Post on 24-Mar-2020
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MOLYMINESLIMITEDMOLY
MINESLIMITED
8th Annual General Meeting24th November 2010
Mine operator and developer
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MOLYMINESLIMITED
Disclaimer
This presentation includes “forward-looking statements” as that term within the meaning of securities laws of applicablejurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in somecases beyond Moly Mines’ control. These forward-looking statements include, but are not limited to, all statements other thanstatements of historical facts contained in this presentation, including, without limitation, those regarding Moly Mines’ futureexpectations. 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-lookingstatements (and from past results, performance or achievements). These factors include the failure to complete andcommission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costscurrently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates betweenthe U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of MolyMines’ suppliers and service providers to fulfil their obligations under construction, supply and tolling agreements; unforeseengeological, 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, oncommercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue relianceon forward-looking statements. We assume no obligation to update such information.
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MOLYMINESLIMITEDAnnual General Meeting Results
Resolution For Against Proxy Holder
Discretion
Abstain Excluded
1 – Remuneration Report 212,228,461 2,504,854 1,178,538 287,865 -
2 – Re-election of David Nixon 212,455,371 1,964,388 1,173,088 35,861 -
3 – Election of Steven Xiao 214,147,310 202,836 1,157,112 121,450 -
4 – Election of Liu Han 214,143,901 228,582 1,144,775 111,450 -
5 – Election of Andy Zhmurovsky 214,083,692 319,717 1,144,775 80,524 -
6 – Election of Bob Prosser 214,244,365 115,403 1,144,775 124,165 -
7 – Election of Michael Braham 214,182,492 244,380 1,153,925 47,911 -
8 – Approval of issue of options to Hanlong Mining Investment Pty Ltd
6,804,887 360,237 1,171,020 156,918 207,135,646
9 – Approval of Iron Ore Sales Agreement 7,074,856 152,676 1,146,520 119,010 207,135,646
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MOLYMINESLIMITED
Company Overview – A producer and mine developer Spinifex Ridge Iron Ore Project. Iron ore mining has commenced First iron ore shipment – December 2010 Strong project cashflows
Spinifex Ridge Molybdenum Project. US$500M Project Finance Loan Facility due
31 January 2011 Construction to commence post financial close Funding secured through major strategic
shareholder
Strategic partner cornerstone growth plans.
Vision to build a major world class mininggroup
Hanlong Group US$6.5 billion credit lines
Australia
Spinifex Ridge
200kms
Newman
Broome
Marble Bar
Port Hedland
Carnarvon
Karratha
W E S T E R N A U S T R A L I A
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MOLYMINESLIMITED
Corporate Settlement of the Hanlong Subscription
Agreement, receipt of US$200M Independent Board
Spinifex Ridge Iron Ore Project Brought into production within 20 months
of first drilling for less than A$20M Mining proposal approved by WA
government within 12 weeks of submission
Completion of mining feasibility study and mining ore reserve
Decision to mine confirmed in May Construction complete within 6 months Iron Ore Sales Agreement First export due December
2010 Highlights and Achievements
Spinifex Ridge Molybdenum Project –US$500M Finance Facility Chinese engineering study completed to assist
government approvals
Term sheet well advanced
Government approvals received
10Mt/a Definitive Feasibility Study near complete
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MOLYMINESLIMITED
Spinifex Ridge Iron Ore Project – in production
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MOLYMINESLIMITED
Corporate Overview
Capital Structure at 24 November 2010
ASX/TSX Ticker MOL
Market Cap A$300M
Ordinary Shares 364.6M
Unlisted Options 43.0M
Cash A$36.1M
Surplus Assets A$45.0M
10 Year Shareholder Loan US$60M
Shareholders
Hanlong Group 56.8%
Australian Register 31.9%
Canadian Register 11.3%
Unlisted Options
TCW 23.8M
Institutions 14.0M
Employees 5.2M
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MOLYMINESLIMITED
Sichuan Hanlong Group
