Pre Feasibility Study September 2013

Transcription

1 Pre Feasibility Study September Completed Feasibility Studies First tin production Positive PFS completed JORC Resource Update: 13.1MT Snow Peak acquires Mt Garnet Concentrator 2012 Completed 9,000m drilling Continued flowsheet development 2011 Completed 15,100m drilling Continued flowsheet development Cornerstone Investor, Snow Peak 2010 JORC Resource Update: 7.3MT Completed 80t bulk sample test through Greenbushes plant CSD lists on ASX Initial JORC Resource completed at 5.3MT Metallurgy test work commences Completed 2,300m drilling Employed experienced tin metallurgist Bob Shelley to drive metallurgy test work

2 Disclaimer This presentation has been prepared by Consolidated Tin Mines Ltd (CSD) based on information from its own and third party sources and is not a disclosure document. This Presentation does not purport to contain all information that a prospective investor may require in connection with any potential investment in CSD. You should not treat the contents of this Presentation, or any information provided in connection with it, as financial product advice or advice relating to legal, taxation or investment matters. Before acquiring any Securities, you should consult your own advisers and conduct your own investigation and analysis in relation to CSD. No representation or warranty is made by CSD or its advisers, agents or employees as to the accuracy, completeness, reasonableness or attainability of any estimates, forecasts or projections set out in this Presentation or provided in connection with it and they do not accept responsibility or liability for any loss or damage suffered or incurred by you or any other person or entity however caused relating in any way to this Presentation. Any liability of CSD, its advisers, agents and employees to you or to any other person or entity arising out of this Presentation including pursuant to the Australian Securities and Investments Commission Act, 2001, Corporations Act 2001 and the Trade Practices Act 1974 or any other applicable law is, to the maximum extent permitted by law, expressly disclaimed and excluded. Forward Statements This Presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of CSD. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of CSD may be influenced by a number of factors, many of which are outside the control of CSD. No representation or warranty, express or implied, is made by CSD or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause CSD s actual future results, performance or achievements to be materially different from those expected, planned or intended, Recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. CSD does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended. Competent Persons The information in this announcement that relates to the Mount Garnet Mineral Resource is based on information compiled by Mr Michael Andrew, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Andrew is a Principal of Optiro Pty Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken 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. Mr Andrew consents to the inclusion in this 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 Processing Engineering Capital and Operating Estimates is based on information reviewed by Mr Alisdair Finnie (B.Sc., Grad Dip. Min Sc, MAusIMM). Mr Finnie is Processing Engineering Manager of Como Engineers and has 15 years of relevant experience in these areas of work. Mr Finnie consents to the inclusion in this report of the matters based on information provided by him and in the form and context in which it appears. The information in this announcement that relates to mine design, mine costing, and capital costs for mining is based on information reviewed by Mr Richar Guerra, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Guerra is a consultant working for Mine RP Ltd and was engaged by Prism Mining Pty Ltd to prepare the mine design, mine costing and mining costs for Consolidated Tin Mines Limited PFS report. Mr Guerra has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken 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. Mr Guerra consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. 2

3 Corporate Overview Issued Capital ASX Code Shares Listed Options Price & Capitalisation Share price (30/09/2013) Market Cap. CSD Million 61.7 Million $0.20 on/before 31/12/2013) 0.06 cents $13.4 Million Cash position (30/06/13) $ 291,698 Number of shareholders 1,097 Share Register Snow Peak % Ralph DeLacey 7.28% Beacon Minerals 6.81 % Geocrystal Ltd 4.48 % John Sainsbury 3.20 % Top 20 hold: % Board of Directors Ralph DeLacey Andrew Kerr Darryl Harris Si He Tong Managing Director / Chairman Non-Executive Director Non-Executive Director Non-Executive Director 3

4 A Consolidated Team B O A R D O F DIRECTORS Ralph De Lacey Chairman Managing Director Andrew Kerr Non Executive Director Darryl Harris Non Executive Director Si He Tong Non Executive Director M ANAGEMENT John Banning Executive General Manager Michael Proctor Manager Project Development Bob Shelley Metallurgical Manager Michael Hicks Exploration Manager Caroline O Brien Office Manager 4

