www.zincox.com ProA Mine 2015 1
ZincOx Resources plc
CORPORATE PRESENTATION
Using today’s technology to make yesterday’s waste into tomorrow’s resource
“ubi est squales est aere”
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This document is for informational purposes only and must not be used or relied upon for the purposes of making any investment
decision or engaging in any investment activity. No reliance may be placed for any purpose whatsoever on the information contained in
this Presentation, nor on assumptions made as to its completeness. No representation or warranty, express or implied, is given by
ZincOx Resources plc or any of its advisers, directors, officers, employees or agents, as to the accuracy, fairness or completeness of
the information or opinions contained in this Presentation and no liability is accepted for any such information or opinions (which should
not be relied upon) or for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or information
expressed in the Presentation. The information contained in this Presentation is subject to amendment, revision and updating in any
way without any notice or liability to any party.
Certain statements in this document relate to the future, including forward looking statements including but not limited to those with
respect to the financial position and strategy of the Company, the price of zinc, the estimation of electric arc furnace dust supply, the
timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of development of new
projects, success of feasibility activities, permitting time lines, currency fluctuations, requirements for additional capital, government
regulation of operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance
coverage and the timing and possible outcome of pending litigation. These forward looking statements involve known and unknown
risks, uncertainties, assumptions and other important factors that could cause the actual results, performance or achievements to be
materially different from future results, performance or achievements expressed or implied by such statements. Such risks,
uncertainties, assumptions and other important factors include, among other things, general economic conditions, exchange rates,
interest rates, the regulatory environment, structural changes in the industries in which the Company operates, competitive pressures,
selling price and market demand. The forward looking statements in this document reflect views held only as of the date of this
document and the Company expressly disclaims any intention or obligation to update or revise any forward looking statements, whether
as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
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Disclaimer
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Contents
PART 1 PHILOSOPHY, STRATEGY and STATUS
PART 2 KOREAN RECYCLING PLANT
PART 3 NEW PROJECTS, FULL CYCLE
PART 4 2015 OBJECTIVES
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PART 1 PHILOSOPHY , STRATEGY AND STATUS
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“Urban Resource”
• 1/3 of steel from recycling (melting) scrap in Electric Arc Furnaces (EAF)
• Steel and scrap is increasingly galvanised (zinc coating to inhibit corrosion– rusting)
• Scrap contains zinc (galvanising), lead (batteries, solder), cadmuim (batteries)
• When scrap is melted in EAFs zinc, lead, cadmium are driven off in the furnace off-gasses as
oxides together with iron oxide (rust) particles
• Oxides are filtered out of the off-gasses before they are released into the environment, these
filtrates are known as Electric Arc Furnace Dust, EAFD
• Over 6 million tonnes of EAFD generated per annum
• Zinc grade typically 22-32% (Fe = 25%)
• EAFD = major growing zinc resource (equivalent to about 10% of global zinc requirement)
• Contains lead and cadmium Hazardous
Mills have paid to dispose of it (typically $40-200/t) Waste
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EAFD - ZincOx Approach
• ZincOx Strategy uses a treatment process that can recover contained metals
without a subsidy and with minimum waste
• Exceptionally strong technical team and network of engineers (ex Umicore)
• 14 years of R&D “Full Cycle” process
• Full Cycle has two parts:
1. New critical breakthrough Rotary Hearth Furnace process, splits EAFD
into exceptional zinc concentrate and iron concentrate
2. Conventional processes upgrade concentrates into final products
NO WASTE and ADDED VALUE MAXIMISED
Environmental and Economic Breakthrough
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Corporate Status
• AIM quoted international recycling company
• 166m shares in issue (mkt. cap. circa £27 million)
• Proven management team
– Building, financing and running public companies
– Considerable technical experience
• Personnel
- Headquarters - UK (6)
- Technical team - Belgium (6+)
- Production - Korea (63)
• Shareholders:
– 40% institutional
– Teck Resources
– International Finance Corporation (private sector division of the World Bank)
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PART 2 KOREAN RECYCLING PLANT
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KRP Schematic Process Flowsheet
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27% zinc
Coal Binder
63% zinc 46% iron
EAFD
Rotary Hearth FurnaceHigh Purity Iron
200,000
KOREAN RECYCLING PLANT
Zinc Concentrate Briquettes
76,819 106,489
RHF
see film on homepage www.zincox.com
www.zincox.com
Korean Recycling Plant (“KRP”)
• One of the world’s largest zinc recycling plants
• Owned 100% by ZincOx
• ZincOx investment $75mil.
• Korea Zinc Debt ($56mil. interest rate 6.2%)
• Long term feed supply contracts (2022)
• Long term zinc concentrate offtake contract with Korea Zinc (approx. 2027)
• First production April 2012
• All zinc concentrate quality is exceptional (Fe < 0,03%, halides washable < 300ppm)
• Ramp-up to full production much slower than expected due to failure of peripheral equipment
• Problems resolved
• Underlying operation at about 90% of target performance and rising
• Positive EBITDA
• Process enhancements planned
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KRP – Underlying performance
• Plant performance depends on two key parameters:
– Physical performance – Throughput, how much feed is being treated
– Process performance – Recovery, how much zinc is recovered from the feed
• Zinc production depends on plant performance and in addition
– Zinc grade of feed, how much zinc is entering the process (this is outside ZincOx’s control)
• These parameters are presented graphically on a weekly basis in the following slides from
January 2013, excluding the weeks affected by major stoppages.
