Corporate Presentation

Corporate Presentation
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This presentation may contain forward-looking statements which involve known and
unknown risks, uncertainties and other factors which may cause the actual results,
performance, or achievements of i-minerals to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements.
Forward looking statements may include statements regarding exploration results and
budgets, resource estimates, work programs, strategic plans, market price of industrial
minerals or other statements that are not statements of fact.
Although i-minerals believes the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that such expectations will prove to have been
correct. Various factors that may affect future results include, but are not limited to,
fluctuations in market prices of minerals, foreign currency exchange fluctuations, risks
relating to exploration, including resource estimation and costs and timing of commercial
production, requirements for additional financing, political and regulatory risks, and other
risks described in i-minerals’ management discussions and analyses as filed on SEDAR.
Accordingly, undue reliance should not be placed on forward-looking statements
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Investment Highlights
Management - built and operated mines worldwide
Deposit: Robust Pre-Feasibility Study- Low CAPEX; strong
IRR; NPV =+2 x CAPEX; short payback.
Infrastructure: Prior mining brought access and utilities
• Property on highway, BN & UP rail in area, tidewater access
• Prior mining ð commercial natural gas/electricity on property
Minerals: Uses drive demand; location impacts pricing:
•
•
•
•
quartz: solar energy, projection technologies;
halloysite: plastics & polymers, life sciences;
kaolin: only kaolin/metakaolin source in Pacific Northwest;
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k-spar: highest quality product in North America.
Management
Thomas M. Conway, President & CEO
Newmont Mining: Manager, Environmental Affairs Carlin compliance & permitting
VP / GM Mineral Yanacocha oversaw start up of 2 met plants and 3 open pits
VP / GM –Carlin Operations 2 million ounce/year operation with 1600 employees
Lamar Long, Project Manager
Exploration Manager Hecla Mining, Industrial Minerals (“IM”) Division;
Gary Nelson, Manager Metallurgical Operations
Plant Superintendent. AZCO Mining; Sr. Metallurgical Engineer, Hecla Mining, IM Div.
Linda Koep, Market Development Manager; Hecla Mining, IM Division
Directors
Thomas M. Conway, President & CEO
Allen Ball, Melaleuca Corporation; Successful Idaho businessman
Barry Girling, Director interim CEO Foundation Resources Inc, former director
Roxgold Inc Arranged transaction & re-structure. SMY;
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Capital Structure
Issued & Outstanding
I-Minerals Inc. (TSX.V:IMA)
1,000,000
0.400
61,819,183 (insiders 26.9%)
Share Price
22,891,863 Expire Apr 13
Volume
Warrants
0.300
500,000
0.200
Options
0.100
2,450,000 avg. $0.42
Expire up to Jun 16
1-Jan-13
1-Dec-12
1-Nov-12
1-Oct-12
1-Sep-12
1-Aug-12
1-Jul-12
1-Jun-12
1-May-12
1-Apr-12
1-Mar-12
1-Feb-12
1-Jan-12
1-Dec-11
1-Nov-11
1-Oct-11
Fully Diluted
88,634,468 (insiders 27.5%)
1-Sep-11
-
vol
close
30 per. Mov. Avg. (close)
90 per. Mov. Avg. (close)
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Helmer-Bovill Project Location
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9279
Middle
Ridge
9272
9276
9274
WBL Pit
WBL
Tailings
Kelly’s
Hump
Scablands
Scablands
Tailings
9273
Tailings
Processing Plants
9274
9312
9311
Simplot Leases
9273
Miciasil Plant (Simplot)
Bovill
Project Layout
Highway 3
0.5 miles
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WBL Tailings: In Production
Tailings are a fine grained, direct ship
quartz and K-spar product for use in
ceramic bodies
Permitted under Mine Plan of
Operations September 2012 first
production October 2012
No CAPEX operating costs consist
of screening and trucking
Increased production expected
as product gains acceptance
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Bovill Kaolin: PFS Complete
Primary Clay is a sandy clay material.
