pre feasibility study - consolidated tin mines - pfs...•completed 80t bulk sample test through...
TRANSCRIPT
2008 •CSD lists on ASX
•Initial JORC Resource completed at 5.3MT
•Metallurgy test work commences
2009 •Completed 2,300m drilling
•Employed experienced tin metallurgist Bob Shelley to drive metallurgy test work
2010 •JORC Resource Update: 7.3MT
•Completed 80t bulk sample test through Greenbushes plant
2011 •Completed 15,100m drilling
•Continued flowsheet development
•Cornerstone Investor, Snow Peak
2012 •Completed 9,000m drilling
•Continued flowsheet development
2013 •Positive PFS completed •JORC Resource Update: 13.1MT
•Snow Peak acquires Mt Garnet Concentrator
2014 •Completed Feasibility Studies
•First tin production
Pre–Feasibility Study September 2013
Disclaimer This presentation has been prepared by Consolidated Tin Mines Ltd (CSD) based on information from its own and third party sources and is not a disclosure document. This Presentation does not purport to contain all information that a prospective investor may require in connection with any potential investment in CSD. You should not treat the contents of this Presentation, or any information provided in connection with it, as financial product advice or advice relating to legal, taxation or investment matters. Before acquiring any Securities, you should consult your own advisers and conduct your own investigation and analysis in relation to CSD.
No representation or warranty is made by CSD or its advisers, agents or employees as to the accuracy, completeness, reasonableness or attainability of any estimates, forecasts or projections set out in this Presentation or provided in connection with it and they do not accept responsibility or liability for any loss or damage suffered or incurred by you or any other person or entity however caused relating in any way to this Presentation. Any liability of CSD, its advisers, agents and employees to you or to any other person or entity arising out of this Presentation including pursuant to the Australian Securities and Investments Commission Act, 2001, Corporations Act 2001 and the Trade Practices Act 1974 or any other applicable law is, to the maximum extent permitted by law, expressly disclaimed and excluded.
Forward Statements This Presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of CSD. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of CSD may be influenced by a number of factors, many of which are outside the control of CSD. No representation or warranty, express or implied, is made by CSD or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause CSD’s actual future results, performance or achievements to be materially different from those expected, planned or intended, Recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. CSD does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended.
Competent Persons The information in this announcement that relates to the Mount Garnet Mineral Resource is based on information compiled by Mr Michael Andrew, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Andrew is a Principal of Optiro Pty Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Andrew consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Processing Engineering Capital and Operating Estimates is based on information reviewed by Mr Alisdair Finnie (B.Sc., Grad Dip. Min Sc, MAusIMM). Mr Finnie is Processing Engineering Manager of Como Engineers and has 15 years of relevant experience in these areas of work. Mr Finnie consents to the inclusion in this report of the matters based on information provided by him and in the form and context in which it appears.
The information in this announcement that relates to mine design, mine costing, and capital costs for mining is based on information reviewed by Mr Richar Guerra, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Guerra is a consultant working for Mine RP Ltd and was engaged by Prism Mining Pty Ltd to prepare the mine design, mine costing and mining costs for Consolidated Tin Mines Limited PFS report. Mr Guerra has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Guerra consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
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Corporate Overview
Issued Capital
ASX Code CSD
Shares 223.3 Million
Listed Options 61.7 Million (exercisable @ $0.20 on/before 31/12/2013)
Price & Capitalisation
Share price (30/09/2013) 0.06 cents
Market Cap. $13.4 Million
Cash position (30/06/13) $ 291,698
