For

per

sona

l use

onl

y

www. .com.au

Page 2

DisclaimerF

or p

erso

nal u

se o

nly

www. .com.au

Page 3

•

•

•

•

•

•

•

•

•

For

per

sona

l use

onl

y

www. .com.au

Page 4

Share Price (13 July 2012 ) $ 0.085 Shares On Issue m 160.1 Market Capitalisation $m 13.6 Cash (30 June 2012) $m 4.7 Convertible Note $m 5.0 Enterprise Value $m 13.9

(For further details, please see Appendices) For

per

sona

l use

onl

y

www. .com.au

Page 5

Target Dates

2014

2013

2012

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

www. .com.au

Page 7

For

per

sona

l use

onl

y

www. .com.au

Page 8

•

•

Source: CM Group

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

www. .com.au

Page 10

Source: Alufer

For

per

sona

l use

onl

y

www. .com.au

Page 11

•

•

•

•

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

www. .com.au

Page 13

•

•

•

•

•

•

•

•

•For

per

sona

l use

onl

y

www. .com.au

Page 14

•

•

•

•

•

•

•

•

•

For

per

sona

l use

onl

y

www. .com.au

Page 15

• Transhipment is an obvious solution for

Cape Alumina’s projects

• Western Cape York has shallow water,

• sheltered seas; and • no infrastructure.

• A small port and barge loading facility will

be located in the Skardon / Ducie Rivers.

• The product is then loaded and exported to

market.

• Low environmental foot print, with minimal

onshore buildings, stockpiles and reduced

dust emissions is a key benefit of the

proposed transhipping system.

Cape alumina will develop its transhipping operations

from the ground up, with no existing infrastructure

available.

For

per

sona

l use

onl

y

www. .com.au

Page 16

Shallow draught barges

will tranship Cape

Alumina’s product 15 to

20 nautical miles offshore

to a mooring in the Gulf to

load Panamax and Cape

size ships

Cape Alumina is

proposing to employ self-

unloading barges, a

stable of CSL’s business.

For

per

sona

l use

onl

y

www. .com.au

Page 17

•

• 1

•

•

•

•

•

1. Excluding the Pisolite and Bauxite Hills project areas, the total resource potential is conceptual in nature and there has been insufficient work completed to

define a mineral resource across all of Cape Alumina’s exploration tenements at this stage. Estimated tonnage range is 300–400 Mt and the estimated

beneficiated grade range is 47-54 per cent Al2O3 and 8-12 per cent SiO2 assuming average 65 per cent recovery.

For

per

sona

l use

onl

y

www. .com.au

Page 18

•

•

•

•

•

•

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

www. .com.au

Page 20

• The Skardon River loading location is approximately 7-10 kms from the proposed beneficiation plant where export product will be stockpiled and loaded on to barges through a newly constructed barge loading terminal facility.

• Other options were considered for the barge loading facility. • Open coast • Ducie River across from Pisolite Hill proposed barge loading facility.

Barge loader – Bontang Coal Terminal

For

per

sona

l use

onl

y

www. .com.au

Page 21

For

per

sona

l use

onl

y

www. .com.au

Page 22

For

per

sona

l use

onl

y

www. .com.au

Page 23

• The studies examined the influence of barging on; • overall cost of operations and its impact on project viability, • the likely marine transport options and resulting costs

• They were evaluated using GHD’s logistics cost model for the transfer of bauxite from the barge loading facility to the export vessels, and on to market.

• The supply chain includes a number of steps that are typical for dry commodity

logistics systems. The supply chain includes: • Transfer of product from the barge terminal stockpile to barges. • Transport of product from the barge terminal to the ship loading point, and

empty return ; • Transfer of product from the barge to the receiving export vessel.

For

per

sona

l use

onl

y

www. .com.au

Page 24

• For the purposes of the GHD pre-feasibility study three barge types have been considered with a range of sizes (1500 to 4000 dwt).

• These barge types are defined as:

• Dumb Barge: no means of propulsion and is reliant on a tug boat

• Self-propelled: Fitted with a means of mechanical propulsion (no tug boat required)

• Self-unloading barges: Self-unloading conveying system

• Barge sailing distance and travel time is dependent on the marine environment, and the export vessel specifications. This is due to draught requirements and achievable water depths in the area.

For

per

sona

l use

onl

y

www. .com.au

Page 25

• Five transfer and transhipment options have been identified

• Option 1: Self-geared vessels: utilises Handy and Handymax class vessels that are self-geared with grab cranes to undertake direct transfer of product between the barge and the vessel.

• Option 2: Barge crane: the use of a barge crane operating with larger grabs. This type of operation allows the system to load all ship classes, including Panamax and Cape size vessels

• Option 3: Transfer platform: utilises Self Unloading Barges, capable of discharging at an average load rate of 3000 tph and 4000 tph.

• Option 4: Silo vessel: uses a converted Capesize vessel which is to be fitted with grab cranes to load ships of the same size or smaller, and to unload barges.

• Option 5: Transhipment vessel: utilises a converted Capesize vessel fitted with four grab cranes and a travelling ship loader.

