundries Batteries Friction Lubricants Expandable and Others Total (kt)*

21 B A T T E R Y G R A D E G R A P H I T E F E A S I B I L I T Y S P H E R I C A L G R A P H I T E D E V E L O P M E N T Production of Battery graphite for anode battery market can add significant value Feasibility study commenced by GR Engineering with results expected Q Discussions underway for distribution of by-product from spherical graphite production 21

22 B A T T E R Y G R A D E ( S P H E R I C A L ) G R A P H I T E Natural Flake Graphite for Lithium Ion Batteries Conversion of flake graphite with 95% purity into spherical graphite with 99,95% purity required Natural Flake Graphite Battery Grade (Spherical) Graphite Currently 100 % of Battery Grade Graphite is produced in China! 22

23 TONNES (KT) B A T T E R Y ( S P H E R I C A L ) G R A P H I T E D E M A N D Expected consumption of spherical natural graphite for battery market (Source: ProGraphite) GWh 35GWh Tesla together with Panasonic, and Korean LG Chem and Samsung SDI are developing the world s largest gigafactories outside China for the growing EV battery market 23

24 E P A N K O B A T T E R Y ( S P H E R I C A L ) G R A P H I T E Measure Unit Outcome Particle size distribution D10 (micron) 10.3 D50 (micron) 15.0 D90 (micron) 22.1 D002 7 (nm) Tap Density (g/cc) 0.98 BET m²/g 7.4 Reversible Capacity mah/g 367 Irreversible Capacity at mah/g 5 Fe ppm 12 Si ppm 19 Ash Content % 0.01 Moisture Content %

25 T H E R I G H T T E A M T O A D V A N C E E P A N K O BOARD & KEY MANAGEMENT Robert Pett (Non-Executive Chairman) Andrew Spinks (Managing Director) Grant Pierce OAM (Executive Director) Christoph Frey (Non-Executive Director) John Condi (Non-Executive Director) A STRONG MIX OF MINING, COMMERICAL AND GRAPHITE EXPERIENCE Minerals Economist with over 30 years experience in developing resources and mines in Australia and Africa. Founding Chairman of Resolute Mining Geologist with over 25 years experience. Expertise in exploration, mining and management across a range of commodities and geographies. Mining engineer, over 25 years experience. Order of Australia Medal 2003 for social development in rural Tanzania. German-based graphite industry professional with over 20 years graphite experience in Russia, Europe, Africa and China. Direct experience in battery grade graphite. Member CPA with 14 years of experience in developing, acquiring and managing publicly listed businesses. CAPITAL STRUCTURE (KNL:ASX, FMK:FSE) Shares on Issue 243.2m Share Price (31 January 2017) $0.16 Market Capitalisation Net Cash (31 March 2017) $38.9m $4.5m Unlisted Options Various Expiries & Exercise Prices 12.1m Top 20 Shareholders 41.5% SHAREHOLDER BASE 25

26 N E W S F L O W T O D R I V E V A L U E UPGRADED BFS TO 60KTPA FURTHER AGREEMENTS DEBT FINANCING BATTERY GRADE FEASIBILITY 26

27 I N V E S T M E N T C A S E F O R K I B A R A N R K I B A R A N Well positioned to be a significant graphite producer PRODUCT Epanko high quality graphite concentrate Value-add strategies to produce a premium spherical graphite product for the global battery market PROJECT PARTNERS Tanzania an established mining jurisdiction and infrastructure Technical and social and environmental work to Equator Principles highest standards as required to secure bank finance Offtake and sales agreements secured blue-chip partners ThyssenKrupp AG + Sojitz + EGT Debt finance providers KfW-IPEX Bank + Nedbank PEOPLE Proven Management team with a track record 27

28 EPANKO GRAPHITE PROJECT ASX:KNL