5 Project Location 5

6 JORC Resource Table TIN (Sn) Cut-off Sn_EQ % Measured tonnes Sn% Indicated tonnes Sn% Inferred tonnes Sn% Total tonnes Sn% Gillian 0.2 1,105, ,563, , ,599, Pinnacles ,461, ,575, ,035, Deadmans Gully , , Windermere , ,211, ,040, TOTAL 1,105, ,296, ,716, ,118, IRON (Fe) Cut-off Sn_EQ % Measured tonnes Fe% Indicated tonnes Fe% Inferred tonnes Fe% Total tonnes Fe% Gillian 0.2 1,105, ,563, , ,599, Pinnacles ,461, ,575, ,035, Deadmans Gully , , Windermere , ,211, ,040, TOTAL 1,105, ,296, ,716, ,118, FLUORINE (F) Cut-off Sn_EQ % Measured tonnes F% Indicated tonnes F% Inferred tonnes F% Total tonnes F% Pinnacles ,461, ,575, ,035, TOTAL - - 5,461, ,575, ,035, TIN EQUIVALENT Cut-off Measured Sn_EQ Indicated Sn_EQ Inferred Sn_EQ Sn_EQ (Sn_EQ) Sn_EQ % tonnes % tonnes % tonnes % Total tonnes % Gillian 0.2 1,105, ,563, , ,599, Pinnacles ,461, ,575, ,035, Deadmans Gully , , Windermere , ,211, ,040, TOTAL 1,105, ,296, ,716, ,118, Sn equiv alent is based on the following Formula, product pricing and metallurgical recov eries; Sn%+(Fe%* FeREC* Fe$/t/Sn$/t)+(F%* FREC* F$/t/Sn$/t) (Sn%)+(Fe%* 0.75*(150/20,000))+(F%* 0.7*(400/20,000)) Sn = AU$ 20,000/tonne, Fe = 75% recov AU$ 150/tonne F = 70% recov AU$ 400/tonne REC = Recov ery 6

7 Prefeasibility Study Results HIGHLIGHTS Positive PFS for the Mt Garnet Tin Project demonstrates the technical and economic viability of the project utilising the existing Mt Garnet concentrator infrastructure 1Mtpa open cut mine forecast to produce 2,944t per annum of tin in concentrate Minimum 9 year mine life NPV of A$184.1M before tax (A$110.3M after tax) at 8% discount rate using base case tin price of A$24,000/t Capital payback indicated at 2 years, IRR of 111% Highly competitive production costs of A$91.94/tonne of ore Free On Board (FOB)¹ Robust combined total cost of A$13,917/tonne Tin FOB (with by-product revenue credits) Project capital cost to first production of A$76M Project average annual revenue expected to be A$127.4M Annual average operating cash flow (after capital costs, before tax) of A$29.7M ¹Free On Board includes all costs loaded on ship; including operating costs, ore and concentrate haulage, port levy and royalties 7

8 Prefeasibility Study Results HIGHLIGHTS (CONT.) Reductions in the capital and operating cost base expected through further review and optimisation of processing and mine design Diversified project commodity base lowers financial risk profile Continued support from cornerstone investor and largest shareholder, Snow Peak International Investment Limited PFS completion triggers finalisation of discussions with Snow Peak investors to ensure that full asset value is realised for all stakeholders PFS strongly supports progression to Definitive Feasibility Study (DFS) Consolidated Tin remains on-track to become a significant and profitable Australian tin producer 8

9 Key Outcomes Annual average Total for 9 years Mining inventory / average mill throughput 0.93 Mt 8.4 Mt Project revenue A$127.4M A$1,146.6M Estimated operating cash flow after capital costs A$29.7M A$267.2M Tin in concentrate production 2,944 tpa 26,495 t Iron production 65% Fe) 234,970 tpa 2,114,732 t Fluorite production 86% CaF2) 53,860 tpa 484,743 t Total cost (after by-product credits) A$13,917/t tin produced 9

10 Tin Price Sensitivity Tin Price A20,000/t Base case A$24,000/t A$25,000/t NPV (at 8% discount) after tax A$60.3M A$110.3M A$122.6M IRR 52% 111% 131% Life of Mine (LOM) Operating Margin (FOB), ore treated A$32.92/t A$45.28/t A$48.38/t LOM cash surplus, before tax A$275.2M A$378.5M A$404.3M 10

11 CAPEX / OPEX Capital Expenditure Breakdown A$M Cost Estimates Mine Infrastructure 1.8 Existing plant reconfiguration 32.1 Roasting / Tin fuming 40.6 Tenure & Environmental 1.5 TOTAL 76 Operating Expenditure Breakdown A$/t ore Mining Cost (Inc Overheads) Processing Cost (Inc Overheads) Cost of Sales 4.12 Ore Haulage/Concentrate Freight Cost FOB Total Operating Cost

12 Sensitivities 8% Discount Rate Tin Price A$24,000t, exchange rate A$0.95/US$1.00 OPEX = 91.94t, CAPEX 76M Sales Price Mining OPEX Processing OPEX Transport to Port Transport to Plant Exchange Rate $180M $170M $160M $150M $140M $130M $120M $110M $100M $90M $80M $70M $60M $50M -10% -5% 0% 5% 10% 12

