For personal use only. VWM Fast-Tracks Entry into Indonesian Coal Sector

Transcription

1 VWM Fast-Tracks Entry into Indonesian Coal Sector September 2011

2 Disclaimer Forward-Looking Statements This presentation may contain forward-looking statements that are subject to risks, uncertainties and other factors associated with exploration and mining that are in some case beyond the control of Victory West Metals. Readers can identify a forward-looking statement by terminology such as aim, anticipate, assume, believe, continue, could, estimate, expect, forecast, intend, likely, may, plan, potential, predict, project, risk, should, will or would and other similar expressions. It is believed that the expectations reflected in these statements are reasonable but they may be affected by variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency movements, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, tenement renewals, project delay or advancement, approvals and cost estimates. Readers are cautioned not to place undue reliance on forward-looking statements. All persons should seek appropriate financial professional financial advise in reviewing or considering the document and all other information with respect to Victory West Metals Limited and evaluating the business, financial performance and operations of Victory West Metals Limited. Neither the provision of the document nor any information contained in the document or subsequently communicated to any person in connections with the document is, or should be taken as, constituting the giving of investment or financial product advise to any person in respect of dealing in Victory West Metals securities, and no such information should be taken to constitute a recommendation or statement of opinion that is intended to influence a person in making a decision to deal in Victory West Metals securities. This document does not purport to contain all of the information that maybe required to evaluate all of the factors that would be relevant in determining whether to deal in Victory West Metals securities, including but not limited to any person s objectives, financial situation or needs. Each person should make, and will be taken to have made, its own investigation, assessment and analysis of the information in this document and other matters that may be relevant to it in considering whether to deal in Victory West Metals securities. JORC Exploration Targets It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this presentation relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserves(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource. In accordance with Clause 18 of the JORC Code, it is important to note that no JORC Mineral Resources or Ore Reserves have been established on these tenements and any current assessment remains subject to ongoing exploration work and drilling. The current interpretation remains preliminary and is based on exploration, evaluation and resource definition work performed by previous owners. Competent Persons Statement The information in this presentation that relates to Exploration Results, Resources and Reserves is based on information reviewed and evaluated by Mr. Peter Macey who is a member of the Australian Institute of Geoscientists and holds a Bachelor of Science (Geology & Chemistry), a Masters of Science in Environmental Management, is an accredited professional geoscientist and environmental auditor, and who has sufficient experience 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ). Mr. Peter Macey is a fulltime employee of AustralAsian Resource Consultants Pty Ltd and he consents to the results as they appear. 9 September Page 2

3 VWM Overview VWM is acquiring thermal & coking coal assets in Indonesia, to compliment existing molybdenum & copper / gold assets East Kalimantan Selected Coal Projects Malala Molybdenum Project Kalimantan Pipeline Coal Projects Novienindo Copper & Gold Project Company vision to secure 50 to 100Mt of JORC compliant coal resource * * In accordance with Clause 18 of the JORC Code, it is important to note that no JORC Mineral Resources or Ore Reserves have been established on these tenements and any current assessment remains subject to ongoing exploration work and drilling. 9 September Page 3

4 VWM Corporate Structure Corporate Structure as at 8 th September 2011 Total Fully Paid Shares on Issue Market 8 cents million A$13.4 million Listed Options (20 cents, expiring 24 Feb 2012) 84.1 million Unlisted Options (20 cents, expiring 31 Dec 2011) 25.0 million Unlisted Performance Options (25 cents, expiring 31 Aug 2014) 3.3 million Unlisted Performance Options (25 cents, expiring 31 Aug 2014) 3.0 million Performance Shares 10.0 million Convertible Note (matures September 2011) A$2.0 million Convertible Loans & Payments A$0.8 million 9 September Page 4

5 VWM Highlights VWM sign Heads of Agreement to acquire 100% of South East Asia Energy Resources Pte Ltd ( SEAE ) Full consideration only paid on milestones: o Annual Production = 2.4 Mt o JORC Inferred Resource = 50 Mt Acquisition positions VWM to: o Diversify into thermal and coking coal assets o Move quickly to production & cashflow o Become a significant player in Indonesian coal 9 September Page 5

