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Australia – Russia Dialogue Mr Craig Parry, CEO 6 May 2014 1
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TIG History – why are we in Russia? 3 TRM (TIG founder) commenced world wide search for potential large scale, low cost coking coal projects in 2009. Amaam seen as most attractive area - close to Pacific coast, scale, good quality coking coal TIG incorporated under Australian law on October 2010 with the objective of engaging in the acquisition, exploration, development and operation of coal mines and to supply coking coal product into the seaborne coking coal market. TIG listed on ASX in August 2011. At the time TIG held 40% of Amaam Project. Since increased to 80% ownership. Purchased 80% interest in Amaam North in Jan 2012. Invested over $70m in Russia to date Raised $52m from Russian based funds including sovereign fund in 2014
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Projects Overview 4 Exploring and developing two exceptionally well located large coking coal projects Amaam: a world-class, large scale coking coal project targeted for +5Mtpa of production from dedicated new infrastructure Amaam North: low cost starter project providing fast track to production and earnings utilising existing infrastructure and supporting development of the entire Bering Coking Coal Field Total Exploration Target - 175Mt-695Mt, the potential quantity and grade of the Exploration Target is conceptual in nature, and there has been insufficient exploration to estimate a Coal Resource, and it is uncertain if further exploration will result in the estimation of a Coal Resource Experienced Board and management $61M capital raising completed 464Mt Resource Project F PFS confirms its potential as a low capex, low opex, starter project with excellent upside potential. Amaam PFS confirms its potential as a large scale, low cost world class coking coal project 27Mt Resource
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Bering Coking Coal Field conceptual development possibility 5 Bering Coking Coal field conceptual development plan: Stage 1: Amaam North Project F to produce up to 1Mtpa, shipping through the existing port of Beringovsky Stage 2: Project F expanded to 3-4Mtpa and shipped out through Arinay Port Stage 3: Amaam developed and ships 6.5 Mtpa through Arinay port Combined shipments could total over 10 Mtpa
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Community and Government Relations Our Commitments and Approach 6 Commitments Create long term sustainable benefits for the communities and regions in which we operate. Build relationships and work in a cooperative manner with stakeholders. Relationships based on mutual respect, open and transparent dealings and long term commitment. Assist and support regional development, training, community based projects and small business opportunities within our host communities. Our Approach in Practice Stakeholder engagement program in place, strong relationships established. Committed support from all levels of Govt. Socio-economic baseline studies program continuing. ESIA well advanced. Local enterprises engaged regarding opportunities to support our Projects, initially focussed on providing supplies for camps. Program established with Anadyr University to provide Geology Students with work experience placements during our exploration programs. Formal agreements on social investment in place with the Anadyr Municipality (Local Government).
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RussiaChukotka Development of Far East with a focus on resources and infrastructure is a priority for Government, supported by Far East Baikal Region Development Fund as well as RDIF Shift in focus from West to East with the Government targeting Asia for growth Growing track record of FDI success in all sectors Favourable fiscal regime ─ 20% profit tax ─ ~$2/t coking coal royalty (product) Improving regulatory environment ─ Coal not a “strategic commodity” Growing presence of western mining companies: ─ Rio Tinto; BHP Billiton; Petropavlovsk; Kinross plus an ever growing list of junior companies Local government supporting regional development Successful track record for foreign listed mining companies, including - Kinross, Polyus, Polymetal, Highland Gold and TIG Favourable operating environment 7
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Board and management Board and management team with a strong track record in project delivery and portfolio growth 8 Board Senior Management Tony Manini – Non-Executive Chairman 24+ years resource industry experience, 14 years with Rio Tinto Senior executive roles at Oxiana / OZ Minerals Founder of TRM and TIG Owen Hegarty - Non-Executive Director 40+ years industry experience, Senior Executive at Rio Tinto Founder and CEO of Oxiana Limited Director Fortescue, Highfield Resources, AusIMM Founder TRM, TIG Craig Wiggill - Non-Executive Director & Senior Advisor 22+ years of coal industry experience gained with the Anglo American Plc group of companies Former CEO Anglo Coal Americas Craig Parry – CEO 15+ years experience in the resources industry Senior executive roles in Tigers Realm Minerals, Oxiana, Rio Tinto, G Resources Founder TIG Vice-President Australia-Russia Dialogue Peter Balka – Chief Operating Officer Mining Engineer, 25+ years in open cut and underground mining operations, project management, feasibility studies and due diligence Leonid Skoptsov - General Director NPCC - Russia 20+ years diverse resource industry experience in Russia covering project generation, exploration, development and operations Chris McFadden - Head of Commercial, Strategy & Corporate Development Lawyer, 20+ years experience in exploration and mining most recently as a Commercial General Manager with Rio Tinto’s exploration division, government joint venture partner negotiations and divestment of non-core assets. Tim Berry – General Manager HSEC Environmental scientist with 14+ yrs global HSEC experience with Rio Tinto, Oxiana and OZ Minerals. Experience covers exploration, studies, permitting, operations David George – Manager Investor Relations 25+ years marketing, research and analyst experience including Bell Potter Securities, JP Morgan, BBY Securities, Deutsche Bank and ANZ Securities. Paul Tongs – Group Financial Controller Chartered Accountant, 30+ years broad finance experience, including 10 + years in the resources industry Experience covers finance roles at Oxiana / Oz Minerals Andrew Gray - Non-Executive Director Professional investor in technology, healthcare, HCIT, resources Tav Morgan - Non-Executive Director Industry Partner at Baring Vostok Capital Partners Former Managing Director at Goldman Sachs, Global Natural Resources Former Director and COO, Norilsk Nickel Tagir Sitdekov - Non-Executive Director Director at Russian Direct Investment Fund Former Managing Director at A-1, part of Alfa Group, Russia’s largest private conglomerate
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Improving trade flows and commerce: Australia and Russia 9 Australian Embassy and DFAT have greatly assisted TIG in providing contacts with Business Representatives and Government Officials within Russia. The Australian Ambassador has hosted functions where TIG has been able to expand its local network. In 2013 the Ambassador hosted TIG and some of its key stakeholders including Australian investors, analysts and brokers, the Governor of Chukotka and key members of his team and leading members of the Russian business community at a function at his residence. This provided the Chukotka Government with an excellent forum to declare its support for TIG and our activities. Other opportunities for improving trade flow and commerce: TIG has recommended to DFAT and the Embassy to host further trade delegation from the Australia mining sector to Russia. Previous delegations have introduced a number of Australian contractors to Russia Further promotion of Russia as a market for Australian expertise and products and as an emerging market with numerous opportunities for Australian companies and investors.
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Russia – the opportunity 10 Large and growing economy that is underserviced Untapped markets Regulatory regime and business environment that is workable Perceptions of risk provide artificial barriers to entry – get past that and the opportunities are huge Undervalued assets Need for foreign expertise and capital Shift of focus- transition from Eurocentricity to an Eastern/Asian focus will present many opportunities in our time zone
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Tigers Realm Coal Limited (ASX:TIG) www.tigersrealmcoal.com Craig Parry Managing Director and CEO Tel: +61 3 8644 1326 Email: IR@tigersrealmcoal.com 11 Thank you! Questions?
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