13 A$ Millions Sensitivities 13

14 Simplified Flowsheet 14

15 Gillian Proposed Mine VIEW WEST 15

16 Pinnacles Draft Pit Design VIEW SOUTH 16

17 Infrastructure and ports 17

18 Similar Commercially Proven Process WAELZ KILNS Fuming and recapture of Zn and Pb from low grade ores or steel plant residues under reducing atmosphere 9 kilns in operation since

19 Similar Commercially Proven Process AUSMELT 6 plants in operation worldwide Fuming and recapture of Sn from ore in a top submerged lance furnace which also produces liquid iron product Kiln in operation at Yunnan Tin, Kunming Province, China. World largest tin producer. Minsur/Funsur in Peru operate an Ausmelt unit on tin 19

20 Similar Commercially Proven Process OPERACIONES METALÚRGICAS S. A. Fuming and recapture of Sn from ore in rotary furnaces Location Bolivia In operation since 1940 Annual production around 3,400 tonne Sn 20

21 Similar Commercially Proven Process GAS CLEANING PROCESS FOR SN FUME COLLECTION Standard process used worldwide Used for gas cleaning and emission control in the metallurgical industry for pyrometallurgical processes smelters, kilns, roasters, furnaces etc Used for treating and recovery in off gas streams of: Dust particles Elements including Zn, Sn, Pb, As, Hg, S and numerous others Basic steps are: Gas cooling in a scrubber Particulate removal in a baghouse or ESP Can handle large volumes of gas and upset conditions High recovery and cleaning efficiency + 99% 21

22 Tin supply outlook Future tin supply constrained and global production declining Producers facing lower grades and increasing operating costs New uses adding demand pressure Few new sustainable tin projects in development 2013 Forecast Global tin consumption 340,000t Global refined tin production 339,000t Global mine production 274,700t Top Tin Producing Countries China world largest producer 160,000t Indonesia 55,000t Malaysia 31,000t Thailand 21,000t Peru (mostly San Rafael mine-closing 2017) 23,000t 22

23 Indonesia - 2 nd largest Producer JAKARTA POST 27TH SEPTEMBER 2013 JAKARTA: Indonesian refined tin shipments are expected drop by around 75 percent in September-December from the same period last year, the country s leading cargo surveyor said, after new trading rules slashed output. The rules, which aimed to establish a benchmark price in Indonesia, have already driven the nation s biggest tin producer, state-backed PT Timah, to halt shipments and declare force majeure. Analysts and traders are unsure how long it will take tin buyers and the country s 47 registered tin exporters to adjust, with the move helping push up international tin prices by 9 percent this month. From September until year-end, Southeast Asia s largest economy will likely ship only 10,000 tons of tin, said Sufrin Hannan, director of the minerals and coal division at PT Sucofindo, a state-owned company. That compares with around 38,000 tons in the same period in We estimate tin exports from September to December [...] will be around 10,000 tons, said Sufrin. Reuters 23

24 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 LME Tin Price T W E L V E M O N T H T I N P R I C E R A N G E ( U S D ) A$24,546/t 26/09/13 Pricing based on LME Cash Price on 26/09/13 - US$22,975 Exchange rate on 26/09/13 USD/AUD

25 Tin Price C R Y S T A L B A L L G A Z I N G Forecast Price USD Thousands $25 $24 $23 $22 World Bank Commodity Forecast July 2013 EIU Economic and Commodity Forecast May 2013 Reuters Analyst Survey 29 July 2013 CRU Projection 24 June 2013 $21 Linear (Trend) $

26 What s next? Final drilling on Gillian deposit consisting of approximately 6,000m RC and 1,500m HQ Diamond, scheduled to start 14 th October Pilot scale reverse silica flotation planned with completion expected by end of 2013 Pilot scale reduction roasting trials expected to commence at Ansac factory at Bunbury WA early January 2014 Optimisation of CAPEX and OPEX inputs to improve project economics Definitive Feasibility Study (DFS) for the Mt Garnet Tin Project commencing with Gillian, with further evaluation work to follow at Pinnacles and later at Windermere Finalise a binding agreement with Snow Peak to ensure that the value of respective assets are maximised with the aim of achieving tin production by end 2014 Finalise CAPEX funding arrangements 26

27 Contact Details Ralph De Lacey Managing Director Consolidated Tin Mines Limited Ph: (07) Fax: (07) Mob: E: Darryl Harris Non-Executive Director Consolidated Tin Mines Limited Ph: (07) Fax: (07) Mob: E: F O L L O W O U R D E V E L O P M E N T A T W W W. C S D T I N. C O M. A U 27