6 VWM Highlights South East Asia Energy Resources Pte Ltd ( SEAE ) has: o Rights to 85% interest in BEK Coal Project, East Kalimantan o Pipeline of 9 coal concessions in East Kalimantan o Initial offtake agreements for 200,000 tonnes per month from major parties including PetrolTek (Korea/Europe) o Ability to develop all necessary transport, loading & port infrastructure for the respective projects o All required licences for mining services & coal export in Indonesia 9 September Page 6

7 VWM Highlights Re-rating opportunity based on: o BEK Project having mineralisation in excess of vendor expectation of 6Mt of high grading thermal coal (5,000+ Kcal/kg) o Only 6% (~200Ha) of the BEK Project has been drilled to date o Potential for significant increases in coal offtake agreements as further resources defined & brought into production o Results of further work on 9 coal concessions in East Kalimantan o Target to take at least 2 more coal concessions to JORC inferred status within 24 months o Ongoing work at Molybdenum and Copper / Gold projects 9 September Page 7

8 SEAE Transaction Details Milestone VWM Shares VWM Options Cash (fully paid) 30cents) Settlement of Share Purchase Agreement 110m 11m A$750,000 SEAE projects have total annualised production 1.2 Mt & total JORC inferred resource 25 Mt 110m 11m --- SEAE projects have total annualised production 2.4 Mt & total JORC inferred resource 50 Mt 110m 11m --- TOTAL CONSIDERATION 330m 33m A$750,000 9 September Page 8

9 SEAE Coal Projects Project Concession Area Location Area (Ha) Permit Status BEK Penajam Penajam East Kalimantan 3,281 IUP Production SDH Penajam Penajam East Kalimantan 4,000 IUP Production SIA Barito Central Kalimantan 1,200 IUP Production PBE Mahakam West Kutai East Kalimantan 4,400 IUP Exploration MBA Mahakam West Kutai East Kalimantan 4,500 IUP Exploration TWP Mahakam West Kutai East Kalimantan 3,900 IUP Exploration AAP Mahakam West Kutai East Kalimantan 7,500 IUP Exploration KTP Mahakam West Kutai East Kalimantan 4,800 IUP Exploration KJ Mahakam West Kutai East Kalimantan 5,500 IUP Exploration TWPI Mahakam West Kutai East Kalimantan 4,350 IUP Exploration 9 September Page 9

10 Flagship BEK Project BEK = flagship project Ready for final stages of mine planning development JORC certification in progress Targeting coal production by end of Q September Page 10

11 Flagship BEK Project 3,281 ha concession Mining approval over entire concession Low progressive entry for high value asset Growth potential to take-over surrounding concessions Complete budget for mine takeover and development Within ~10km of river Certified Proximate Analysis (NATA Laboratory) Gross Calorific Value 5,000 6,500 Kcal/kg Ash 10% % Total Sulphur 0.43% - 1.5% Inherent Moisture 5.02% 6.26% Total Moisture 10% - 25% 9 September Page 11

12 BEK Strata & Topography Exposed Coal at Adjacent Concession to BEK Project 4m THICKNESS AND 9 0 DIP, STRIKE N E Pit & Haulage Road on Adjacent Concession 9 September Page 12

13 BEK Current Site & Logistics Crusher Process Plant 250 tonnes / hour WEIGHT BRIDGE Stockpile Area 15 hectares MANUAL JETTY BARGE LOADER WITH RAMP DOOR 9 September Page 13

14 BEK Technical Details Project drilled & cored over 200Ha for 20 holes High quality bituminous coal for export supply Coal Sample from BEK Concession Area Gross calorific value of 5,000-6,500 kcal/kg Low ash coal that requires no washing, hence 100% yield 9 September Page 14

15 BEK Timeline to Production 1. Plan Exploration JORC Program Commenced Sept Infrastructure Haul Road & Port Facility Commence Nov Infrastructure Mine Site Commence Dec Mining Operations February Coal Shipment April 2012 BEK is producing BEK is producing 9 September Page 15

16 Asia Energy Group (AEG) SEAE acquisition facilitated by Asia Energy Group Singapore: o Leading global provider of mining services with skills & experience in Indonesian coal projects o Experienced team of high quality local & overseas geologists, engineers, and project managers able to source quality coal concessions, investigate viability, acquire and profitably develop o Providers of high calibre thermal coal projects developed to production, coupled with robust management information enabling compliance with ASX and statutory requirements o Access to a strong project pipeline of Indonesian coal projects 9 September Page 16

