Low Cost Ferro-Alloy Production for the European Steel Industry. Chris McNamee Managing Director

Transcription

1 Low Cost Ferro-Alloy Production for the European Steel Industry Chris McNamee Managing Director

2 These presentation materials and the accompanying verbal presentation ( Presentation Materials ) have been issued by Steelmin Limited (the Company ) in relation to a proposed issue of securities and fundraising. The Presentation Materials do not comprise an admission document, listing particulars or a prospectus relating to the Company or any of its subsidiaries or associated companies (together, the Group ). The Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company ( Company Securities ) nor shall they or any part of them form the basis of or be relied upon in connection therewith or act as any inducement to enter into, any contract or commitment with respect to such securities. The information in these Presentation Materials is in draft form and is incomplete and is subject to updating, completion, revision, verification and amendment. 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3 Project Background The plant is located in Jajce, in central Bosnia and formed part of the Elektrobosna industrial group It was one of the largest and best known producers of ferrosilicon and silicon metal in Europe Following the war, the business was privatised and the ferro-alloy operations were sold off in two parts One facility was sold to the Italian ferro-alloy producer Metalleghe The second larger facility was sold to local interests. It reopened briefly in the early 2000's but ceased operations in 2005 due to a lack of working capital. Steelmin acquired control of the facility at the end 2011 Steelmin plant has two furnaces, a 48 MVA installed power Elkem furnace and a 30 MVA Tagliaferri furnace 2

4 Steelmin Plant Under Elektrobosna Ownership 3

5 Steelmin Plant Under Elektrobosna Ownership 4

6 Project Highlights Very low upfront capex Structurally low cost FeSi75 producer In production by Q Leverages advantages of Bosnia Low upfront capex and low on-going operating costs 5

7 Project Status Senior operational management team in place Obtained all required permits for refit and operation Secured surrounding land for future expansion Completed significant site works Received expressions of interest to buy product from 24 European steel producers and secured quotes for all required raw material supplies On track to be put back into production Q and produce 28,000 tonnes of FeSi75 per annum from the first furnace Looking to close the final round of funding for 4m in late May which will be enough to put the first furnace back into operation Ready to be put back into production by Q

8 Steelmin Management Team General Manager Djevad Delic Production Director Dragomir Culic Process Engineer and Metallurgist Has over twenty-five years of experience in Ferroalloys (Silicon, Chromium, Nickel, Manganese and Vanadium) Smelting Worked for over 10 years at Rio Tinto, Simcoa and Promet Engineering in Australia Spent 15 years working for Elektrobosna at Jajce plant Master Chemical Engineer Has over twenty-five years of experience of managing quality control of ferro alloys Author of over 15 reports concerning the optimisation of ferroalloy production Managed the R&D department of Elektrobosna in Jajce plant before closure Technical / Maintenance Director Perica Puric Mechanical Engineer Has over thirty years of experience Managing preventive mechanical maintenance for FeSi plants Spent 12 years working for Elektrobosna at Jajce plant Recruited the team who ran the plant before it closed 7

9 Steelmin Board Chairman David Archer Over 30 years experience in resources & minerals processing sectors Former CEO of Savage Resources Limited and Hillgrove Resources Limited and former Chairman of Crusader Resources Limited Savage owned and operated the Clarkesville Zinc Smelter in Tennessee, USA Managing Director Chris McNamee Non-Exec Director Stephen Copulos Over 15 years of Corporate Finance and Accounting experience Began career at KPMG and prior to joining Steelmin spent the previous 8 years in Investment Banking and Private Equity at Goldman Sachs, National Australia Bank and 17Capital in Sydney and London Holds a Bachelor of Commerce degree and is a member of the Institute of Chartered Accountants Australia. Over 30 years experience in Property Development, Retail, Fast food, Hospitality, Bio-tech, Healthcare, Manufacturing & Mining Managing Director of Copulos Group, an Australian private global investor Executive Chairman of Australia s largest independent KFC franchisee Previous experience as Managing Director & Non Executive Director of four ASX listed Companies Major shareholder of Steelmin Experienced Board 8

10 Bulgaria Bosnia Romania Portugal France Greece Luxembourg Spain Finland Ireland Estonia Sweden Netherlands Hungary Belgium Slovenia Poland Latvia United Kingdom Germany Denmark Italy Slovakia Czech Rep. Austria Lithuania Cyprus Malta Average / kwh for 2012 Electricity costs Source: European Energy Portal for users great than 250GWh / year for 2012 Bosnia an ideal European country for Ferrosilicon production 9

11 Location: Jajce Ideally placed for servicing European customers 10

12 Bosnia as an Investment Destination Shared border with the EU Croatia joins the EU in July Government and commercial incentives amongst the lowest electricity and labour costs in Europe and corporate tax exemptions to companies who export over 30% of production Foreign Investment Rights and Protections - foreign investors have same rights as domestic investors, nor are there are no limits placed on percentage of business that can be owned by foreigners, except for media and defence Significant EU oversight - Bosnia is a potential candidate country for EU accession and the prospect of their accession to membership as critical to the country s continued stability Government is very keen to attract new investment 11

13 Summary Senior operational team in place Obtained all required permits for refit and operation On track to be put back into production Q and produce 28,000 tonnes of FeSi75 per annum from the first furnace and 45,000 from the two furnaces combined Ready to be put back into production by Q

14 Steelmin Plant in

15 Contact: Steelmin Limited Chris McNamee Managing Director London Office 18 Pall Mall London SW1Y 5LU