TERRAMIN AUSTRALIA LIMITED Annual General Meeting 30 May 2018
Disclaimer & Competent Person Statement Disclaimer This presentation has been prepared by Terramin Australia Limited (Terramin). It is current as at the date of this presentation. It contains information in a summary form and should be read in conjunction with Terramin s other periodic and continuous disclosure announcements to the Australian Securities Exchange (ASX) available at www.asx.com.au An investment in Terramin shares is subject to known and unknown risks, many of which are beyond the control of Terramin. In considering an investment in Terramin shares, investors should have regard to (amongst other things) the risks outlined in this presentation and in other announcements and disclosures made by Terramin to the ASX. This presentation contains statements, opinions, forecasts and other material based on various assumptions which may or may not be correct. The information contained in this presentation does not take into account the investment objectives, financial situation or particular needs of any recipient and is not financial advice or financial product advice. To the extent permitted by law, Terramin, its directors, officers, employees, agents, advisers and persons named in its presentation: give no warranty or guarantee as to the accuracy or likelihood of fulfilment, any assumptions upon which any part of this presentation is based or the accuracy, completeness or reliability of the information contained in this presentation; accept no responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this presentation. Competent Person Statement The information in this Presentation that relates to Exploration Results and Mineral Resources is based on information compiled and thoroughly reviewed by Mr Eric Whittaker. The information that relates to Ore Reserves for Angas and Tala Hamza is based on information thoroughly reviewed by Mr Joe Ranford. Mr Whittaker and Mr Ranford are Members of The Australasian Institute of Mining and Metallurgy. At the time of their respective estimates Mr Whittaker was a Principal Resource Geologist and Mr Ranford was General Manager Operations and both were employees of Terramin Australia Limited. Both have sufficient experience relevant to the style of mineralisation and type of deposit(s) under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined by the relevant 2004 or 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves as specified in the explanation notes above. Mr Whittaker and Mr Ranford consent to the inclusion in the presentation of the matters based on their information in the form and context in which it appears. TERRAMIN AUSTRALIA LIMITED SLIDE No. 2
About Terramin Australia Limited Significant base metal and gold development portfolio Tala Hamza Zinc Project Bird-in-Hand Gold Project Substantial South Australian multi-commodity exploration tenement portfolio Management and Board with extensive practical and commercial experience in all stages of project development and mining TERRAMIN AUSTRALIA LIMITED SLIDE No. 3
2017 Highlights Tala Hamza Zinc Project Project design and technical studies have been completed. Definitive Feasibility Study completed. Environmental Impact Studies completed. Review and approval processes with Algerian Government well advanced. Bird in Hand Gold Project Draft Bird-in-Hand Mining Lease application has been lodged and is currently being reviewed by SA government agencies. Positive referral decision from the Federal Department of Environment and Energy under the EPBC Act. Community consultation processes well established. Other project development Kapunda In-situ Recovery Copper joint venture established. TERRAMIN AUSTRALIA LIMITED SLIDE No. 4
Tala Hamza Zinc Project World class resource containing 3.9 million tonnes of zinc and lead - Resource of 68.6 million tonnes at 5.7% zinc plus lead. Joint venture with Algerian government owned entity (65% Terramin). Infrastructure including deep water port and international airport. Low operating cost due to availability of low cost power and fuel. Young well educated workforce available. TERRAMIN AUSTRALIA LIMITED SLIDE No. 5
Tala Hamza Zinc Project Design of project has been finalised. The design incorporates revised elements which significantly enhance the project such as dry stacking of tailings and reduced project footprint. Definitive Feasibility Study in final stages of review. Environmental Impact Study finalised. Extensive review of the project has been undertaken by our Algerian partner and other Algerian agencies. This process is ongoing TERRAMIN AUSTRALIA LIMITED SLIDE No. 6
Tala Hamza Zinc Project Low upfront capital relative to scale of project Availability of local infrastructure reduces capital expenditure. Competitive operating costs low labour and energy costs drive low cash costs. Potential expansion strong exploration upside at Tala Hamza and in the immediate vicinity. Detailed financials to be released upon approval of JV partner and Algerian regulator. TERRAMIN AUSTRALIA LIMITED SLIDE No. 7
