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Ausmelt Limited 12 Kitchen Road Dandenong 3175 Victoria Australia
Tel: + 61 3 9794 6200 Fax: + 61 3 9794 9411 Website: www.ausmelt.com.au Email: [email protected] ABN: 72 005 884 355
12 June 2008 ASX Announcement
AUSMELT LIMITED Presentation AUSMELT LIMITED (AET) provides a copy of a presentation given today to the �2008 Rising Stars Micro Cap Conference� in Sydney by the Mr Paul Abbott, MD.
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2008 Rising Stars
Micro Cap Conference
ASX :AET
Presented by
Paul Abbott
(Managing Director)
SYDNEY HILTON, 12th of June 2008
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What does Ausmelt do?
Ausmelt is an Australian-based company servicing the global mining, metals
and industrial waste recycling industries with world-leading technologies.
Ausmelt has a broad suite of environmentally safe and technically superior
technologies, including Top Submerged Lance (TSL) smelting technology and
the AM2 mineral flotation reagent.
The principal activities of Ausmelt consist of the development, design
engineering and supply of equipment for Ausmelt TSL furnaces for the
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Overview of Ausmelt Top Submerged Lance (TSL) technology invented by Dr John Floyd at
CSIRO in 1970�s
Founded Ausmelt Pty Ltd in 1981
CSIRO sub-licensed TSL to Ausmelt
Continuing development of TSL throughout the 1980�s
First commercial plant built in South Korea (Korea Zinc) in 1991
Listed on Australian Stock Exchange in late 1993
Currently 46 Ausmelt TSL smelting furnaces in operation or under
design/construction in 14 countries
Diversifying into mineral flotation reagents, metallurgical laboratory
services and smelting operations
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Ausmelt Business Structure
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Non-Ferrous - TSL
Seller of proven smelting technology to the global non-ferrous metal and
metallurgical waste industries
Whyalla Smelter Operations (South Australia)
Commercial operating plant for toll smelting and processing of zinc-bearing materials
Mining Chemicals (AM2)
Supplier of a new mining chemical for the recovery of metals from oxide ores
Ausmelt Metallurgical Laboratory - AMML (Gosford, NSW)
Metallurgical laboratory services to the Australian & international mining industry
AusIron (Ferrous) - TSL
Innovative technology for the direct smelting of iron ore
Ausmelt Business Activities
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2006 2007
2008
HALF YEAR
PROFIT & LOSS ($000)
Revenue $13,699 $19,862 $11,750
Profit before Tax $3,115 $3,778 $2,637
Profit after Tax $2,842 $3,052 $1,950
BALANCE SHEET ($000)
Assets $14,998 $17,766 $23,802
Liabilities $5,041 $5,559 $10,324
Net Assets/Equity $9,957 $12,207 $13,478
Financial Performance Summary
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Australian-developed smelting technology
Single technology with wide application
Applied to diverse spectrum of metals & wastes
Patents & technical know-how
Delivers economic benefits - lower operating
and capital costs than competing technologies
Environmentally superior technology
Revenue from sale of technology licence,
engineering services & equipment supply
TSL Smelting Technology
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Non-Ferrous
Metallurgical Waste
Whyalla Smelter
Pilot Plant
Copper
Lead
Nickel
PGMs
Zinc
Tin
SPL
MWIA
TSL �World Leading Technology
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Jinchuan Nickel (China) - 1,000,000 tpa Nickel Concentrates
Jilin Nickel (China) - 250,000 tpa Nickel Concentrates
Huludao Copper (China) - 500,000 tpa Copper Concentrates
JinJian Copper (China) - 480,000 tpa Copper Concentrates
Carat Lead (Russia) - 70,000 tpa Lead Concentrates
Yunnan Tin (China) - 190,000 tpa Lead Concentrates
Votorantim (Brazil) - 75,000 tpa Lead Bullion
Intertrust (Bulgaria) - 60,000 tpa Lead Bullion
Yunnan Tin (China) - 100,000 tpa Copper Metal
Daye Copper (China) - 1,250,000 tpa Copper Concentrates
Vinto Tin (Bolivia) - 38,000 tpa Tin Concentrates
Tongling Copper Smelter, China
Current TSL Projects
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Ausmelt owns a TSL plant in Whyalla, South
Australia
Built as a demonstration plant for iron-making,
but capable of processing more than 50,000 tpa
of non-ferrous feed
Agreement with Nyrstar (formerly Zinifex) to toll
smelt 55,000 tpa of zinc bearing wastes from
Risdon, Tasmania
~$10M spent on capital modifications
Commenced operations in April 2008
Forecast revenues of $15m per annum