Privately owned
Resource Interests – Zn, Mo, Cu, Coal, Au
Electricity production, infrastructure development, pharmaceutical production, food and alcoholic beverages, real estate development, environmental technology, tourism development and high tech industries
RMB 9.5 billion revenue 2008 (A$1.5 billion)
12,000 employees
Hanlong VisionMoly Mines Limited International Mining House
Major world Mo company
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MOLYMINESLIMITED
Status of the US$500M Project Finance Facility
Banking syndicate, counsel and Hanlong working towards finalization by 31 January 2011
Term Sheet negotiations nearing completion
National Development Reform Commission Beijing approval imminent
Supported by Hanlong parent company guarantee
Key contracts to support construction and operations advanced including:
EPC contract
Gas supply agreement
10Mt/a Definitive Feasibility Study near complete to support project execution and
construction
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MOLYMINESLIMITED
Outlook for the Molybdenum Market
Supply
No new supply sources – existing by-productproducers at full capacity
China domestic production quota’s
The world needs new primary molybdenum mines
Large new mines need high molybdenum prices andstrategic partners to be funded
Prices
Found a floor at US$15.00/lb
Limited western world demand throughGFC
China currently the dominant player andnet importer
Limited global stocks
End 2008 and early 2009 price levelsprove unsustainable as higher costmarginal produces in China withdraw frommarket
Demand
Global consumption 2009: 437M lb
Consumption grew at 8.2% 2002-2008before contracting in 2009
Stainless steel
Energy applications
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MOLYMINESLIMITED
China Information
Transportation of mill sections, Perth
Spinifex Ridge Molybdenum Project
World’s most advanced greenfield moly project
Fully permitted
Simple open pit mining and processing operation
10Mt/a throughput
Major items of plant and equipment purchased and in storage
Ready for immediate construction post financing
2 year construction period post financial close
12-13 million lb per annum produced over first 10 years
By-product copper production
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MOLYMINESLIMITED
Integrated Project Development Schedule
Construction
Operations & “FOOS”
Fe Sales
Hanlong Investment
US$500m Drawdown and Construction
Commissioning
Mo/Cu Sales
Iron Ore Project
Moly Project
2010 2011 2012 2013 2014
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MOLYMINESLIMITED
Experienced and Independent Team
Board of Directors
Over 40 years of worldwide experience in the resource industry, more than 20 years experience as a manager of publicly listed resource companies, in addition to serving as a director of mining companies that developed mines in Australia, Mongolia, Armenia and the DRC.
Over the past 10 years Mr. Liu has built the Sichuan Hanlong Group intoa modern and international company . He is well known fort hisphilanthropic work and has been awarded national recognition. Mr. Liuwas named one of the 10 most influential people on the economy ofSichuan in the past 30 years.
Mr. David Craig - Chairman
An experienced businessman and lawyer, who has held andholds Executive and Board positions in the fields of law, financialservices and the resources industry. Appointed as Chairman in2009
Dr. Derek Fisher – CEO/Managing Director
Mr. Liu Han – Non-Executive Director
Mr. Liu has appointed Mr. Chen as his alternate director. Mr Chen holdspostgraduate degrees in finance and accounting and is fully bilingual. Hebrings with him extensive cross cultural professional experience.
Mr. Nelson Chen – Alternate Non-Executive Director
Holds a Bachelor of Business Administration with Honors from theUniversity of Texas at Austin. Mr. Zhmurovsky is the Senior VicePresident within the Energy and Infrastructure Group at TCW.
Mr. Andy Zhmurovsky – Non-Executive Director
Over 15 years experience in finance and investment working for globallyrecognized investment banks and financial organizations.
Skilled in capital utilization and industry integration with extensive globalM&A experience.
Mr. Steven Xiao – Executive Director
A mechanical engineer with 40 years experience in the miningand construction industries in Southern Africa, Australia, NewZealand, Canada and Indonesia.