Number of shareholders 1,097
Board of Directors
Ralph DeLacey Managing Director / Chairman
Andrew Kerr Non-Executive Director
Darryl Harris Non-Executive Director
Si He Tong Non-Executive Director
Share Register
Snow Peak 16.30 %
Ralph DeLacey 7.28%
Beacon Minerals 6.81 %
Geocrystal Ltd 4.48 %
John Sainsbury 3.20 %
Top 20 hold: 59.51 %
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Ralph De Lacey Chairman
Managing Director
Andrew Kerr Non Executive
Director
Darryl Harris Non Executive
Director
Si He Tong Non Executive
Director
Michael Hicks Exploration
Manager
Bob Shelley Metallurgical
Manager
Michael Proctor Manager Project
Development
Caroline O’Brien Office Manager
John Banning Executive General
Manager
A Consolidated Team
BOARD OF D IRECTORS
MANAGEMENT
4
Project Location
5
JORC Resource Table
6
TIN (Sn)
Cut-off
Sn_EQ %
Measured
tonnes
Grade
Sn%
Indicated
tonnes
Grade
Sn%
Inferred
tonnes
Grade
Sn% Total tonnes
Grade
Sn%
Gillian 0.2 1,105,000 0.73 1,563,000 0.62 930,000 0.61 3,599,000 0.65
Pinnacles 0.33 - - 5,461,000 0.30 1,575,000 0.30 7,035,000 0.30
Deadmans Gully 0.18 - - 444,000 0.34 - - 444,000 0.34
Windermere 0.25 - - 829,000 0.26 1,211,000 0.27 2,040,000 0.27
TOTAL 1,105,000 0.73 8,296,000 0.36 3,716,000 0.37 13,118,000 0.39
IRON (Fe)
Cut-off
Sn_EQ %
Measured
tonnes
Grade
Fe%
Indicated
tonnes
Grade
Fe%
Inferred
tonnes
Grade
Fe% Total tonnes
Grade
Fe%
Gillian 0.2 1,105,000 32.32 1,563,000 24.50 930,000 28.53 3,599,000 27.95
Pinnacles 0.33 - - 5,461,000 19.12 1,575,000 21.04 7,035,000 19.55
Deadmans Gully 0.18 - - 444,000 26.70 - 0.00 444,000 26.70
Windermere 0.25 - - 829,000 25.79 1,211,000 23.68 2,040,000 24.54
TOTAL 1,105,000 32.32 8,296,000 21.21 3,716,000 23.78 13,118,000 22.87
FLUORINE (F)
Cut-off
Sn_EQ %
Measured
tonnes
Grade
F%
Indicated
tonnes
Grade
F%
Inferred
tonnes
Grade
F% Total tonnes
Grade
F%
Pinnacles 0.33 - - 5,461,000 6.28 1,575,000 4.14 7,035,000 5.80
TOTAL - - 5,461,000 6.28 1,575,000 4.14 7,035,000 5.80
TIN EQUIVALENT
(Sn_EQ)
Cut-off
Sn_EQ %
Measured
tonnes
Grade
Sn_EQ
%
Indicated
tonnes
Grade
Sn_EQ
%
Inferred
tonnes
Grade
Sn_EQ
% Total tonnes
Grade
Sn_EQ
%
Gillian 0.2 1,105,000 0.91 1,563,000 0.75 930,000 0.77 3,599,000 0.81
Pinnacles 0.33 - - 5,461,000 0.50 1,575,000 0.47 7,035,000 0.49
Deadmans Gully 0.18 - - 444,000 0.49 - 0.00 444,000 0.49
Windermere 0.25 - - 829,000 0.40 1,211,000 0.41 2,040,000 0.41
TOTAL 1,105,000 0.91 8,296,000 0.54 3,716,000 0.53 13,118,000 0.56
Sn equiv alent is based on the following Formula, product pricing and metallurgical recov eries;
(Sn%)+(Fe%*0.75*(150/20,000))+(F%*0.7*(400/20,000))
Sn = AU$ 20,000/tonne,
Fe = 75% recov ery @ AU$ 150/tonne
F = 70% recov ery @ AU$ 400/tonne
REC = Recov ery
Sn%+(Fe%*FeREC*Fe$/t/Sn$/t)+(F%*FREC*F$/t/Sn$/t)
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Prefeasibility Study Results
Positive PFS for the Mt Garnet Tin Project demonstrates the technical and
economic viability of the project utilising the existing Mt Garnet concentrator
infrastructure
• 1Mtpa open cut mine forecast to produce 2,944t per annum of tin in
concentrate
• Minimum 9 year mine life
• NPV of A$184.1M before tax (A$110.3M after tax) at 8% discount rate using
base case tin price of A$24,000/t
• Capital payback indicated at 2 years, IRR of 111%
• Highly competitive production costs of A$91.94/tonne of ore Free On Board
(FOB)¹
• Robust combined total cost of A$13,917/tonne Tin FOB (with by-product
revenue credits)
• Project capital cost to first production of A$76M
• Project average annual revenue expected to be A$127.4M
• Annual average operating cash flow (after capital costs, before tax) of
A$29.7M
¹Free On Board includes all costs loaded on ship; including operating costs, ore and concentrate haulage, port
levy and royalties
HIGHLIGHTS
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Prefeasibility Study Results
Reductions in the capital and operating cost base expected through further
review and optimisation of processing and mine design
Diversified project commodity base lowers financial risk profile
Continued support from cornerstone investor and largest shareholder, Snow
Peak International Investment Limited
PFS completion triggers finalisation of discussions with Snow Peak investors to
ensure that full asset value is realised for all stakeholders
PFS strongly supports progression to Definitive Feasibility Study (DFS)
Consolidated Tin remains on-track to become a significant and profitable
Australian tin producer
HIGHLIGHTS (CONT.)
