Highbank Resources - August 2013 Corporate Presentation

18
August 2013 August 2013

Transcript of Highbank Resources - August 2013 Corporate Presentation

Page 1: Highbank Resources - August 2013 Corporate Presentation

August 2013August 2013

Page 2: Highbank Resources - August 2013 Corporate Presentation

Stock Snapshot

Sector: Resources

Property Type: Construction Aggregate

Stock Market Symbol: TSXV: HBK; Frankfurt: V7O

52-Wk Trading Range: C$ 0.025 - C$ 0.13

Shares I&O: 73,693,999 (as at August 20, 2013)

Market Capitalization: C$5.2 million (approx.)

2

Page 3: Highbank Resources - August 2013 Corporate Presentation

CONSTRUCTION AGGREGATE

• Sand, gravel, crushed stone essential for road building and concrete for commercial operations

• Aggregate is the world’s most mined material next to oil. 2012 global sales revenues were est. at $99 billion http://ow.ly/oaQzb, an increase of 41% from 2010 est. sales of $70 billion http://ow.ly/oaQzb

• Annual Canadian consumption of aggregate 10 to 15 tons per person

• BC Production was 38 million tonnes in 2010 valued at C$322million (2012 figures not available)

• BC Production expected to considerably exceed previous years

3

Page 4: Highbank Resources - August 2013 Corporate Presentation

WESTERN CANADIAN AGGREGATE STOCKS

Athabasca Minerals (TSXV:ABM)

Price: $1.3752-Wk Range: $0.33-$2.40Market Cap: $45.0mmP/E: 10.8P/Rev: 2.5

Polaris Minerals (TSXV:PLS)

Price: $1.5952-Wk Range $0.52-$1.99Market Cap: $39.1mmP/E: NAP/Rev: 1.4

4

Page 5: Highbank Resources - August 2013 Corporate Presentation

HIGHBANK’S AGGREGATE PROJECT: SWAMP POINT NORTH

• Full Working Interest earned

• $2.1 million of capitalized costs

• Proximity to Prince Rupert – high demand for aggregate

• NI 43-101 compliant

• 72 million tonnes measured and indicated

• First sales commitment received

• Cooperative agreement in place with First Nations

• Near-term production, pending final permits and financing

5

SwampPoint

Page 6: Highbank Resources - August 2013 Corporate Presentation

LOCATION• East side of Portland Canal

fjord on protected, year round ice free tidewater

• Site access by helicopter, float equipped aircraft, or boat

• 78 miles by sea north of Prince Rupert, closest West coast port to Asian markets by 33 hours

• 38 miles south of the Port of Stewart & 35 miles North of Grassy Point also a proposed new LNG terminal

6

Page 7: Highbank Resources - August 2013 Corporate Presentation

RESOURCE – NI 43-101 compliant

Classification Tonnes

Measured 62,936,877

Indicated 8,775,166

Measured and Indicated

71,712,043

Inferred 2,246,464

7

Page 8: Highbank Resources - August 2013 Corporate Presentation

economic potential

• PRINCE RUPERT AREA – HAS LIMITED SUPPLIES OF

QUALITY SAND AND GRAVEL

• HIGHBANK’S SWAMP POINT DEPOSIT MEETS

SPECIFICATIONS FOR CONSTRUCTION AGGREGATE

• NEAREST, LARGEST AND MOST ACCESSIBLE SOURCE WITH LOW COST TRANSPORTATION

• PRICE RANGE $20 - $32.50 / Tonne

8

Page 9: Highbank Resources - August 2013 Corporate Presentation

TARGET MARKET

• Primary Target Region

Prince Rupert-Kitimat, B.C. and Alaska

• Competitive Advantage

Proximity to the Port of Prince Rupert’s construction projects facilitates port to port transportation – most economic mode of delivery

• Highbank’s First Sales Contract

To West Fraser Concrete. 100,000 tonnes. Signed March 2012.

9

Location of Highbank Off Loading - Ridley Island

Page 10: Highbank Resources - August 2013 Corporate Presentation

MAJOR PRINCE RUPERT-KITIMAT CONSTRUCTION PROJECTS

TOTAL $80 BILLION (VANCOUVER SUN - SEPT. 2012)

• 10 year expansion plan of Prince Rupert Port Authority - $1.3 billion Federal Initiative

• Spectra – BG, 850-km pipeline project - $6-$8 billion

• Canpotex potash terminal - $400 million

• Watson Island Industrial Site Redevelopment - $90 million

• Ridley Terminals coal expansion - $200 million and $90 million road and infrastructure projects

