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AUSTRALIANBAUXITEASXCodeABZ
AUSTRALIAN BAUXITE LIMITED
ABZ
Developing our first bauxite mine
Strong bauxite market
Bauxite is the ore for aluminium
Level 2 131 Macquarie St
Sydney NSW 2000 Australia
Phone: +61 2 9251 7177
Facsimile: +61 2 9251 7500
E: corporate@australianbauxite.com.au
Ian Levy, CEO
Mob: 0407 189 122
E: ilevy@australianbauxite.com.au
AUSTRALIANBAUXITEASXCodeABZ
2
JORC Code Compliant Public Reports
The Company advises that this presentation contains summaries of Exploration Results and Mineral Resources as defined in the 2004 Edition of
the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”).
The following table references the location of the Code -compliant Public Reports or Public Reporting on which the summaries are based. These
references can be viewed on the ASX website and the Company will provide these reports, free of charge, to any person who requests it.
Reference Issue Date Title of Notice as lodged with ASX
1 12/10/2011 Binjour Maiden JORC Resource
2 15/08/2011 Guyra Maiden JORC Resource
3 12/05/2011 Taralga Bauxite Resource Doubled to 25 Million Tonnes
4 06/12/2010 Taralga JORC Resource Update
5 02/09/2010 Inverell JORC Resource Update
Reference Issue Date Title of Notice as lodged with ASX
1 28/07/2012 Binjour JORC Resource Upgrade to 24.5 Million Tonnes
2 15/08/2011 Guyra Maiden JORC Resource 6.0 Million Tonnes
3 30/05/2012 Taralga Bauxite Resource Increased 50% to 37.8 Million Tonnes
4 08/05/2012 Inverell JORC Resource Update 38.0 Million Tonnes
5 08/11/2012 Tasmania Maiden JORC Resource 5.7 Million Tonnes
Forward Looking Statement
Whilst based on information from sources considered reliable, Australian Bauxite Limited ( ABx), its directors, employees and consultants do not represent,
warrant or guarantee, expressly or impliedly, that the information in this document and presentation is complete or accurate. Tothe maximum extent permitted
by law, ABx disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequent ly comes to its notice, which
may affect any of the information contained in this document and presentation.
JORC and Competent Person Statement
Information herein relating to Exploration Results, Resources and Resource Targets is based on information compiled by Ian Levy BSc MSc who is a Fellow of The
Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Levy is employed by ABx as Chief Executive Officer.
Mr Levy has more than five years experience relevant to the style of mineralisation and type of deposit being reported and to th e activity which he is undertaking
to qualify as a Competent Person as defined in the 2004 Editionof the‘ Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves’ (the JORC Code). This report is issued with the prior written consent of the Competent Person as to the form and context in which it appears.
Exploration Target Statement
ABx has an exploration target of 200 to 300 million tonnes of bauxite, based on Mineral Resources announced in mid 2010 of 35 million tonnes of bauxite at
Inverell4,5
from 15% to 20% of the known bauxite deposits on Exploration Lea se EL 6997 in northern NSW and 25 million tonnes of bauxite at Taralga 1,2,3
from
approximately 50% of the bauxite targets on Exploration Lease EL 7357 in southern NSW . In accordance with the JORC Code, readers are advised that“ the
potential quality and grade is conceptual in nature, that therehas been insufficient exploration to define full Mineral Resources and that it is uncertain if further
exploration will result in the determination of a Mineral Resource”. As first- pass drilling has proceeded across most of its tenements, ABx has seen no reason to
vary its exploration target.
In this presentation all references to direct shipping ore ( DSO ) refers to the company ’s exploration objective of defining DSO grade mineralisation.
The potential quantity and grade of exploration targets is conce ptual in nature, there has been insufficient exploration to defi ne a Mineral Resource
and it is uncertain if further exploration will result in the de termination of a Mineral Resource.
Direct Shipping Ore
Maiden QLD Mining Lease JORC Resource 3.5 Million Tonnes6 15/11/2011
AUSTRALIANBAUXITEASXCodeABZ
3
AUSTRALIAN BAUXITE LIMITED
• First Mine Lease Application lodged
• 3 Tasmanian mines each producing ~0.8 mill tonnes pa
• Highways, rail, ports already exist
• $10 million capital cost funded by offtake partner
• Operating costs $25 to $29 per tonne FOB
• Margin $15 to $20 per tonne
• 114 million shares @ 20c = $23 million market cap
• $3.1 million cash @ 8 April + $2.4 million pending
Fully funded if all goes to plan
AUSTRALIANBAUXITEASXCodeABZ
4
AUSTRALIAN BAUXITE LIMITED
• Joint Venture with Xinfa Group - in due diligence
• $0.5 million 5 month exclusivity payment received
• Xinfa to fund all project capital costs to earn 50%
• ABx can refund Xinfa and lock-in 50:50 JV
• Xinfa to take a $2 million placement at 38 cents
Whilst Xinfa has fully-funded the capital costs:
• Xinfa can take up to 70% of production each year
• Xinfa can buy 20% of project to have 70% of project
31 AUGUST 2013 – DECISION TO PROCEED?
AUSTRALIANBAUXITEASXCodeABZ
5
Aluminium use: 40% construction, 45% consumption
Source: IAI
AUSTRALIANBAUXITEASXCodeABZ
6
Aluminium cost advantage over copper & steel
Source: LME
Aluminium consumption growing fast, but
Aluminium prices are flat
& yet bauxite is booming ! Why ?
AUSTRALIANBAUXITEASXCodeABZ
7
Market Fundamentals: New Industry Structure
China China, Middle East
Giant New Smelters
Australia,
Indonesia
1 tonne
Figure:
Alumina
Limited
• New Smelters use 30% less electricity per tonne aluminium
• New Chinese smelters taking more market share
• China must import 40% of bauxite used
• Indonesian bans/taxes tightening: in 2012 & more in 2014
=> Strong demand for Oz bauxite in China
AUSTRALIANBAUXITEASXCodeABZ
8
South
America
Asia
ABZ bauxite deposits
Other bauxite deposits
Alumina Refineries
China-Australia Trade
Australia will supply China’s 38 large refineries
Indonesian reductions, especially from 2014
Europe
America
NorthEurope
Africa
Russia
Australia
Australian low temp bauxite
will replace Indonesian
bauxite strongly in 2014
Hi
tempLo
temp
variable,
looming
bans &
taxes
Country risk &
transport limits
US supply &
transport
limits
AUSTRALIANBAUXITEASXCodeABZ
0
1
2
3
4
5
6
Milliontonnespermonth
Milliontonnespermonth
Bauxite imports into China - million tonnes/month
Indonesia Australia India Other
9
Strong Chinese Bauxite Imports
Sources: C&M, MBC & China Customs
Indonesian supply will reduce further in 2014 as export bans & taxes increase
AUSTRALIA’S & ABZ’S OPPORTUNITY IS NOW
Indonesian export bans &
20% tax imposed
AUSTRALIANBAUXITEASXCodeABZ
10
Sources: C&M, MBC & China Customs
Indonesian export tax on bauxite increases from 20% to 50% in 2014 = + US$60/t
AUSTRALIA’S & ABZ’S OPPORTUNITY IS NOW
Strong Chinese Bauxite Prices
$20
$30
$40
$50
$60
$70
US$pertonneCIFChina
Average CIF Price of Chinese Bauxite Imports US$/tonne
Indonesian export bans &
20% tax imposed
AUSTRALIANBAUXITEASXCodeABZ
11
Alumina Refineries (8)
Australia Will Increase Bauxite Exports
Forecast
World’s largest
alumina refineries
Aluminium Smelters (6)
World’s largest bauxite &
alumina production
Gove
Rio Investing $1.5 Billion: Hi-Temp Bauxite.
Selling to Hi-Temp Refineries
Darling
Ranges
Mitchell
Plateau
(Dormant)
Others’ Bauxite Projects (6)
ABZ bauxite deposits (36)
Eastern
Australian
Bauxite
Province
Binjour Project
Goulburn Projects
Mainly too
low grade
to export.
