investor presentation q4 2013 investor...

22
Investor Presentation Q3 2012 Investor Presentation Q4 2013

Upload: vobao

Post on 29-Oct-2018

245 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

Investor Presentation Q3 2012

Investor Presentation Q4 2013

Page 2: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Disclaimer

This document, and the information contained in this document, is confidential and is being supplied to you solely for your information and

may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any

purpose. In particular, the existence of a heads of terms or any other agreement between Horizonte Minerals plc (the “Company”), must be

kept confidential and may not be disclosed, or referred to, by you to any person or body without exception. Neither this document nor any

copy of it (or any part of it) may be sent to or taken into the United States, Australia, Republic of South Africa or Japan (or any of their

respective territories or possessions, or to any resident thereof or any other corporation, partnership or other such entity created or

organised under the law thereof), nor may it be distributed to or for the account or on behalf of any US person (within the meaning of

Regulation S under the US Securities Act of 1933, as amended). This document may not be sent or taken into Canada in contravention of

the securities laws, regulations or rules of any province or territory of Canada. The distribution of this presentation in other jurisdictions may

also be restricted by law and persons into whose possession this presentation comes (or a copy hereof) should inform themselves about,

and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other

jurisdiction.

This document does not constitute or form any part of any offer or invitation or other solicitation or recommendation to purchase any

securities and contains information designed only to provide a broad overview for discussion purposes. As such, all information and

research material provided herein is subject to change and this document does not purport to provide a complete description of the

investment opportunity. All expressions of opinion are subject to change without notice and do not constitute advice and should not be relied

upon. The Company does not undertake any obligation to update or revise the information in or contents of this document. Recipients of

this document who may consider acquiring shares in the Company are reminded that any such acquisition should not be made on the basis

of the information contained in this document.

This document is being distributed in the UK only to, and is directed only at persons who are (i) investment professionals as defined in

Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (“the Promotion Order”) or (ii) are persons of a

kind described in Article 49(2) of the Promotion Order or (iii) are persons to whom this document may otherwise lawfully be issued or

passed on (all such persons together being referred to as “relevant persons”). Any person who is not a Relevant Person should not act or

rely on this presentation or any of its contents and any investment or investment activity to which it relates will only be available to Relevant

Persons. Any person who is unsure of their position should seek independent advice.

The Company nor its employees, advisers or representatives nor any other person makes any guarantee, representation, undertaking or

warranty, express or implied as to the accuracy, completeness, correctness or fairness of the information and opinions contained in this

document (or as to the reasonableness of any assumptions on which any of the same is based or the use of any of the same), nor does the

Company nor its employees, advisers or representatives nor any other person accept any responsibility or liability whatsoever for any loss

howsoever arising from any use of this document or its contents or otherwise arising in connection therewith.

2

Page 3: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Horizonte is a well funded leading AIM and TSX-quoted resources

company focussed in Brazil. It is developing the wholly-owned

Araguaia nickel project, a world leading asset in terms of size and

grade. The Company is mid way through a Pre-Feasibility Study

planned for completion in Q1 2014. Horizonte has a clear path to

generate significant value uplift for shareholders over the next 12

to 24 months.

3

Page 4: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Highlights

• 100% ownership of the Araguaia Nickel Project located south of the producing Carajás mineral

district, Brazil – significant evolution over the past 10 years

• Global resource of >100 million tonnes defined – potential for >20 year mine life at Araguaia

• Pre-Feasibility Study (‘PFS’) is underway - running on budget and on schedule (delivery Q1 2014) • Two processing plant options:

• Option A: Twin line - 2.7 MTPA

• Option B: Single line – 900 KTPA

• Completed PFS work to date includes:

• Basis of Design for Options A & B; preliminary pit optimisation; plant site selection; preliminary plant mass

and energy balances; geotechnical drilling; and environmental and social studies are progressing on

schedule

• Well funded – circa £4.5 million cash plus potential royalty payment and £8 million optional Equity

Finance Facility with Darwin Strategic

• Cornerstone investors – Teck Resources 42.5%, Henderson Global Investors 15.1%, Anglo Pacific Group 9.2% and LGA 7.5%

• Short and mid term value drivers as Araguaia is developed as Brazil’s next major nickel project

4

Page 5: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Key Data

5

November 2013*

Ticker HZM Cash c. £4.5 M

Share Price

(AIM)

6.5p

Market

cap

(AIM)

£26.07 M

Share Price

(TSX) 0.12c

Market

Cap

(TSX)

$48.1 M

Shares in

Issue AIM

401.1

million

52 week

trading

AIM

5.88p

(9.5c)

12.13p

(19.7c)

Teck Resources42.5%

Henderson 15.1%

Anglo PacificGroup 9.2%

Quantom Holdings7.5%

Richards Griffiths4.1%

Other 21.6%

*28 November 2013

Page 6: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Management Team

6

Board

David J. Hall, Msc, EuroGeol

Executive Chairman

30 years in exploration & development on projects and mines in over 50 countries. Extensive South America and Brazil

experience. All aspects of project development with majors including Minorco, AngloAmerican & AngloGold. Founded

Horizonte with JM

Jeremy J. Martin, Msc, ASCM

Chief Executive Officer

Extensive exploration experience in South America, the Caribbean. Involved in the formation of a number of AIM and TSX

listed companies and has completed several high value mineral project transactions.

