MOLY MINES LIMITED MINES LIMITEDs3-us-west-2.amazonaws.com/brr-streamguys/files/MOL/MOL... · 2013-09-16 · 2 MOLY MINES LIMITED Disclaimer This presentation includes “forward-looking

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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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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: [email protected]

Website: http://www.molymines.com

Stock m arket codes: ASX: MOL, TSX: MOL, FWB: HJ1

Moly Mines Contact Details