Straits Resources Debt Restructure A New Beginning Established Copper Producer Solid Project Pipeline Exploration Upside ASX: SRQ 18 August 2015
Company Snapshot Established and growing copper producer (28,000tpa guidance FY2016) Tritton Operations performing at record levels Board and management team with a proven track record and clear vision and strategy Exciting…
Company Turnaround New Management Team commenced December 2012 Improved operational performance Reduced overheads, secured the future Record production at Tritton Corporate Office downsized and Cost reduction strategies at Tritton…
Position Pre Debt Restructure US111M Bridge Loan Facility with SCB due to expire (29 July 2015) US7M Convertible Notes with Credit Suisse US3.75M matures November 2015 US3.25M matures November 2016 (50% mandatory convertible at 3…
Background to Debt Restructure Mid-2013 Advised SCB that Straits would not be able to meet scheduled step-up in repayments from August 2013 September 2013 lower repayment structure agreed for 9 months after which debt would be…
Refinancing 7
Overview of Debt Restructure (SCB) SCB US111M debt reduced to US50M senior debt facility: 5% cash interest with 2 year payment holiday 10% PIK interest year 1; 12.5% year 2; and 7.5% thereafter 7 year term with a bullet payment SCB…
Overview of Debt Restructure (SCB) Copper Price Participation Agreement with SCB: Small additional payment at high copper prices SCB to receive on a cumulative basis: 5% of incremental copper revenue when copper price between…
Overview of Debt Restructure (PAG) - New Funding PAG to provide a revolving priority debt facility of up to US25M: 2 tranches: A) US15M available on close of transaction B) US10M available on confirmation of Tritton Deeps resource…
Overview of Debt Restructure (Other) Management: Both SCB and PAG requested and made transaction conditional on key management staying to deliver on business plan and growth strategy Key management can earn, through the issue of…
Pro Forma Debt and Equity Structure Current Debt restructure Pro forma3 Debt Structure (USM) Current SCB facilities 111.1 (111.1) - Leases / other1 3.8 - 3.8 CS convertible notes 7.0 (7.0) - New SCB Facility - 50.0 50.0 Total Debt 121.9…
Straits - Post Debt Restructure Post Debt Restructure Straits will have: A sustainable debt position Access to additional funding A strong performing operation at Tritton generating positive operating cashflows long mine life…
Next Steps to Completion of Restructure Credit Suisse convertible note restructure Independent Experts report Shareholder Notice / Explanatory Memorandum Shareholder Meeting target mid-October Completion of Restructure…
Established Copper Producer 15
Tritton Operations: Cornerstone Asset Proven copper producer Multiple mines Established infrastructure Long mine life Portfolio of growth projects Large copper inventory Exploration upside Proven copper field Large portfolio of…
Tritton Operations Reliable and growing copper production Tritton Copper Production 1.6mtpa Processing Plant tonnes 35,000 Multiple ore sources: currently mining the 30,000 Tritton and North East/Larsens deposits 30,245 28,000…
Tritton Operations: Turnaround Strategy Tritton Copper Production 9,000 8,000 7,000 Refocus on planning, people and maintenance: 6,000 Tonnes 5,000 Production: UP 4,000 3,000 New quarterly production record of 8,352 tonnes…
Tritton Operations: Two Underground Mines Tritton underground mine: 1.3mtpa 1.9% Cu North East / Larsens: 300ktpa 1.8% Cu 19
Tritton Operations: Maintenance & Fleet Strategy 2013 /14 - significant investment in operating maintenance and fleet rebuilds 2014 /15 - focus on fleet availability to underpin production Process plant debottlenecking…
Tritton Operations: Established Infrastructure Mobile fleet workshop Paste fill plant for Tritton U/G Road Haulage 22
Large Pipeline of Growth Projects to Extend Mine Life 23
Tritton Deeps Depth extensions to Tritton orebody single largest opportunity for significant ore reserve conversion: Ore Reserve 5Mt 1.8% Cu* Mineral Resource 11Mt 1.8% Cu* Current Ore Reserve extends to 4,200mRL Mineral Resource…
North East / Larsens Targeting additional resources to extend mine life Ore Reserve 0.9Mt 1.6% Cu* Mineral Resource 1.3Mt 1.8% Cu* Deposits located in north of Girilambone Complex Near-mine resource definition drilling planned…
Murrawombie Underground PFS completed Ore Reserve: U/G 3.3Mt 1.3% Cu* Mineral Resource: 8Mt 1.4% Cu** Largest copper inventory outside Tritton Deposit: 110,000t contained Cu *As at 30 June 2014. **Includes Mineral Resources for…
Avoca Tank PFS completed Ore Reserve: 680kt 2.5% Cu* Mineral Resource: 903kt 2.6% Cu* North of Girilambone Complex and located 2km north of current mining at North East/Larsens Provide higher grade supplementary feed for Tritton…
Murrawombie Open Pit Extension PFS completed Ore Reserve: 0.7Mt 1.2% Cu* Modest expansion (cut-back) of Murrawombie Open Pit Cut-back to access 700kt of sulphide ore Mining of pit expansion to assist with final closure of heap…
Excellent Exploration Potential 29
Significant Ground Position In Proven Copper Field Besshi style VMS orebodies generally occur in clusters Tritton region hosts Besshi style VMS deposits Mining to date has been from Girilambone and Tritton complexes multiple…
Proven Exploration Success Two complexes mined to date characterised by one large deposit (10-20Mt) with multiple smaller (1-5Mt) deposits 31
Target Rich Tenement Package 32
High Potential Targets: Kurrajong EM signature twice the size of Tritton All recent holes intersected mineralisation Three holes indicated grades above 2% Cu Next stage is drilling program to better define target Target…
High Potential Targets: Avoca Tank Repeats Avoca Tank Ore Reserve (as at 30 June 2014): 680kt 2.5% Cu, 0.8g/t Au VMS deposits typically occur in clusters Remainder of the magnetic high complex is under- explored Recent…
High Potential Targets: Greater Hermidale Along strike from Tritton Significant strike extent Exciting recent results Anomalous Cu adjacent to EM anomaly Drill program planned to test targets 35
High Potential Targets: Carters Exciting results from limited drilling Hard work completed ready to drill Many untested targets in close proximity to Carters 36
Investment Rationale: Poised for Growth Established and growing copper producer (28,000tpa guidance FY2016) Tritton Operations performing at record levels Board and management team with a proven track record and clear vision and…
Thank you Straits Resources Limited Level 2, HQ South Tower, 520 Wickham Street, Fortitude Valley 4006 Brisbane QLD, Australia E: infostraits.com.au T: +61 7 3034 6200 F: +61 7 3034 6290 www.straits.com.au 38
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