Professional Documents
Culture Documents
Transitioning into
Robust Asian Coal Sector
Disclaimer
• Certain forward-looking statements may be contained in this presentation which include,
without limitation, expectations regarding platinum and coal prices, estimates of
resources, production, operating expenditure, capital expenditure and projections
regarding the completion of capital projects as well as the financial position of the
company. Although Realm Resources believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that such
expectations will prove to be accurate. Accordingly, results could differ from those
projected as a result of, among other factors, changes in economic and market conditions,
changes in the regulatory environment and other business and operational risks.
• Therefore, Realm Resources gives no warranty, express or implied that the projections
and/or material contained in this presentation will be achieved or prove to be correct.
Realm Resources, its officers, employees and advisors to the extent permitted by law
expressly disclaim all responsibility relating to or resulting from the use of the material and
information contained in this presentation and exclude all liability whatsoever (including
negligence) for any loss or damage suffered by any person as a result of the use of any of
the information in this presentation or any error or omission there from. It should not be
expected from Realm Resources to update any person regarding any inaccuracy,
omission or change of the information contained in this presentation.
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Contents
• Highlights
• Realm snapshot
• Experienced team
• Investment Case
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Highlights
• Coal acquisition strategy well advanced
• Highly regarded coal specialist joins Board as executive
director to lead coal expansion
• Agreement to acquire 75% of development ready
thermal coal project for US$29.6m in phased payments
• First production as early as 12 months away with
potential to expand production
• Deal pipeline to support future growth & vision
• Attractive investment opportunity
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– 3.5m options
– 220m after completion of
Morningstar/Realm
Resources and Rooderand
transactions
• Share price: A$0.094c
(12/08/11) • Major shareholders
– Nkwe - 9.2%
• Market cap. $15.5m
– Sunshore - 4.0%
• Cash $4m (June ’11) – E Evans - 3.6%
– Berpaid – 3.4%
• Coal, PGM’s and Aluminium
Source: ASX, Bloomberg and Company records
For personal use only
36mt
Russia
106mt
16mt
9mt W Europe
108mt E Europe 24mt11mt China
USA 36mt
15/100mt Japan, Korea,
14mt 38mt Taiwan
USA
55mt 257mt
15mt India
15m
78mt Vietnam
t
15mt 18mt
Colombia 107mt 112mt
71mt 10mt
23mt 55mt
Indonesia
280mt
S Africa Australia
Major exporter
66mt 140mt
Major importer
China imports/exports
• Start small and expand – 0.5mtpa and expand with 10-15yr life
Experienced Board
and Management Team
• Andrew Matheson joined as Executive Director
- Coal background
(geology, project development, operations)
Further team additions planned
Acquisition terms
• Option to acquire 75% of KR for $27m in
phased payments
$10m – 51% (~Sept ‘11)
$17m – further 24% to 75% (~H1’12)
NB: All mining licences confirmed “clean and clear” by Minister of Energy and Mineral Resources.
See http://www.djmbp.esdm.go.id/modules/news/?_act=detail&sub=news_minerbapabum&news_id=3313
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Advance Exploration
PT KR up to 2010
• 63 drill holes
• Hole spacing ~ 400m
• Only a few geophysically logged
• Limited field mapping & lab test work
• Inadequate points of observation for
resource estimates
Simple Geology
• Site located within Barito Basin Sediments
Upper 1.45-1.81
• 4 seam groups (South): Main 1.68-5.49
No2 0.21-0.84
No 3 0.36-1.57
Source: Xenith
Consulting July 2011
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Upper - - - - - - -
Note: - 100% basis - Based on internal and external assumptions appended to this presentation – to be firmed up during detailed feasibility study
For personal use only
• Western Limb
Farm in agreement to
acquire 51% of Rooderand
for $2m and 5m RRP
shares
• ~ 4.5Moz inferred
(3PGE+Au)
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• Tinderbox (49%)
– Early stage exploration project –
UG2 target potential
Investment case
• Realm set to become a thermal coal producer within 12
months
• Due diligence advanced on Katingan Ria coal project
• Experienced leadership team - with track record of
project delivery and growth
• Attractive valuation –> Coal underpinned by Platinum
and Aluminium assets (value maximisation strategy in
place)
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www.realmresources.com.au
For personal use only
Realm
Resources
Realm SA
Alumicor Kalres
(PGM)