9
Key Outcomes
Annual
average
Total for 9
years
Mining inventory / average mill throughput 0.93 Mt 8.4 Mt
Project revenue A$127.4M A$1,146.6M
Estimated operating cash flow after
capital costs A$29.7M A$267.2M
Tin in concentrate production 2,944 tpa 26,495 t
Iron production (tonnes @ 65% Fe) 234,970 tpa 2,114,732 t
Fluorite production (tonnes @ 86% CaF2) 53,860 tpa 484,743 t
Total cost (after by-product credits) A$13,917/t tin produced
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Tin Price Sensitivity
Tin Price
A20,000/t
Base case
A$24,000/t
A$25,000/t
NPV (at 8% discount) after tax A$60.3M A$110.3M A$122.6M
IRR 52% 111% 131%
Life of Mine (LOM) Operating
Margin (FOB), ore treated A$32.92/t A$45.28/t A$48.38/t
LOM cash surplus, before tax A$275.2M A$378.5M A$404.3M
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CAPEX / OPEX
Capital Expenditure Breakdown A$M Cost Estimates
Mine Infrastructure 1.8
Existing plant reconfiguration 32.1
Roasting / Tin fuming 40.6
Tenure & Environmental 1.5
TOTAL 76
Operating Expenditure Breakdown A$/t ore
Mining Cost (Inc Overheads) 24.25
Processing Cost (Inc Overheads) 49.59
Cost of Sales 4.12
Ore Haulage/Concentrate Freight
Cost 13.98
FOB Total Operating Cost 91.94
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Sensitivities
$50M
$60M
$70M
$80M
$90M
$100M
$110M
$120M
$130M
$140M
$150M
$160M
$170M
$180M
-10% -5% 0% 5% 10%
NPV @ 8% Discount Rate Tin Price A$24,000t, exchange rate A$0.95/US$1.00 OPEX = 91.94t, CAPEX 76M
Sales Price Mining OPEX Processing OPEX Transport to Port Transport to Plant Exchange Rate
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Sensitivities A
$ M
illio
ns
NPV @8% NPV @10% NPV @12%
Simplified Flowsheet
14
15
VIEW WEST
Gillian – Proposed Mine
16
Pinnacles Draft Pit Design
VIEW SOUTH
Infrastructure and ports
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WAELZ KILNS
Similar Commercially Proven Process
Fuming and recapture of Zn and Pb from low grade ores or steel
plant residues under reducing atmosphere
9 kilns in operation since 1970
http://www.globalsteeldust.com/waelz_kiln_technology
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AUSMELT
Similar Commercially Proven Process
6 plants in operation worldwide
Fuming and recapture of Sn from
ore in a top submerged lance
furnace which also produces liquid
iron product
Kiln in operation at Yunnan Tin,
Kunming Province, China. World
largest tin producer.
Minsur/Funsur in Peru operate an
Ausmelt unit on tin
http://www.outotec.com/en/Investors/Acquisitions/Acquisition-of-Ausmelt/
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OPERACIONES METALÚRGICAS S. A.
