Transcript Hello

ADVANCING AFRICAN PROJECTS
MAGINDUSTRIES
MineAfrica, Vancouver
June 17, 2008
Disclaimer
Except for historical information, this presentation contains forward-looking
statements, which reflect the Company's current expectation regarding future
events. These forward-looking statements involve risks and uncertainties,
which may cause actual results to differ materially from those statements.
Those risks and uncertainties include, but are not limited to, changing market
conditions, and other risks detailed from time-to-time in the Company's
ongoing filings. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. In light of these risks, uncertainties and assumptions, the
forward-looking events in this presentation might not occur.
MAG_AGM08.PPT
1
MagIndustries – AGM 2007
Kouilou Potash Project
(ROC)
MAG_AGM08.PPT
Forest Products (Eucalyptus)
(ROC)
Hydroelectric Developments
(DRC)
Magnesium Alloys
(ROC)
2
MagIndustries at a Glance
 Developing major industrial
projects in
– Republic of Congo (ROC)
– Democratic Republic of Congo
(DRC)
 Achievements are driving
shareholder value
 Canadian-based:
– TSX-V: MAA, market cap
~C$600M
 7% owned by management,
directors
52 week
low: 1.25
high: 3.35
– ~75% institutional including
Fidelity, Ospraie, Enso,
Blakeney, L-R Global
MAG_AGM08.PPT
3
Track Record Demonstrates Competencies
2007 and Subsequent Events
Secured MagMinerals mining license
Successfully raised capital: US$140M (last 12 months)
Successful forestry operations and chip mill start-up
Advancing decisions with global brand name partners
– SNC Lavalin; BNP Paribas; Ameropa AG; EIB; IDC
– Mitsui; Forestales
MAG_AGM08.PPT
4
Agenda
The
Projects
MAG_AGM08.PPT
The
Future
5
The MagIndustries story is about…
Exciting Resource Projects in Central Africa
Exceptional Returns
Potash for
the world
 First new entrant to potash
industry
– with unmatched
competitive advantages
MAG_AGM08.PPT
6
MagMinerals
Significant Progress in Advancing Project
43-101 Measured, Indicated and Inferred Resource 1 Billion tons
Total years of production
MAG_AGM08.PPT
> 100
Planned production (tpy) Phase I (2011)
600,000
Planned production (tpy) Phase II (2013)
1,200,000
Final SNC Lavalin feasibility report
Feb 2008
Capital raised in MagMinerals (pvt.pl.) April 2008
US$100M
Willy Verbrugghe appointed as MagMinerals CEO
May 2008
7
Kouilou Potash Project
Key characteristics of planned mine





600,000 tonne annual capacity; est. cap cost US$723M
Production costs projected to be in the bottom quartile
Phase II adds 600,000 tonnes; est. cap costs US$500M
First production estimated Q2 2011
10% free carried interest granted to ROC Government
Marketing
 Ameropa AG: marketing partner to provide bankable off-take contract for
100% of production to support project financing
Next steps
 Project financing is well advanced; strong expression of interest from debt
providers: Debt and equity financing expected to close Q3 2008
 Construction startup Q3 2008, Commissioning Q4 2010
MAG_AGM08.PPT
8
Kouilou Potash Project
Competitive Advantages
Exclusive rights to one of world’s largest carnallite deposits
– carnallite  potash
Low cost solution mining + low cost energy  one of lowest
cost producers
Location advantage near port (16 km existing rail line)
– US$18-$40/tonne freight savings vs. inland competitors
Pointe-Noire
Gabon
ROC
Proposed plant site
BRAZZAVILLE
KINSHASA
Best deepwater port in west-central Africa
PointeNoire
DRC
Angola
MAG_AGM08.PPT
9
The MagIndustries story is about…
Exciting Resource Projects in Central Africa
Exceptional Returns
Chips Ahoy!
 Sustainable, renewable
wood fibre producer
 Strong Competitive
Advantages
MAG_AGM08.PPT
10
MagForestry
Proven Business Model in Africa
Acquisition
Execution
Return on
Investment
 Two stage acquisition of 100% ownership for cash
and shares (US$6M)
 Installation of experienced Canadian Forestry
Management Personnel
 US$10M invested in forestry operations
 US$25M invested in chip mill
– completing commissioning
 2007
2008
2009
2014
MAG_AGM08.PPT
revenues US$9.5M
est. revenues US$20M
to 2013 est. revenues US$35
est. revenues US$80M
11
MagForestry
Accomplishments and Outlook
2007 Accomplishments






Built the team
Upgraded equipment, increased mechanization
Expanded the tree nursery and planting operations
Built a strong relationship with the community
Sales (net of shipping) +125%
Substantial completion of chip mill
2008 Outlook