Investigating other feed sources
Whyalla Smelter Project
Ausmelt Whyalla Plant
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AM2 is a specialty mineral flotation
chemical with high margins
Developed and patented by
Ausmelt
AM2 improves the recovery of
oxide minerals
Major focus on copper in Africa and
South America
Selling to Ruashi Copper/Cobalt
mine in DRC
Sold trial tonnage of AM2 for plant
trials in Peru & Morocco
Sales of $2.4M in first half 2008
PERUAusmelt Chemicals � AM2
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A new minerals processing testing
laboratory established in Gosford,
NSW
Specializing in flotation testing of
base & precious metal ores,
hydrometallurgical testing, gravity,
grinding work & index tests
Services Australian and overseas
clients
Managed by Graeme Sheldon,
former founder and director of
Metcon Laboratories in Sydney
Plans to grow the business globally
through acquisition
Metallurgical Laboratory
BALL MILL
FLOTATION LAB
LEACH LAB
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AUSIRON® (IRON-MAKING) TECHNOLOGY
Developed for pig iron production
Direct use of iron ore fines
No sintering or pelletizing
Tolerates high P, Zn, Alkalis
Direct use of thermal coals
No coke-making
Single processing unit
Simple low-pressure operation
Operating flexibility
Ease of maintenance
Environmentally robust
No coke-making or sintering
Efficient use of coal
Low capital cost
Feasibility study in Mongolia
Tapping Operations
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Total Revenue - $19.86 Million (up 45%)
EBIT $3.78 Million (up 21%)
NPAT $3.05 Million (up 7.4%)
EPS improved from 7.2 cents to 7.7 cents
Dividend (Unfranked) 3 Cents per Share
Signed 3 New TSL Projects
2007 Financial Results
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Total Revenue - $11.75 Million (up 7%)
EBIT $2.64 Million (up 51%)
NPAT $1.95 Million (up 34%)
EPS improved from 3.66 cents to 4.87 cents
Dividend (Unfranked) 2 Cents per Share
YTD � Signed 5 new projects >$37 Million
2008 Interim Results
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Key Metrics (at 23rd May 2008)
Revenue: $11.75M (1H08, up 7% on 1H07)
EBIT: $2.64M (1H08, up 51% on 1H07)
NPAT: $1.95M (1H08, up 34% on 1H07)
No. Shares: 40.1M
Share Price: $1.30 (at close 23/5/08)
Market Cap: $52M
EPS: 7.7c (2007)
4.87c (1H08)
P/E Multiple: 17.0X (based on 2007)
13.3X (based on extrapolated 1H08)
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Outlook for Second Half 2008
Signed $19 million of new TSL projects since January
Finalised modifications to Whyalla Smelter and commenced operations
Conducting AM2 plant trials in Morocco and Peru in pursuit of sale orders
Continue to pursue acquisition targets for metallurgical laboratory
Successfully completed pilot plant trials for Australian tin project
Commenced client-paid feasibility studies for two prospective TSL projects
Continued financial performance improvements
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Outlook for 2009
2009 financial performance underpinned by existing TSL contracts
Project opportunities for TSL business remain strong
Commencement of profit contribution from the Whyalla Smelter
Build the AM2 customer and sales base
Plans to expand the metallurgical laboratory business by acquisition
Increased focus on commercialisation of the first AusIron technology project
Continued strong earnings
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Summary / Investment Case
Top Submerged Lance Technology - Best Available Technology (BAT)
Strengthening market share in global smelting projects
Outlook for resources/metals industry remains strong
Track record of delivering quality projects on time and on budget
Expanding both smelting applications and geographic markets
Over $40 million revenue in hand from existing TSL contracts
Investments in AM2 and Whyalla Smelter ready to bear fruit
AM2 business provides significant growth opportunity with high margins
Opportunities to grow the metallurgical laboratory business by acquisition
AusIron �iron-making� represents significant blue sky growth opportunity
Diversifying business to provide a balanced sustainable portfolio
Strong balance sheet, presently un-geared
Continuity of senior management team and Board
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Questions & Enquiries
NAME POSITION Phone / Email
Paul Abbott Managing Director 03 9794 6200/[email protected]
Jim Fogarty GM Non Ferrous 03 9794 6200/[email protected]
Wayne Pennell CFO / Company Secretary 03 9794 6200/[email protected]
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