Similar Commercially Proven Process
Fuming and recapture of Sn from ore in rotary furnaces
Location Bolivia
In operation since 1940
Annual production around 3,400 tonne Sn
http://www.omsabo.com/en/detfoto2.html
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GAS CLEANING PROCESS FOR SN FUME COLLECTION
Similar Commercially Proven Process
Standard process used worldwide
Used for gas cleaning and emission control
in the metallurgical industry for
pyrometallurgical processes – smelters, kilns,
roasters, furnaces etc
Used for treating and recovery in off gas
streams of:
• Dust particles
• Elements including Zn, Sn, Pb, As, Hg, S
and numerous others
Basic steps are:
• Gas cooling in a scrubber
• Particulate removal in a baghouse or ESP
Can handle large volumes of gas and upset
conditions
High recovery and cleaning efficiency + 99%
http://www.luhrfilter.com.au/product.php?id=15&name=dust-collectors-offline-dfk-filter
Tin supply outlook
Future tin supply constrained and global production declining
Producers facing lower grades and increasing operating costs
New uses adding demand pressure
Few new sustainable tin projects in development
2013 Forecast
Global tin consumption 340,000t
Global refined tin production 339,000t
• Global mine production 274,700t
Top Tin Producing Countries
• China world largest producer 160,000t
• Indonesia 55,000t
• Malaysia 31,000t
• Thailand 21,000t
• Peru (mostly San Rafael mine-closing 2017) 23,000t
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Indonesia - 2nd largest Producer
JAKARTA POST 27TH SEPTEMBER 2013
JAKARTA: Indonesian refined tin shipments are expected drop by around
75 percent in September-December from the same period last year, the
country’s leading cargo surveyor said, after new trading rules slashed
output.
The rules, which aimed to establish a benchmark price in Indonesia, have
already driven the nation’s biggest tin producer, state-backed PT Timah, to
halt shipments and declare force majeure.
Analysts and traders are unsure how long it will take tin buyers and the
country’s 47 registered tin exporters to adjust, with the move helping push
up international tin prices by 9 percent this month.
From September until year-end, Southeast Asia’s largest economy will likely
ship only 10,000 tons of tin, said Sufrin Hannan, director of the minerals and
coal division at PT Sucofindo, a state-owned company. That compares
with around 38,000 tons in the same period in 2012.
“We estimate tin exports from September to December [...] will be around
10,000 tons,” said Sufrin. — Reuters
LME Tin Price
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T W E LV E M O N T H T I N P R I C E R A N G E (U S D )
Sep
12
Oct
12
No
v 1
2
Dec
12
Jan
13
Feb
13
Mar
13
Ap
r 1
3
May
13
Jun
13
Jul 1
3
Au
g 1
3
Sep
13
Pricing based on LME Cash Price on 26/09/13 - US$22,975 Exchange rate on 26/09/13 USD/AUD - 0.936
A$24,546/t 26/09/13
Tin Price
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C R Y ST AL B A LL G A Z ING
$20
$21
$22
$23
$24
$25
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
Fore
cast
Pri
ce U
SD
Tho
usa
nd
s
World Bank Commodity Forecast July 2013
EIU Economic and Commodity Forecast May 2013
Reuters Analyst Survey 29 July 2013
CRU Projection 24 June 2013
Linear (Trend)
What’s next?
Final drilling on Gillian deposit consisting of approximately 6,000m RC and 1,500m HQ Diamond, scheduled to start 14th October
Pilot scale reverse silica flotation planned with completion expected by end of 2013
Pilot scale reduction roasting trials expected to commence at Ansac factory at Bunbury WA early January 2014
Optimisation of CAPEX and OPEX inputs to improve project economics
Definitive Feasibility Study (DFS) for the Mt Garnet Tin Project commencing with Gillian, with further evaluation work to follow at Pinnacles and later at Windermere
Finalise a binding agreement with Snow Peak to ensure that the value of respective assets are maximised with the aim of achieving tin production by end 2014
Finalise CAPEX funding arrangements
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Ralph De Lacey
Managing Director
Consolidated Tin Mines Limited
Ph: (07) 4032 3319
Fax: (07) 4027 9429
Mob: +61 428 163 176
F OLLOW OU R D E V ELOP MEN T A T
W W W . C S DT IN .COM .AU
Contact Details
Darryl Harris
Non-Executive Director
Consolidated Tin Mines Limited
Ph: (07) 4032 3319
Fax: (07) 4027 9429
Mob: +61 419 908 645
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