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Building a Strategic Position
in the Fluorspar Sector
Company Presentation
January 2017
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January 2016
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Board of Directors
4 5 1 2 3
3
3. Donald McAlister, Non-Executive Director
Accountant.
Previously Finance Director at Mwana Africa plc, Ridge Mining plc
and Reunion Mining.
22 years’ experience in all financial aspects of the resource
industry, including metal hedging, tax planning, economic
modelling/evaluation, project finance and IPO’s.
Founding director of the Company.
1. Patrick Cheetham, Executive Chairman
Geologist.
35 years’ experience in mineral
exploration.
30 years’ experience in public
company management.
Founder of the Company, Dragon
Mining Ltd, Archaean Gold NL and
Sunrise Resources plc.
2. Richard Clemmey, Managing Director
Chartered Engineer.
23 years’ experience in developing and managing
mining/quarrying projects worldwide for Derwent Mining, Lafarge,
Hargreaves (GB) Ltd, Marshalls plc and CFE.
Board Director since May 2012.
4. David Whitehead, Non-Executive Director
Mining Geologist.
43 years’ experience in all aspects of mineral exploration, mine
development and operations management.
20 years’ at senior executive level at BHP Billiton.
Board Director since 2002.
5. Colin Fitch LLM, FCIS, Company Secretary
Barrister-at-Law.
Previously Corporate Finance Director of Kleinwort Benson,
Partner and Head of Corporate Finance at Rowe & Pitman
(SG Warburg Securities) and Assistant Company Secretary at
the London Stock Exchange.
Held a number of non-executive directorships including
Merrydown plc, African Lakes plc and Manders plc.
Company’s Aims, Strategy and
Business Plan
Company’s Aims
• To become a reliable long-term and competitive supplier of
high quality fluorspar to world markets
• Revenue generating in the near term
• To add value to the Group’s mineral projects
• The discovery, acquisition and development of mineral
resources
4
Fluorspar and Applications
5
• Fluorspar is the commercial name for the mineral fluorite, composed of calcium and fluorine
(CaF2)
• Fluorspar is the predominant commercial source for the chemical element fluorine
• Fluorine is a non-metallic element and the lightest of the halogens and is therefore largely
irreplaceable
• Two principal commercial grades:
Metallurgical grade/Met-spar (60-96% CaF2)
Acid grade/Acid-spar (+97% CaF2)
Source: Industrial Minerals Magazine, Roskill, CRU, UN, USGS, CCM, Company Data
Fluorspar Market
• The global supply and demand for fluorspar
had seen steady growth over the decade
1998 to 2008 – reflected in the long-term
upward trend in price
• In 2009 the global financial crisis
contributed to a contraction in acid-spar
supply and demand followed by a short-
term recovery in 2011
• Acid-spar demand has softened in the last
5 years resulting in oversupply and a
downward trend in the price
6Source: Industrial Minerals Magazine, Roskill, CRU, UN, USGS, CCM, Company Data
• Major Producing regions: China (>50% world’s production); Mexico; Mongolia/CIS; South Africa;
Vietnam
• Major consuming regions (highest to lowest): China; North America; Europe; Mexico; Russia
• Key western acid-spar consumers: Chemours, Honeywell, Solvay, Lanxess, Fluorsid, DDF,
Fluorchemie
Opportunity in Fluorspar
• Industry view (producers, end users, analysts): demand and price will increase in the medium to long-term
• No large scale commercial alternative or recycling
• Refrigeration – new generation of zero ozone depleting potential (ODP) and very low global warming
potential (GWP) refrigerants, hydrofluoroolefins (HFO’s) - Driven by environmental legislation, most recently
the Kigali Amendment:170 nations agreed to phase down low ODP, high GWP Hydrofluorocarbons (HFCs)
• Energy reduction in the steel and aluminium industry
• Emerging uses - fluoropolymers in lithium batteries for example
• Permanent mine closures – removing capacity from the market
• China fluorspar exports have continued to decline since 2000 driven by increasing internal demand and
production/export restrictions – potentially a future net importer
• Western Europe and North America (USA imports 100% of its fluorspar) are the largest acid-spar
consuming regions outside China, importing more than 900,000 tonnes per year
• North America and Europe face the potential risk of security of supply
• Fluorspar is classified as a Critical Raw Material by the European Commission – high risk of supply
shortage and consequent impact on the economy
• USA considers fluorspar as a strategic mineral
• Based on macroeconomic drivers the Company continues to be strategically placed to capitalise on this
position in the future by developing its 100% owned large fluorspar assets, containing fluorspar