Owen Bavinton

Non Executive Director

Previously Group Head of Exploration and Geology at Anglo American, overseeing and advising on acquisitions and

exploration programmes of Anglo’s key projects, including Barro Alto and Morro sem Bone nickel projects, both in Brazil.

Alexander N. Christopher

Non Executive Director

Over 25 years’ experience in mineral exploration and mining. His is currently Vice President of Exploration for Teck,

having previously been General Manager New Ventures and for the last 10 years has been focussed on the junior mining

sector.

William Fisher P.Geo

Non Executive Director

Extensive industry experience in both exploration and mining positions worldwide, including Karmin Exploration, Boliden

AB, GlobeStar Mining and Aurelian Resources and is currently on the Boards of PC Gold, Goldquest and Treasury Metals.

Allan M. Walker, MA

Non Executive Director

Over 25 years of energy & natural resource banking experience, focussed in Latin America. Currently running a private

Clean Energy fund and previously ran the energy and project finance groups for Standard Bank and CSFB Garantia.

Senior Management

Antonio José de Almeida P.Geo

General Manager in Brazil

Mr de Almeida is a Brazilian national and qualified geologist with over 30 years of experience in mineral exploration. Has

held a number of senior positions with both major and junior mining groups including country manager for Phelps Dodge.

F. Roger Billington P. Geo

Technical Director Nickel

Ex head of Falconbridge nickel laterite exploration worldwide. Also senior roles in the discovery and evaluation of the

Koniambo nickel laterite deposit (New Caledonia) and the GlobeStar nickel laterite deposit (Dominican Republic).

Jeffrey Karoly BSc ACA

Chief Financial Officer

Mr Karoly has degree in geology and is a Chartered Accountant with over 15 years experience in the mining industry. He

was with Anglo American for 11 years and previously CFO of South American Ferro Metals which in 2010 listed on the

ASX.

Dr Philip Mackey

Senior Metallurgical Advisor

Consulting Metallurgical Engineer with 40+ years experience in non-ferrous metals processing including a focus on nickel

laterite processing. Previously at Falconbridge and Xstrata.

Page 7: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Nickel Uses

7

Stainless Steel (typically 8-12% Ni)

• Construction: strong, corrosion-

resistant structural and

architectural components;

• High efficiency heating systems;

Food and beverage storage and

production;

• Surgical Instruments

Electronics • Critical component of

rechargeable batteries including

hybrid cars;

• Layering of hard drives;

• Electromagnetic shielding:

aircraft / hospitals

Transport • Nickel alloys in jet engines and

airframes;

• Batteries in hybrid cars;

• Passenger rail cars;

• High strength nickel cobalt steels

in gears and drives

Energy • Coal scrubbing systems

• Gearing in wind turbines (500 kg

Ni per turbine)

• Power station turbine blades and

pipework

Page 8: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Why Brazil / Nickel

• Brazilian iron ore projects will generate US$45 billion by 2015

• Brazil has established infrastructure

• Excellent record of recent nickel, iron ore and copper discoveries - many areas of the country are

largely under explored – upside potential

• With an output of more than 85,000 t of nickel in 2012, Brazil is currently a global top 10 producer

of the base metal

• It is predicted that nickel production in Brazil will grow by around 40% by 2016

8

Page 9: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Pára & Carajás– Brazil

• NE region of Brazil has seen rapid development over the past ten years including the building of

ports, railways, refineries and mines

• Principle new mining projects include Vale’s S11D iron project and Votorantim’s Rondon do Pára

and Hydro’s Alunnorte Projects

• Vale’s S11D iron project cost US$19.7 billion and produces circa 90Mtpa with total Vale

production in Pára up to 230 Mtpa. The project is high grade, 66.7% iron, with production costs of

US$15 per tonne and forms part of the Vale Northern Logistics Corridor programme

9

Page 10: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Araguaia Project Location & Infrastructure

10

Page 11: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

PFS

• PFS contract awarded to Snowden Mining Industry Consultants

• As lead contractors Snowden will be managing a group of selected third party consulting

groups to deliver the PFS including:

• IGEOLOGIA (IGEO)

• Walm and Integratio

• Total drilling to date 35,200 metres (1,412 holes) of HQ drilling

• Geotechnical drilling and trial pitting on the mines, plant and tailings sites completed, together with development of geotechnical mine models

• Preliminary pit optimisation and feed scheduling for both options are complete

• Preliminary mining schedules completed on Options A & B and the mining Capex and Opex cost models now established