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KRP – Weekly Plant Performance, 2013- Present
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0
0.2
0.4
0.6
0.8
1
1.2
Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15
Throughput as % of target (4,070t/week)
Throughput
Lack of EAFD due to holiday period for steel mills
Lack of EAFD being addressed by additional supply contracts Nominal capacity
demonstrated
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KRP – Weekly Plant Performance, 2013- Present
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KRP – Weekly Plant Performance, 2013- Present
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KRP – Revenue 2012-2014
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-
5
10
15
20
25
30
35
40
2012 2013 2014
US$
Mill
ion
s
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KRP – EBITDA (US$), 2013 - Q1/2015
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-6,000,000
-5,000,000
-4,000,000
-3,000,000
-2,000,000
-1,000,000
0
1,000,000
2,000,000
3,000,000
4,000,000
H1 2013 H2 2013 H1 2014 H2 2014 Q1 2015
Q1 2015
H1
April 2015
May 2015
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KRP – Enhancements
Optimisation (EAFD = 180,000tpa)
• Continuing improvement of combustion management inside the RHF
• Cost: nil
• Benefit: To reach target recovery and monthly throughput by September 2015
De-Bottlenecking (EAFD = 200,000tpa)
• Removal of heat exchangers
• Cost: <US$3 million.
• Benefit: To attain full annual nameplate capacity, and avoid cost of HX repairs and reduce
operating costs, annual benefit of >US$6 million per annum
Iron Concentrate Upgrading Potential (EAFD = 200,000tpa + SAF)
• Direct sales, commercial trials planned
• Investigation of dedicated iron melter on site (SAF)
• Development Cost: US$25 million.
• Benefit: Pig iron and slag sales, could enhance cash flow by about US$10 million
(Scrap=$350/t)
Zinc Concentrate Upgrading
• Not currently possible due to offtake contract with Korea Zinc
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PART 3 NEW PROJECTS “FULL CYCLE”
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Korean Recycling Plant
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27% zinc
Coal Binder
63% zinc 46% iron
EAFD
Rotary Hearth FurnaceHigh Purity Iron
200,000
KOREAN RECYCLING PLANT
Zinc Concentrate Briquettes
76,819 106,489
RHF
www.zincox.com
Full Cycle projects
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26% zinc
Coal Binder
63% zinc 46% iron
Consecutive Metal Leaching Submerged Arc Furnace
Brine Slag
15,213
EAFD100000
Rotary Hearth FurnaceHigh Purity Iron
Zinc Oxide 26,993
30,853
Zinc Concentrate Briquettes
39,206 50,897
Industrial Pig Iron
FULL CYCLE
RHF
SAF
CML
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Full cycle projects
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Zinc Oxide Industrial Chemical
• Minimum specification >97% ZnO
• ZincOx product >99.7% ZnO
• Market is about 1,200,000 tpa
• Targeting Ceramics and Rubber (70% of market)
• The premium to the value of the zinc contained
depends on the nature of impurities
• Suitability for Ceramic and Rubber applications
has been independently verified
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Tyres and rubber 47%
Ceramics 23%
Chemical 15%
Agriculture 6%
Paints 5%
Other 4%
• Rubber quality mostly produced from new zinc metal
Cost of metal + physical premium + transport + boiling (>900OC) + filtration + bagging
Sold at price in excess of value of the metal contained (about twice that of zinc concentrate)
Potential to double revenue at only about 30% additional operation cost
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Illustrative EBITDA Growth Potential (US$ millions)
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0
100
200
300
400
500
600
700
800
0
20
40
60
80
100
120
140
160
180
2015 2016 2017 2018 2019 2020 2021 2022
Cumulative value(USDm)
Value (USDm)
EBITDA and CAPEX (yearly and cumulative)
Capex
EBITDA
Cum Capex
Cum EBITDA
Ambitious roll-out strategy (KRP plus 3 x 100,000tpa Full Cycle plants)
Typical Full Cycle plant: Capacity:100,000 tpa EAFD, capital cost: $115mm,
EBITDA: $38mm, IRR >25%
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Thai Recycling Project (“TRP”)
• Thailand is well known to ZincOx, Regional HQ for ZincOx, established presence (2006)
• Good relationship with mills and government officials
• No recycling companies in the country
• EAFD grade rising (>27%)
• Effluent disposal permission demonstrated
• EAFD importation possible
• New government very supportive of Inward Investment
• Site negotiated
• Positive discussions with mills underway
• MOU for supply signed with three largest steel companies
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Plant Site
• Rayong Eco Park
• Owned by national petroleum products refining company, IRPC
• 6 hectare site
• Utilities available at fence
• 3km from coast
• Container and bulk handling ports
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TRP Site
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TRP ZincOx site
Capacity: 100,000tpa EAFD Capital cost: $115mm EBITDA: $38mm IRR: >25%
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PART 4 2015 Objectives
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2015 Objectives
KRP
Arrange EAFD imports
Optimize process
Replace heat exchangers
New Projects
Pilot CML (Europe)
Commercial trial of SAF (Korea)
Basic Engineering
TRP
Start bankable feasibility study
Other
Advance: Vietnam, Japan, etc
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