diggers & dealers presentation · • strong global demand growth since the early 2000s •...

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MOLYMOLYMOLYMOLYMOLYMOLYMOLYMOLYMMMMIIIINNNNEEEESSSSMMMMIIIINNNNEEEESSSSLIMITEDLIMITED

Diggers & Dealers Presentation5 August 2008

Mike GloyneMike GloyneMike GloyneMike Gloyne - General Manager Operations

Diggers & Dealers Presentation5 August 2008

Mike GloyneMike GloyneMike GloyneMike Gloyne - General Manager Operations

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This presentation includes “forward-looking statements” as that term within the meaning of securities laws of applicable jurisdictions.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Moly Mines’

control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts

contained in this presentation, including, without limitation, those regarding Moly Mines’ future expectations. Readers can identify

forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,”

“forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “risk,” “should,” “will” or “would” and other similar expressions.

Risks, uncertainties and other factors may cause Moly Mines’ actual results, performance, production or achievements to differ materially

from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors

include the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and

within estimated costs currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange

rates between the U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure

of Moly Mines’ suppliers and service providers to fulfil their obligations under construction, supply and tolling agreements; unforeseen

geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes,

labour shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and

global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no

obligation to update such information.

Forward Looking StatementsForward Looking Statements

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Investment HighlightsInvestment Highlights

Spinifex Ridge Molybdenum ProjectSpinifex Ridge Molybdenum Project

Attractive location, environmental approval received and final Part

IV/works approvals in process, 70% of capex awarded/ready to award

plus, mining, roasting and off take contracts executed.

Sustained sector outlook with continuing strong demand,

constrained supply and strong price fundamentals.

Poised to become the 1st major new primary Mo producer, with 23

year Reserve mine life with substantial resource tail.

Operating contracts provide cost certainty. Substantial by-product

credits.

20Mtpa to 33Mtpa expansion potential year 5.

Significant potential Project credits from iron ore mineralisation.

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World Class PartnersWorld Class Partners


Incentive based EPCM agreement for project

delivery and execution.

ThyssenKrupp (Polysius) – (Primary Crusher, Ball Mills, HPGR’s),

Metso – (Secondary Crusher), Ausco – (Village Accommodation)

Molymet, the worlds largest independent

toller of Mo concentrates,

ThyssenKrupp, volume and

cashflow certainty,

7 year mine operations agreement.

Global managers of the debt and equity

funding package for Spinifex Ridge,

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Mineral / Ore Reserves & Mineral ResourcesMineral / Ore Reserves & Mineral Resources


JORC/NI43-101 classification Mt Mo% Cu% Ag g/t

Proven reserves 199.7 0.06 0.10 1.5

Probable reserves 251.1 0.04 0.07 1.1

Total 450.8 0.05 0.08 1.3

JORC/NI43-101 classification Mt Mo% Cu% Ag g/t

Measured resources 206.8 0.06 0.10 1.5

Indicated resources 445.4 0.04 0.07 1.1

Total 652.2 0.05 0.08 1.3

Inferred resources 399.0 0.04 0.07 1.1

Reserves

Resources

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Services corridorServices corridor

Secondary

Crusher

Secondary

Crusher

StockpileStockpile

Ball & SAG

Mills

Ball & SAG

MillsHPGR MillHPGR Mill

Power StationPower Station

AdministrationAdministration

Tailings

Thickener

Tailings

Thickener

Mo / Cu Regrind &

Flotation

Mo / Cu Regrind &

Flotation

Waste 3Waste 3

Waste 2Waste 2

Waste 1Waste 1

PitPit

ROMROM Plant &Administration

Plant &Administration

Dry Stack TailingsDry Stack Tailings

CampCamp

Pit Office/Workshops

Pit Office/Workshops

Port Hedland (160kms)

NorthNorth

TunnelTunnel

Construction ReadyConstruction Ready


23 Year Reserve+ Resource tail

10 Year

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Execution & Development TimetableExecution & Development Timetable


Q1

20072007

Q2 Q3 Q4 Q1

20082008

Q2 Q3 Q4 Q1

20092009

Q2 Q3 Q4 Q1

20102010

Q2 Q3 Q4

• Long Lead Items Ordered

• Feasibility Study Completed

• Capital Cost Control Est.