Rio exports high temperature bauxite to China’s high temp. refineries
ABZ will supply low temperature bauxite to low temperature refineries
30Mtpa
5 to 10 Mtpa by ABZ
Lo-Temp Bauxite sold to
Lo-Temp Refineries
Tasmanian Project
Weipa
1
2
3
AUSTRALIANBAUXITEASXCodeABZ
Costs & Timetable For ABZ’s First Projects
Inverell-Guyra
Discoveries
Binjour
Project
Tasmania
Goulburn South &
Goulburn North
Goulburn
Project Date Tonnes pa
1 Tasmania 2014 @0.7-1.5Mtpa
Capex A$10 million
Opex A$27 / t FOB
2 Goulburn Sth 2015 @ 1-2Mtpa
Capex A$20 million
Opex A$30 / t FOB
3 Goulburn Nth 2017 @ 2-3Mtpa
Capex A$90 million
Opex A$37 / t FOB
3 Binjour QLD 2018 @ 1-5Mtpa
12
AUSTRALIANBAUXITEASXCodeABZ
13
Corporate Details
2012 2013
Board of Directors
John Dawkins
1
Non-executive Chairman
Peter Meers Exec Dir & Vice Chairman
Ian Levy CEO & Managing Director
Jacob Rebek
2
Executive Director & CG
Ken Boundy
3
Non-executive Director
Wei Huang Non-executive Director
Henry Kinstlinger Company Secretary
2. Chief Geologist Rebek is ex CRA (Rio) Chief Geol. Led the
. discovery teams at Century Zinc '93 & Eastern Australian Bauxite '06-09
1. Past Australian Treasurer & Minister for Finance
3. Investor in Tasmanian tourism. Holds senior public positions
ABZ Shares 6 Months A$
ASX Code : ABZ Listed 24 Dec'09 at $0.20 Major Shareholders Shares %
Shares 113.8 million Hudson Resources 32.7 million 28.7%
Options 3.7 million Gleneagles Securities 8.0 million 7.0%
Market Cap ($0.20) $23 million State One Capital 8.0 million 7.0%
Cash (31 Dec'12) $3.1 million = 2 yrs budget Soul Pattinson 6.3 million 5.5%
Share range $0.19 to $0.84 Top 20 Holders 74.9 million 65.8%
Avg Daily Volume 65,000 Shareholders 998
AUSTRALIANBAUXITEASXCodeABZ
14
OUR BAUXITE: Low temperature type
• 116 Mill tonnes JORC Resource +200Mt target
• Surface, easy mined, thickest bauxite in Australia
• Low-temperature, gibbsite bauxite, low silica,
42% Al2O3 3% SiO2 23% LOI
Penrose NSW – old quarry. 14 December 2011
>36metres
Section
Australia’s Thickest Bauxite at Mt Rae
AUSTRALIANBAUXITEASXCodeABZ
Simple start-up in Tasmania
Bell Bay
Bulk Port
LEGEND
ABx Bauxite Lease
Major Export Port
Aluminium Smelter
Coal Mines
Major Roads
Rail Lines
Hobart
Scottsdale
Launceston
Bell BayBurnie
100kilometres0
N
Bridport
Meadowbank
DL-130
Bald Hill Bauxite Project
near Campbell Town
AUSTRALIANBAUXITEASXCodeABZ
16
Bald Hills Bauxite Project, Tasmania
The Three Amigos
AUSTRALIANBAUXITEASXCodeABZ
17
Good Landholder Relations
ABZ endorses best practices on agricultural land to leave land & environment
better than we find it.
We only operate where welcomed.

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Ian Levy - Australian Bauxite

  • 1. AUSTRALIANBAUXITEASXCodeABZ AUSTRALIAN BAUXITE LIMITED ABZ Developing our first bauxite mine Strong bauxite market Bauxite is the ore for aluminium Level 2 131 Macquarie St Sydney NSW 2000 Australia Phone: +61 2 9251 7177 Facsimile: +61 2 9251 7500 E: corporate@australianbauxite.com.au Ian Levy, CEO Mob: 0407 189 122 E: ilevy@australianbauxite.com.au
  • 2. AUSTRALIANBAUXITEASXCodeABZ 2 JORC Code Compliant Public Reports The Company advises that this presentation contains summaries of Exploration Results and Mineral Resources as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). The following table references the location of the Code -compliant Public Reports or Public Reporting on which the summaries are based. These references can be viewed on the ASX website and the Company will provide these reports, free of charge, to any person who requests it. Reference Issue Date Title of Notice as lodged with ASX 1 12/10/2011 Binjour Maiden JORC Resource 2 15/08/2011 Guyra Maiden JORC Resource 3 12/05/2011 Taralga Bauxite Resource Doubled to 25 Million Tonnes 4 06/12/2010 Taralga JORC Resource Update 5 02/09/2010 Inverell JORC Resource Update Reference Issue Date Title of Notice as lodged with ASX 1 28/07/2012 Binjour JORC Resource Upgrade to 24.5 Million Tonnes 2 15/08/2011 Guyra Maiden JORC Resource 6.0 Million Tonnes 3 30/05/2012 Taralga Bauxite Resource Increased 50% to 37.8 Million Tonnes 4 08/05/2012 Inverell JORC Resource Update 38.0 Million Tonnes 5 08/11/2012 Tasmania Maiden JORC Resource 5.7 Million Tonnes Forward Looking