• Each of the ship loading options has different performance characteristics that influence the type of barging operation and the overall system capacity.

For

per

sona

l use

onl

y

www. .com.au

Page 26

2.5MTPA – Barge Operations (Utilisation and $/tonne)

• The lowest cost option for the Skardon River location was the use of self-geared vessels; however, the level of system utilisation identified a high level of operational risk that may result in failing to meet the target export volume, and potential demurrage impact due to vessel delays. In addition, when the cost of export shipping is considered, the impact of small vessels resulted in a high cost option when delivered to the customer. F

or p

erso

nal u

se o

nly

www. .com.au

Page 27

2.5 MTPA – Export Shipment + Barge Operations (Utilisation, USD/tonne)

• At an export volume of 2.5MTPA from the Skardon River location, the lowest cost to risk option was provided through the charter of a barge crane (750 tph), with 4,000 dwt or above dumb barges and tugs.

For

per

sona

l use

onl

y

www. .com.au

Page 28

5MTPA – Barge Operations (Utilisation and $/tonne)

• At an export volume of 5MTPA from the Skardon River location, the lowest cost to risk option was provided through the use of self -unloading barges (of maximum achievable size) and tugs utilising a high speed transhipment platform. F

or p

erso

nal u

se o

nly

www. .com.au

Page 29

5MTPA – Barge Operations + Export Shipping (Utilisation, USD/tonnes)

• Where possible, large vessel classes should be used in order to achieve the high load rates during barge transhipment to minimise vessel time, and maximise economies of scale through large payloads to minimise the sea-freight cost to the customer, as this will be likely to affect the achievable contract price. F

or p

erso

nal u

se o

nly

www. .com.au

Page 30

Self-Unloading Barge and transfer platform

Source: http://www.cslaustralia.com.au/transhipment_gallery.html

The GHD study concluded that self-unloading barges appear the optimal operation.

Self-unloading barges similar to those used at Arrium’s operations in South Australia are proposed for Cape Alumina’s projects.

• 4,000 tonne barges were considered for Bauxite Hills

• 10,000 tonne barges were considered for Pisolite Hills

For

per

sona

l use

onl

y

www. .com.au

Page 31

Further investigations required• Optimisation of transhipment operations

• Scale 2, 3, 5, >5? • Link projects – capture synergies

• Investigate alternatives that could deliver lower costs – capital & operating

• Investigate options for funding

• outsourcing transhipment; or • owner / operator

• Investigate options for early start up

• Facilitate lower initial production levels – charter / short term contract • Facilitate delivery time for long term barges

• Investigate the purchase of second hand equipment

INVESTIGATIONS WILL FEED INTO THE BANKABLE FEASIBILITY STUDIES

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

www. .com.au

Page 33

For

per

sona

l use

onl

y

www. .com.au

Page 34

For

per

sona

l use

onl

y

www. .com.au

Page 35

For

per

sona

l use

onl

y

www. .com.au

Page 36

For

per

sona

l use

onl

y

www. .com.au

Page 37

Option 1: Self-geared vessels

Option 2: Barge crane

Source: http://www.demagcranes-ag.de/files/content/sites/global/files/Bilder/presse/bildarchiv/hafentechnologie/bild10g.jpg; http://www.lda.fr/img/310_dona-felicia.jpg

Source: http://www.adaro.com/AnnualReport2010/pages/en/04_management/3002.html

For

per

sona

l use

onl

y

www. .com.au

Page 38

Option 3: Transfer platform

Option 4: Silo vessel

Source: http://www.cnco.com.hk/fleet/bulk-carriers; http://www.swireshipping.com/images/stories/article/Fleet/bulkCarriers /MV_ERAWAN.pdf

Source: http://www.cslaustralia.com.au/transhipment_gallery.html

For

per

sona

l use

onl

y

www. .com.au

Page 39

Options 5: Transhipment vessel

Source: http://www.seabulk.com/goa.html

For

per

sona

l use

onl

y

www. .com.au

Page 40

Pisolite Hills - Barge Facilities The function of the barge loading terminal is to load beneficiated bauxite onto

self unloading barges of approximately 10,000 DWT. Production levels of 3, 5,

7 and 10 Mtpa have been considered.

The size of ship that the marine operation must be capable of handling is a

Panamax vessel up to 75,000 DWT with an option to facilitate loading of Cape

size vessels of 160,000DWT.

The facility would be designed to operate on a 24 hours per day, 7 days per

week basis and would only be shut down for scheduled maintenance,

emergency breakdowns and cyclones.

The limiting conditions for transhipping at sea would be winds gusting to 20 m/s.

The following port capacities have been

assumed: 3 Mtpa 5.0 Mtpa 7.0 Mtpa

Maximum load out rate t/h 2,500 2,500 2,500

Average load out rate t/h 1,250 1,385 1,385

Ship capacity (average) t 75,000 160,000 160,000

No. of vessels per year 40 33 47

For

per

sona

l use

onl

y

Cape Alumina Limited

For

per

sona

l use

onl

y