Minara Resources Limited. Peter Johnston Chief Executive Officer. October 2007

Transcription

1 Minara Resources Limited Peter Johnston Chief Executive Officer October 2007

2 Important Notice This presentation contains certain statements which may constitute forwardlooking statements. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by Minara that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Minara, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. Minara accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person not any obligation to furnish the person with any further information.

3 Minara Resources Major nickel and cobalt producer One of world s top 10 nickel producers Australia s second largest nickel producer One of the world s largest producers of LME grade nickel briquettes Significant cobalt producer 5 th largest in world

4 World class nickel laterite asset Murrin Murrin is located in the north eastern goldfields of Western Australia High pressure acid leach (HPAL): nameplate capacity 40,000 tpa nickel 2,500 tpa cobalt Heap leach demonstration plant capacity 2,000 tpa nickel 200 tpa cobalt 60:40 joint venture with Minara and Glencore

5 Minara s operations project location

6 Minara s operations Murrin Murrin plant

7 Corporate overview positioned for growth ASX Code Fully paid shares MRE 465 million Market capitalisation (30 September 2007) Cash reserves (30 June 2007) Minimal debt A$3.028 billion A$435 million Unhedged in commodity or currency

8 Resources and reserves Resources Reserves 0.99% Ni 1.09% Ni & 0.087% Co 40 plus years mine life at nameplate capacity Deposit targets Marshall Pool Weld Range 0.69% Ni % Ni

9 Solid financial performance 6 months ended 30 June 2007 Revenue from operations Gross profit Net profit after tax Net cash flow A$529.9 million A$354.8 million A$246.5 million A$131.9 million Record profitability 145% increase over 6 months to 30 June 2006 Interim dividend - 25 cents fully franked Focus on maximising shareholder returns 9.8% yield 2006

10 Minara dividends paid DIVIDENDS PAID (cents per share) June Dec June Dec June 2007 Interim dividend Final dividend

11 Murrin Murrin nickel production profile Nic kel P roduc tion (tonnes ) * 2007 produc tion forec as t is betw een 28,000 to 30,000 tonnes

12 2007 statutory shutdown Preparing Murrin for next three years operations Statutory inspections and planned maintenance Acid plant refurbishment A$15 million - superheater replacement Acid plant capacity increased to 4,500 tonnes per day Shut duration (entire plant) 21 Oct 18 Nov Continued normal operations for substantial period during shut

13 Growth - heap leach Four years of successful R&D Innovative technology focussing on medium and low grade material Mining rates remain unchanged 2,000 tpa nickel demonstration plant completed Jan 2007 If successful, initial expansion to 10,000 tpa Further expansion potential to a combined HPAL and HL of 70-80,000 tpa

14 Heap leach process flow chart

15 Heap leach layout and stacking Heap leach Scats Scats Scats Scats Scats/ Ore Scats/ Ore Scats Scats Ore Ore Scats Scats

16 Heap leach layout and stacking Scats Stockpile and Agglomerator Scats Scats Scats Scats Scats/ Ore Scats/ Ore Scats Scats Ore Ore Scats Scats 80m 400m

17 Heap leach why? Fully utilises resources Leverages existing infrastructure Significant increase in nickel production Lower capital and operating cost Lower risk - second production stream Recovery rate in line with projections Recovery from ore commenced

18 Minara positioning for growth Record profitability Interim dividend - 25 cents fully franked Heap leach commenced significant upside Major shutdown in October/November 2007 Strong financial platform Improving returns for shareholders

19 Minara Resources Limited Peter Johnston Chief Executive Officer October 2007

20 Minara Resources Limited Additional information October 2007

21 Murrin Murrin tenements and borefields

22 Heap leach process flow chart

23 Heap leach process pads

24 Heap leach process stacking ore

25 Heap leach process conditioning drum

26 Heap leach process irrigation

27 Heap leach process ponds

28 Heap leach process feed into plant

29 Shutdown activities

30 Acid Plant additional storage tank

31 H2S new reactors

32 HX 19 new heat exchange unit

33 Acid plant - Superheater replacement

34 Acid plant enlarged blowers

35 Acid plant - catalyst replacement