Orbite AR2013 ENG FinalWeb

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AGM Presentation June 19, 2014 TSX: ORT OTCQX: EORBF

Transcript of Orbite AR2013 ENG FinalWeb

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AGM Presentation June 19, 2014

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Annual and Special Meeting of Shareholders

Certain information contained in this document may include “forward-looking statements”. Forward-looking statements may include statements regarding Orbite Aluminae Inc. (“Orbite” or the “Company”) intentions, beliefs or current expectations about its projects, costs, objectives and future returns of the Company, or hypotheses underlying these items. In this document, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements are based on information available at the time and/or management’s good-faith beliefs with respect to future events, and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company’s control. These risks uncertainties and assumptions include, but are not limited to, those described in the section of the Management’s Discussion and Analysis (MD&A) entitled “Risk and Uncertainties” as filed on May 3, 2014 on SEDAR ,and in the section ‘’Risk Factors’’ of the Annual Information Form of March 30th, 2012 also filed on SEDAR, and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does it undertake any obligation to update, or revise any forward-looking statements or other information contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.

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Presenter
Presentation Notes
Permettez-moi de mentionner que, pour vous aider à comprendre les activités et les résultats de la Société, il nous arrive de faire des énoncés prospectifs. Il est possible que les résultats réels diffèrent. Des renseignements supplémentaires sur les hypothèses qui sous-tendent les énoncés prospectifs et sur les facteurs de risque que pourrait poser un tel écart figurent dans notre notice annuelle du 30 mars 2012 ainsi que dans notre rapport de gestion déposé auprès des commissions des valeurs mobilières du Canada.
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producer of smelter grade alumina /

producer of high purity alumina /

red mud remediation company for alumina extraction

We were going to be a …

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What we will be.…

SHORT TERM

Specialty products producer

MID-TERM

Waste monetization Company

LONGER TERM

Commodity products producer

Opportunities beyond alumina Based on unique and disruptive processing technology

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Today’s resource processing is

inefficient and creates waste

TSX: ORT OTCQX: EORBF 5 © Orbite – Confidential

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WASTE ELEMENTS Gallium / Scandium / Hematite / Silica

/ Alumina / Rare Earths

ALUMINA

BAUXITE

Inefficient: value is thrown away

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RARE EARTHS Growing demand, uncertain supply, no substitutes

We need the value in that waste

ALUMINA Rapid decline in bauxite quality = increasing OPEX

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3B tonnes of red mud

stored globally

550M tonnes of fly ash

produced annually

Ongoing liabilities for producers and communities

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We can fix all of that

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OUR TECHNOLOGY EXTRACTS

all high-value products with only inert residue remaining

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…from mining, to sustainable mining, to environmental remediation, to today’s multiple business lines

1983

Began as a mineral exploration company

2012

Beginning of the construction of the HPA plant

2014

3tpd HPA plant moving towards completion

2007

First patent application filed for SGA production

2013

Application of Orbite Process to other feedstocks. Initiated waste monetization initiative

In short, we’ve evolved…

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2013 – the year in review

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2013 – a year of challenges

Delays / Cost overruns / Lack of focus /

Communication not enough results driven

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But also of change and accomplishment

Board & Management changes /

Renewed focus / Cost rationalization / Funding /

Provincial and federal government support

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A strong base to build on

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Technology Development Centre

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(1) Total plant capex estimated at $106M, including RITCs (Refundable income tax credits are 40% of the first $75M and %5 thereafter).