Statement Whilst based on information from sources considered reliable, Australian Bauxite Limited ( ABx), its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information in this document and presentation is complete or accurate. Tothe maximum extent permitted by law, ABx disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequent ly comes to its notice, which may affect any of the information contained in this document and presentation. JORC and Competent Person Statement Information herein relating to Exploration Results, Resources and Resource Targets is based on information compiled by Ian Levy BSc MSc who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Levy is employed by ABx as Chief Executive Officer. Mr Levy has more than five years experience relevant to the style of mineralisation and type of deposit being reported and to th e activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Editionof the‘ Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). This report is issued with the prior written consent of the Competent Person as to the form and context in which it appears. Exploration Target Statement ABx has an exploration target of 200 to 300 million tonnes of bauxite, based on Mineral Resources announced in mid 2010 of 35 million tonnes of bauxite at Inverell4,5 from 15% to 20% of the known bauxite deposits on Exploration Lea se EL 6997 in northern NSW and 25 million tonnes of bauxite at Taralga 1,2,3 from approximately 50% of the bauxite targets on Exploration Lease EL 7357 in southern NSW . In accordance with the JORC Code, readers are advised that“ the potential quality and grade is conceptual in nature, that therehas been insufficient exploration to define full Mineral Resources and that it is uncertain if further exploration will result in the determination of a Mineral Resource”. As first- pass drilling has proceeded across most of its tenements, ABx has seen no reason to vary its exploration target. In this presentation all references to direct shipping ore ( DSO ) refers to the company ’s exploration objective of defining DSO grade mineralisation. The potential quantity and grade of exploration targets is conce ptual in nature, there has been insufficient exploration to defi ne a Mineral Resource and it is uncertain if further exploration will result in the de termination of a Mineral Resource. Direct Shipping Ore Maiden QLD Mining Lease JORC Resource 3.5 Million Tonnes6 15/11/2011
  • 3. AUSTRALIANBAUXITEASXCodeABZ 3 AUSTRALIAN BAUXITE LIMITED • First Mine Lease Application lodged • 3 Tasmanian mines each producing ~0.8 mill tonnes pa • Highways, rail, ports already exist • $10 million capital cost funded by offtake partner • Operating costs $25 to $29 per tonne FOB • Margin $15 to $20 per tonne • 114 million shares @ 20c = $23 million market cap • $3.1 million cash @ 8 April + $2.4 million pending Fully funded if all goes to plan
  • 4. AUSTRALIANBAUXITEASXCodeABZ 4 AUSTRALIAN BAUXITE LIMITED • Joint Venture with Xinfa Group - in due diligence • $0.5 million 5 month exclusivity payment received • Xinfa to fund all project capital costs to earn 50% • ABx can refund Xinfa and lock-in 50:50 JV • Xinfa to take a $2 million placement at 38 cents Whilst Xinfa has fully-funded the capital costs: • Xinfa can take up to 70% of production each year • Xinfa can buy 20% of project to have 70% of project 31 AUGUST 2013 – DECISION TO PROCEED?
  • 5. AUSTRALIANBAUXITEASXCodeABZ 5 Aluminium use: 40% construction, 45% consumption Source: IAI
  • 6. AUSTRALIANBAUXITEASXCodeABZ 6 Aluminium cost advantage over copper & steel Source: LME Aluminium consumption growing fast, but Aluminium prices are flat & yet bauxite is booming ! Why ?
  • 7. AUSTRALIANBAUXITEASXCodeABZ 7 Market Fundamentals: New Industry Structure China China, Middle East Giant New Smelters Australia, Indonesia 1 tonne Figure: Alumina Limited • New Smelters use 30% less electricity per tonne aluminium • New Chinese smelters taking more market share • China must import 40% of bauxite used • Indonesian bans/taxes tightening: in 2012 & more in 2014 => Strong demand for Oz bauxite in China