• Key Contract Completion

• Environmental Approvals

• Project Funding

• Site Construction Activities

• Commissioning

• Production

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What is Molybdenum?What is Molybdenum?

Spinifex Ridge Copper/Molybdenum Producer

Crushing, Grinding, Flotation

Crushing, Grinding, Flotation

Lubricants, Chemicals, Mo Metal

Bags, Drums, Cans

Bags, Drums

Low Cu Concentrate

High Cu Concentrate

TechnicalMolybdenum Oxide

Pure Oxide Oxide Powder and Briquettes

FeMo

LeachingRoasting

Sublimation and Further Processing

Converting

Molybdenum Output Flow-Chart Highlights

• Moly is primarily used as an alloying

agent in steel or as a catalyst in

chemicals

• Moly offers very attractive properties

• Fourth highest melting point of any metal on the periodic table

• Anti-corrosive

• Weldability

• Flexibility

• Hardness

• Low substitution risk

• Unique properties that satisfy increasing performance requirements

• Potential substitutes are more costly and/or follow same commodity cycle

Molybdenum … ‘a metal for our time’Molybdenum … ‘a metal for our time’

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• Stainless and low alloy steels will continue to

grow supporting molybdenum’s traditional

applications.

• BUT….

• The Energy Industry to emerge as a major end

user of molybdenum products

Diversified End-Use Diversified End-Use


28%

40%

11%

6%

4%

4%5% 2%

Stainless

Steel

Low Alloy Steels

Chemicals

Moly Metal

Castings

Superalloys

High-speed & tool steels Other

Energy IndustryEnergy Industry Global WarmingGlobal Warming Nuclear PowerNuclear Power

• Pipelines

• Sour oils & gases

(high sulphur)

• Pipelines

• Sour oils & gases

(high sulphur)

• Desalination

• Automobile Industry

• Desalination

• Automobile Industry• Piping

• Shells & tubes

• Piping

• Shells & tubes

ULSDULSD

• Ultra low sulphur diesel

• Catalysts

• Ultra low sulphur diesel

• Catalysts

Energy Industry accounts for 35-40% of global Moly demandEnergy Industry accounts for 35-40% of global Moly demand

Global economies demanding more molybdenum

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• June 2008 Spot Price

• US$33.20 /lb

• 3 Year Average

• US$30.00 /lb

• 5 Year Average

• US$26.10 /lb

• Long Term Estimate

• US$20.00+ /lb

Market HighlightsMarket Highlights


PricingSupply and Demand

CAGR Demand Estimates: 5 – 6%

Existing Production Sources Are At Capacity

• Primary mines require capital intensive expansions

• By-product producers have high graded & production stagnant

• Chinese industry consolidating, export quota’s & tariffs applied

• No significant new supply before 2011

• Production costs are rising, energy intensive industry

• New projects are capital intensive

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Growing Supply Defecit Growing Supply Defecit

• Estimated committed supply

growth includes planned

expansions of existing primary

and by-product mines

• Moly consumption is expected to

grow at 5-6% CAGR through

2015

• Cumulative supply deficit of 70-

100Mlb expected by 2012,

growing to 230-300Mlb by 2015

• Short fall in future supply can

only be met by NEW production

from NEW mines

• Only 4 major new primary mines

under consideration to help fill

this deficit

Industry OverviewIndustry Overview

Highlights

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• Western Europe, USA and Japan accounted for 62% of total

consumption in 2007, China consumed 17%

• World CAGR of 6.6% since 2002

• China CAGR of 24% since 2002

• Strong global demand growth since the early 2000s

• Continued strong demand growth from BRIC markets driven by

urbanization, development in stainless, carbon and alloy steels

• China to lead world growth at estimated 12 – 15% CAGR through

2015

• Developing steel industries key growth driver (2006-2012 CAGR of 17%)

• 8-9% growth expected for low alloy steels and chemicals

• Western Europe: Estimated 3 – 4% CAGR through 2015

• Stainless steel represents ~50% of total moly demand

• Automotive industry (low alloy steels) also important contributor to

demand

• Moly bearing grades becoming increasingly popular

• USA: Estimated 2 – 3% CAGR through 2015

• Comparatively even distribution between end segments

• Strong environmental regulations driving growth (chemicals)

HighlightsMoly Consumption Dominated by the Big Four

China is Expected to Drive Demand Growth

China Growth Supported by Stability from WestChina Growth Supported by Stability from West