State-of-the-art Technology Piloting Facility Process development and optimization

Product Customization Proprietary product characterization

Technical Staff 6 Scientists / 3 Technicians

Presenter
Presentation Notes
----- Meeting Notes (12-11-08 13:35) ----- sassol, sumitomo, add market detail to this slide
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$105 million extraction and purification facility

Fully qualified operations and engineering staff / Industrial-class facility / Start commercial operations: Q1-2015

High Purity Alumina (HPA) facility

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Presenter
Presentation Notes
Permettez-moi de mentionner que, pour vous aider à comprendre les activités et les résultats de la Société, il nous arrive de faire des énoncés prospectifs. Il est possible que les résultats réels diffèrent. Des renseignements supplémentaires sur les hypothèses qui sous-tendent les énoncés prospectifs et sur les facteurs de risque que pourrait poser un tel écart figurent dans notre notice annuelle du 30 mars 2012 ainsi que dans notre rapport de gestion déposé auprès des commissions des valeurs mobilières du Canada.
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DEC 2013

Funding

Technical issues HPA1 addressed

JUL 2014 ONWARDS

Equipment installation & plant construction

JAN 2015

Start commercial production

JUN 2014

Calcinator delivery

Tender process for construction

HPA timeline

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Sufficiently capitalized through to commercialization /

On time and within budget / Plant Manager appointed /

Successful limited production run /

Re-engaging customers / Sample shipments

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Progress …

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Moving forward

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Focused commercialization

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FEEDSTOCK

Recycled Aluminum, Aluminum, SGA,

Al. Hydroxide

Aluminous Clay, Bauxite, Kaolin, Nepheline,

Red Mud, Fly Ash, Mine Tailings

SPECIALTY PRODUCTS COMMODITY MINERALS WASTE MONETIZATION

High-Purity Alumina (4N-5N) Gallium, Scandium, REE, RM

Smelter-Grade Alumina, Hematite, Silica

Silica, Titanium, Scandium, Gallium, REE and RM

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Specialty products – HPA, REEs, RMOs

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(1) Total plant capex estimated at $106M, including RITCs (Refundable income tax credits are 40% of the first $75M and %5 thereafter).

Commercial HPA production to commence in Jan 2015 /

Conversion to chloride process and scandium and gallium recovery circuit to be commissioned in 2015 /

Upgrade to 5 tpd in 2015 /

Subsequent optimization and expansion for recovery of other specialty products such as Rare Earths

Presenter
Presentation Notes
----- Meeting Notes (12-11-08 13:35) ----- sassol, sumitomo, add market detail to this slide
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HPA

*4N stands for 99.99% purity, 5N for 99.999%

17 340

21 240

25 360

30 360

34 390

2012 2013 2014 2015 2016

The premium market is mainly for 4N* to 5N* purities

HPA prices: $15,000-30,000 per tonne, depending on characteristics and application

Confident of producing up to5N consistently

Market expected to strengthen beyond current outlook

GLOBAL HPA DEMAND (tpa)

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Commercial demonstration for waste monetization and commodities projects

Formalization of plant design for the use of various feedstocks: red mud, fly ash, mine tailings, clay

Fully equipped for materials handling

Feedstock preparation in place

Will continue to produce HPA

Conversion of HPA facility to chloride-based process

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Waste Monetization

Turning liabilities into assets

Extraction of all value from industrial waste feedstock while only inert residue remains (<10%)

Initial focus on red mud monetization (RMM) Discussions with Veolia for global commercialization

Subsequent focus on fly ash monetization (FAM) and mine tailings monetization (MTM)

Director of Engineering appointed to spearhead technical realization

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Why now

No mines to develop / Already in industrial zone /

Transportation and energy infrastructure in place /

Resource with negative value to current owners /

Customer is right next door

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Commodities

Binding 10-year off-take agreement signed with Glencore for 100% of planned plant’s SGA production

To become a low-cost, strategically located producer of commodities such as SGA, magnesium, silica and hematite First smelter grade alumina (SGA) plant to be built in Quebec /

World’s third largest aluminum producing region, fully dependant on the import of alumina /

Feedstock will be aluminous clay from the Company’s Grande-Vallée deposit /

Negotiations soon to be initiated with potential joint-venture partners, Glencore interested

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2014 Q1-Q4

HPA facility 3 tpd construction & commissioning

2015 Q2-Q4

5 tpd HPA engineering and conversion

2016 ONWARDS Q1 2015 ONWARDS

HPA 3 tpd production

Commercialization timeline

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5 tpd production

Scandium & Gallium production

Waste monetization commercial demonstration

Design & construction of first 100-200 ktpa industrial scale plant

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The new Orbite