• Social and Environmental study SEIA-EIA/RIMA is making solid progress, with consultants

Walm and Integratio working to schedule

• Gap Analysis baseline study near completion and final Flora and Fauna report expected to

be completed by the end of Q4 2013

• Preliminary mass and energy balances for the plant have been completed

11

Page 12: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Project Targets & Resource

12

Proposed

Plant site

Location

Page 13: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Pequizeiro Target

13

Pequizeiro Sector

Drilling May 2011

Thickness (m) 1.0% Ni

COG

2.0m minimum intersect 2.0m maximum internal waste

Page 14: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Plant Site and Slag Dump Locations

14

Page 15: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Araguaia RKEF Proven Process

• Araguaia ore confirmed as suitable for the proven RKEF

process – PFS will be based on RKEF (H2 2013)

• 14 operational RKEF plants worldwide in 2013

• Two 185 metre long rotary kilns in the process of calcing

the ore which removes the moisture and water crystals

indicating the start of the metallurgical process

15

Anglo American Barro Alto Project, Brazil

Page 16: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Metallurgical Testwork Summary

• The Batch smelting tests conducted at 1520°C were

successful in producing a FeNi alloy at around 30 wt %

nickel for the transition, saprolite and two blends

• Market study has confirmed the targeted grade (20%) for

Araguaia ferronickel meets requirements of stainless

steel plants

16

Morro Azul pilot plant test facility for Araguaia pilot run

Page 17: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Regional Potential

17

Page 18: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Market Comparables

18

Deal structure Resources at time of

transaction

Price paid

$/lb

Sherrit acquisition of 40% of Ambatovy from Dynatec for

$1.6B

125Mt at 1.04% Ni (2007) $1.67

Vale acquisition of Canico Resources Onca Puma

Project

82.7Mt at 1.73% Ni (2005) $0.23

HudBay acquisition of Skye Resources for $476M 108.8Mt at 1.379% Ni (2008) $0.14

Solway Group acquires 98% of Fenix ferro-nickel project

in Guatemala from Hudbay for $170M

45.9 Mt at 1.85% Ni (2011) $0.09

Skye Resources acquires Fenix Nickel for 70% issue

25% equity, raise $20M and complete Feasibility Study

and $5M cash

31Mt at 1.8% Ni (2004) $0.06

Anfield Nickel completed PFS on Mayaniquel Project,

Guatemala

Global reserves of 69.9Mt at

1.41% Ni (Nov 2013)

$0.04

“Current Horizonte in-situ valuation approximately 0.01 $/lb”

Page 19: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

The Nickel Market

19

Planned Araguaia

Production

Mid-term over supply - Long term shortage

Page 20: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

The Nickel Market

• For the period 2014-2018, global nickel demand growth is projected at 5.2% p.a.

• Estimated average annual growth of 7.4% p.a. in China and 3.0% p.a. in the rest of the world

• Nickel consumption in stainless steel is projected to increase 6.0% p.a. throughout outlook period,

while primary nickel usage in non-stainless steel applications is forecast to increase by 3.5% p.a.

• Will Indonesia ban ore exports? – The principle source of NPI. There is huge uncertainty around

the ban and/or disruptions to exports and the general availability of high grade ores

• After the current batch of new projects finally ramp up (Koniambo, Ambatovy, Ramu, Barro Alto,

Onca Puma) there is limited funding anticipated for the next generation of nickel projects

The nickel life cycle is compelling: demand has been strong and outlook remains strong

20

Page 21: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Conclusion

• Araguaia has sound economics based on low strip ratio, excellent infrastructure, large mineral

resource (100Mt) as shown in the PEA with two viable alternatives for processing

• Pre-Feasibility looking at two operating scenarios (2.7Mtpa and 900Ktpa – the latter offering

lower Capex and improved returns)

• Post tax PEA outlines NPV8 of US$693M with IRR of 15.4% using the proven RKEF process

route, with 14 operations globally (Araguaia ore confirmed as suitable for RKEF process)

• Project de-risked: geology, metallurgy and social/ environmental

• Completed 3rd phase drilling in May 2013: 9,300m Infill resource drill programme completed –

resource upgrade due as part of PFS

• Well funded with c. £4.5 million and support from Teck 42.5% shareholder (current market cap

circa CAD$16 billion)

• Designed to come on-line in nickel market deficit and produce at the lower end of the cost curve

21

Page 22: Investor Presentation Q4 2013 Investor …horizonteminerals.com/news/2013-12-11_HZM_Investor...Investor Presentation Q3 2012 Investor Presentation Q4 2013 Developing the next major

AIM: HZM TSX: HZM Developing the next major nickel project in Brazil

Contacts

Horizonte Minerals Plc

26 Dover Street, London, UK

www.horizonteminerals.com

Jeremy Martin, Chief Executive Officer

Tel: 020 77637157

[email protected]

22