MAG_AGM08.PPT
Chip sales contracts signed
Mitsui shipping contracted
Chip mill now commissioned and in production
Sales (net of shipping) of US$20ME.
Positive cash flow
Increased area under cultivation
12
MagForestry
Pointe Noire Chip Mill
MAG_AGM08.PPT
13
MagForestry
Pointe Noire Chip Mill
MAG_AGM08.PPT
14
MagForestry
Kissoko Tree Nursery
MAG_AGM08.PPT
15
The MagIndustries story is about…
Exciting Resource Projects in Central Africa
Power for the
Copperbelt
 Restoring capacity to one
of the world’s lowest cost
power producers
MAG_AGM08.PPT
16
INGA Projects: Planned Scope of Work
 Phase 1: Emergency work to maintain current output
– cost US$25M, work started Q2, 2006
– revenues from sale of 84 MW annually starting late 2008
– Subcontractor: Franco Tosi (Italy)
 Phase 2: Rehabilitate 4 INGA II turbines
– cost US$140M
– MagEnergy to market 25% of restored capacity (i.e., 164 MW)
 Status: Ratification process continues; timing uncertain
MAG_AGM08.PPT
17
Busanga, Zongo 2
 As DRC’s first Independent Power Producer  secured rights
 Busanga is 2nd largest hydro
site in DRC after INGA
(250 MW potential)
– Feasibility study underway
– adjacent to Katanga Copperbelt
– connected to the South African
Power Pool grid
 Status: Review of project
construction and financing
consortium in 2008
 Zongo 2 site (100 MW potential)
 Next Step: Pre-feasibility Study
Congo River
DRC
ROC
KINSHASA
INGA
hydro
plant
Zongo 2
1,100 MW DC line
Busanga
Zambia
Angola
MAG_AGM08.PPT
Copperbelt
18
The MagIndustries story is about…
Exciting Resource Projects in Central Africa
Exceptional Returns
Magnesium
Automotive Engineers’
“Light Metal of Choice”
 Key to achieving vehicle
mileage targets
MAG_AGM08.PPT
19
MagMetals
Project Status
 Decision to proceed will follow
successful startup of
MagMinerals potash plant
 Construction start potentially
in 2011
 First production potentially
2014
Key Characteristics
 Planned capacity of 60,000 tonnes per year
 Potential to be lowest cost magnesium metal producer in the
world: low cost MgCl source; low cost electricity and natural gas
– Alcan considering re-opening Addy plant in US
– Chinese to move Norsk Becancour plant to China
– New company to re-open Norsk plan in Porsgruun, Norway
MAG_AGM08.PPT
20
MagIndustries – Looking Forward
The
Projects
MAG_AGM08.PPT
The
Future
21
Key Milestones Next 3-12 Months
Potash project financed
and construction started
Chip Mill to begin full operation
and export sales
One refurbished turbine running
on commercial basis
Update business plan and
project timing
Will drive shareholder value
MAG_AGM08.PPT
22
MagIndustries 4-6 Years Out
 MagMinerals Potash plant Phase I and II in operation
– annual revenues ~US$600M
 MagEnergy: most turbines refurbished and operating
 MagForestry: annual wood chip sales double from US$35M to
US$70M
 Construction start for 60,000 tpy magnesium plant
 Decision to proceed with greenfield hydro projects
 Decision to proceed with MDF (fiberboard) plant
MAG_AGM08.PPT
23
Management Team & Board of Directors
William B. Burton, Founder, President & CEO, Director MagIndustries. BSc Honours Economic Geology, 30 years
global experience in identifying and developing mineral properties. 12 years with RTZ.
Stéphane A. Rigny, Exec. VP & Director MagIndustries, MBA Finance, family history with ROC, 11 years of project
and finance experience in francophone Africa, with Rand Merchant Bank (e.g.; $400M project finance in the ROC and
the DRC).
Bryan Benitz, Chairman and Director since 1999, England. Private investment advisor specializing in financing junior
resource companies. Independent Director.
Richard Linnell, Director, Johannesburg. Geologist, 35 years African resource industry. Previously Regional Director,
African Exploration and Development for Billiton; Director of BHP Billiton (SA) Ltd. Independent Director.
Gerard Munera, Director since 2003, United States. Long history in the mining and metals industry as Senior
Executive Officer, notably with Union Miniere, Pechiney, RTZ, and Minorco. Independent Director.
Mustapha Niasse, Director, Former PM of Senegal, Key negotiator in Sun City Peace Accord which resulted in the
power sharing Government for the DRC. Close friend of President Kabila. Independent Director.
Gary E German, Director since 2003, Canada. Engineer, extensive experience with Noranda and others developing
mining assets globally. Independent Director.
Victor Wells, Director, Chairman of the Audit Committee. 30 years financial management with resource companies.
Independent Director.
Willy Verbrugghe, CEO MagMinerals. 35 years experience with major project development and management.
Mike Edwards, VP Projects. 35 years experience planning and building major resource projects in Africa.
Achim Strauss, VP Engineering & Development. Mechanical engineer, 6 years with Salzgitter Anlagenbau GmbH
principally evaluating magnesium projects. Over 11 years of experience in business and project development.
Georges Kyriakos, VP Development MagEnergy Inc., Johannesburg, SA. Engineer, Extensive business operating
experience in Africa especially in the DRC. Widespread network of political contacts in Central Africa.
Dan Orlando, VP MagForestry. Pointe Noire. 25 years experience in management and operations in the
Canadian Forestry Industry.
MAG_AGM08.PPT
24