In first 8 years every 100
tons of clay mined is
forecast to yield about:
o 6
o 4
o 8
o 40
o 16
o 26
tons of halloysite
tons of kaolin
tons of metakaolin
tons of quartz
tons of k-spar
tons to tailings
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Bovill Kaolin Project Simplified Flow Schematic
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Halloysite
[Al2Si2O5(OH)4·2H2O]
o a naturally occurring porcelain like clay
mineral derived from weathering of feldspar
o Composition similar to kaolinite; contains
more water; tubular morphology
o High aspect ratio key to value
Traditional uses:
o porcelain and fine bone china
Advantages in Emerging Uses:
o much lower prices vs. synthetic nano
particles (e.g. carbon nanotubes)
o Biodegradable /Ecofriendly (EPA Class 4a)
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Halloysite: Emerging Uses
Plastics & Polymers: adds
strength, reduces weight:
windmills, automobile parts
Energy: treatment of
radioactive waste, purification of
fuels for fuel cell technology
Environment: nanoporous membranes for gas separation
Life Sciences: delivery mechanism in plant and animals
systems: cosmetics
Chemistry: nanoporous matrix for catalysts
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Kaolin [Al2Si2O5(OH)4]
Traditional Use: ceramics
When calcined (heated to 700o c)ð
bonded water evaporates becomes
Metakaolin; reacts with cement.
Metakaolin Benefits
ñ strength, density, acid resistance
ò ASR, CO2 output, setting time
Applications uses benefiting from
strength, lighter weights and acid
resistances; e.g. bridge decks, tunnels,
cooling towers (picture)
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Quartz [SiO2]
Value determined by purity and
how fine the grind
Purity not only SiO2%, but how
impurities react ð melt tests
99.965% SiO2= low end of high
purity achieved through single
flotation
Applications: solar glass,
LCD monitors / flat panels,
specialty lighting,
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K (Potassium)-Feldspar [KAlSi3O8]
Value determined alkali content, purity
(low iron) and how fine the grind.
I-Minerals K-spar products have:
• Highest alkalis (K+Na)
• High alumina (Al)
• Very low iron
= best K-Spar product in N.A.
with strong market demand
Applications: primarily as glaze
in ceramics such as tiles and
sanitary ware such as sinks etc.
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MINERAL PRODUCT MARKETS & VALUES
Potential
Market (1)
IMA
Target Applications
Halloysite
150-180
(global)
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o
o
o
o
Kaolin
250
(western
US Only)
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Quartz
K - Feldspar
Mineral
$/ton
high
$/ton
low
+1500
350
o Metakaolin
o Ceramics
o Filler
400
50
900
85
(US & Asia)
o Solar Glass
o Specialty Lighting
o LCD displays
500
50
229
(US)
o Ceramic Glazes
275
100
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(1) Based upon study by Charles River Associates
Ceramics
Plastics & Polymers
Clean Tech
Life Sciences
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AVERAGE REVENUE PROJECTIONS YEARS 1-8
Mineral
Halloysite
Kaolin
Quartz
K - Feldspar
TOTAL
Forecast
$ per ton
Sales
12,000
600
27,000
190
84,000
248
34,000
182
157,000
Revenue
(000s)
7,200
5,000
20,800
6,000
39,000
Process
Method
Wash Plant
Wash Plant
Flotation
Flotation
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PREFEASIBILITY RESULTS
US$ (000s)
Initial Capital Costs
66,000
Mineral Revenue per annum
39,000
Freight Marketing & Royalties
2,000
Operating Costs
10,000
EBITDA
27,000
Average Life of Mine Income Taxes
6,500
Free Cash Flow
20,500
Payback Period
3 years
Net Present Value (6%; after tax)
$150 million
Internal Rate of Return (after tax)
28%
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Notes to Pre-Feasibility:
Permitting: No Jurisdictional
Water Issues (No EIS prior to
production) ð only State permits
Mining: No drilling or blasting;
Milling: No crushing; only tertiary
grinding (lower CAPEX & OP costs)
Mineral Mix: Areas with greater halloysite concentrations can
be mined as markets warrant. Additional halloysite potential
Quartz and K-spar from WBL Tailings not included in model
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2013 Catalysts
Customer Uptake:
companies allow publication of their
interest IMA products
Phase 2 Bovill Kaolin Permitting:
Completion of Phase 2 permitting allowing for construction and mining
in advance of EIS (2013 with funding)
Full Feasibility: completion of drilling (~ 3,000 feet) required for
first 10 years of Bovill Kaolin production to be proven reserve.
Separations/SEM bottleneck. (completion 2013 with funding)
Initiate CAPEX funding seek partner or sell
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Summary
o Robust Pre-Feasibility Study
Ø Before tax $237mm NPV; 37% IRR
Ø After tax $150 mm NPV 28% IRR
Ø $66mm initial CAPEX; $83mm LoM; 3 year payback
o Idaho Government sanctioned debt available
o Long mine life (+50 years?) ð long term cash flows
o Diversified product and product market mix; four mineral
products in various purities and grinds available for sale into
markets diversified by both geography and industry
o Strong cash flow for future dividends
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