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

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Transcription:

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

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. The Presentation Materials are confidential and being supplied to you solely for your own information and may not be reproduced, further distributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person or published, in whole or in part, for any purpose whatsoever. No reliance may be placed for any purpose whatsoever on the information contained in the Presentation Materials or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company, or any member of the Group or their respective shareholders, directors, officers, employees, agents or advisors or any other person as to the fairness, accuracy or completeness of the information or opinions contained in the Presentation Materials, and no liability is accepted for any such information or opinions or otherwise arising in connection therewith (including in the case of negligence, but excluding any liability for fraud). The information contained in Presentation Materials is provided as at the date of this presentation and is subject to amendment, revision and updating in any way without notice or liability to any party. These Presentation Materials contain forward-looking statements, including in relation to the Group s proposed strategy, plans and objectives. By its very nature, such forward-looking information requires the Group to make assumptions that may not materialise or that may not be accurate. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Group that could cause the actual performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Furthermore, the forward-looking information contained in the Presentation Materials is made as of the date of the Presentation Materials and accordingly, you should not rely on any forward-looking statements and the Group accepts no obligation to disseminate any updates or revisions to such forward-looking statements. The forward-looking information contained in this presentation is expressly qualified by this cautionary statement. The Presentation Materials do not constitute an offer of securities for sale in the United States, Canada, Australia, Japan, the Republic of South Africa, or the Republic of Ireland nor must they be distributed to persons with addresses in the United States, Canada, Australia, Japan, the Republic of South Africa or the Republic of Ireland, or to any national or resident of the United States, Canada, Australia, Japan, the Republic of South Africa, the Republic of Ireland or to any corporation, partnership, or other entity created or authorised under the laws thereof. Any such distribution could result in a violation of American, Canadian, Australian, Japanese, South African or Irish law. It is the responsibility of each recipient outside the UK to ensure compliance with the laws of and regulations of any relevant jurisdiction. The Company Securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the US Securities Act ) or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined in Regulation S under the US Securities Act. The Company has not been registered and will not register under the United States Investment Company Act of 1940, as amended. The Presentation Materials have not been approved by any authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000 ( FSMA ). The Presentation Materials are exempt from the general restriction set out in section 21 of the FSMA on the communication of invitations or inducements to engage in investment activity on the grounds that they are directed only at persons whose ordinary activities involve them in acquiring, holding, managing and disposing of investments (as principle or agent) for the businesses of their business and who have professional experience in matters relating to investments and are qualified investors as defined in section 86(7) of FSMA being persons falling within the meaning of Article 2(1)(e) of the Prospectus Director (Directive 2003/71/EC) ( Qualified Investors ) and in the United Kingdom fall within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ( the Order ); or are persons who fall within Article 49 of the Order, all such persons together being referred to as Relevant Persons. The Company Securities are available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire the Company Securities will be engaged in only with, Relevant Persons. By agreeing to receive the Presentation Materials and continuing to attend the presentation to which they relate you: (I) represent and warrant that you are a Relevant Person; and (ii) agree to the foregoing (including, without limitation, that the liability of the Company, any member of the Group and their respective shareholders, directors, officers, employees, agents and advisors or any other person shall be limited in the manner described above); and (iii) you represent and warrant that you will use the information in the Presentation Materials solely for evaluating your possible interest in the Placing and for no other purpose. Any person who is not a Relevant Person or who does not have professional experience in matters relating to investors should not act or rely on the Presentation Materials including this document or any of its contents. Reliance on the communication set out in these Presentation Materials for the purposes of engaging in any investment activity may expose an individual to a significant risk of losing all of their investment or of incurring additional liability. Any individual who is in any doubt as to the investment to which these Presentation Materials relate should consult an authorised person specialising in advising on investments of the kind referred to in these Presentation Materials. 1

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

Steelmin Plant Under Elektrobosna Ownership 3

Steelmin Plant Under Elektrobosna Ownership 4

Project Highlights Very low upfront capex Structurally low cost FeSi75 producer In production by Q4 2013 Leverages advantages of Bosnia Low upfront capex and low on-going operating costs 5

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 Q4 2013 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 Q4 2013 6

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

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

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 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 - Source: European Energy Portal for users great than 250GWh / year for 2012 Bosnia an ideal European country for Ferrosilicon production 9

Location: Jajce Ideally placed for servicing European customers 10

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

Summary Senior operational team in place Obtained all required permits for refit and operation On track to be put back into production Q4 2013 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 Q4 2013 12

Steelmin Plant in 2013 13

Contact: Steelmin Limited Chris McNamee Managing Director +44 7906 893 016 +387 63 107 815 chrism@steelmin.com London Office 18 Pall Mall London SW1Y 5LU www.steelmin.com