17 Asia Energy Group (AEG) Past achievements of key AEG personnel include: o Development of coal resources & reserves for International Thermal Coal Power Groups in Indonesia (40Mt+) o Development of underground coal mining projects in Bowen Basin Queensland o Development of coal projects in NSW, VIC & TAS o Mining & processing developments in Australia, Africa, Indonesia, Thailand, New Zealand, China & South America o Design & engineering of coal & iron ore port terminals in Australia & Indonesia 9 September Page 17

18 VWM Organisation Structure VWM Board Gary Williams CEO Project Development Danny Josef CFO Paul Raftery Marketing Manager Robert Wall Operations Manager T. L. Lie Developm t Manager Construct n Manager Engineering Services Legal Advisor Financial Controller Marketing Admin Quality Control Mining Manager Logistics Manager Senior Geologist Exploration Geologist Coal Superintendent Plant Engineer Contracts Manager Clerical Assistant Office Assistant NATA Labs Mining Contractor Sourcing Port Manager AEG team + existing VWM management team = target JORC resources & production from Indonesian coal assets 9 September Page 18

19 VWM Senior Executives Gary Williams Chief Executive Officer Experienced mining executive manager with global experience 30+ years in mining, infrastructure projects, engineering & processing Held board positions in Australian and offshore resource companies Proven track record in Indonesian negotiations, legal, development & operations Danny Josef Project Development General Manager - Indonesia Project manager with civil and mining companies 20 years in Australian & Indonesian civil construction, quarry & mining operations Extensive experience in coal exploration & development in Kalimantan & Sumatra T.L. Lie Operations Manager - Indonesia 30 years in engineering, including 20 years in Indonesia & 10 years in Europe Held senior executive positions with mining contracting & resource companies Track record in pre-mine purchase due diligence for viability & profitability Managed major coal trading company 9 September Page 19

20 VWM Senior Executives Robert Wall Coal Marketing / Business Development Experienced in coal trading, marketing & trade finance in Indonesian coal industry 10+ years in investment, capital raising, trading & financial administration in USA & Asia Member of Australian Institute of Marketing & Association of Company Directors Paul Raftery Chief Financial Officer 20+ years experience as director & advisor in mining industry Held senior financial roles at major corporations including Shell, Thiess & Anglo American 9 September Page 20

21 VWM Board Mr. Steven Pynt - Chairman & Non-Executive Director 25+ years legal experience Non-executive chairman of Richfield International Limited (ASX:RIS) Director of Gondwana Resources Ltd (ASX:GDA), Global Health Ltd (ASX:GLH) & Muzz Buzz Franchising Pty Ltd (private company) Mr. Michael Scivolo - Non-Executive Director 40+ years tax & accounting experience Director of Sabre Resources Ltd (ASX:SBR), Blaze International Ltd (ASX:BLZ), Power Resources Ltd (ASX:PWW) & Prime Minerals Ltd (ASX:PIM) Mr. Wayne Knight - Non-Executive Director 20+ years financial services experience Luke Martino - Company Secretary 25+ years corporate advisory experience Director & Company Secretary of Pan Asia Corporation Limited (ASX:PZC) 9 September Page 21

22 Other VWM Projects Malala Molybdenum Project Novienindo Copper & Gold Project 9 September Page 22

23 Malala Molybdenum Project Working actively with JV Partner, China Guangshou Group Corp ( CGGC ) CGGC to acquire 65% interest for sole funding 100% of expenditure up to production Working with key Indonesia Government groups Terms relating to approvals & letters extended to 31 Oct 2011 * In accordance with Clause 18 of the JORC Code, it is important to note that no JORC Mineral Resources or Ore Reserves have been established on these tenements and any current assessment remains subject to ongoing exploration work and drilling. Initial Exploration target = 105 to pmm Molybdenum * New Geological Model identifies >300% increase in target zone = Significant upside potential 9 September Page 23

24 Novienindo Copper & Gold Project VWM continues to evaluate the Novienindo Project Recent 40 day field work program included: Mobilisation of 6 senior geologists from Malala Survey of ~5,000ha Collation of data on in-situ rock outcrop formations Sample collection from prospective zones 9 September Page 24

25 Contact Company CEO Elect Victory West Metals Limited Mr Gary Williams Address Hay Street Subiaco WA 6008 AUSTRALIA Phone Fax Web Site 9 September Page 25