Industry OverviewIndustry Overview

17%

15%

21%

29%

18%

USA

W Europe

Other

Japan

China

30%

11%

20% 25%

14%

USA

W Europe

Other

Japan

China

~ 2015

2007

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Iron Ore Drilling

Iron Formation

Waste

Mo Pit

Waste

Process Plant

0 1500

metres

Mine Village

Airstrip

Tailings

Fe Area 2Fe Area 2Fe Area 1Fe Area 1

S p i n i f e x

R i d g e

Mining Leases

• 55 metres @ 64.3% Fe from 0m


• 29 metres @ 58.3% Fe from 0m including

• 4 metres @ 63.1% Fe from 0m and









• 3 metres @ 65.4% Fe and

• 47 metres @ 65.8% Fe


• 42 metres @ 66.2% Fe and

• 9 metres @ 60.2% Fe

Iron Ore At Spinifex Ridge Iron Ore At Spinifex Ridge

• Major synergies for the Spinifex Ridge operation

• Potential credits to molybdenum production

• Resource delineation drilling required

Highlights Results

Ju

ne

200

8 R

es

ult

s

General /

Misc. Leases

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Shares on issue: 86,191,677

• ASX Listed: 54M

• TSX Listed: 32M

Options: 15,425,000

Fully diluted issued capital: 101,616,677

Board/Staff (inc all options) : 16%

Cash on hand: A$48M

Major Shareholders:

• 19.9% - Harbinger Capital

• 7.2% - CIBC Mellon

• 5.8% - Oppenheimer Funds

Broker Coverage:

• Paradigm Capital Inc.

• Haywood Securities Inc.

• Wellington West Capital Markets Inc.

Trading Symbols:

• ASX: MOL, TSX: MOL, FWB: HJ1

Corporate StructureCorporate Structure

Moly Mines LimitedMoly Mines Limited

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• 50 Kings Park Rd, West Perth, WA, 6005, AUSTRALIA

• Telephone: +61 8 9429 3300 Fax: +61 8 9429 3399

Contact informationContact information

• Suite 1801, Level 18,

80 Richmond St West, Toronto, Ontario, CANADA

• Telephone: +1 416 777 1801 Fax: +1 416 777 1802

• Email: [email protected]

• Website: http://www.molymines.com

• Stock market codes: ASX: MOL, TSX: MOL, FWB: HJ1


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The information contained in the report to which this statement is attached relating Mineral Resources and Mineral / Ore Reserves is

based on information compiled and verified under the supervision of Dr Derek Fisher who is a Fellow of The Australasian Institute of

Mining and Metallurgy. Dr. Fisher is CEO of Moly Mines Limited and has sufficient experience which is relevant to the style of

mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as

defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ and as a

Qualified person for purposes of National Instrument 43-101 of the Canadian Securities Administrators.

Dr Fisher consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Mineral Resource estimates was prepared under the supervision and based on information compiled by Mr Phil Jankowski, MAusIMM

(CP), who is an employee of SRK Consulting and has been engaged by Moly Mines Limited in such capacity. Mr Jankowski has sufficient

experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is

undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting Identified Mineral

Resources and Ore Reserves (JORC Code) and as a Qualified person for purposes of National Instrument 43-101 of the Canadian Securities

Administrators. Mr Jankowski consents to the inclusion in this release of the matters based on his information in the form and context in

which it appears. The grades were estimated by SRK into the block model by Ordinary Kriging. Geological data verification and QA/QC of

the drill hole results were described in the report titled “Spinifex Ridge Mo-Cu Deposit, Western Australia, Updated NI 43-101 Technical

Report” prepared by SRK and filed on SEDAR in May 2008.

Ore/Mineral Reserves & Mineral ResourcesOre/Mineral Reserves & Mineral Resources

Spinifex Ridge Molybdenum / Copper Competent Person Statement

Spinifex Ridge Iron Ore Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Dr Derek Fisher who is a Fellow of

The Australasian Institute of Mining and Metallurgy. Dr Fisher is Chief Executive Officer of Moly Mines Limited, and has sufficient

experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is

undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration

Results, Mineral Resources and Ore Reserve’s and as a Qualified Person for purposes of National Instrument 43-101 of the Canadian

Securities Administrators. Dr Fisher consents to the inclusion in the report of the matters based on his information in the form and

context in which it appears.


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