loadout location >
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Loadout Location >. Donahue Creek. MARCH 2014. Swamp Point. Stock Snapshot. Sector: Resources Property Type: Construction Aggregate Stock Market Symbol: TSX.V: HBK; Frankfurt: V7O 52-Wk Trading Range: C$ 0.05 - C$ 0.135 Shares I&O: 78,017,749 (March 06, 2014) - PowerPoint PPT PresentationTRANSCRIPT
Loadout Location >
Donahue Creek
MARCH 2014
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Swamp Point
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Sector: Resources
Property Type: Construction Aggregate
Stock Market Symbol: TSX.V: HBK; Frankfurt: V7O
52-Wk Trading Range: C$ 0.05 - C$ 0.135
Shares I&O: 78,017,749 (March 06,
2014)
Market Capitalization: C$9.4 million (approx.) 3
Sand, gravel, crushed stone essential for road building and concrete for commercial operations
Aggregate is the world’s most mined material next to oil. 2012 global sales revenues were est. at $99 billion, an increase of 41% from 2010 est. sales of $70 billion http://ow.ly/oaQzb
Annual Canadian consumption of aggregate 10 to 15 tons per person
BC Production was 38 million tonnes in 2010 valued at C$322million (2012 figures not available)
BC Production expected to considerably exceed previous years
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Athabasca Minerals TSX.V:ABM
Price: $1.7052-Wk Range: $0.68-$1.89Market Cap: $54.5 million
Polaris Minerals (TSX.V:PLS)
Price: $2.5952-Wk Range $0.94-$2.60Market Cap: $208.5 million
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Full Working Interest earned
$2.5 million of capitalized costs
Proximity to LNG projects – high demand for aggregate
NI 43-101 compliant resource
72 million tonnes measured and indicated
First sales commitment received
Cooperative agreement in place with First Nations
Near-term production, pending final permits and financing
Land position increased fourfold
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East side of Portland Canal fjord on protected, year round ice free tidewater
Site access by helicopter, float equipped aircraft, or boat
78 miles by sea north of Prince Rupert, closest West coast port to Asian markets by 33 hours
38 miles south of the Port of Stewart & 35 miles north of Grassy Point, site of proposed new LNG Terminal/Plants
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Classification Tonnes
Measured 62,936,877
Indicated 8,775,166
Measured and Indicated 71,712,043
Inferred 2,246,464
PRINCE RUPERT AREA – HAS LIMITED SUPPLIES OF
QUALITY SAND AND GRAVEL
HIGHBANK’S SWAMP POINT DEPOSIT MEETS
SPECIFICATIONS FOR CONSTRUCTION AGGREGATE
NEAREST, LARGEST AND MOST ACCESSIBLE SOURCE WITH LOW COST TRANSPORTATION
PRICE RANGE $30 - $35 / Tonne
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Primary Target Region
Prince Rupert-Kitimat, B.C. and Alaska
Competitive Advantage
Proximity to the Port of Prince Rupert’s construction projects facilitates port to port transportation – most economic mode of delivery
Highbank’s First Sales Contract
To West Fraser Concrete. 100,000 tonnes. Signed March 2012.
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Location of Highbank Off Loading - Ridley Island
10 year expansion plan of Prince Rupert Port Authority - $1.3 billion Federal Initiative
Spectra – BG, 850-km pipeline project - $6-$8 billion
Canpotex potash terminal - $400 million Watson Island Industrial Site
Redevelopment - $90 million Ridley Terminals coal expansion - $200
million and $90 million road and infrastructure projects
Global TV video clip on multi-billion dollar projects in Prince Rupert-Kitimat
http://tinyurl.com/9q4syyx
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Canpotex Potash Export Terminal
Exxon Mobile Imperial Oil export,
permit filed for terminal at Grassy
Point (38 miles from Swamp Point)
Region’s share of BC provincial
govt’s $25 billion Pacific Gateway
Transportation Strategy investment
Pacific North West LNG Terminal $9
- $11 Billion
See Invest in Northwest http://investnorthwestbc.ca
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Highbank, upon completion of a C$3.5 million financing and receipt of permits, will ramp up Swamp Point North production:
Months 1-12 - Stage One development - stripping, construction of processing plant, conveying systems and development of product stockpiles
Initial mining phase at rates of up to 235,000 tonnes per year
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Months 12-24 - Completion of Stage Two and ramp-up of production
1,500,000 tonnes of annual production potentially by Year 3
Years 3-20 - Large-scale mining of the aggregate and commence export sales
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Source of Funds
Financing (combined debt/equity) C$3.5 – C$4.0 million
Use of Funds
Swamp Point North Start-up Costs C$3.0 – C$3.5 million
General Working Capital C$ 500,000
Total C$4,000,000
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Inflows C$ 3.0 million financing, Q2 2014 C$ 2.3 million exercise of $0.10, $0.12 and $0.15 warrants, Q1-Q4
2014 C$6.65 million in aggregate sales, less C$500,000 royalties, from
sale of 235,000 tonnes in 2014
Outflows* C$3.5 million on start-up capital costs C$4.9 million of operating expenses from production of 235,000
tonnes C$300,000 for Highbank overhead expenses of (C$25,000/month)
*excluding interest payments and taxes
** View our Updated Cash Flows on our Swamp Point Portland Canal Website page: www.highbankresources/projects/swamp-point-portland-canal/
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Years 2 and 3 (through December 2016)
540,000 tonnes per annum
$18.90 million per year in revenue (@ $35/tonne)
$8.6 million per year in operating profit*
*prior to interest, Highbank overhead, taxes
Potential Production By 2017 (with expansion)
1,500,000 tonnes per annum
$52.5 million per year in revenue ($35/Tonne)
$24.3 million per year in operating profit *
* prior to interest, Highbank overhead, taxes
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Victor N. Bryant, I.Eng; MAusIMM, President/CEO/Director
40+ years mining experience incl. with Major Mining Companies
Gary Musil, Secretary/CFO/Director
30 years financial and management consulting experience
Stan Spletzer, VP of Aggregate Operations
30 years contracting experience incl. for Canfor, Houston Forest Products, and
BC Ministry of Forests
Luard J Manning, P.Eng (Mining) Director
50 years mining experience as a consultant and as President of L.J.
Manning and Associates since 1967
Jake Bottay, Director, past President of Highbank
Mining and project financing experience as director or officer of numerous
public companies
Jim Place, P. Geo;
25+ years with BC Government, engineering and consulting companies
including Levelton, and quarry evaluations
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#600 - 625 Howe Street,Vancouver, B.C. V6C 2T6
Victor Bryant CEO/President/DirectorGary Musil, CFO, Secretary/Directort. (604) 683-6648/f. (604) 683-1350
This document contains certain forward-looking statements and information relating to Highbank that are based on the beliefs of management as well as assumptions made by and information currently available to management. When used in this document, the words "anticipate," "believe," "estimate," "expect," and "intend" and similar expressions, as they relate to Highbank or its management, are intended to identify forward-looking statements. Such statements reflect the current view of Highbank respecting future events such as the antcipated completion of certain Prince Rupert-Kitimat construction projects, the company’s ramp-up schedule, various stages of financing by the company, completion of stage two and any production estimates, the company’s use of proceeds calculation, projected cashflow forecasted revenue and production dates, revenue and profit, and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended.
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