resources of 13.1 million tonnes, located in the USA and Europe
7Source: Industrial Minerals Magazine, Roskill, CRU, UN, USGS, CCM, Company Data
Strategic Project Locations
and Performance
8
• Three 100% owned fluorspar projects strategically located in
the USA and Europe
• Maintained momentum with the development of its projects
through the mining cycle in line with its aims and strategy
• The Company has continued to increase its fluorspar Mineral
Resource asset since 2011 – currently 13.1 million tonnes of
contained fluorspar (JORC compliant)
Sweden - Storuman Fluorspar Project
Excellent Location & Infrastructure
• Adjacent to the main E12 highway
• Storuman town and new bulk rail terminal – 25 km
• Road and rail linked to Umeå Port – 240 km
Lars Lind
Umeå
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Storuman Fluorspar Project
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Positive Scoping Study – Scott Wilson
• Low Capex: US$ 46 million
• Average annual Turnover: >US$ 34 million
• Pre-Tax NPV (8% coc): US$ 33 million
• IRR (100% Equity): 24%
• Payback: <3 years
Post Scoping Study – Key Developments
• 46 diamond core drill holes
• 28% increase in Mineral Resource compared
with Scoping Study – JORC Classified
• New Bulk Rail Terminal constructed – 25km
from project site
• Waste:ore strip ratio reduced from 2.2t:1t to
0.8t:1t
• Potential step-change for scale of mineralisation,
open laterally in all directions
JORC Mineral Resource Estimate
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Indicated 25 10.28
Inferred 2.7 9.57
Total 27.7 10.21
Storuman Fluorspar Project
2016 Highlights
• 25-year Exploitation (Mine) Permit approved by the Swedish Mining
Inspectorate (Bergsstaten) - Feb 2016
• Appeals lodged against Permit decision: Sami Reindeer Husbandry
Community and Urbergsgruppen received by the Swedish Government
• New case law for Sweden in 2016: Norra Karr rare earth deposit owned by
Leading Edge Minerals (formerly Tasman Metals) had its Mine Permit revoked by
the Supreme Administrative Court
• The Norra Karr Mine Permit was revoked on the basis that the Environmental
Impact Assessment (EIA) did not sufficiently assess the impact of mining on the
wider area beyond the Mineral Deposit
• The Government returned the Tertiary Mine Permit case to the Swedish Mining
Inspectorate in Dec 2016 for re-assessment in light of the Norra Karr case
• The EIA prepared by Tertiary is based on extensive and detailed baseline
environmental studies which do cover the wider area
• The Company is confident that the quality and extent of the EIA coupled with the
expected continued support from key stakeholders in the project will provide
support for a positive outcome for Tertiary in the re-assessment process
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Norway - Lassedalen Fluorspar Project
Excellent Location & Infrastructure
• 500 m from highway E134 & railway
• 6 km from famous silver mining town of Kongsberg
• 50 km from Port of Drammen
• 80 km SW of City of Oslo
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Lassedalen Fluorspar Project
History and Geology
• Steeply dipping fluorspar vein system in 4 km long vein breccia zone
• Drilled by Norsk Hydro in the 1970’s – 28 diamond holes
• Proved vein over 2.7 km strike length
• Open at depth and along strike
13
Lassedalen Fluorspar Project
• JORC Mineral Resource Estimate (SRK consulting)
• Re-logged and sampled 3.5 km of drill core from 23 of the 28 diamond holes drilled in the 1970’s
14
Highlights
• Positive Scoping Study (Wardell Armstrong International) – 2012
• Tertiary and Global aluminium company, Hydro, have entered into a Heads of Terms: Tertiary
will acquire the land and historic mine workings for 1 Norwegian Krone following successful
due diligence and purchase agreement completion
JORC Mineral Resource Estimate
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Inferred 4 24.6
Base Case Extended Mine CaseTonnage Mined (Underground) 3.6mt @ 22.4% Fluorspar 4.5mt @22.4% Fluorspar
Mining Rate 543,000 tpa 543,000 tpa
Acid Grade Fluorspar production/year 100,000 tpa 100,000 tpa
Mine Life 6.6 years 8.25 years
Initial Capital Cost (Capex) US$ 78 million US$ 78 million
Pre-Tax NPV (10% coc) US$ 31.6 million US$ 52.2 million
IRR (100% Equity) 20.20% 24.10%
USA - MB Fluorspar Project
Nevada - Most Favourable Mining Jurisdiction in
the USA
• Located 19 km SW of Eureka, Eureka County, Nevada
• 146 Mining Claims >2,800 acres on BLM land
• Trans-national road and rail links, rail 161 km from the
project location
• 780 km to port of San Francisco
• Road access to and over property
• Government land - no special status
• >80% of Eureka County population employed in mining
industry
15
MB Fluorspar Project
2013 – 2015 Milestones
• Phase 1&2 drilling programmes