  • 8. AUSTRALIANBAUXITEASXCodeABZ 8 South America Asia ABZ bauxite deposits Other bauxite deposits Alumina Refineries China-Australia Trade Australia will supply China’s 38 large refineries Indonesian reductions, especially from 2014 Europe America NorthEurope Africa Russia Australia Australian low temp bauxite will replace Indonesian bauxite strongly in 2014 Hi tempLo temp variable, looming bans & taxes Country risk & transport limits US supply & transport limits
  • 9. AUSTRALIANBAUXITEASXCodeABZ 0 1 2 3 4 5 6 Milliontonnespermonth Milliontonnespermonth Bauxite imports into China - million tonnes/month Indonesia Australia India Other 9 Strong Chinese Bauxite Imports Sources: C&M, MBC & China Customs Indonesian supply will reduce further in 2014 as export bans & taxes increase AUSTRALIA’S & ABZ’S OPPORTUNITY IS NOW Indonesian export bans & 20% tax imposed
  • 10. AUSTRALIANBAUXITEASXCodeABZ 10 Sources: C&M, MBC & China Customs Indonesian export tax on bauxite increases from 20% to 50% in 2014 = + US$60/t AUSTRALIA’S & ABZ’S OPPORTUNITY IS NOW Strong Chinese Bauxite Prices $20 $30 $40 $50 $60 $70 US$pertonneCIFChina Average CIF Price of Chinese Bauxite Imports US$/tonne Indonesian export bans & 20% tax imposed
  • 11. AUSTRALIANBAUXITEASXCodeABZ 11 Alumina Refineries (8) Australia Will Increase Bauxite Exports Forecast World’s largest alumina refineries Aluminium Smelters (6) World’s largest bauxite & alumina production Gove Rio Investing $1.5 Billion: Hi-Temp Bauxite. Selling to Hi-Temp Refineries Darling Ranges Mitchell Plateau (Dormant) Others’ Bauxite Projects (6) ABZ bauxite deposits (36) Eastern Australian Bauxite Province Binjour Project Goulburn Projects Mainly too low grade to export. Rio exports high temperature bauxite to China’s high temp. refineries ABZ will supply low temperature bauxite to low temperature refineries 30Mtpa 5 to 10 Mtpa by ABZ Lo-Temp Bauxite sold to Lo-Temp Refineries Tasmanian Project Weipa 1 2 3
  • 12. AUSTRALIANBAUXITEASXCodeABZ Costs & Timetable For ABZ’s First Projects Inverell-Guyra Discoveries Binjour Project Tasmania Goulburn South & Goulburn North Goulburn Project Date Tonnes pa 1 Tasmania 2014 @0.7-1.5Mtpa Capex A$10 million Opex A$27 / t FOB 2 Goulburn Sth 2015 @ 1-2Mtpa Capex A$20 million Opex A$30 / t FOB 3 Goulburn Nth 2017 @ 2-3Mtpa Capex A$90 million Opex A$37 / t FOB 3 Binjour QLD 2018 @ 1-5Mtpa 12
  • 13. AUSTRALIANBAUXITEASXCodeABZ 13 Corporate Details 2012 2013 Board of Directors John Dawkins 1 Non-executive Chairman Peter Meers Exec Dir & Vice Chairman Ian Levy CEO & Managing Director Jacob Rebek 2 Executive Director & CG Ken Boundy 3 Non-executive Director Wei Huang Non-executive Director Henry Kinstlinger Company Secretary 2. Chief Geologist Rebek is ex CRA (Rio) Chief Geol. Led the . discovery teams at Century Zinc '93 & Eastern Australian Bauxite '06-09 1. Past Australian Treasurer & Minister for Finance 3. Investor in Tasmanian tourism. Holds senior public positions ABZ Shares 6 Months A$ ASX Code : ABZ Listed 24 Dec'09 at $0.20 Major Shareholders Shares % Shares 113.8 million Hudson Resources 32.7 million 28.7% Options 3.7 million Gleneagles Securities 8.0 million 7.0% Market Cap ($0.20) $23 million State One Capital 8.0 million 7.0% Cash (31 Dec'12) $3.1 million = 2 yrs budget Soul Pattinson 6.3 million 5.5% Share range $0.19 to $0.84 Top 20 Holders 74.9 million 65.8% Avg Daily Volume 65,000 Shareholders 998
  • 14. AUSTRALIANBAUXITEASXCodeABZ 14 OUR BAUXITE: Low temperature type • 116 Mill tonnes JORC Resource +200Mt target • Surface, easy mined, thickest bauxite in Australia • Low-temperature, gibbsite bauxite, low silica, 42% Al2O3 3% SiO2 23% LOI Penrose NSW – old quarry. 14 December 2011 >36metres Section Australia’s Thickest Bauxite at Mt Rae
  • 15. AUSTRALIANBAUXITEASXCodeABZ Simple start-up in Tasmania Bell Bay Bulk Port LEGEND ABx Bauxite Lease Major Export Port Aluminium Smelter Coal Mines Major Roads Rail Lines Hobart Scottsdale Launceston Bell BayBurnie 100kilometres0 N Bridport Meadowbank DL-130 Bald Hill Bauxite Project near Campbell Town
  • 16. AUSTRALIANBAUXITEASXCodeABZ 16 Bald Hills Bauxite Project, Tasmania The Three Amigos
  • 17. AUSTRALIANBAUXITEASXCodeABZ 17 Good Landholder Relations ABZ endorses best practices on agricultural land to leave land & environment better than we find it. We only operate where welcomed.