Mr. David Nixon – Independent Non-Executive Director
Moly Mines Limited
Mr. Michael Braham – Non-Executive Director
Mr. Bob Prosser – Non-Executive Director
Recently appointed new independent director. Investment bankingbackground with many years as a public company director.
Recently appointed new independent director. Experienced corporateadvisor with 30 years experience in mergers and acquisitions. MA (Oxf)in Chemistry and is a Fellow of the Institutes of Chartered Accountants ofAustralia, and England and Wales and is a member of the AustralianInstitute of Company Directors.
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MOLYMINESLIMITED
Key Managers and expanding
Mr. Collis Thorp – Chief Operating Officer
40 years mining experience, having operated and managed open-pit and undergroundmines in Australia and internationally. Experience covers precious, base and specialtymetal operations, including gold, tin, tungsten, titanium and zircon.
Andrew is a qualified accountant with a Bachelor of Commerce (Accounting andFinance) from the University of Western Australia. Over 16 years corporate, financeand company secretarial experience in the resources industry commencing with ArthurAndersen Chartered Accountants and spending the last 12 years in seniormanagement positions within mining houses.
Mr. Andrew Worland – Company Secretary , General Manager Commercial & Marketing
John is a Chartered Accountant and holds a Bachelor of Science Honours inMathematics with Applications from Southampton University. John has held mineaccountant, commercial manager roles and financial controller roles since 1989 andhas held CFO or Company Secretary roles for Australian and AIM listed companiessince 2004. Previously held positions with Barrick Gold, Wiluna Mines & Cable Sands.
Mr. John McEvoy – Chief Financial Officer
Mike holds a Bachelor of Science, Mining Engineering, University of Newcastle Upon Tyne, England, a WA Unrestricted Quarry Managers Certificate and a Northern Territory Mine Managers Certificate. Over 30 years of mine management and operations experience in iron ore, manganese and gold for companies including Hamersley Iron (now Rio Tinto) and Dominion Mining. Over 10 years in executive management positions with major mining contractors such as Henry Walker, Boral and Brambles.
Mr. Mike Gloyne – General Manager Operations
Experienced Team – Management
Mr. David Pass –Manager Metallurgy
Mrs. Barbara Kwiecien –Manager Land Administration
Mr. Graeme Kininmonth –Manager Health & Safety and Environment
David holds a Bachelor of Science and a double major: Extractive Metallurgy and Chemistry from Murdoch University, Western Australia and has over 25 years hard rock mining experience. Prior to joining Moly Mines David spent 12 years with Placer Dome’s (now Newmont Mining) Granny Smith operation holding senior metallurgist, plant operator and processing manager positions. David has also held senior metallurgical roles at Plutonic Gold Mine and with BP Mineral Australia.
Graeme holds a Bachelor of Science from Australian National University and has over 30 years experience including management of project approvals processes in senior environmental and site management positions for Straits Resource ,Sons of Gwalia and Cable Sands.
28 years of international experience within land and tenure administration and land access negotiations. An accredited mediator, she has facilitated her work internationally, specifically with indigenous people.
Ms. Xu Chuanmei
MA Degree from China University of Geosciences. Ms Xu has extensive experience working with Chinese and international resource sectors, and is highly skillful in intercultural communications and negotiations. She also specialises in international trade and marketing.
Moly Mines Limited
Mr. Ben Cairns – Exploration Manager
Mr Cairns holds a Bachelor of Science from the Australian National University with Honours in Geology. He has twelve years experience as an exploration geologist working on a range of projects from greenfields exploration, through to resource development, near mine exploration and project evaluation in a range of commodities including gold, copper, base metals, PGE’s, molybdenum and iron ore.
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MOLYMINESLIMITED
50 Kings Park Rd, West Perth, WA, 6005, AUSTRALIATelephone: +61 8 9429 3300 Fax: +61 8 9429 3399
Telephone: +1 416 371 7541
Em ail: info@molymines.com
Website: http://www.molymines.com
Stock m arket codes: ASX: MOL, TSX: MOL, FWB: HJ1
Moly Mines Contact Details