• Global TV video clip on multi-billion dollar projects in Prince Rupert-Kitimat

http://tinyurl.com/9q4syyx

10

Canpotex Potash Export Terminal

Page 11: Highbank Resources - August 2013 Corporate Presentation

MAJOR PRINCE RUPERT-GRASSY POINT CONSTRUCTION PROJECTS

• Exxon Mobile Imperial Oil export, permit filed for terminal at Grassy Point (38 miles from Swamp Point)

• Region’s share of BC provincial govt’s $25 billion Pacific Gateway Transportation Strategy investment

• Rio Tinto expansion of Alcan smelter - C$3.3 billion

• See Invest in Northwest http://investnorthwestbc.ca

11

Page 12: Highbank Resources - August 2013 Corporate Presentation

AGGREGATE PRODUCTION:SHORT-TERM RAMP-UP SCHEDULE

Highbank, upon completion of a C$3 million financing and receipt of permits, will ramp up Swamp Point North production:

Months 1-12 - Stage One development - stripping, construction of processing plant, conveying systems and development of product stockpiles

Initial mining phase at rates of up to 235,000 tonnes per year

12

Page 13: Highbank Resources - August 2013 Corporate Presentation

AGGREGATE PRODUCTION:MEDIUM-TERM OBJECTIVES

• Months 12-24 - Completion of Stage Two and ramp-up of production to 1,500,000 annual tonnes

1,500,000 tonnes of annual production potentially by Year 4

• Years 3-20 - Large-scale mining of the aggregate and commence export sales

13

Page 14: Highbank Resources - August 2013 Corporate Presentation

PROPOSED FINANCING & USE OF PROCEEDS

Source of Funds

Debt Financing C$3,000,000

Use of Funds

Swamp Point North Start-up Costs C$2,550,000

General Working Capital C$ 450,000

Total C$3,000,000

14

Page 15: Highbank Resources - August 2013 Corporate Presentation

CASH FLOW OBJECTIVESSEPTEMBER 2013 – OCTOBER 2014

Inflows

• C$ 3.0 million financing, Q4 2013

• C$ 2.7 million exercise of $0.10 and $0.15 warrants, Q3 /Q4 2013

• C$5.3 million in aggregate sales, less C$500,000 royalties, from sale of 235,000 tonnes

Outflows*

• C$2.55 million on start-up capital costs

• C$4.9 million of operating expenses from production of 280,000 tonnes

• C$300,000 for Highbank overhead expenses of (C$25,000/month)

*excluding interest payments and taxes

15

Page 16: Highbank Resources - August 2013 Corporate Presentation

Medium/Long-Term OBJECTIVES

Years 3 and 4 (through September 2016)

• 540,000 tonnes per annum

• $12.150million per year in revenue

• $1.6million per year in operating profit*

*prior to interest, Highbank overhead, taxes

Full-Scale Production By 2017 (without major expansion)

• 1,500,000 tonnes per annum

• $33.75million per year in revenue

• $4.425million per year in operating profit *

* prior to interest, Highbank overhead, taxes

16

Page 17: Highbank Resources - August 2013 Corporate Presentation

MANAGEMENT• Victor N. Bryant, I.Eng; MAusIMM, President/CEO/Director

40+ years mining experience incl. with Major Mining Companies

• Gary Musil, Secretary/CFO/Director

30 years financial and management consulting experience

• Stan Spletzer, VP of Aggregate Operations

30 years contracting experience incl. for Canfor, Houston Forest Products, and BC Ministry of Forests

• Luard J Manning, P.Eng (Mining) Director

50 years mining experience and as a consultant as President of L.J. Manning and Associates since 1967

• Jake Bottay, Director, past President of Highbank

Mining and project financing experience as director or officer of numerous public companies

• Jim Place, P. Geo;

25+ years with BC Government, engineering and consulting companies including Levelton, and quarry evaluations

17

Page 18: Highbank Resources - August 2013 Corporate Presentation

Contact Information

#600 - 625 Howe Street,

Vancouver, B.C. V6C 2T6

Gary Musil, CFO, Secretary/Director

t. (604) 683-6648/f. (604) 683-1350

[email protected]

www.highbankresources.com

This document contains certain forward-looking statements and information relating to Highbank that are based on the beliefs of management as well as assumptions made by and information currently available to management. When used in this document, the words "anticipate," "believe," "estimate," "expect," and "intend" and similar expressions, as they relate to Highbank or its management, are intended to identify forward-looking statements. Such statements reflect the current view of Highbank respecting future events such as the antcipated completion of certain Prince Rupert-Kitimat construction projects, the company’s ramp-up schedule, various stages of financing by the company, completion of stage two and any production estimates, the company’s use of proceeds calculation, projected cashflow forecasted revenue and production dates, revenue and profit, and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended.

18