26 holes, 3220 metres
• Large Maiden JORC Compliant Mineral Resource Estimate –
completed April 2014
16
• Phase 3 drilling programme
9 percussion holes, 2516 metres
Completed November 2014
• Large upgraded JORC Compliant Mineral Resource
Estimate – completed June 2015
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Indicated (9% CaF2 cut-off) 6.1 10.8
Inferred (9% CaF2 cut-off) 80.3 10.7
Total 86.4 10.7
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Indicated (8% CaF2 cut-off) 8.9 10.3
Inferred (8% CaF2 cut-off) 29.5 10.4
Total 38.4 10.4
MB Fluorspar Project
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MB Fluorspar Project
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2015/2016 Highlights & 2017 Targets1
• 166 line-km ground magnetic survey completed
• Phase 4 drilling programme completed
4 percussion holes, 1,553 metres
Significant lateral and depth extension of fluorspar
mineralisation proven in the Western Area
• Deposit and field appraisal by world renowned geologist –
Dr Richard Sillitoe
Reasonable possibility that fluorspar grades could
increase to the north-west region of the deposit
• Modelling, optimisation and associated economic
evaluation - key opportunities and challenges:
Potential higher grade fluorspar to the north west –
significant effect on project economics
Potential for production of commercial grade mica as a
secondary product – valuable upside
Project sensitive to transport distance/cost to market
Mineralogy of the deposit is highly variable
• Following successful completion of modelling – Scoping
Study targeted for completion by summer 2017
Note 1: All target schedules are subject to change, funding and successful completion of each phase of work
Kaaresselkä & Kiekerömaa - Gold, Finland
• Sale of two legacy gold assets in Finland to TSX-V listed Aurion Resources Ltd
• Aurion is a Canadian listed (TSX-V: AU) exploration company primarily focusing on the development of its
Finnish gold projects, several of which are under a joint venture with B2Gold, a main listed (TSX:BTO,
NYSE MKT:BTG) gold producer and developer
• Deal Highlights:
£100,000 initial consideration to be paid by Aurion: £15,000 in cash and £85,000 in Aurion shares
Tertiary will retain royalty interest in the projects:
Pre-Production Royalty on definition of a NI 43-101 (or equivalent) Code compliant Minerals Resource Estimate on
either project:
US$1.00/ounce gold – Inferred Mineral Resource
US$2.00/ounce gold – Indicated Mineral Resource
US$3.00/ounce gold – Measured Mineral Resource
Net Smelter Returns Royalty (NSR) of 2% on all future gold production from either property
Aurion can purchase 50% of the NSR from Tertiary for USD$1,000,000 at any time prior to commencement of
commercial production on either project
The sale is conditional upon successful transfer of the Exploration Licences for each project from Tertiary to Aurion
Rosendal Tantalum Project, Finland
• Exploration Licence expired – renewal application submitted
• No material work planned, continue to seek potential partners or buyers
Future Revenue from
Non-Core Projects
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Investment Case
• Tertiary Minerals plc - The only UK public traded company offering an exciting exposure to fluorspar – a
strategic and critical mineral in the USA and Europe
• Three 100% owned fluorspar assets strategically located in the USA and Europe: 13.1 million tonnes
contained fluorspar (CaF2) resources (JORC classified
• Europe – Key market, Fluorspar Critical Raw Material Classification (EC), net importer
• USA – Key market, 100% net import reliance, strategic mineral
• No large scale commercial alternative or recycling
• Broker Research suggests shares are undervalued2:
20Note 2: Previous price target estimates are no indication of future prices
SP Angel 10.6p per share 13 March 2015
Beaufort 9p per share 13 April 2016
BROKER RESEARCH - Latest Price Target
Current SP: 1.03p
Current Mkt Cap: £2.8M
Looking Forward……..
• Storuman Project: Resolution on 25-year Mine Permit
• MB Project: Modelling, optimisation and associated
economic evaluation followed by Scoping Study
• Potential Revenue:
Retained Royalty Interest in Finnish Gold Projects
Evaluating a number of projects for acquisition with
near term revenue and profit potential
Building a Strategic Position
in the Fluorspar Sector
Tertiary Minerals plc
Richard Clemmey/Patrick Cheetham
Tel: +44 (0)1625 838 679
[email protected]@tertiaryminerals.com
Nominated Adviser & Joint BrokerS P Angel Corporate Finance LLP
Ewan Leggat/Lindsay Mair/Laura Harrison
Tel: +44 (0)203 470 0470
[email protected]@spangel.co.uk
Joint BrokerBeaufort Securities Ltd
Elliot Hance
Tel: +44 (0)207 382 8300
THANK YOU FOR YOUR TIME AND SUPPORT
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