Global Zinc Markets After the significant reduction in mine supply in 2015 and 2016, there was an increase in production in 2017. New mine production (Dugald River, Mt Isa, Castellanos, and Gamsberg) is expected to result in a modest increase in production up to 2020. Only a small increase in Chinese zinc production due to strict enforcement of environmental regulations constraining production. Global demand for zinc continues to grow at 2% CAGR. Chinese demand growth remains strong led by housing construction, consumer goods and the automotive sector. Source: Teck TERRAMIN AUSTRALIA LIMITED SLIDE No. 8
Global Zinc Markets Zinc market is in deficit and has been consuming zinc stockpiles since 2012. Significant cumulative rundown of zinc stocks. Small surplus Q1 2018 (25kt). However, ILZSG forecast deficit in FY2018. Zinc price very sensitive to supply disruptions. Zinc Stocks and Prices Source: ILZSG TERRAMIN AUSTRALIA LIMITED SLIDE No. 9
Global Zinc Markets Zinc market remains supply constrained. Underinvestment in zinc exploration and development. New mines are lower grade and older mines are reaching the end of their commercial lives. Long development lead times mean there is insufficient potential supply in the medium term. Tala Hamza is well positioned to take advantage of market developments. Source: Teck TERRAMIN AUSTRALIA LIMITED SLIDE No. 10
Gold AUD Price Remains High Gold price remains at historic highs in AUD terms. Australian Gold Production and Price Australian gold price averaged A$1,754 a troy ounce in 2016 17. Highest level since the recent historical peak in 2011 12. Growth in demand for gold 1.8% CAGR driven largely by increasing affluence in India and China. Australian gold exports expected to peak at $19 billion in 2019-2020. Attractive scenario for gold exploration in Australia resulting in a 21% increase in 2017 to $750 million. Source: Dept. Industry, Innovation and Science Resources and Energy Quarterly March 2018 TERRAMIN AUSTRALIA LIMITED SLIDE No. 11
Adelaide Hills Projects 100% Terramin. Bird-in-Hand Gold Project Resource of 252,000 ounces at 13.3gt. Angas Zinc Mine Processing Plant Existing 400,000 tonnes per annum base metals processing plant and tailings dam. 3,750 square kilometres of exploration tenements including over 300 historic gold, copper and other base metal mines. Established base metal mining province with significant mining operations. Established infrastructure with experienced residential workforce. Multiple copper, zinc, lead and gold exploration targets. TERRAMIN AUSTRALIA LIMITED SLIDE No. 12
Bird-in-Hand Gold Project High grade mine based on 13g/tonne gold resource. Low start up capital. Processing through existing Angas Zinc Mine plant. Engineering studies have been completed. Approval process well advanced with draft Mining Lease application lodged and feedback being received. Terramin owns all the freehold land it requires for project development. Community consultation process underway. TERRAMIN AUSTRALIA LIMITED SLIDE No. 13
Bird in Hand Gold Project Exploration Potential Simple orebody structure means lower mining costs. Existing Bird in Hand gold deposit is open at depth. Nearby historic mines Bird- Extended and the Ridge recorded historical high grade production. Potential for further discoveries. TERRAMIN AUSTRALIA LIMITED SLIDE No. 14
Strong Growth potential Tala Hamza Zinc Project Algeria (65%) Excellent relationship with JV partner and government. Revised DFS and EIS based on new project structure. On path towards decision to mine and approval. Bird in Hand Gold Project - South Australia (100%) 252,000 ounce high grade gold project with exceptional exploration potential. Existing Angas 400ktpa processing plant and associated infrastructure can be leveraged. On path towards approval. Exploration - South Australia (100%) 12,000 square kilometre of exploration licences. Advancing $6.0 million study on the in situ extraction of copper at Kapunda. Exposure to 2 most attractive metals: Gold at new historically high levels in A$ terms. Zinc price expected to continue to perform due to supply restrictions. TERRAMIN AUSTRALIA LIMITED SLIDE No. 15
Focus for 2018 Obtain approval for the development of the Tala Hamza Zinc Project. Release technical and economic Feasibility Study outcomes for Tala Hamza. Progress land acquisition and financing options with Algerian government. Increased capability for Tala Hamza project development. Lodge final Bird in Hand Gold Project Mining Lease application. Release Pre-Feasibility Study outcomes for Bird in Hand. Continue to look for avenues to extract value from significant tenement portfolio. TERRAMIN AUSTRALIA LIMITED SLIDE No. 16
TERRAMIN AUSTRALIA LIMITED Annual General Meeting 30 May 2018